Revenues drop but hospitality remains strong at Churchill

STAFFORDSHIRE pottery manufacturer and distributor Churchill China has seen a year-on-year fall in revenues but a small spike in pre-tax profit.

Group revenue at the Stoke-based plc for the six months to June 30, 2011, was £19.2m, down from £20.2m in 2010.

Profit before tax was up by 10% at £0.7m, from £0.6m, while basic earnings per share were up 12% to 4.7p from 4.2p.

Operating cash generation was £1.6m, a significant fall of £1m year-on-year, while cash balances sat at £4m at the end of the period, down from £5.7m.

The firm’s interim dividend remains unchanged at 4.8p.

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Chairman Jonathan Sparey said: “Our performance is robust and we are on track to deliver the board’s revenue and profit objectives for the full year.

“I am pleased to report an improvement in group profitability for the first half of the year.

“This performance reflected the continued strength of our hospitality business where profitability was ahead of the first half of 2010 on sales which were slightly lower than the comparable period.”