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Highlights

  • Churchill China PLC's revenue declined 7.7% to GBP40.60 million in H1 FY24.
  • Profit after tax increased 2.9% to GBP3.60 million due to improved factory productivity and valuable product mix.
  • Net cash decreased by 21.2% to GBP7.80 million.

Churchill China PLC (LSE:CHH) produces high-performance ceramics for the hospitality industry, catering to restaurants, hotels, and retail customers globally. The company has a market cap of GBP 96.47mn.

In H1 FY24, Churchill China PLC reported revenue of GBP40.60 million, reflecting a year-on-year decline of 7.7% compared to GBP44.00 million in H1 FY23. This downturn was primarily due to weaker performance in Europe, although the UK, the Rest of the World (ROW), and the USA demonstrated resilience during the period. In constant currency, turnover decreased by 6.4%.

On the profitability front, the company recorded a profit after tax of GBP3.60 million, a modest increase of 2.9% from GBP3.50 million in the previous year. This growth can be attributed to improvements in factory productivity, resulting in enhanced yields and skill levels among employees.

Additionally, the company experienced a shift towards a more valuable product mix. However, net cash and deposits decreased to GBP7.80 million, down 21.2% from GBP9.90 million in H1 FY23. This decline is primarily due to planned increases in finished goods stocks and higher debtors associated with the seasonal working capital cycle.

Company Outlook

Despite the revenue decline in H1 FY24, the company is focused on enhancing order fulfillment by increasing stock levels. Although profitability has been impacted by the sales mix and market sentiment, the company's consistent performance in challenging conditions highlights the resilience of its long-term strategy and the strength of the Churchill brand worldwide, as stated by the company.

Top 10 Shareholders

The top 10 shareholders own approximately 66.69% of the total shares. Investec Wealth & Investment Limited holds the largest stake at about 10.79%. Following closely is Roper (James Andrew) with around 8.40%. The chart below illustrates these holdings.

Price Information

The stock price of CHH has tumbled approximately 10.52% in the past month. Over the last six months, it has declined by about 22.72%. Its 52-week low is GBX 800.00, while the high is GBX 1,495.00. The stock’s closing price as of 09 Oct is GBX 850.00.

Image source: EODHD/Others

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 09 October 2024. The reference data in this report has been partly sourced from EODHD/Others.