Churchill China (CHH) investor relations material

Executive summary

• Revenue declined 2.6% year-over-year to £76.3m, reflecting challenging hospitality markets and reduced new installations, but replacement business remained strong.

• Profit before tax fell to £6.0m from £8.5m, with return on sales at 7.9% versus 10.9% last year.

• Robust cash generation of £0.7m, aided by a £2.0m inventory reduction and disciplined working capital management.

• Final dividend reduced to 14.0p, with a total dividend of 21.0p for the year, reflecting a prudent approach amid market headwinds.

• Continued capital investment in automation, efficiency, and ESG initiatives, positioning the business for future growth.

Financial highlights

• Revenue: £76.3m (2024: £78.3m), down 2.6% year-over-year.

• Profit before tax: £6.0m (2024: £8.5m).

• EBITDA: £9.4m (2024: £11.7m).

• EPS: 39.7p (2024: 57.9p).

• Cash and cash equivalents: £10.8m (2024: £10.1m).

• Operating profit: £5.6m (2024: £8.0m).

• Dividend: 21.0p per share (2024: 38.0p).

Outlook and guidance

• Entering 2026 with improved factory efficiency, controlled costs, and a stronger UK and European pipeline.

• Confident in long-term resilience and ability to deliver sustainable value.

• Market recovery expected, with growth focus on Continental Europe and new product launches.

• ERP system implementation planned for 2027 to drive further efficiency and support AI adoption.