LONDON (ShareCast) - (Sharecast News) - Shares in Churchill China tumbled on Wednesday as it warned that 2024 profit would be "materially below" market expectations and the outlook for 2025 will also be affected, as global hospitality markets remained "subdued".
The AIM-listed company, which makes ceramics for the hospitality markets, said revenue in the year to September has been below expectations, although profitability has not been affected as significantly "due to a strong operational performance".

Churchill said that in the final quarter to date, it has not seen the normal seasonal uplift in order intake, in particular from the independent sector.

"As a result, the company now anticipates a reduction in its forecast for the final quarter of 2024 and the profitability for the year is consequently expected to be materially below market expectations," it said.

Churchill said it expects softness in its key hospitality markets to continue into next year, driven by the effects of the UK budget and political uncertainty in some key European markets.

In addition, it said implications of the recent Budget will "materially" impact the cost base, which can only partially be offset by price increases.

"Accordingly, actions on costs are being taken to mitigate these cost increases. As a result, the company believes that the outlook for next year will also be impacted, and the expected profit in the year will be reduced from current market expectations."

Chairman Robin Williams said: "The current macro-economic uncertainty combined with significant increases in our cost base creates near term challenges. We are, however, confident that our core strategy will continue to deliver growth as markets improve."

At 1020 GMT, the shares were down 15% at 698p.

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