AGM Trading Update

RNS Number : 9239U

Churchill China PLC

21 May 2008

 



For Immediate Release

21 May 2008

Churchill China plc

AGM Trading Update 2008

At the Company's Annual General Meeting today, Jonathan Sparey, Chairman, will make the following statement.

'I am pleased to report that trading in the year to date has continued in line with the comments made in our Preliminary Results statement on 1 April 2008.

Demand in our Hospitality markets has returned to more normal levels after the exceptional performance in the first half of 2007 when the division benefited from higher levels of new installation business.  Whilst this lower level of activity will affect profitability in the short term, its impact has been mitigated by healthy replacement sales and close attention to our cost base.

Operating performance in our Retail division has slightly exceeded our expectations and has benefited from improved margins as we have introduced new products and extended our distribution within UK department stores. Products launched in partnership with Sanderson, Disney and Cath Kidston are all performing well.

We continue to invest in a number of new market and geographic sectors where we have identified that revenues can be grown in the short and medium term.  The £6m capital expenditure programme initiated in 2007 to both increase our operating efficiency and expand our capacity in key areas is progressing well and is expected to reduce our cost base in the second half of 2008.

Given the above trading performance and our expectation of increased operational efficiency in the second half of the year, we remain confident that Churchill is capable of achieving its objectives for the full year.'

For further information, please contact:

Churchill China plc	Today on: 020 7466 5000
Andrew Roper/David Taylor	thereafter on: 01782 577566
Buchanan Communications	Tel No: 020 7466 5000
Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich
Brewin Dolphin Investment Banking	Tel No: 0845 270 8610
Andrew Emmott

 

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