Churchill China’s Share price bearly bullish after an in-line trading update

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Churchill China’s (LON:CHH) share price Β was down -0.16% after the company’s last trading update ahead of interim figures in April

Churchill China, the Staffordshire headquartered maker and supplier of high quality crockery and tableware to the hospitality industry and mid market retailers, has published its full year trading update this morning.

Encouragingly the final two months of trading in 2024 met with both company and market expectations

And, there are no changes to the guidance that the company issued in November 2024 when it said that:

β€œAs highlighted in our Interim Results, global hospitality markets remain subdued. Revenue in the year to September has been below that expected, but, due to a strong operational performance, profitability has not been affected as significantly. In the final quarter to date”

And that

β€œThe company has not seen the normal seasonal uplift in order intake from, particularly, the independent sector. As a result, the Company now anticipates a reduction in its forecast for the final quarter of 2024 and the profitability for the year is consequently expected to be materially below market expectations.”

Today’s trading update covers the year ended December 31, 2024, for which the market is expecting profit before tax of some Β£8.50 million.

Churchill China’s preliminary results are expected to be released in April 2025.

At an operational level Churchill China continues to improve its factory productivity and yield, and its management remains confident in its β€œunparalleled service offering” and its emphasis on innovative and differentiated performance products that mark it out from the competition. The firm has acknowledged the challenging environment, as the comments from November attest.

However, management are still confident about the long-term future of the business, and though they don’t provide any details the update says they have taken the appropriate actions.

The fact that they have maintained their previous guidance, and the confirmation that they will meet market expectations, suggests that trading hasn’t deteriorated further in the current economic climate. In which other companies are issuing profit warnings or downward revisions about their performance.

Sometimes no new news is actually good news.

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