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(Alliance News) - Churchill China PLC on Friday said it expects to meet consensus market expectations for 2021's profit, as increased demand fostered strong revenue growth, particularly in the second half.
The Stoke-On-Trent, England-based ceramic products maker said company-compiled consensus expectations for the annual pretax profit stood at GBP5.6 million, surging from GBP91,000 the year before, but still short of 2019's GBP11.3 million.
Although Churchill China exceeded its earlier revenue estimates, the company has experienced higher production cost levels, with the raising of output to meet demand and a rise in cost inflation.
Revenue has continued to grow, and in the second half, sales rose above pre-pandemic levels. Order levels over the year remained high as supply into the market from competitors have remained constrained.
Looking ahead, Churchill China said that the need to scale production quickly in order to meet demand has exerted additional pressure on its operations, leading to inefficiencies across the company's manufacturing unit.
These are expected to continue in 2022, but gradually improve over the year, allowing Churchill China to achieve substantial growth.
"The current business environment has created both opportunities and challenges, we remain clear that we will continue to make progress against our strategic objectives across 2022," the company stated.
Shares in Churchill China were down 1.3% at 1,750.00 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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