FCA Results Moratorium and COVID-19 Update

RNS Number : 3973H

Churchill China PLC

24 March 2020

 

For immediate release

24 March 2020

CHURCHILL CHINA plc

("Churchill China" or the "Company")

FCA Results Moratorium and COVID-19 update

Churchill China plc (AIM: CHH), the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, makes the following announcement.

The Financial Conduct Authority (FCA) and Financial Reporting Council (FRC) have issued guidance asking public companies to delay the release of Preliminary Results for at least two weeks. Accordingly Churchill China will delay the release of its Preliminary Results for the year ended 31 December 2019, originally scheduled on Thursday 26 March 2020. The Company will await further guidance from the FCA with regard to the timing of the publication of its Preliminary Results.

In advance of the issue of the Company's audited Preliminary Results, we today release the following unaudited financial information for the year to 31 December 2019, which confirms a strong performance during the year.

Revenue: £67.5m (2018: £57.5m)

Profit before income tax: £11.3m, including exceptional credits of £0.1m (2018: £8.9m after exceptional costs of £0.5m).

Net cash and deposits: (excluding lease liabilities) £15.6m (2018: £17.4m).

COVID-19

The hospitality sector we serve has already been affected by COVID-19 and the level of impact on Churchill's operations remains uncertain. Management has acted quickly to develop and implement plans aimed at preserving the safety of our employees and the long term health of the business. These contingency plans have focussed on significantly reducing the cash cost of our operations in the short term.

Substantially the largest part of Churchill's cost base is represented by direct materials, manpower and energy costs. Recent announcements in relation to Government support for employment will facilitate this cost reduction programme and we have taken the decision to temporarily suspend manufacturing operations until the business environment is clearer. This will significantly reduce our cost of operation without impacting customer service levels which will be fulfilled from existing inventory.

The Company has a positive cash position and a strong balance sheet. We retain the ability to act quickly to actively manage cash outflows in the short and medium term.

Owing to the evolving COVID-19 position and consequent lack of visibility, no formal guidance will be given on future financial performance until further notice.

For further information, please contact:

Churchill China plc	Tel: [phone]
David O'Connor / David Taylor
Buchanan	Tel: [phone]
Mark Court / Charlotte Slater
Investec Bank plc
David Flin / Alex Wright / David Anderson	Tel: [phone]

 

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