Revenue falls but profits stable at Churchill China
By Josh White
Date: Thursday 05 Sep 2024
(Sharecast News) - Hospitality ceramics manufacturer Churchill China reported a 7.8% decrease in revenue in its interim results on Thursday, totaling £40.6m, compared to £44m in the same period last year.
The AIM-traded firm said despite the decline, it maintained its operating profit at £4.5m, matching the restated figure for the first half of 2023.
Profit after tax increased 3.1% to £3.6m, up from £3.5m a year earlier, while earnings per share rose slightly to 32.8p, from 31.9p.
The company declared an interim dividend of 11.5p per share, a 4.5% increase from the prior year's interim dividend of 11p, reflecting the board's ongoing confidence in the company's performance.
However, net cash and deposits decreased to £7.8m from £9.9 million a year earlier, due to planned increases in finished goods stocks and higher debtors related to seasonal working capital requirements.
Churchill China said its factory performance had shown an improvement, attributed to enhanced staff training and increased automation.
The company reported strong demand within the UK nationals sector, and continued to focus its investment strategy on innovation, automation, and energy efficiency to support long-term, sustainable profit growth.
"Global hospitality markets continued their flat performance from the second half of 2023 and remained subdued for early 2024, however group revenues have been broadly in line with expectations," said chairman Robin Williams.
"A strong operational performance helped maintain operating profit in line with prior year.
"We remain dependent on the stronger demand normally experienced in the final four months to meet our expectations for the year."
At 1353 BST, shares in Churchill China were down 7.5% at 999p.
Reporting by Josh White for Sharecast.com.
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