Trading Update

31July 2026

Churchill China plc

("Churchill China" or the "Company")

Trading Update

Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, today provides an update on trading for the six months ended 30 June 2026.

As highlighted at the Company's Annual General Meeting on 29 May 2026, trading performance stabilised following the market declines experienced in 2025, with Company sales broadly in line with the prior year.

External sales for the first half were £37.4m (H1 2025: £38.5m), representing a resilient performance against a backdrop of subdued demand in a number of hospitality markets, where sales are broadly flat year on year.

The added-value hospitality product sales, including pressure cast, have shown encouraging stability during 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 capital management.

Operationally, factory performance has improved during the year, with manufacturing yields improving in the first half. This has mitigated some but not all of the cost pressures being faced particularly within distribution costs. The Company's previously announced capital investment programme, focused on productivity, automation and efficiency improvements, continues to progress well. Early results from completed projects, including the installation of a new flat plate making machine, are showing measurable benefits in both productivity and waste reduction.

The Company's energy requirements are significantly hedged for the year and consequently the Company 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, the Board is reassured by the resilience of trading during the first half which remained in line with the Board's expectations. We believe we continue to gain market share through our differentiated product offering, 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 to present 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 across our key markets during the first half of 2026, with sales broadly in line with the prior year despite ongoing 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 productivity benefits, and cash generation remains strong

Whilst market conditions are still challenging, and recent developments in the Middle East have added further 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 will maximise long-term value per share for shareholders while ensuring Churchill is well positioned to benefit when markets recover."

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