China manufacturer declines
Chinaware manufacturer Churchill China has seen a drop in profits as the recession impacted on its retail and hospitality markets.
The Stoke company, which distributes ceramic tableware and household goods to the hospitality and retail markets, has reported profit before tax of £2.1m for last year, which compares to £3.4m in 2008.
Churchill China (CHH) turnover remained relatively stable at £41.7m only slightly below the £42m recorded the year before.
Jonathan Sparey, group chairman said: “2009 was an unpredictable year characterised by global recession, uneven demand, a weakening UK currency and very challenging operating conditions.
“In the circumstances, we demonstrated the resilience of the Churchill business. Our group revenues were flat against last year but pre-tax profit of £2.1m was lower largely due to the impact of reduced interest received on our £7m cash balance.”
He said the group was taking heart from an improved second half performance, which showed rising operating profits.
“This positive trend is continuing,” he added.
Midlands-based car valeting company Autoclenz (ACZ) has seen an improvement in profits despite the challenging market conditions.
The company said its adjusted operating profit for last year had risen 28% to £1.54m last year, compared to 2008’s £1.2m.
It also saw an improvement in margins and a cost reduction programme helped to offset declining sales in the automotive market.
James Leek, chairman, said: “Overall in 2009, following the management team’s actions, we performed better in revenue and margin terms than the prevailing market conditions suggested we should.
“At this early stage of 2010 our target is to at least maintain last year’s level of profitability and stem some of the revenue declines we have seen in the past two years.”
Stockbrokers Arden (ARDN) will today tell shareholders that conditions in the trading markets remain challenging as the economy struggles with recovery.
In a statement to the company’s annual general meeting, chairman Sir David Rowe-Ham will say: “Market volumes continue to be low and our corporate finance pipeline remains encouraging subject to market conditions.
“The company has continued to invest selectively in high quality hires and cash continues to be strong.”
Elsewhere, Staffordshire-based industrial services and rental company Northbridge Industrial Services (NBI) has seen a reduction in its annual pre-tax profits.
Challenging conditions saw the group, which supplies utility companies, the public sector and the oil and gas industries, record pre-tax profits of £2.2m, compared to £3m in 2008.
Group revenue declined to £12.7m compared to 2008’s £15.7m, although rental revenue remained stable at £7.7m, mirroring the level of the previous year.
The group said its open offer to shareholders had raised £1.5m net of expenses and it had prepared for the future by investing £5.5m into its hire fleet.
It said it was hopeful improved market conditions would continue during this year.
