Coronavirus Update

Churchill China Plc - Interim Results

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CHURCHILL CHINA plc

("Churchill" or the "Company" or the "Group")

INTERIM RESULTS

For the six months ended 30 June 2020

Resilient performance

Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, is pleased to announce its interim results for the six months ended 30 June 2020.

Key Highlights:

Financial

  • Operating profit before exceptional items £0.5m (2019 H1: £4.2m; 2019: £11.2m)
  • Profit before exceptional items and  tax £0.5m (2019 H1: £4.2m; 2019: £11.2m)
  • Reported (loss) / profit before tax after exceptional items (£0.4m) (2019 H1: £4.3m; 2019: £11.3m)
  • Adjusted earnings per share 3.5p (2019 H1: 30.4p; 2019:  81.7p)
  • Basic (loss) / earnings per share (2.9p) (2019 H1: 31.3p; 2019: 81.8p)
  • Interim dividend to be reviewed December 2020
  • Cash generated from operations £3.4m (2019 H1: £2.4m; 2019: £11.3m)
  • Cash and deposits £16.3m (2019 H1: £13.5m; 2019: £15.6m)

Business

  • Total revenues £18.9m (2019 H1: £31.9m; 2019: £67.5m)
  • Strong start to 2020, impact of COVID in Q2
  • Revised operational plans implemented swiftly
  • Market recovery progressing
  • Continued shift of sales mix towards Europe
  • Sales of Hospitality added value product over 50% for the first time
  • Forward investment in business continues

Alan McWalter, Chairman of Churchill China, commented:

"Churchill remains a resilient Company with a strong market position and a geographically wide spread of business within the hospitality sector. Our key strengths of innovative design, technically differentiated products and market leading customer service will remain important in our markets."