17th May 2006 07:00
Churchill China PLC17 May 2006 For Immediate Release 17 May 2006 CHURCHILL CHINA plc AGM Trading Statement At the Company's Annual General Meeting, Stephen Roper, Chairman, will make thefollowing statement: "Group sales for the four months to the end of April 2006 were marginally aheadof our expectations and as anticipated were below the levels recorded in thecorresponding period of 2005 as we continued to actively manage the mix of ourbusiness towards more profitable distribution channels. We have continued to make good progress against our target of improved profitfor the year and this has been enhanced by improved capital utilisation and costsavings from a number of investment projects. The principal reason for the fall in Group sales is the planned transfer oflower price Retail business from a full service model through our UK operationsto shipment direct from source to both our UK and export markets. This revisedstrategy is designed to improve both our competitive position and operatingperformance and has been well received by customers. Sales of Hospitalityproducts are marginally below anticipated levels, however good progress has beenmade in our key markets, the UK, Spain and the USA. Overall sales are marginallybelow 2005 with reduced sales to some lower margin export markets. We continue to generate cash through careful management of our working capitalbase and disposal of surplus assets. We are confident that the optimismexpressed in our Preliminary Results statement in March remains appropriate andthat we will deliver an improved performance at the half year and for the yearas a whole." For further information, please contact: Stephen Roper, Chairman or David Taylor, Finance Director Tel No: 01782 577566Churchill China plc Tim Anderson/Lisa Baderoon/Rebecca Skye DietrichBuchanan Communications Limited Tel No: 020 7466 5000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Churchill China