Pre-tax profits at Churchill China fell 29% to £6 million last year as the hospitality sector faced continued challenges.
Latest accounts for the Stoke-on-Trent tableware manufacturer were published by Companies House this week. Figures show revenue reduced 2.6% to £76.3 million to the year ending 31 December 2025, from £78.3 million in 2024.
UK sales performed well in the first half of the year but a ‘slightly harder’ second half meant that hospitality revenue ended the year £0.3m behind 2024.
The company said reduced manufacturing volumes were exacerbated by a planned reduction in stock levels, leading to higher manufacturing cost per piece. Pressures also included wage and National Insurance increases that took effect in April 2025.
In a statement, chairman Robin Williams said the Group traded in line with expectations set, which reflected weaker trading and cost positions that had become evident. He also said the second half of the year showed early signs of improved trading in mainland Europe.
Looking ahead, he added: “The Group continues to offer world class products coupled with a high-level service offering.
“With a recovering market and our investment in our sales and service offering we see a bright future for Churchill.
“We are focussed on leveraging new technologies to drive efficiency improvements in both the factory and in the administrative and sales areas.
“The introduction of our new enterprise resource planning (‘ERP’) system, due for implementation in 2027, will provide a strong foundation in the adoption of Al technologies to further drive this journey and improve efficiencies across the business particularly in respect to production planning and optimisation of stock holding.”
Churchill China operates from two sites in Stoke-on-Trent and has been in existence since 1795.
Robin thanked employees for their ‘commitment, effort and diligence through the year’.
