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| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10.00 | 0.83% | 1,210.00 | 1,170.00 | 1,250.00 | 1,210.00 | 1,200.00 | 1,200.00 | 6,101 | 09:10:59 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Misc Homefurnishings Stores | 83.08M | 7.9M | 0.7179 | 16.85 | 133.07M |
From Apr 2022 to Apr 2024
TIDMCHH
RNS Number : 8189I
Churchill China PLC
21 April 2022
For immediate release 21 April 2022
CHURCHILL CHINA plc
("Churchill" or the "Company" or the "Group")
PRELIMINARY RESULTS
For the year ended 31 December 2021
Strong demand delivers sustainable market share growth
Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, is pleased to announce its Preliminary Results for the year ended 31 December 2021.
Key Highlights:
Financial
-- Operating profit before exceptional items GBP6.1m (2020: GBP0.9m) -- Profit before exceptional items and tax GBP6.0m (2020: GBP0.8m) -- Reported profit before tax after exceptional items GBP6.0m (2020: GBP0.1m) -- Adjusted* basic earnings per share 37.8p (2020: 6.5p) -- Basic earnings per share 37.8p (2020: 1.0p) -- Re-instated final dividend of 17.3p per share (2020: nil) -- Total dividend for the year 24.0p (2020: nil) -- Net cash and deposits of GBP19.0m (2020: GBP14.0m) -- Cash generated from operations GBP10.6m (2020: GBP1.8m)
o Working capital controlled as revenues grow
Business
-- Total revenues GBP60.8m (2020: GBP36.4m) -- Strong performance following lifting of COVID restrictions
o Group H2: +111% on 2020, +4% on 2019
o Hospitality H2: +132% on 2020, +7% on 2019
-- Continued market share gains across key markets -- Strong demand from customers and end users -- Input cost rises offset by sustainable sales price increases -- Further investment in UK manufacturing -- Continued progress on implementation of strategic plans
Alan McWalter, Chairman of Churchill China, commented:
"The second half of 2021 saw a strong recovery in our sales to the Hospitality market such that the full year results are ahead of our expectations. We continue to benefit from record levels of demand and, while we are mindful of the potential impact of external factors on our markets and manufacturing operations, we remain confident in our ability to deliver an improved performance in 2022."
An online meeting for analysts will be held at 10.00am today 21 April 2022. Analysts who require further details should contact Buchanan at 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 / Sophie Wills Investec Tel: 020 7597 5970 David Flin / Alex Wright / Ben Farrow
*Adjusted basic earnings per share is calculated after the adjusting for the post tax effect of exceptional items.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report that Churchill's trading performance has continued to improve with strong growth in orders from all our markets and progress on improving our ability to satisfy this demand efficiently following the disruption of COVID. The plans we implemented over the last two years have allowed us to improve our competitive position and also to respond to the impact of the changes to the business environment later in 2021. We continue to make progress against our long term plans.
Our core strategy is to build our worldwide market share for the long term and market conditions currently give us an opportunity to accelerate this growth. The acquisition of market share is normally the most difficult element of our strategy to deliver as we operate in a market where customers change suppliers infrequently. Our decision to maintain a higher level of production during 2020 and to scale this up in the second half of 2021 has allowed us to take and retain an increased share of recovering Hospitality markets in both the UK and overseas.
The sharp increase in production output required to satisfy demand, together with elevated levels of input price inflation, have in the short term constrained the improvement in overall business performance. However, we have still made satisfactory progress, exceeding our expectations for the year.
Current revenue performance is strong and at levels well ahead of comparable periods. We believe that we continue to gain sustainable market share and provide a best in class service to our customers, maintaining deliveries to a market generally experiencing long lead times.
Financial Review
Total revenues rose to GBP60.8m (2020: GBP36.4m) as the effects of COVID-related market restrictions were reduced through the year. As a comparison H2 sales were higher than those achieved in the comparable period in 2019. Growth has continued into the first months of 2022. Ceramics revenues were GBP55.6m (2020: GBP33.1m). External revenue from Materials was GBP5.2m (2020: GBP3.3m). UK revenues increased by GBP10.5m to GBP24.4m (2020: GBP13.9m). Export revenues also grew, reaching GBP36.4m for the year (2020: GBP22.5m).
Overall gross margins were lower than in previous periods. Reduced output levels in the first half of the year were followed by higher costs as output and manpower levels increased quickly and input prices for materials and energy rose. We expect to see an improvement in efficiency across 2022. Our strong competitive position has allowed us to pass on higher input cost levels through increased prices while continuing to offer customers a market leading service.
Operating profit before exceptional items rose to GBP6.1m (2020: GBP0.9m). Overhead cost levels continued to be carefully managed, supporting strategic developments and maintaining our forward capability. Operating profit margins before exceptional items were 10.1% (2020: 2.5%).
Profit before exceptional items and income tax was GBP6.0m (2020: GBP0.8m) with the increase entirely reflecting improved operating profit.
The reported tax charge in the period includes the requirement to re-state the deferred tax balances to reflect the increase in Corporation Tax rates to 25% in 2023.
Adjusted basic earnings per share before exceptional items was 37.8p (2020: 6.5p).
Reported profit after exceptional items before tax was GBP6.0m (2020: GBP0.1m).
Basic earnings per share, after exceptional items, was 37.8p (2020: 1.0p)
Cash generation continues to be a strength of the business, with operating profit levels of GBP6.1m (2020: GBP0.2m) being substantially exceeded by cash generation of GBP10.6m (2020 GBP1.8m). We had anticipated a requirement to fund additional working capital levels as the business recovered during the second half of the year but delivered an improved position, aided by a reduction in inventory levels as revenues grew ahead of output. Capital expenditure increased to GBP3.7m (2020: GBP2.4m) further details of which are set out below. We expect to increase our rate of investment in 2022 to support investments targeting our energy footprint, additional value added product capacity and improved productivity. Cash and deposits at the start of the year were GBP14.0m and had increased to GBP19.0m by the year end.
Our record of cash generation and level of reserves allow us to accelerate investment where we believe it will support the development of the business. We continue to enjoy a strong, ungeared, balance sheet with net assets of GBP42.7m. Our assets are largely tangible and also give us a high degree of short term liquidity, if required.
Dividend
Following the re-instatement of dividend payments in September 2021 we are pleased to propose a final dividend of 17.3p (2020: nil) per ordinary share. This gives a total for the year of 24.0p (2020: nil) per ordinary share. This dividend will be payable on 27 June 2022 to shareholders on the register on 31 May 2022 and reflects our confidence in the progress of the business and the maintenance of our strong financial position. As previously announced all CJRS support in relation to 2021 has been repaid. Once again, the Board would like to express its thanks for the support of shareholders.
Business
Our overall performance in 2021 has reflected the considerable upheavals in the general business environment through the year. We dealt well with the hospitality market restrictions that affected much of the first half of 2021 and, as supply side issues impacted the later months of the year, we once again responded quickly. We have been guided in this by our core principles, firstly to continue to offer our customers a market leading service when our competitors have struggled to maintain deliveries and, secondly, to build our market share in profitable and repeat orientated markets. Both of these reflect our continued belief that we should always plan and operate for the longer term. The blend of our market, product and operational strategies has allowed us to continue to perform well. As a result we are now benefiting from exceptional demand from customers across all our markets and continue to build long term market share.
Ceramics
Overall Hospitality sales in the year to 31 December 2021 were 90% of the comparable period in 2019, with the shortfall entirely attributable to the COVID affected first four months of the year where sales were approximately half their 2019 levels. Sales in the second half year were 7% above 2019's comparative. This growth rate has increased in the first months of 2022.
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 GBP9.9m and recovered to 2019 levels despite the restricted start to the year. Sales in the second half year were 30% ahead of the comparable period in 2019. Good progress continued to be made in the USA and Rest of the World markets. UK sales have performed well with progress in fragmented regional sales channels being supplemented by a later strong recovery in national account business.
We have further increased the proportion of added value products within our sales with the proportion of sales attributable to our differentiated portfolio rising to 59%. We continue to develop and launch new products.
Retail revenues increased slightly during the period as we adjusted UK production capacity on a tactical basis. In line with our strategy we expect revenue to reduce in this area in 2022.
Materials
Furlong Mills has performed well during the year with strong demand both from retail focused customers and from Churchill. Sales in the second half year exceeded those made in the comparable period of 2019.
Operations
2021 has been a year of significant challenge for our manufacturing and logistics operations. During the first half of the year output was maintained at lower levels, but the business' desire to quickly scale output to meet sharply rising demand has, as previously announced, introduced a number of inefficiencies within our operations. We increased our manufacturing staff numbers substantially over the course of the year in a difficult labour market and this has inevitably led to productivity issues as new staff entered the workplace. We have worked intensively to increase training and are pleased that output levels and efficiency are now starting to improve. Additionally the inflationary pressures more generally evident within the global economy have also impacted both our material and energy costs. While we have ultimately raised our prices to reflect these rises we have absorbed some of the increases in the short term. Our energy price hedging through 2022 and 2023 is now at higher levels.
We have invested further in projects to support the forward development of our operations. During the early part of the year we completed a number of investments. We completed our third factory extension in the last eighteen months which will aid flexibility and improve efficiency. We have also installed additional added value product capacity and a further kiln to support its use. Our forward plans now emphasise investment in reducing our energy footprint and, importantly, in improving our productivity.
Alongside capital investment we have identified increased training of our workforce as a key forward target. Alongside the high training requirement associated with a rapidly growing workforce, we have re-invigorated our Continuous Improvement 'Masterclass' programme and introduced other initiatives aimed at developing skills and capabilities across our business.
Environmental, Social and Governance ('ESG')
Churchill has made good progress in relation to the definition and implementation of ESG processes at strategic and operational levels across our business. We believe that many of the elements of a sound approach to ESG are already present within Churchill: We manufacture a product that is highly sustainable given that it may be used several thousand times and our programme of capital investment has given us a modern production facility ahead of those of many of our competitors. We have always recognised the need to develop our workforce and have ongoing research projects to both lower our energy usage and reduce waste. However the work we have done to benchmark our operations and to build an approach that embeds an ESG process within Churchill has identified many other opportunities to improve our performance. We are in the early stages of a project that will extend for several years, but we are clear that it will bring many benefits to all the stakeholders in the Churchill business.
Highlights for this year would include the investment of over GBP1.2m in generating solar power at our main Stoke on Trent site, substantially reducing our forward net electricity demand and the research into and subsequent development of a ceramic body to reduce waste. We have many other initiatives underway.
People
It is clear from the above report on the Company's operations and the challenges faced during the year that our employees have once again had to perform to a very high level to deliver a solid result. It would be invidious to single out any particular group for praise, they have all performed well and I thank them for their efforts, their initiative and above all, for their commitment to their colleagues and the Company.
Outlook
The second half of 2021 saw a strong recovery in our sales to the Hospitality market enabling us to deliver against our targets despite a less than predictable business environment. Some of the issues arising from the challenges we face continue to impact on our operations, but we are making progress in resolving them and we continue to benefit from growing revenues.
Churchill has a long term approach to business and we believe that the fundamentals of our strategic position remain strong. The Hospitality market continues to be an attractive market characterised by a high level of repeat business. We have a leading position within the market supported by a technically differentiated product, a well invested operational base and a robust financial position.
We continue to benefit from record levels of demand. Whilst there may be concerns in relation to the effect of increased costs of living on discretionary spending we are not as yet experiencing any impact from this on order volumes. Our margin level remains affected by lower than desired levels of productivity, but we expect to improve this progressively as the year unfolds. While we are mindful of the potential impact of further COVID-related restrictions and geopolitical developments on our markets and manufacturing operations, we remain confident in our ability to deliver an improved performance in 2022.
Alan McWalter
Chairman
21 April 2022
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Churchill China plc
Consolidated Income Statement
for the year ended 31 December 2021
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Note
Revenue 1 60,839 36,362
============ ============
Operating profit before
exceptional items 6,122 922
Exceptional items 2 - (757)
------------ ------------
Operating profit 6,122 165
Finance income 3 5 60
Finance costs 3 (164) (134)
------------ ------------
Profit before exceptional item
and income tax 5,963 848
Exceptional item 2 - (757)
------------ ------------
Profit before income tax 5,963 91
Income tax (expense) / credit 4 (1,797) 22
------------ ------------
Profit for the year 4,166 113
============ ============
Profit for the year is
attributable to:
Owners of the Company 4,166 113
Pence per Pence per
Share share
Basic earnings per ordinary share 5 37.8 1.0
Adjusted basic earnings per ordinary
share 5 37.8 6.5
Diluted earnings per ordinary
shares 5 37.8 1.0
Adjusted diluted earnings
per ordinary share 5 37.8 6.5
Churchill China
plc
Consolidated Statement of Comprehensive
Income
for the year ended 31 December 2021
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Other comprehensive income / (expense)
Items that will not be reclassified to
profit or loss:
Remeasurements of post-employment benefit
obligations net of tax 1,499 (4,571)
Items that may be reclassified subsequently to
profit or loss:
Impact of change in
UK tax rate on deferred
tax 557 84
Currency translation
differences 10 (13)
------------ ------------
Other comprehensive income / (expense)
for the year 2,066 (4,500)
Profit for
the year 4,166 113
Total comprehensive income / (expense)
for the year 6,232 (4,387)
============ ============
Attributable
to:
Owners of the Company 6,232 (4,387)
------------ ------------
All the above figures relate to continuing
operations
Churchill China
plc
Consolidated Balance
Sheet
as at 31 December
2021
Audited Audited
31 December 31 December
2021 2020
GBP000 GBP000
Assets
Non Current assets
Property, plant and
equipment 21,021 20,058
Intangible assets 1,022 1,306
Deferred income tax
assets 1,842 2,082
23,885 23,446
Current assets
Inventories 10,486 12,823
Trade and other receivables 10,877 4,309
Other financial
assets 4,005 3,258
Cash and cash equivalents 15,046 10,738
------------ ------------
40,414 31,128
------------ ------------
Total assets 64,299 54,574
============ ============
Liabilities
Current liabilities
Trade and other
payables (12,268) (5,663)
Current income tax
liabilities - (24)
------------ ------------
Total current liabilities (12,268) (5,687)
------------ ------------
Non-current liabilities
Lease liabilities (217) (215)
Deferred income tax
liabilities (1,975) (1,149)
Retirement benefit
obligations (7,156) (10,382)
Total non-current
liabilities (9,348) (11,746)
------------ ------------
Total liabilities (21,616) (17,433)
============ ============
Net assets 42,683 37,141
============ ============
Equity attributable to owners of the
Company
Issued share capital 1,103 1,103
Share premium account 2,348 2,348
Treasury shares (80) (80)
Other reserves 1,195 1,215
Retained earnings 38,117 32,555
------------ ------------
42,683 37,141
============ ============
Churchill China plc
Consolidated Statement of Changes in Equity
as at 31 December 2021
Issued
Retained share Share Treasury Other Total
earnings capital premium shares Reserves equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2020 37,034 1,103 2,348 (446) 1,802 41,841
----------------------------------------------- ----- ------------- -------- -------- --------- --------- --------
Comprehensive income
Profit for the period 113 - - - - 113
Other comprehensive income
Depreciation transfer - gross 12 - - - (12) -
Depreciation transfer - tax (2) - - - 2 -
Deferred tax - change in rate 107 - - - (23) 84
Remeasurement of post-employment
benefit obligations - net of tax (4,571) - - - - (4,571)
Currency translation - - - - (13) (13)
----------------------------------------------- ----- ------------- -------- -------- --------- --------- --------
Total comprehensive income (4,341) - - - (46) (4,387)
----------------------------------------------- ----- ------------- -------- -------- --------- --------- --------
Transactions with owners
Proceeds of share issue - - - 4 - 4
Share based payment 310 - - - (541) (231)
Deferred tax - share based payment (86) - - - - (86)
Treasury shares (362) - - 362 - -
----------------------------------------- ---- ----- ------------- -------- -------- --------- --------- --------
Total transactions with owners (138) - - 366 (541) (313)
----------------------------------------------- ----- ------------- -------- -------- --------- --------- --------
Balance at 31 December 2020 32,555 1,103 2,348 (80) 1,215 37,141
----------------------------------------------- ----- ------------- -------- -------- --------- --------- --------
Churchill China plc
Consolidated Statement of Changes in
Equity
as at 31 December 2021
Issued
Retained share Share Treasury Other Total
earnings capital premium shares Reserves equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2021 32,555 1,103 2,348 (80) 1,215 37,141
------------------------------------- ---- ----------- ---------- -------- --------- --------- -------
Comprehensive income
Profit for the period 4,166 - - - - 4,166
Other comprehensive income
Depreciation transfer - gross 12 - - - (12) -
Depreciation transfer - tax (3) - - - 3 -
Deferred tax - change in rate 623 - - - (66) 557
Remeasurement of post-employment
benefit obligations - net of
tax 1,499 - - - - 1,499
Currency translation - - - - 10 10
------------------------------------- ---- ----------- ---------- -------- --------- --------- -------
Total comprehensive income 6,297 - - - (65) 6,232
------------------------------------- ---- ----------- ---------- -------- --------- --------- -------
Transactions with owners
Dividends relating to 2021 (739) - - - - (739)
Share based payment - - - - 45 45
Deferred tax - share based payment 4 - - - - 4
Total transactions with owners (735) - - - 45 (690)
------------------------------------- ---- ----------- ---------- -------- --------- --------- -------
Balance at 31 December 2021 38,117 1,103 2,348 (80) 1,195 42,683
------------------------------------- ---- ----------- ---------- -------- --------- --------- -------
Churchill China
plc
Consolidated Cash Flow Statement
for the year ended 31 December 2021
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Cash flows from operating
activities
Cash generated from operations
(note 6) 10,627 1,803
Interest received 5 60
Interest paid (28) (29)
Income tax paid (854) (847)
Net cash generated from operating activities 9,750 987
------------ ------------
Cash flows from investing
activities
Purchases of property, plant and equipment (3,740) (2,403)
Proceeds on disposal of property, plant
and equipment 43 44
Purchases of intangible
assets (12) (50)
Net cash used in investing
activities (3,709) (2,409)
------------ ------------
Cash flows from financing
activities
Issue of ordinary
shares - 4
Dividends paid (739) -
Principal elements of leases (247) (163)
Net purchase of other financial
assets (747) (252)
Net cash used in financing
activities (1,733) (411)
------------ ------------
Net increase / (decrease) in cash and cash
equivalents 4,308 (1,833)
Cash and cash equivalents at the beginning
of the year 10,738 12,572
Exchange loss on cash and cash equivalents - (1)
Cash and cash equivalents at the end of
the year 15,046 10,738
------------ ------------
1. Segmental analysis
for the year ended 31 December
2021
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Revenue - segment
Ceramics 55,605 33,092
Materials 8,773 5,453
------------- -------------
64,378 38,545
Less: Inter segment revenue (3,539) (2,183)
------------- -------------
60,839 36,362
------------- -------------
Revenue - geographic
United Kingdom 24,424 13,868
Rest of Europe 24,241 14,681
USA 6,388 4,145
Rest of the World 5,786 3,668
60,839 36,362
------------- -------------
Operating profit / (loss)
before exceptional items
Ceramics 5,628 1,104
Materials 494 (182)
6,122 922
------------- -------------
Exceptional items
Ceramics - (666)
Materials - (91)
- (757)
------------- -------------
Operating profit / (loss)
after exceptional items
Ceramics 5,628 438
Materials 494 (273)
6,122 165
Unallocated items
Finance income 5 60
Finance costs (164) (134)
Profit before income tax 5,963 91
------------- -------------
2. Exceptional items
In the year ending 31 December 2020 exceptional costs totalling
GBP757,000 were recognised relating to expenses incurred directly
in relation to the effect of COVID-19 and the restructuring of the
business to reflect lower demand and output levels. This is largely
composed of severance costs of GBP863,000 and further costs of GBP227,000,
offset by the release of share based payment and related provisions
of GBP333,000. In the year ending 31 December 2021 no costs have
been incurred directly in relation to COVID-19.
3. Finance income and
costs
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Finance income
Interest income on cash and cash equivalents 5 60
Finance income 5 60
--------------- ----------------
Finance cost
Interest on pension scheme (136) (105)
Interest on lease
liabilities (23) (20)
Other interest (5) (9)
Finance costs (164) (134)
--------------- ----------------
The interest cost arising from pension schemes is
a non cash item.
4. Income tax expense
/(credit)
Audited Audited
Year to Year to
31 December 31 December
2021 2020
GBP000 GBP000
Current taxation 671 (15)
Current taxation -
exceptional - (207)
Deferred taxation 1,126 143
Deferred taxation -
exceptional - 57
Income tax expense
/ (credit) 1,797 (22)
--------------- ----------------
5. Earnings per ordinary share
Basic earnings per ordinary share is based on the profit after income tax and on 11,022,835 (2020: 10,996,835) ordinary shares, being the weighted average number of ordinary shares in issue during the year. Adjusted basic earnings per share is calculated after adjusting for the post tax effect of exceptional items (see Note 2).
. Audited Audited
Year to Year to
31 December 31 December
2021 2020
Pence per share
Basic earnings per share 37.8 1.0
Add: Exceptional items - 5.5
Adjusted basic earnings per
share 37.8 6.5
------------- -------------
Diluted earnings per ordinary share is based on the profit after income tax and on 11,022,835 (2020: 11,028,486) ordinary shares, being the weighted average number of ordinary shares in issue during the year of 11,022,835 (2020: 10,996,835) increased by nil (2020: 31,651) 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 share price during the year. There has been no impact of diluted earning per share on the shares that were granted during the year. Adjusted diluted earnings per share is calculated after adjusting for the post tax effect of exceptional items (see Note 2).
Audited Audited
Year to Year to
31 December 31 December
2021 2020
Pence per share
Diluted earnings per share 37.8 1.0
Add: Exceptional items - 5.5
Adjusted diluted adjusted
earnings per share 37.8 6.5
------------- -------------
6. Reconciliation of operating profit to net cash inflow from continuing
activities
Audited Audited
Year to Year to
31 December
2021 31 December 2020
GBP000 GBP000
Cash flows from operating
activities
Operating profit 6,122 165
Adjustments for:
Depreciation and amortisation 2,838 2,586
(Gain)/ Loss on disposal of property,
plant and equipment (5) 3
Charge/ (credit) for share
based payment 45 (231)
Defined benefit pension cash contribution (1,362) (749)
Pension current service charge - non
cash - 40
Changes in working capital
Inventory 2,337 (1,176)
Trade and other receivables (6,396) 6,696
Trade and other payables 7,048 (5,531)
Net cash inflow from operations 10,627 1,803
-------- ------------
7. Dividend
The dividends paid in the year were as follows:
2021 2020
Ordinary GBP'000 GBP'000
Final dividend 2020 GBPnil (2020: nil) per
10p ordinary share - -
Interim 2021 6.7p (2020: nil) per 10p ordinary
share paid 739 -
----------------------------------------------- ------- -------
739 -
----------------------------------------------- ------- -------
The Directors now recommend payment of the following dividend:
Ordinary dividend: Final dividend 2021 17.3p (2020: nil) per 10p ordinary share 1,907 - ---------------------------------------------- -----
Dividends on treasury shares held by the Company are waived.
8. Retirement benefit obligations
The liability recognised by the Company in relation to its Defined Benefit Pension Scheme under IAS 19 has decreased by GBP3,226,000 to GBP7,156,000 (2020: increased by GBP5,039,000). This decrease is as a result of changes in market derived assumptions in relation to the discount rate used to assess the present value of Scheme liabilities of 1.8% (2020: 1.4%) and an increase in forecast future CPI inflation to 2.9% (2020: 2.3%). Together with other more minor variations in assumptions these changes have decreased liabilities by GBP221,000, and increased anticipated investment returns. The Scheme was closed to new entrants in 1999 and to future accrual in 2006.
Audited Audited
Year to Year to
31 December
2021 31 December 2020
GBP000 GBP000
Liability at 1 January (10,382) (5,343)
Past service cost - (40)
Interest cost (136) (105)
Experience gains / (losses) 45 121
Re-measurement from change in
assumptions (211) (8,381)
Re-measurement of return on plan assets 2,166 2,617
Employer contributions 1,362 749
Liability at 31 December (7,156) (10,382)
--------- ----------
9. Share buybacks
The Company did not buy back any shares during the year, but may consider making ad hoc share buybacks going forward at the discretion of the Board and subject to shareholder authorities being renewed at the forthcoming Annual General Meeting.
10. Basis of preparation and accounting policies
The financial information included in the preliminary announcement for year to 31 December 2021 has been approved by the Board on 21 April 2022.
The preliminary financial statements do not constitute the statutory accounts of the Company within the meaning of section 434 of the Companies Act 2006, but are derived from those accounts, which have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
This information has 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 preliminary financial statements as were applied in the Group's financial statements for the year ended 31 December 2020 with the impact of transition to UK-adopted International Accounting Standards having no impact on recognition, measurement or disclosure in the period as a result of the change in framework.. Statutory accounts for the year ended 31 December 2020 have been delivered to the Registrar of Companies. Statutory accounts for the year ended 31 December 2021 will be delivered to the Registrar of Companies after the Company's Annual General Meeting and will also be available on the Company's website ( www.churchill1795.com ) in May 2022. The auditors have reported on those accounts. Their report was not qualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
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FR PPURCCUPPGRU
(END) Dow Jones Newswires
April 21, 2022 02:01 ET (06:01 GMT)
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