We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Churchill China Plc | LSE:CHH | London | Ordinary Share | GB0001961035 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -25.00 | -2.08% | 1,175.00 | 1,150.00 | 1,200.00 | 1,200.00 | 1,175.00 | 1,200.00 | 7,119 | 12:09:45 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Misc Homefurnishings Stores | 83.08M | 7.9M | 0.7179 | 16.37 | 129.22M |
TIDMCHH
RNS Number : 4732I
Churchill China PLC
31 August 2016
For immediate release 31 August 2016
CHURCHILL CHINA plc
("Churchill China" or the "Company" or the "Group")
INTERIM RESULTS
For the six months ended 30 June 2016
Churchill China plc (AIM: CHH), the manufacturer and global distributor of performance ceramic and related products to hospitality and retail markets, is pleased to announce its interim results for the six months ended 30 June 2016.
Key Highlights:
-- Group revenue up 12% to GBP24.0m (2015: GBP21.4m) - Hospitality total revenue growth 15% -- Operating profit up 30% to GBP2.0m (2015: GBP1.6m) -- Profit before tax up 29% to GBP2.0m (2015: GBP1.6m) -- Basic earnings per share up 30% to 14.8p (2015: 11.4p) -- Interim dividend up 12% to 6.3p (2015: 5.6p) -- Capital investment increased to GBP1.6m (2015: GBP0.6m) -- Cash and deposit balances of GBP9.6m (June 2015: GBP8.7m)
Alan McWalter, Chairman of Churchill China, commented:
"Churchill has delivered a strong performance in the first half of the year and the Board remains confident that our strategies remain appropriate for the future progress of the business.
"Our Hospitality business has once more reported record revenues.
"We are confident that we will meet our expectations for the full year."
For further information, please contact:
Churchill China plc Tel: 01782 577566 David O'Connor / David Taylor Buchanan Tel: 020 7466 5000 Mark Court / Sophie Cowles / Jane Glover N+1 Singer Tel: 020 7496 3000 Richard Lindley
Our interim results will be available today on the Company's website: www.churchill1795.com. Copies of the Interim Report will be sent to shareholders in due course.
CHAIRMAN'S STATEMENT
Introduction
I am pleased that we can again report a strong improvement in our performance over the first six months of the year. We have made good progress against our long term targets and have successfully completed a number of projects which we expect to contribute to the further development of the Company. Our Hospitality business has once more reported record revenues. This progress is attributable to the targeted development of export markets and increased sales of added value products. Whilst we anticipate that the economic environment looking forward is likely to be more uncertain, we believe that our business is well positioned to respond positively to changing conditions within our markets.
Financial Review
Total revenues increased by 12% to GBP24.0m (2015: GBP21.4m) or 10% at constant exchange rates with exports increasing by over 30%. Overseas sales now represent over half of our business.
Gross margins improved as a result of increased revenues, an improved mix of products and more favourable exchange rates. The exchange rate benefit to revenue was GBP0.5m in comparison with 2015, principally from a stronger Euro, although the overall effect on operating profit was lower at GBP0.1m as currency hedges were revalued following the fall of Sterling towards the end of the first half year. We have retained our traditional operating efficiency and high standards of service.
Operating profit increased by 30% to GBP2.0m (2015: GBP1.6m). Operating margins improved by 1.2% to 8.4% (2015: 7.2%).
Earnings before interest, tax, depreciation and amortisation increased by 18% to GBP2.8m (2015: GBP2.4m).
Profit before tax rose by 29% to GBP2.0m (2015: GBP1.6m), largely attributable to the improved operating performance.
Earnings per share improved by 30% to 14.8p (2015: 11.4p).
Operating cash generation improved against a low comparative in 2015, largely as a result of lower working capital demands. Operating cash generation was GBP1.6m (2015: GBP0.4m). As normal in the first half year, we rebuilt inventory levels to support our service promise in the seasonally stronger second half year. At the end of the period, net cash and deposit balances were GBP9.6m (June 2015: GBP8.7m).
We have continued to invest in our business to deliver additional capacity for higher value product for our Hospitality business. Capital investment increased to GBP1.6m (2015: GBP0.6m). We have successfully completed a 28,000 square feet extension to our factory and commissioned additional manufacturing capacity. Further investment in the UK is planned over the remainder of 2016 and into 2017, building on the progress we have made to date.
Dividend
We recognise the importance to our shareholders of growing dividends. The Board is declaring a 12.5% increase in the interim dividend to 6.3p per share (2015: 5.6p). This increase reflects our policy of linking dividends growth to increased profitability whilst maintaining appropriate levels of dividend cover. The interim dividend will be paid on 6 October 2016 to shareholders on the register on 9 September 2016.
Markets
Hospitality
Total sales to Hospitality customers increased by GBP2.7m (15%) to GBP20.5m (2015: GBP17.8m). Contribution to Group operating profits rose by 30% to GBP3.7m from GBP2.9m.
We have delivered an exceptional performance in our export markets in first half of the year. Overall export revenue growth was over 30% or GBP2.6m in absolute terms. We made good progress in all our geographic market sectors. Whilst this increase was achieved with support from more favourable exchange rates, the majority of the growth reflects the progressive investment we have made in both market and product development over several years.
Performance in the UK was more restrained as market growth, particularly in larger accounts, moderated. We continue to make progress and remain satisfied with the returns delivered from the market and the leading position we hold.
Much of our success this year can be attributed to a strong programme of new product development. Our Stonecast range has continued to perform well and the initial response to further new introductions in 2016 has been good.
Retail
Although revenues declined, our Retail business has performed well in the first half. In accordance with our strategy, sales of licensed ranges reduced and were largely replaced by sales of UK manufactured Churchill products.
Revenue declined by GBP0.1m to GBP3.5m. The effect on profitability of this reduction was offset by an improvement in margins and control of overheads. As a consequence, contribution to Group profit rose slightly to GBP0.3m (2015: GBP0.2m).
Operations
Manufacturing and logistics operations have continued to deliver well against high expectations. We have made further investments in both people and productive capacity. Our strategy places heavy demands on our operations to deliver new products, to meet high service requirements and maintain operational efficiency. Our products meet the highest standards for performance and design.
Capital expenditure increased during the first half year, with much of the investment associated with the construction of new buildings. We expect that capital expenditure on machinery will continue over the next 18 months. We have reached the half year well positioned to meet the expected seasonal increase in demand in the second half year.
People
Our market expansion and the increased flexibility and capacity in our operations is being underpinned by increased focus on the development of our workforce at all levels. The skills and capabilities of our staff are the cornerstone of our current and future success.
We have a programme of continuous improvement and have supplemented the training and development of existing employees with targeted recruitment to acquire specific skills and experience.
At Board level we are pleased to welcome Angela Bromfield as a non executive Director and we believe that she will provide additional support and guidance to the long term growth of the Company.
Prospects
Churchill has delivered a strong performance in the first half of the year and the Board remains confident that our strategies remain appropriate for the future progress of the business.
We believe that the increased scale of our Export business and our record of successful market and product development will provide further growth opportunities in line with our established strategy. We anticipate that the UK may continue to be affected by increased levels of uncertainty following the result of the EU referendum, but believe we hold a strong position in an attractive market.
Our central aim is to develop our business steadily for the long term, meeting customer requirements across diverse markets and maintaining a robust financial position to allow progressive investment across business cycles.
We are confident that we will meet our expectations for the full year.
Alan McWalter
Chairman
30 August 2016
Hot Features
Premium
Churchill China
plc
Consolidated Income
Statement
for the six months
ended 30 June 2016
Unaudited Unaudited Audited
Six Six Twelve
months months months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Note
Revenue 23,980 21,449 46,829
---------- ---------- ------------
Operating
profit 1 2,011 1,549 4,959
Share of results
of associate company 62 75 135
Finance income 2 46 41 82
Finance costs 2 (75) (84) (162)
Profit before
income tax 2,044 1,581 5,014
Income tax
expense 3 (417) (341) (928)
Profit for
the period 1,627 1,240 4,086
---------- ---------- ------------
Pence Pence
per Pence per per
share share share
Basic earnings
per ordinary share 4 14.8 11.4 37.3
Diluted basic earnings
per ordinary share 4 14.7 11.2 36.9
All the above figures
relate to continuing
operations
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2016
Unaudited Unaudited Audited
Six Six Twelve
months months months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Other comprehensive
income/(expense)
Items that will not be reclassified
to profit and loss:
Actuarial gain on
retirement benefit
obligations - - 104
Items that may be reclassified
subsequently to profit
and loss
Impact of change in UK tax
rate on deferred tax on - - 24
revaluation
reserve
Exchange differences 35 (3) 16
Other comprehensive
income/(expense) 35 (3) 144
Profit for the
period 1,627 1,240 4,086
Total comprehensive
income for the period 1,662 1,237 4,230
---------- ------------
Attributable
to:
Equity holders
of the Company 1,662 1,237 4,230
---------- ---------- ------------
Churchill China
plc
Consolidated Balance
Sheets
as at 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Assets
Non Current assets
Property, plant
and equipment 15,106 14,026 14,046
Intangible
assets 57 53 59
Investment in associates 1,293 1,171 1,231
Deferred income
tax assets 791 1,002 848
17,247 16,252 16,184
Current assets
Inventories 8,980 8,942 8,360
Trade and other
receivables 8,466 8,457 8,648
Other financial
assets 3,000 2,250 2,500
Cash and cash equivalents 6,631 6,421 9,307
---------- ---------- ------------
27,077 26,070 28,815
---------- ---------- ------------
Total assets 44,324 42,322 44,999
---------- ---------- ------------
Liabilities
Current liabilities
Trade and other
payables (8,170) (7,516) (8,721)
Current income tax
liabilities (578) (490) (580)
Total current liabilities (8,748) (8,006) (9,301)
---------- ---------- ------------
Non current liabilities
Retirement benefit
obligations (3,912) (4,715) (3,837)
Deferred income
tax liabilities (948) (1,070) (936)
Total non current
liabilities (4,860) (5,785) (4,773)
---------- ---------- ------------
Total liabilities (13,608) (13,791) (14,074)
---------- ---------- ------------
Net assets 30,716 28,531 30,925
---------- ---------- ------------
Shareholders' equity
Issued share capital 1,103 1,101 1,101
Share premium account 2,348 2,348 2,348
Treasury shares (575) (10) (144)
Retained earnings 26,409 23,740 26,181
Other reserves 1,431 1,352 1,439
30,716 28,531 30,925
---------- ---------- ------------
Churchill China
plc
Consolidated Statement
of Changes in Equity
as at 30 June 2016
Retained Share Share Treasury Other
earnings capital premium shares reserves Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January
2015 23,654 1,096 2,348 (224) 1,532 28,406
Comprehensive income
Profit for
the period 1,240 - - - - 1,240
Other comprehensive
income
Depreciation transfer
- gross 6 - - - (6) -
Depreciation transfer
- tax (1) - - - 1 -
Currency translation - - - - (3) (3)
Total comprehensive
income 1,245 - - - (8) 1,237
---------- -------- ---------- --------- ------------ --------
Transactions with
owners
Dividends (1,200) - - - - (1,200)
Proceeds of share
issue - 5 - - - 5
Share based payment 250 - - - (172) 78
Treasury
shares (209) - - 214 - 5
---------- -------- ---------- --------- ------------ --------
Total transactions
with owners (1,159) 5 - 214 (172) (1,112)
---------- -------- ---------- --------- ------------ --------
Balance at 30 June
2015 23,740 1,101 2,348 (10) 1,352 28,531
Comprehensive income
Profit for
the period 2,846 - - - - 2,846
Other comprehensive
income
Depreciation transfer
- gross 6 - - - (6) -
Depreciation transfer
- tax (1) - - - 1 -
Deferred tax -
change in rate - - - - 24 24
Remeasurements of
post employment
benefit obligation
- net 104 - - - - 104
Currency translation - - - - 19 19
Total comprehensive
income 2,955 - - - 38 2,993
---------- -------- ---------- --------- ------------ --------
Transactions with
owners
Dividends (616) - - - - (616)
Proceeds of share
issue - - - 5 - 5
Share based payment - - - - 49 49
Deferred tax - Share
based payment 102 - - - - 102
Treasury shares - - - (139) - (139)
Total transactions
with owners (514) - - (134) 49 (599)
---------- -------- ---------- --------- ------------ --------
Balance at 31 December
2015 26,181 1,101 2,348 (144) 1,439 30,925
Comprehensive income
Profit for
the period 1,627 - - - - 1,627
Other comprehensive
income
Depreciation transfer
- gross 6 - - - (6) -
Depreciation transfer
- tax (1) - - - 1 -
Currency translation - - - - 35 35
Total comprehensive
income 1,632 - - - 30 1,662
---------- -------- ---------- --------- ------------ --------
Transactions with
owners
Dividends (1,395) - - - - (1,395)
Proceeds of share
issue - 2 2 4
Share based payment 117 - - - (38) 79
Deferred tax - Share
based payment 16 - - - - 16
Treasury shares (142) - - (433) - (575)
Total transactions
with owners (1,404) 2 - (431) (38) (1,871)
---------- -------- ---------- --------- ------------ --------
Balance at 30 June
2016 26,409 1,103 2,348 (575) 1,431 30,716
---------- -------- ---------- --------- ------------ --------
Churchill China
plc
Consolidated Cash Flow
Statement
for the six months
ended 30 June 2016
Unaudited Unaudited Audited
Six Six Twelve
months months months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Cash flow from operating
activities
Cash generated from
operations (note
5) 1,634 355 5,319
Interest received 46 41 82
Interest paid - - (1)
Income tax
paid (332) (434) (922)
Net cash generated from
/ (used by) operating
activities 1,348 (38) 4,478
---------- ---------- ------------
Investing activities
Purchases of property,
plant and equipment (1,541) (584) (1,214)
Proceeds on disposal
of property, plant and
equipment 33 28 49
Purchases of intangible
assets (51) (5) (27)
Net cash used in
investing activities (1,559) (561) (1,192)
---------- ---------- ------------
Financing activities
Issue of ordinary
shares 4 10 10
Purchase of treasury
shares (575) - (134)
Dividends
paid (1,395) (1,200) (1,816)
Sale of other financial
assets 2,000 1,500 1,500
Purchase of other
financial assets (2,500) (2,250) (2,500)
Net cash used in
financing activities (2,466) (1,940) (2,940)
---------- ---------- ------------
Net (decrease) /
increase in cash
and cash equivalents (2,677) (2,539) 346
Cash and cash equivalents
at the beginning of the
year 9,307 8,961 8,961
Exchange losses on cash
and cash equivalents 1 (1) -
Cash and cash equivalents
at the end of the year 6,631 6,421 9,307
---------- ---------- ------------
1. Segmental analysis
for the six months ended 30 June 2016
Hospitality Retail Unallocated Group
GBP000 GBP000 GBP000 GBP000
Six months to
30 June 2016
Revenue 20,527 3,453 - 23,980
------------ ------- ------------ --------
Contribution to group overheads
excluding depreciation 4,267 341 (1,842) 2,766
Depreciation (592) (47) (116) (755)
Operating
profit 3,675 294 (1,958) 2,011
Share of results of associate
company 62
Finance
income 46
Finance
costs (75)
Profit before
income tax 2,044
Income tax expense (417)
Profit for the
period 1,627
--------
Six months to
30 June 2015
Revenue 17,849 3,600 - 21,449
------------ ------- ------------ --------
Contribution to group overheads
excluding depreciation 3,383 325 (1,360) 2,348
Depreciation (563) (116) (120) (799)
Operating
profit 2,820 209 (1,480) 1,549
Share of results of associate
company 75
Finance
income 41
Finance
costs (84)
Profit before
income tax 1,581
Income tax expense (341)
Profit for the
period 1,240
--------
Twelve months to 31 December
2015
Revenue 38,859 7,970 - 46,829
Contribution to group overheads
excluding depreciation 8,182 1,121 (2,849) 6,454
Depreciation (1,033) (225) (237) (1,495)
Operating
profit 7,149 896 (3,086) 4,959
Share of results of associate
company 135
Finance
income 82
Finance
costs (162)
Profit before
income tax 5,014
Income tax expense (928)
Profit for the
period 4,086
--------
2. Finance income and costs
Unaudited Unaudited Audited
Six Twelve
Six months months months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Finance income
Other interest
receivable 46 41 82
Finance income 46 41 82
----------- ---------- ------------
Finance cost
Interest on pension
scheme (75) (84) (161)
Other interest - - (1)
Finance costs (75) (84) (162)
----------- ---------- ------------
The interest cost arising from pension schemes is a non cash item.
3. Income tax expense
Unaudited Unaudited Audited
Six months Six months Twelve months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Current taxation 332 226 803
Deferred
taxation 85 115 125
Income tax
expense 417 341 928
----------- ----------- --------------
4. Earnings per ordinary share
Basic earnings per ordinary share is based on the profit after taxation of GBP1,627,000 (June 2015: GBP1,240,000, December 2015: GBP4,086,000) and on 10,982,793 (June 2015: 10,914,230, December 2015: 10,956,828) ordinary shares, being the weighted average number of ordinary shares in issue during the period.
Diluted basic earnings per ordinary share is based on the profit after taxation of GBP1,627,000 (June 2015: GBP1,240,000, December 2015: GBP4,086,000) and on 11,077,581 (June 2015: 11,021,343, December 2015: 11,064,046) ordinary shares, being the weighted average number of ordinary shares in issue during the year of 10,982,793 (June 2015: 10,914,230, December 2015: 10,956,828) increased by 94,788 (June 2015: 107,113, December 2015: 107,218) shares, being the weighted average number of ordinary shares which would have been issued if the outstanding options to acquire shares in the Group had been exercised at the average price during the period.
Adjusted earnings per ordinary share is based on the profit on ordinary activities after taxation and adjusted to take into account the exceptional profit on disposal of fixed assets.
5. Reconciliation of operating profit to net cash inflow from continuing activities
Unaudited Unaudited Audited
Six Six Twelve
months months months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Cash flow from operating
activities
Operating
profit 2,011 1,549 4,959
Adjustments
for
Depreciation 755 799 1,495
Loss on disposal of property,
plant and equipment 3 5 4
Charge for share
based payment 79 78 128
Decrease in retirement
benefit obligations - (43) (758)
Changes in working
capital
Inventory (620) (669) (86)
Trade and other
receivables 228 (205) (371)
Trade and other
payables (822) (1,159) (52)
Cash inflow from
operations 1,634 355 5,319
---------- ---------- ------------
6. Basis of preparation and accounting policies
The interim financial information for the period to 30 June 2016 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The Company's statutory accounts for the year ended 31 December 2015, prepared in accordance with accounting standards adopted for use in the European Union (International Financial Reporting Standards - IFRS), 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 in accordance with IFRS as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS, under the historical cost convention as modified by the revaluation of land and buildings, available for sale financial assets, 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.
The figures included in the statements in respect of Retirement Benefit Obligations are those calculated under IAS 19 (Revised) as at 31 December 2015 as adjusted for notional interest charges derived at that date and cash payments in the period to 30 June 2016. Asset and liability figures have not been recalculated to reflect changes in market conditions since 31 December 2015. The next full IAS 19 Revised calculation will be undertaken at 31 December 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSRTAIIVIR
(END) Dow Jones Newswires
August 31, 2016 02:00 ET (06:00 GMT)
1 Year Churchill China Chart |
1 Month Churchill China Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
