REG - Churchill China PLC - Interim Results
13/09/2022 07:00
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RNS Number : 1733Z Churchill China PLC 13 September 2022
For immediate release 13 September 2022
CHURCHILL CHINA plc
("Churchill" or the "Company" or the "Group")
INTERIM RESULTS
For the six months ended 30 June 2022
Substantial revenue gains and profit progress
Churchill China plc (AIM: CHH), the manufacturer of innovative performance
ceramic products serving hospitality markets worldwide, is pleased to announce
its Interim Results for the six months ended 30 June 2022.
Key Highlights:
Financial
· Operating profit before exceptional items £3.5m (2021 H1: £1.1m,
FY2021: £6.1m)
· Profit before exceptional items and tax £3.4m (2021 H1: £0.9m,
FY2021: £6.0m)
· Reported profit after exceptional items before tax £3.9m (2021 H1:
£1.0m, FY2021: £6.0m)
· Adjusted* earnings per share 24.7p (2021 H1: 4.5p, FY2021: 37.8p)
· Basic earnings per share 28.9p (2021 H1: 4.5p, FY2021: 37.8p)
· Interim dividend of 10.5p per share (2021 H1: 6.7p)
· Net cash and deposits of £15.7m (2021 H1: £13.4m, FY2021: £19.0m)
· Cash generated from operations £2.0m (2021 H1: £0.9m, FY2021:
£10.6m)
Business
· Total revenues £41.4m up 73% (2021 H1: £23.9m, FY2021: £60.8m)
· Strong revenue performance
o Hospitality H1: +87% on 2021, +32% on 2019
· Successful execution of strategy with further market share gains
across key markets
· Strong demand from customers and end users with record order books
· Sales price rises implemented in November 21 and May 22 to address
inflationary pressures
· Percentage margins affected by lower labour efficiency, absolute
margins remain on target
· UK manufacturing investment targeting process automation and energy
efficiency
Alan McWalter, Chairman of Churchill China, commented:
"We are pleased to report a sound revenue and profit performance in the first
half of the year and that we are well positioned to continue to grow in line
with our established strategy."
An online meeting for analysts will be held at 9.00am today 13 September 2022.
Analysts who require further details should contact Buchanan
at ChurchillChina@buchanan.uk.com (mailto:ChurchillChina@buchanan.uk.com)
or telephone 020 7466 5000.
For further information, please contact:
Churchill China plc Tel: 01782 577566
David O'Connor / David Taylor / James Roper
Buchanan Tel: 020 7466 5000
Mark Court / Abigail Gilchrist
ChurchillChina@buchanan.uk.com
Investec Tel: 020 7597 (Tel:020%207597) 5970
David Flin / Alex Wright / William Brinkley
*Adjusted earnings per share is calculated after adjusting for the post tax
effect of exceptional items.
CHAIRMAN'S STATEMENT
Introduction
We are pleased to report a sound revenue and profit performance in the first
half of the year. Sales revenues increased by 76% overall, with an 87%
increase in our target Hospitality market. We believe we have continued to
build long term market share, principally in our core markets of Europe and
the UK, but we have also made progress in other markets worldwide. In common
with many other manufacturers our margins have been affected by labour,
material and energy cost growth, but our strong position in what remains an
attractive market in the long term has allowed us to raise prices to offset
some of these increases.
Increased production costs have constrained the benefit we would normally
expect to gain from the substantial increase in revenue achieved. Whilst our
percentage margins have reduced as a result of the cost pressures outlined
above, our absolute margin generation is in line with our plans. We have
initiated several projects designed to recover previous efficiency levels in
the medium and long term. We are also investing to secure additional capacity
for the longer term.
We continue to benefit from high levels of demand. Our order book is the
strongest we have experienced and reflects Churchill's reputation for
providing an innovative, technically advanced product alongside market leading
service levels. We expect revenue to grow for the foreseeable future despite
increasing economic headwinds in the wider economy. The ability to deliver a
good performance in a difficult trading environment confirms the strength of
Churchill's market position, strategy and operations and emphasises the
benefit of our long term approach to business.
Financial Review
Total revenues rose by 73% to £41.4m (2021 H1: £23.9m, FY2021: £60.8m).
Revenues increased both as a result of market share gain and in comparison to
a year where the first quarter was affected by COVID restrictions. Average
selling prices also increased to help offset additional material and energy
costs, although the increase implemented on 1 May 2022 will not materially
benefit our pricing until the second half of the year.
Revenue (£m) 2022 H1 2021 H1 Change 2021 FY
Ceramics 37.7 21.5 76% 55.6
Materials 3.7 2.4 48% 5.2
Total 41.4 23.9 73% 60.8
UK 16.0 8.9 81% 24.4
Export 25.4 15.0 68% 36.4
Total 41.4 23.9 73% 60.8
Overall gross margins were lower than in previous periods. As experienced in
H2 2021 factory output and efficiency levels were affected by labour
availability and lower than normal levels of experience within our workforce.
Input prices for materials and energy also rose. We expect to make progress in
the resolution of these issues over the medium term. The effect on our margins
has been mitigated in part by the successful implementation of two price rises
and we retain the ability to adjust our pricing to reflect further changes in
our operating environment.
Operating profit before exceptional items rose by £2.4m to £3.5m (2021 H1:
£1.1m, FY2021: £6.1m). Overhead cost levels continued to be carefully
managed, supporting business development and maintaining our forward
capability. Operating profit margins before exceptional items were 8.5% (2021
H1: 4.4%, FY2021: 10.1%).
Profit before exceptional items and income tax was £3.4m (2021 H1: £1.0m,
FY2021: £6.0m) with the increase entirely reflecting improved operating
profit.
Exceptional income: During the first half year we received £0.5m as an on
account payment in relation to the disposal of assets of an industry trade
body of which we were a member. We do not currently expect any further
receipts or costs in relation to this disposal. This has been treated as
exceptional given its size and nature.
Adjusted earnings per share before exceptional income was 24.7p (2021 H1:
4.5p, FY2021: 37.8p).
Reported profit after exceptional items but before income tax was £3.9m (2021
H1: £1.0m, FY2021: £6.0m).
Basic earnings per share, after exceptional income, was 28.9p (2021 H1: 4.5p,
FY2021: 37.8p)
We have continued to generate cash at a satisfactory level with operating cash
generation of £2.0m (2021 H1: £0.9m, FY2021: £10.6m). As expected there was
a substantial working capital requirement associated with the strong growth in
revenue experienced in the first six months of the year, although this was
partially offset by a smaller than expected increase in inventory. Capital
expenditure increased to £2.7m (2021 H1: £1.3m, FY2021: £3.7m) further
details of which are set out below. After a dividend payment of £1.9m, cash
and deposits at 30 June 2022 were £15.7m (June 2021: £13.4m, December 2021:
£19.0m).
Our record of cash generation and level of reserves allow us to accelerate
investment where it is needed to address changes in our operations and to
support the long term development of the business. We continue to enjoy a
strong, ungeared, balance sheet with net assets of £43.6m.
Dividend
We are pleased to announce an interim dividend of 10.5p per share, a 57%
increase on the 6.7p paid at this stage in 2021. This dividend will be payable
on 30 September 2022 to shareholders on the register on 23 September 2022. The
dividend is in line with our policy of growing returns to shareholders and
reflects our confidence in the progress of the business.
Business
We are pleased to have delivered well against our performance objectives in
the first half of the year. Once more this has been achieved as a result of
our focus on providing both a high quality product and a market leading
service at an appropriate value to our customers. We have grown our revenue
against a backdrop of uncertain economic conditions, cost inflation and supply
chain difficulties. The increase in revenue will generate further returns in
the longer term given the replacement nature of our markets. We have also been
able to prosper because we serve a multiplicity of markets worldwide and,
again in line with our strategic objectives, we have extended the reach of our
export sales during the first half year.
Ceramics
Overall Hospitality sales in the six months to 30 June 2022 increased by 87%
against the comparable period in 2021 and were 32% ahead of the last
meaningful comparison in 2019, being before the onset of COVID. In volume
terms sales were 77% ahead of last year and 5% ahead of 2019.
Export revenues continue to be our main focus for growth and we have made
progress in all of our overseas regions. The best performance was again from
Europe, where revenues rose by £7.7m, over 80%, to £17.2m and were 36% ahead
of 2019 levels. Good progress continued to be made in the USA (+69%) and Rest
of the World (+84%) markets.
UK sales, where the post COVID recovery had been slowest, also grew strongly
as larger customers increased their investment. Sales were more than double
the level achieved in 2021 and were significantly ahead of 2019's comparative.
Continued increases in our materials and energy input costs required us to
increase prices by more than normal levels, firstly in November 2021 and again
in May 2022. Given the extended nature of our order book, the effect of the
May 2022 price rise will not affect reported performance until the second half
of this year. The market has accepted these rises and they are similar to
those introduced by our competitors. Order levels remain well ahead of
comparable levels last year.
The proportion of added value products within our sales remained in line with
2021, although this represented a substantial increase in absolute terms. We
continue to develop and launch new products.
Retail revenues reduced during the first half year as we prioritised the
manufacture of product for Hospitality where there is a higher level of repeat
business. Retail remains a market that we can serve effectively on a tactical
basis.
Materials
Furlong Mills has performed well during the first half of the year despite a
number of notable cost rises. Supply has been maintained to our customers and
external sales were 48% ahead of H1 2021. Inter-segment sales to Churchill
were also well ahead of last year reflecting higher manufacturing output. We
have taken the decision to substantially increase holdings of raw materials to
improve supply chain security to both Churchill and our external customer base
and inventory levels are £1.6m higher than the end of 2021.
Operations
The success apparent in our revenue growth has generated a substantial
challenge for our fulfilment staff. When sales volumes rise quickly we have to
respond within our manufacturing operations to satisfy this demand. Output
levels increased by over 70% in the first six months of the year against prior
year comparatives, but further improvement continues to be constrained by
labour availability and lower average levels of experience within our
workforce.
We have undertaken a significant amount of work to address the issues raised
by lower labour availability and a less experienced workforce. We continue to
increase our training effort and are pleased with the progress made through
this process alongside our Continuous Improvement programme. Further
investment has been made in the automated pressure cast process for the
manufacture of differentiated product and we have commenced several automation
projects that target improved labour efficiency and the release of staff to
fulfil roles that generate additional value to the business. Alongside this we
have made substantial progress in the installation of solar panels across our
main Stoke on Trent factory. When this project is completed later this year we
expect to generate up to 20% of the site's electricity requirement from this
sustainable source.
We are also developing additional sources of product from third party
manufacture and we expect to increase our effective capacity once this is
secured.
Our energy hedging position is relatively robust. We largely secured our
volumes and pricing earlier in the year for a substantial proportion of our
anticipated usage for the remainder of 2022 and the first nine months of 2023.
We are mindful of the extended impact of volatile energy pricing and will
continue to monitor market movements carefully.
Environmental, Social and Governance ('ESG')
We continue to develop our ESG processes and procedures. The work we carried
out at a strategic level last year identified a number of areas where we could
both improve the sustainability of our business and to add value to our
operations.
The most tangible current outfall of this work is in relation to the reduction
of our energy footprint, where we have invested heavily. The research and
development work underway to reduce energy consumption within our materials
and manufacturing processes continues to offer the highest potential long term
reward. Our investment in the technological base of Furlong Mills and
contribution to industry initiatives remain central to this development
process.
One of the key themes identified during our strategic review was, as a larger
employer, the need to improve engagement, working experience and development
opportunities for all our staff. We are making progress in defining how we
achieve and demonstrate performance in this area.
We believe that our Governance procedures remain appropriate for a business of
our scale and structure but, in common with other areas of our business, they
must follow a process of continuous improvement. A substantial amount of work
has been carried out in relation to the development and implementation of a
succession plan for the Board and senior management.
People
The commitment that our workforce, at aIl levels, shows to their colleagues
and to Churchill is rarely in doubt and we regularly remind ourselves of how
fortunate we are to enjoy this loyalty. We are acutely aware of the challenges
that our employees face both at work and within their daily lives and as ever
we would like to thank them for their valued contribution. We were pleased to
accelerate our 2022 pay rise from August to April to support our employees at
a time when their costs were increasing quickly.
Outlook
We believe that we have delivered a sound overall performance in the first
half of 2022 in the face of a number of substantial macroeconomic challenges.
This performance reflects firstly our decision to focus for the long term on
markets that benefit from a number of positive characteristics and secondly
our commitment to provide outstanding products and service levels to our
customers. We have a leading competitive position in what remains a good
market place and we benefit from strong operational and financial standing.
We are aware of increasing levels of uncertainty in the general business and
economic landscape and the possible effect of this on demand for our products,
although we continue to benefit from good order levels after the period end.
We are, however, mindful of the potential effects of an economic slowdown on
our revenue and will manage our business accordingly. Input costs, in
particular energy, remain volatile. Our energy costs are largely hedged well
into 2023 and we will continue to monitor our exposure in this area. The
business' principal focus over the next few months will be to develop our
manufacturing operations to support increased output and efficiency levels
both in the short and longer term. We will continue to invest in our people
and our productive capacity.
We remain confident that Churchill is a resilient company and is well
positioned to continue to grow in line with our established strategy over both
the short and long term. We look forward to delivering an improved year on
year performance in 2022.
Alan McWalter
Chairman
13 September 2022
Churchill China plc
Consolidated Income Statement
for the six months ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Note
Revenue 1 41,375 23,922 60,839
=========== =========== ===========
Operating profit before exceptional item 1 3,508 1,055 6,122
Exceptional items 2 471 - -
Operating Profit 1 3,979 1,055 6,122
Finance income 3 15 2 5
Finance costs 3 (93) (80) (164)
------------------ ------------------ ------------------
Profit before exceptional item and income tax 1 3,430 977 5,963
Exceptional items 2 471 - -
Profit before income tax 3,901 977 5,963
Income tax expense 4 (713) (480) (1,797)
------------------ ------------------ ------------------
Profit for the period 3,188 497 4,166
=========== =========== ===========
Pence per Pence per Pence per
Share Share Share
Adjusted earnings per ordinary share 5 24.7 4.5 37.8
Basic earnings per ordinary share 5 28.9 4.5 37.8
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Other comprehensive income
Items that will not be reclassified to profit and loss:
Actuarial gain on retirement benefit obligations (net) - - 1,499
Items that may be reclassified subsequently to profit
and loss
Impact of change in UK tax rate on deferred tax - 558 557
Exchange differences - 2 10
--------------- -------------- ---------------
Other comprehensive income - 560 2,066
Profit for the period 3,188 497 4,166
--------------- --------------- ----------------
Total comprehensive income for the period 3,188 1,057 6,232
========== ========== ==========
Attributable to:
Owners of the Company 3,188 1,057 6,232
========== ========== ==========
All above figures relate to continuing operations
Churchill China plc
Consolidated Balance Sheet
as at 30 June 2022
Unaudited Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 22,318 20,074 21,021
Intangible assets 908 1,152 1,022
Deferred income tax assets 1,591 2,539 1,842
24,817 23,765 23,885
Current assets
Inventories 11,097 11,600 10,486
Trade and other receivables 14,651 10,908 10,877
Other financial assets 5,016 1,000 4,005
Cash and cash equivalents 10,650 12,437 15,046
41,414 35,945 40,414
Total assets 66,231 59,710 64,299
========== ========== =============
Liabilities
Current liabilities
Trade and other payables (13,666) (10,037) (12,268)
Current income tax liabilities - (41) -
----------------- ---------------- ---------------------
Total current liabilities (13,666) (10,078) (12,268)
----------------- ---------------- ---------------------
Non-current liabilities
Lease liabilities payables (515) (164) (217)
Deferred income tax liabilities (2,048) (1,449) (1,975)
Retirement benefit obligations (6,353) (9,812) (7,156)
----------------- ---------------- ---------------------
Total non-current liabilities (11,425) (9,348)
(8,916)
----------------- ---------------- ---------------------
Total liabilities (22,582) (21,503) (21,616)
========== ========== =============
Net assets 43,649 38,207 42,683
========== ========== =============
Equity
Issued share capital 1,103 1,103 1,103
Share premium account 2,348 2,348 2,348
Treasury shares (431) (80) (80)
Other reserves 1,230 1,154 1,195
Retained earnings 39,399 33,682 38,117
----------------- ---------------- ---------------------
Total equity 43,649 38,207 42,683
=========== ========== =============
Churchill China plc
Consolidated Statement of Changes in Equity
as at 30 June 2022 Issued
Retained share Share Treasury Other Total
earnings capital premium shares reserves Equity
£000 £000 £000 £000 £000 £000
Balance at 1 January 2021 32,555 1,103 2,348 (80) 1,215 37,141
Comprehensive income
Profit for the period 497 - - - - 497
Other comprehensive income
Depreciation transfer - gross 6 - - - (6) -
Depreciation transfer - tax (2) - - - 2 -
Deferred tax - change in rate 623 - - - (65) 558
Currency translation - - - - 2 2
Total comprehensive income 1,124 - - - (67) 1,057
Transactions with owners
Share based payment - - - - 6 6
Deferred tax - share based payment 3 - - - - 3
Total transactions with owners 3 - - - 6 9
Balance at 30 June 2021 33,682 1,103 2,348 (80) 1,154 38,207
Comprehensive income
Profit for the period 3,669 - - - - 3,669
Other comprehensive income
Depreciation transfer - gross 6 - - - (6) -
Depreciation transfer - tax (1) - - - 1 -
Re-measurement of retirement 1,499 - - - - 1,499
benefit obligations - net of tax
Currency translation - - - - 7 8
Total comprehensive income 5,173 - - - 2 5,175
Transactions with owners
Dividends relating to 2021 (739) - - - - (739)
Share based payment - - - - 39 39
Deferred tax - share based payment 1 - - - - 1
Total transactions with owners (738) - - - 39 (699)
Balance at 31 December 2021 38,117 1,103 2,348 (80) 1,195 42,683
Churchill China plc
Consolidated Statement of Changes in Equity
as at 30 June 2022 Issued
Retained share Share Treasury Other Total
earnings capital premium shares reserves Equity
£000 £000 £000 £000 £000 £000
Balance at 31 December 2021 38,117 1,103 2,348 (80) 1,195 42,683
Comprehensive income
Profit for the period 3,188 - - - - 3,188
Other comprehensive income:
Depreciation transfer - gross 6 - - - (6) -
Depreciation transfer - tax (2) - - - 2 -
Total comprehensive income 3,192 - - - (4) 3,188
Transactions with owners
Share based payment - - - - 39 39
Dividends (1,907) - - - - (1,907)
Treasury Shares - - - (351) - (351)
Deferred tax - share based payment (3) - - - - (3)
Total transactions with owners (1,910) - - (351) 39 (2,222)
Balance at 30 June 2022 39,399 1,103 2,348 (431) 1,230 43,649
Churchill China plc
Consolidated Cash Flow Statement
for the six months ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Cash flows from operating activities
Cash generated from operations (note 6) 2,008 884 10,627
Interest received 15 2 5
Interest paid (21) (8) (28)
Income tax paid (333) (30) (854)
----------------- ----------------- ------------------
Net cash generated from operating activities 1,669 848 9,750
----------------- ----------------- -----------------
Investing activities
Purchases of property, plant and equipment (2,644) (1,307) (3,740)
Proceeds on disposal of property, plant and equipment 5 31 43
Purchases of intangible assets (25) (13) (12)
----------------- ----------------- -----------------
Net cash used in investing activities (2,664) (1,289) (3,709)
----------------- ----------------- -----------------
Financing activities
Dividends paid (1,907) - (739)
Treasury shares (352) - -
Principal element of finance lease payments (131) (118) (247)
Net (purchase) / sale of other financial assets (1,011) 2,258 (747)
----------------- ----------------- -----------------
Net cash generated by / (used in) financing activities 3,401 2,140 (1,733)
----------------- ----------------- -----------------
Net (decrease) / increase in cash and cash equivalents (4,396) 1,699 4,308
Cash and cash equivalents at the beginning of the period 15,046 10,738 10,738
----------------- ----------------- -----------------
Cash and cash equivalents at the end of the period 10,650 12,437 15,046
----------------- ----------------- -----------------
1. Segmental analysis
for the six months ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Revenue by class of business
Ceramics 37,737 21,461 55,605
Materials 6,408 3,966 8,773
--------------------- --------------------- ------------------------------
44,145 25,427 64,378
Inter segment (2,770) (1,505) (3,539)
-------------------------- ------------------------- -----------------------------------
41,375 23,922 60,839
--------------------------- -------------------------- ------------------------------------
Revenue by destination
United Kingdom 16,040 8,884 24,424
Rest of Europe 17,431 9,833 24,241
USA 3,926 2,651 6,388
Rest of the World 3,978 2,554 5,786
-------------------------- -------------------------- -----------------------------------
41,375 23,922 60,839
--------------------------- -------------------------- ------------------------------------
1. Segmental analysis (continued)
for the six months ended 30 June 2022
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Operating profit before exceptional items
Ceramics 2,985 825 5,628
Materials 523 230 494
--------------------- --------------------- ------------------------------
3,508 1,055 6,122
---------------------- ---------------------- -------------------------------
Exceptional items
Ceramics 471 - -
Materials - - -
-------------------------- --------------------- ------------------------------
- - -
---------------------- ---------------------- -------------------------------
Operating profit after exceptional items
Ceramics 3,456 825 5,628
Materials 523 230 494
-------------------------- ------------------------- -----------------------------------
3,979 1,055 6,122
Unallocated items
Finance income 15 2 5
Finance costs (93) (80) (164)
---------------------- ---------------------- -------------------------------
Profit before income tax 3,901 977 5,963
--------------------------- -------------------------- ------------------------------------
2. Exceptional
items
During the six months to 30 June 2022, the Company received £471,000 as an on
account payment in relation to the voluntary winding up of a ceramic industry
trade body of which we were a member. Due to the size and nature of this
income, the receipt has been treated as exceptional. This on account payment
is subject to finalisation of the liquidation but at this time the Board does
not expect any further significant cash receipt or payment.
3. Finance income and costs
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Finance income
Other interest receivable 15 2 5
Finance income 15 2 5
Finance costs
Interest paid (21) (8) (28)
Interest on pension scheme (72) (72) (136)
Finance costs (93) (80) (164)
The interest cost arising from pension schemes is a non cash item.
4. Income tax expense
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Current taxation 392 75 671
Deferred taxation 321 404 1,126
Income tax expense 713 479 1,797
5. Earnings per ordinary share
Basic earnings per ordinary share is based on the profit after taxation
attributable to owners of the Company of £3,188,000 (June 2021: £497,000;
December 2021: £4,166,000) and on 11,020,612 (June 2021: 11,022,835; December
2021: 11,022,835) ordinary shares, being the weighted average number of
ordinary shares in issue during the period. Adjusted earnings per ordinary
share is calculated after adjusting for the post tax effect of exceptional
items (see note 2).
Unaudited Unaudited Audited
Six months Six months to Twelve months to
to
30 June 2022 30 June 2021 31 December 2021
Pence per share Pence per share Pence per share
Basic earnings per share 28.9 4.5 37.8
Less exceptional items (4.2) - -
Adjusted earnings per share 24.7 4.5 37.8
6. Reconciliation of operating profit to net cash inflow from continuing
activities
Unaudited Unaudited Audited
Six months to Six months to Twelve months to
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Cash flow from operations
Operating profit 3,508 1,055 6,122
Exceptional Income 471
Adjustments for
Depreciation and amortisation 1,481 1,464 2,838
Profit on disposal of property, plant and equipment - (2) (5)
Charge / (credit) for share based payment 39 6 45
Decrease in retirement benefit obligations (875) (642) (1,362)
Pension past service charge - non cash - - -
Changes in working capital
Inventory (611) 1,223 2,337
Trade and other receivables (3,833) (6,597) (6,396)
Trade and other payables 1,828 4,377 7,048
Cash inflow from operations 2,008 884 10,627
7. Basis of preparation and accounting policies
The financial information included in the interim results announcement for the
six months to 30 June 2022 was approved by the Board on 12 September 2022.
The interim financial information for the six months to 30 June 2022 has not
been audited or reviewed and does not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The Company's statutory
accounts for the year ended 31 December 2021, prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006, have been delivered to the Registrar of Companies; the
Report of the Auditors on these accounts was unqualified and did not contain a
statement under Section 498 (2) or (3) of the Companies Act 2006.
The interim financial statements have been prepared under the historical cost
convention as modified by the revaluation of land and buildings and financial
assets and liabilities (including derivative instruments) at fair value
through the profit and loss account. The same accounting policies,
presentation and methods of computation are followed in the interim financial
statements as were applied in the Group's last audited financial statements
for the year ended 31 December 2021.
8. Share buybacks
The Company purchased 25,000 of its own ordinary shares during the first six
months of the year, and may consider making further ad hoc share buybacks
going forward at the discretion of the Board and subject to the shareholder
authorities approved at the 2022 Annual General Meeting.
9. Publication
The interim report and this announcement will be available shortly on the
Company's website www.churchill1795.com
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. END IR FLFSRAEIFLIFRecent news on Churchill China
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