The information communicated within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulations (EU) No. 596/2014 as
it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
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For immediate
release
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20 November
2024
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CHURCHILL CHINA
plc
("Churchill" or the "Company" or the "Group")
Trading
Update
Churchill China plc (AIM: CHH), the
manufacturer of innovative performance ceramic products serving
hospitality markets worldwide, provides a trading update on the
current financial year, ending 31 December 2024.
As highlighted in our Interim
Results, global hospitality markets remain subdued. Revenue in the
year to September has been below that expected, but, due to a
strong operational performance, profitability has not been affected
as significantly. In the final quarter to date, the Company
has not seen the normal seasonal uplift in order intake from,
particularly, 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 is anticipated that this softness
in our key hospitality markets will continue into 2025 driven by
the effects of the UK budget and political uncertainty in some key
European markets. In addition, implications of the recent UK 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.
This situation does not change the
fundamentals of our business. We have high-quality differentiated
products with significant growth potential as markets recover,
particularly where we currently have low market share. All of which
is backed by solid financials of operational cash generation and a
strong unencumbered balance sheet.
Robin Williams, Chairman of Churchill China,
commented:
"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."
For further information,
please contact:
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Churchill China plc
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Tel: 01782
577566
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David O'Connor / James Roper /
Michael Cunningham
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Buchanan
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Tel: 020
7466 5000
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Mark Court / Sophie Wills / Abigail
Gilchrist
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ChurchillChina@buchanan.uk.com
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Investec
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Tel: 020
7597 5970
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David Flin / Oliver
Cardigan
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