5th Sep 2024 16:19
(Alliance News) - Churchill China PLC said on Thursday that it is counting on "stronger demand" usually experienced towards the end of the calendar year to be able to meet its full-year expectations, as profit marginally increased but revenue dropped in the first half.
The Stoke-on-Trent, England-based ceramic products manufacturer said pretax profit for the six months ended June 30 was GBP4.8 million, a 2.5% rise year-on-year from GBP4.7 million. Revenue fell 7.8% to GBP40.6 million from GBP44.0 million, however.
Churchill China raised its interim dividend by 4.5% to 11.50 pence per share from 11.00p.
The company expects to see "subdued activity" from its key European markets, but maintains that demand in the UK nationals sector remains strong. It said that factory performance continues to improve after improved staff training and additional automation.
Chair Robin Williams said: "Global hospitality markets continued their flat performance from the second half of 2023 and remained subdued for early 2024, however, group revenues have been broadly in line with expectations. A strong operational performance helped maintain operating profit in line with prior year.
"We remain dependent on the stronger demand normally experienced in the final four months to meet our expectations for the year."
Churchill China shares fell 7.8% to 995.40 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.