11th Jan 2008 07:00
Churchill China PLC11 January 2008 For Immediate Release 11 January 2008 Churchill China plc Trading update - Profit to exceed expectations Churchill China plc, the manufacturer and global distributor of ceramictableware and household products to hospitality and retail markets, is pleasedto advise that following a good trading performance in the key fourth quarter,it expects to deliver pre-tax profits in excess of current market estimates forthe year to 31 December 2007. Revenues and profits in the Group's Hospitality division have continued to growwell, benefiting from strong performances in a number of sectors of the UKmarket. Whilst the surge of investment in hospitality by UK pub groups may haveslowed it is evident that the capital spending cycle of hotels, restaurants andother customers has remained at a healthy level. This robust performancereflects the continued advantage derived from our consistent investment inproduct innovation and market development; underpinned by a high level of repeatbusiness. Our Retail division has also made significant progress against its strategictargets. Whilst overall revenues will be, as expected, lower than 2006, a largerproportion of these sales have been made to middle market customers leading tobetter overall margins. Sales of licensed product, particularly in the Disneyand Sanderson ranges have exceeded our expectations. Cash generation has also been strong over the second half of the year, withcontinued tight control of working capital and the completion of the sale ofsurplus land for gross proceeds of £1.1m. The profit associated with thisdisposal will be disclosed as an exceptional item in the Group's 2007 results. Contacts Churchill China plc 01782 577566Andrew Roper, Chief ExecutiveDavid Taylor, Finance Director Brewin Dolphin Investment Banking 0845 270 8610Andrew Emmott Buchanan Communications 020 7466 5000Tim AndersonRebecca Skye Dietrich This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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