AGM Trading Statement

Churchill China PLC
18 May 2005


For Immediate Release                                              18th May 2005

                              Churchill China plc

                             AGM Trading Statement

At the Company's Annual General Meeting, Stephen Roper, Chairman, will make the
following statement.

'In my Chairman's Statement at the time of our Preliminary Results in March, I
indicated that sales to hospitality customers were expected to meet the high
level achieved in the first half of 2004 when we benefited from an unusually
high number of new installations in restaurants and hotels. Whilst sales growth
is marginally behind our expectations, I am pleased to report that in the four
months to the end of April we have matched last year's record sales figure and
continue to secure new business both in the UK and our target markets overseas.

'Retail sales in the same period were lower than expected reflecting the slow
down in demand from our customers in both the UK and US, although a further
increase in sourced sales was achieved.

'Margin levels have been affected by a number of cost increases, particularly in
relation to gas, a major cost for the Group. These increases have not yet been
offset by efficiency gains. The cost saving initiatives established last year
continue to progress. The positive impact of the commissioning of our new
warehouse and from the consolidation of hospitality dish production into our
Marlborough and Whieldon Road sites will, as anticipated, benefit the second
half of the financial year. These savings will however be partially eroded by
further gas price increases expected in the fourth quarter of the current year.

'As a result of the above the Board believes that profit before tax in the first
half of the year will be significantly below that achieved in the corresponding
period in 2004. Our full year performance will, however, benefit from the normal
seasonal improvement in trading and will be underpinned by increased cost
efficiencies, although the shortfall in profit in the first six months is
unlikely to be recovered in the second half year. Despite the disappointing
level of current trading the Board envisages that on the basis of its revised
expectations are achieved, the level of dividend payments for the year will be
maintained.'



For further information, please contact:
 Stephen Roper, Chairman or David Taylor, Finance Director          01782 577566
 Churchill China plc

 Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich
 Buchanan Communications Limited                           Tel No: 020 7466 5000


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