Churchill China PLC Full Year Trading Update (9076Z)

TIDMCHH

RNS Number : 9076Z

Churchill China PLC

17 January 2024

 
 For immediate release   17 January 2024 
 

CHURCHILL CHINA plc

("Churchill" or the "Company" or the "Group")

Full Year Trading Update

Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products serving hospitality markets worldwide provides an update on trading for the year ended 31 December 2023.

The Company is pleased to announce that margins have continued to improve throughout the year and as a result profitability for the year is expected to be in line with analyst forecasts. This is particularly pleasing given a more challenging sales backdrop in H2 of 2023.

Revenue for the year was GBP82.1m (2022: GBP82.5m), with revenue in the second half of GBP38.1m (H2 2022: GBP41.1m) with export sales remaining strong.

The reduced revenue for the year was offset by improving manufacturing yields as the Company overcame its previously communicated staffing issues. In addition, a further reduction in agency staff in Q4 supported margin improvement.

The macro-economic situation in UK and Europe remains challenging and we expect demand to remain weak for at least the first half of the year. Cost increases, including the national living wage will have an impact on margins in 2024 which will in part be mitigated by further efficiency improvements and increased prices.

Robin Williams, Chairman of Churchill China, commented:

"We are pleased that we have delivered a good result in 2023 and have continued to improve profitability and levels of efficiency despite the difficult trading conditions. Churchill China is a resilient business and whilst the outlook for 2024 remains challenging, we are confident that our long-term strategy positions the Company well to benefit when demand improves."

The Company expects to release its preliminary results for the year ended 31 December 2023 in April.

For further information, please contact:

 
 Churchill China plc                       Tel: [phone] 
 David O'Connor / James Roper / Michael 
  Cunningham 
 
 Buchanan                                 Tel: [phone] 
 Mark Court / Sophie Wills / Abigail 
  Gilchrist 
 [e-mail] 
 
 Investec                                 Tel: [phone] 
 David Flin / Oliver Cardigan / William 
  Brinkley 
 

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January 17, 2024 02:00 ET (07:00 GMT)