Churchill China (CHH) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 decreased 7.8% to £40.6m compared to H1 2023, reflecting planned stock increases and a lower opening order book.

• Operating profit remained stable at £4.5m, supported by improved factory yields and operational efficiencies.

• Profit after tax rose 3.1% to £3.6m, with EPS up 2.8% to 32.8p.

• Interim dividend increased 4.5% to 11.5p per share, reflecting Board confidence.

• Net cash and deposits declined to £7.8m due to higher inventories and receivables from seasonal working capital needs.

Financial highlights

• Revenue: £40.6m (down 7.8% year-over-year); UK and ROW held up, Europe weaker.

• Operating profit: £4.5m, flat versus restated prior year.

• Profit before tax and exceptional items: £4.8m, up 2.5% year-over-year.

• Profit after tax: £3.6m, up 3.1% year-over-year.

• Net cash and deposits: £7.8m, down from £9.9m in H1 2023 and £13.9m at FY2023.

Outlook and guidance

• Dependent on stronger demand in the final four months to meet full-year expectations.

• Board remains confident in long-term strategy and dividend progression.

• European market activity subdued; UK and ROW expected to benefit from any market recovery.