Profits are up nearly 50 per cent at Churchill China despite market headwinds, according to latest figures.
The Stoke-on-Trent-based ceramics manufacturer filed interim results for the six months to 30 June today, with revenues up six per cent to £44 million, driven by higher sales to the hospitality market.
Operating profit was up 39 per cent to £4.9 million, whilst pre-tax profits before exceptional items increased 47 per cent to £5 million.
Daily Focus reported in April when the company published its annual results for 2022 that it was expecting an “improved” performance this year.
Today, a statement by Chairman Robin Williams said: “We are pleased to report a healthy increase in revenue and profit in the first half of the year and that despite some market headwinds the Group is in a good position to meet the Board’s profit expectations for the full year.”
Volumes were down year-on-year due to soft trading conditions within the UK.
Robin added: “This is as a result of our strategic focus on value added product, which has increased its share of total revenue by 1% year on year and helped to improve the margin performance of the business.
Increased production costs, driven by both material and labour, have been mitigated by the price increases implemented last year and improvements in labour efficiencies and efficient energy purchasing has meant that margin expectations should be met for the year.”
Meanwhile, Portmeirion Group’s interim results for the same time period show a three per cent dip in revenue to £44.1 million compared to record prior year sales.
The company, which is also based in Stoke-on-Trent, had already warned of the decrease due to customer uncertainty in the key North American market.
But improved productivity at its factory in the city has again been credited in the report.
The update also says the second half of the year is in line with expectations and there is a strong Christmas order book which is ahead of the same period last year.
Chief Executive Mike Raybould said: “Together with new product launches we therefore expect that sales in our US and Canadian markets will stabilise and return to growth in due course.
“We are successfully controlling overheads despite the significant inflationary environment and will continue to target further global synergies in our cost base over the next 12 months.
“Alongside ongoing improved factory productivity in our Stoke site and as global container shipping rates return to historical levels, we remain confident of delivering our medium and long term operating margin growth targets.”
