Acquisition of additional equity in Furlong Mills

RNS Number : 0116R

Churchill China PLC

25 February 2019

 

CHURCHILL CHINA plc

("Churchill China" or the "Company" or the "Group")

Acquisition of additional equity in Furlong Mills

Churchill China has acquired further ordinary shares in Furlong Mills Limited ('Furlong Mills') from Dudson Holdings Limited, for a total consideration of £454,000, funded from the Group's existing cash resources. These shares constitute 9.5% of the issued share capital of Furlong Mills and, together with Churchill China's holding immediately prior to the transaction of 46.1%, give the Company a resultant 55.6% majority shareholding. Furlong Mills has previously been accounted for as an associated company and will be consolidated into the Group's accounts going forward.

Furlong Mills is a ceramic materials manufacturer based in Stoke on Trent, providing processed clay body and glazes to the Group and to other ceramic manufacturers. The provision of Furlong's products is a key part of Churchill's supply chain.

Churchill's strategy continues to be to offer innovative, high performance and technically differentiated ceramic products to hospitality markets worldwide. Our recent performance has been driven by investment in the development and sale of well designed added value products. The above acquisition both improves the Group's ability to develop materials technology for use in these products and secures an important part of our supply base.

In the last audited accounts of Furlong Mills (to 31 December 2017), revenue was £8.6m, which included £3.2m of sales to Churchill China, and profit before tax was £504,000. Net assets at 31 December 2017 were £4,856,000.

For further information, please contact:

Churchill China plc	Tel: [phone]
David O'Connor / David Taylor
Buchanan	Tel: [phone]
Mark Court / Sophie Wills / Gemma Mostyn-Owen
N+1 Singer	Tel: [phone]
Richard Lindley / James White / Rachel Hayes

 

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