Churchill China PLC AGM Statement (5928P)
June 11 2020 - 2:00AM
UK Regulatory
TIDMCHH
RNS Number : 5928P
Churchill China PLC
11 June 2020
For immediate release 11 June 2020
CHURCHILL CHINA plc
("Churchill China" or the "Company")
AGM STATEMENT
Churchill China plc (AIM: CHH), the manufacturer of innovative
performance ceramic products serving hospitality markets worldwide,
will hold its Annual General Meeting at 12 noon today. At the
meeting, Alan McWalter, Chairman, will make the following
statement:
"I would like to update you on the progress our business has
made since our 2019 Preliminary Results announcement on 8 April
2020.
As we anticipated at the time, the impact of the COVID-19
lockdown in the UK and overseas on our sales to hospitality markets
has been significant. Following a strong start to the year, trading
in April and May was well below normal levels. A number of actions
were implemented to mitigate the effect of this reduction in
activity, with output, cost and liquidity levels being carefully
managed. We have, however, continued to despatch orders from our
UK, European and North American warehouses throughout the second
quarter of the year.
We are now beginning to see the first signs of an improvement in
trading with growing levels of orders and activity. Hospitality
outlets in our major European markets have now largely re-opened
albeit with some level of restrictions. The UK's exit from lockdown
has begun and we anticipate increased market demand over the next
few months. However we still expect overall monthly revenues to
remain below 2019 levels for some time as hospitality market
activity re-adjusts.
During May we re-opened our manufacturing operations in Stoke on
Trent at a reduced level of output and under safe working
conditions. Output will now be progressively increased until
revised operating levels are reached later in the summer. We have
commenced a process to adjust costs across our business consistent
with these lower levels of activity and as such we have entered
into a consultation period with our employees in relation to the
potential reduction in the size of our workforce. We hope that this
period will allow us to mitigate the effect of this workforce
reduction on our employees. No decision has yet been made on the
number of redundancies that may result from this process.
Our operational and financial position remains strong and we
will continue to target growth in export markets where we have
significant potential to increase both market share and revenue
over the long term. We have an experienced management team and the
Company retains a high degree of flexibility to respond to the
anticipated recovery in business conditions. We will also continue
to invest in the development of our business."
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 / Charlotte Slater
Investec Tel: 020 7597 5970
David Flin / Alex Wright / Virginia
Bull
This announcement contains information which, prior to its
disclosure, was considered inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014 (MAR)
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END
AGMKKKBNABKDPAD
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