Churchill China PLC FCA Results Moratorium and COVID-19 Update (3973H)
March 24 2020 - 8:41AM
UK Regulatory
TIDMCHH
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: GBP67.5m (2018: GBP57.5m)
Profit before income tax: GBP11.3m, including exceptional
credits of GBP0.1m (2018: GBP8.9m after exceptional costs of
GBP0.5m).
Net cash and deposits: (excluding lease liabilities) GBP15.6m
(2018: GBP17.4m).
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: 01782 577566
David O'Connor / David Taylor
Buchanan Tel: 020 7466 5000
Mark Court / Charlotte Slater
Investec Bank plc
David Flin / Alex Wright / David Anderson Tel: 020 7597 5970
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END
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