Earnings release
Page 1
RNS Number : 7277OChurchill China PLC31 July 2026 31July 2026 Churchill China plc ("Churchill China" or the "Company") Trading Update Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products servinghospitality markets worldwide, today provides an update on trading for the six months ended 30 June2026. As highlighted at the Company's Annual General Meeting on 29 May 2026, trading performancestabilised following the market declines experienced in 2025, with Company sales broadly in line withthe prior year. External sales for the first half were £37.4m (H1 2025: £38.5m), representing a resilient performanceagainst a backdrop of subdued demand in a number of hospitality markets, where sales are broadly flatyear on year. The added-value hospitality product sales, including pressure cast, have shown encouraging stabilityduring the period, reflecting continued success in securing new business and gaining market share. Cash generation remained strong, with cash balances of £8.8m at 30 June 2026 (30 June 2025: £5.6m),reflecting the Company's continued focus on operational efficiency and disciplined working capitalmanagement. Operationally, factory performance has improved during the year, with manufacturing yields improving inthe first half. This has mitigated some but not all of the cost pressures being faced particularly withindistribution costs. The Company's previously announced capital investment programme, focused onproductivity, automation and efficiency improvements, continues to progress well. Early results fromcompleted projects, including the installation of a new flat plate making machine, are showingmeasurable benefits in both productivity and waste reduction. The Company's energy requirements are significantly hedged for the year and consequently theCompany expects limited exposure to short-term fluctuations in energy prices. Whilst sales visibility remains limited and recognising the significance of the final quarter of the year, theBoard is reassured by the resilience of trading during the first half which remained in line with theBoard's expectations. We believe we continue to gain market share through our differentiated productoffering, strong customer service and reputation for market-leading quality and innovation. Macro-economic factors remain hard to predict and the ongoing situation in the Middle East continues topresent a risk to performance. The Company will issue its results for the six months ended 30 June 2026 in early September 2026. David O'Connor, Chief Executive Officer, commented: "Following a difficult market environment in 2025, we are reassured by the stability demonstrated acrossour key markets during the first half of 2026, with sales broadly in line with the prior year despiteongoing pressures within the hospitality sector. Our focus on innovation, customer service and operational improvement continues to deliver results.Factory performance has improved, our investment programme is generating tangible productivitybenefits, and cash generation remains strong Whilst market conditions are still challenging, and recent developments in the Middle East have addedfurther uncertainty, we continue to strengthen our competitive position through market share gains,disciplined investment and a strong balance sheet. We remain focused on taking decisions that willmaximise long-term value per share for shareholders while ensuring Churchill is well positioned tobenefit when markets recover."
Page 2
For further information, please contact: Churchill China plc Tel: 01782 577566 David O'Connor / James Roper / Michael Cunningham Burson Buchanan Tel: 020 7466 5000 Helen Tarbet / Sophie Wills / Abby Gilchrist churchillchina@buchanan.uk.com Investec Bank plc (Nominated Adviser and Joint Broker) David Flin Tel: 020 7597 5970 Panmure Liberum Limited (Joint Broker) Tel: 020 3100 2000 Edward Thomas / John More This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END