Manufacturer’s share price spikes to all-time high
SHARES in Staffordshire pottery maker Churchill China reached a record closing price after it announced its 2016 performance would be “well ahead” of the previous year.
Investors responded by sending its share price soaring to 955p in the first hour of trading, surpassing its previous intra-day high of 900p achieved last September. It closed up 9% at 929p, valuing the company above £100m for the first time.
The Stoke-on-Trent firm said trading in the final quarter of the year was “ahead of earlier expectations”, with favourable exchange rates boosting its exports.
It said: “The board now expects that operating performance will be ahead of current market estimates and well ahead of 2015. Additionally, cash and deposit balances are also expected to exceed current market estimates.”
In 2015, Churchill China increased revenues by 5%, to £46.8m, and grew its pre-tax profits by 16% to £5.0m. This strong performance was maintained in the first half of 2016 as revenues grew by a further 12%.
Analysts at N+1 Singer said: “Churchill China continues to surprise on the upside with a very positive year-end trading update.
“We remain big fans of Churchill.”
The company has enjoyed recent success in Australasia, Central and South America and the United States as its export business has flourished.
It will publish its full-year financial figures on March 28.
