Churchill China (LSE:CHH) reported revenue of £37.4 million for the six months ended 30 June 2026, down 2.9% from the same period a year earlier, as lower UK hospitality and materials sales offset increases in European and U.S. revenue.
Profit before tax and exceptional items declined 19.4% year-on-year to £2.5 million. The company reported improved cash generation during the period, with net cash increasing to £8.5 million.
Churchill China maintained its interim dividend at 7p per share.
The company said sales declines have stabilised and factory performance has improved. It also continued capital expenditure during the period and reduced inventory, which supported cash generation.
Trading was affected by costs associated with European distribution and freight expenses linked to conditions in the Middle East. Churchill China said it nevertheless expects full-year profitability to be in line with its expectations.
Management said the company has gained market share and improved its competitive position despite lower demand across global hospitality markets. The group also continues to face uncertainty associated with geopolitical conditions.
Chief Executive Officer James Roper plans to focus on increasing project business, expanding the customer base and using recent investments in products, employees and manufacturing capabilities to support sales growth.
More about Churchill China
Churchill China is a U.K.-based manufacturer of ceramic products for hospitality markets. The company supplies tableware and related products to customers in the UK and international markets, including Europe and the U.S.
The group operates manufacturing facilities in Stoke-on-Trent and has been investing in automation and production efficiency. Its business includes replacement-driven sales to hospitality customers.
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