Historic manufacturer continues transformation
Historic manufacturer Churchill China has “exceeded expectations” in another year of growth for the pottery company.
Churchill China, which dates back to the 18th century, increased its pre-tax profits before exceptional items by 26%, to £9.4m.
Revenues grew more steadily at the Stoke-on-Trent group, up 7% in 2018 to £57.5m.
Churchill China’s chairman Alan McWalter described 2018 as “a very successful year” but also took a longer view in reviewing the company’s progress.
He said: “We believe that simply focussing on a single year’s performance does not fully reflect the strength of our business or the transformation achieved in our operations over the longer term.
“Our business has developed substantially over the last five years from 2013 in line with our business strategy.”
Its share price reached an all-time high in January and last night’s close of 1325p is 45% higher than a year ago. Its shares have been edging upwards for most of the past decade, rising more quickly over the last five years.
In that time sales to hospitality customers have increased at a compound annual rate of almost 10%, with group exports increasing from 39% to 60%.
McWalter added: “The trading environment in the UK, alongside that of many businesses, is subject to increased uncertainty, but we believe we have a robust business model.
“Our plans will evolve, but we will continue to emphasise growth in export markets where there is a significant opportunity to improve our market share.”
It increased its final dividend by 18% to 20.3p.
