Churchill China (CHH) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was £37.4m, down 2.9% year-over-year, with UK sales declining but European and US sales slightly ahead.

• Profit before tax and exceptional items fell 19.4% to £2.5m, mainly due to increased distribution costs and lower UK sales.

• Profit after tax decreased 26.1% to £1.7m, with basic EPS at 15.3p, down 27.1%.

• Interim dividend maintained at 7.0p per share; net cash and deposits rose 51.8% to £8.5m.

• Factory performance improved through automation and capital projects, with further investment planned.

Financial highlights

• Revenue: £37.4m (H1 2025: £38.5m), -2.9% year-over-year.

• Operating profit before exceptionals: £2.3m (H1 2025: £2.8m), -17.9%.

• Profit before tax and exceptionals: £2.5m (H1 2025: £3.1m), -19.4%.

• Profit after tax: £1.7m (H1 2025: £2.3m), -26.1%.

• Net cash from operations: £0.8m (H1 2025: -£0.2m); net cash and deposits: £8.5m (H1 2025: £5.6m).

Outlook and guidance

• Full year profitability expected to be in line with expectations, dependent on Q4 trading.

• Profitability improved in Q2; operational issues from H2 2025 resolved, supporting margin confidence for H2.

• Market conditions remain challenging, but the company is well positioned for future growth.