Ceramics manufacturer Churchill China has reported a dip in profits and revenue for 2024, but says it remains well positioned for growth as market conditions improve.
In the company’s latest annual report, chairman Robin G.W. Williams said the Tunstall-based business had demonstrated ‘the strength of our brand’ in a ‘challenging’ year, with demand holding up across both UK and export markets.
Revenue fell by 4.9 per cent year-on-year to £78.3 million, down from £82.3 million in 2023. Profit before tax dropped to £8.5 million, compared with £10.8 million the previous year – representing a return on sales of 10.9 per cent, down from 13.1 per cent.
Mr Williams said the results came against a backdrop of ‘waning consumer confidence and political uncertainty’, both in the UK and overseas. He also cited the impact of the October UK Budget, which he said ‘created further financial challenges for our UK hospitality customer base and added considerably to our costs of employment’.
Despite the decline in sales, he praised the company’s operational progress, noting that ‘efficiencies and yields continued to improve in the year’ and that Churchill now believed itself to be ‘sector leading in terms of our waste levels through our manufacturing process’.
Products introduced in the last two years contributed £7 million in sales during 2024, and the company said it had continued to perform well in core markets such as the UK and northern Europe.
Looking ahead, Churchill said it remained focused on improving productivity and was committed to ‘maintaining an active capital expenditure program to facilitate our long-term focus on cost reduction, productivity and yield’. The company is also exploring alternative energy options as part of its drive towards net zero and lower costs.
Among the company’s initiatives is a move towards electrification of its glazing lines, which has already led to ‘significant yield improvements’. According to the report, the project will ‘reduce the energy footprint of glazing by 80 per cent’.
Churchill ended the year with a cash balance of £10.1 million, down from £13.9 million in 2023, reflecting ongoing investment and dividend payments. A final dividend of 26.5p per share has been proposed, bringing the total for the year to 38.0p.
Mr Williams wrote: “A more robust hospitality market is required for a step forward in our market penetration and profitability. We will continue to focus on improving efficiencies within the business and invest strategically to ensure we are in the best position to capitalise on future opportunities, as underlying macro conditions and consumer sentiment improves.”
