Churchill China’s new CEO strikes optimistic note despite falling profits
Stoke-on-Trent-based ceramics manufacturer Churchill China has reported revenue of £37.4m for the six months to 30 June, down 2.9% from £38.5m last year.
New chief executive James Roper said trading has stabilised despite challenging market conditions.
Operating profit before exceptional items fell 17.9% to £2.3m. Profit before tax and exceptional items was down 19.4% to £2.5m, driven largely by higher rent at the company’s European Distribution Centre following the loss of a co-tenant, alongside increased carriage costs linked to the conflict in the Middle East. Basic earnings per share fell to 15.3p from 21.0p.
European and US sales were slightly ahead of the prior year. UK hospitality sales fell 3.3%, and Furlong Mills’ external material sales dropped 16.5%, partly reflecting the well-publicised closure of the Denby factory.
Churchill said the impact was minimal since Denby was not a significant customer, but that the closure reflects wider pressures facing the ceramics industry in Stoke-on-Trent.
The interim dividend was held at 7.0p per share. Net cash and deposits rose 51.8% to £8.5m. The company generated £0.8m in cash from operations, compared with a £0.2m cash outflow in the first half of 2025, aided by reduced stock levels.
Churchill introduced 187 new products in March and reported improved performance in pressure cast products, the area that saw the steepest decline in 2025. The company is investing £3.2m this year in factory automation and efficiency projects, including a second flat-making machine ordered in August. Nearly 200 staff have been trained to Six Sigma white belt standard or above as part of a wider productivity drive.
James Roper, who took over as chief executive from Dave O’Connor last month after 14 years leading the company’s sales and marketing function, said: “As I take on the role of Chief Executive Officer, I am proud to continue my family’s long association with Churchill and to lead a business with such a strong heritage, market position and culture.
“While near-term market conditions remain challenging, I am confident in the strength of our competitive position and product proposition.”
He added that a key priority is to “accelerate sales growth and increase Churchill’s share of the markets we serve,” with the company continuing to expect full-year profitability in line with expectations, dependent on the fourth quarter, traditionally its most significant trading period.
The company also welcomed the government’s announcement of £120m in support for the UK ceramics industry, though said details of the scheme are not yet clear.
