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(Sharecast News) - Churchill China reported a strong financial performance and revenue growth in its final results for 2022 on Thursday, with operating profit before exceptional items rising 49% to £9.2m.
The AIM-traded company said profit before exceptional items and tax also increased, by 52% to £9.1m, while reported profit after exceptional items before tax was ahead 61% at £9.6m.
Adjusted basic earnings per share surged 77% to 66.9p, while basic earnings per share increased to 71.7p.
The board declared a final dividend of 21p per share, up 21% from the prior year, making for a total distribution for 2022 of 31.5p, up 76%.
Churchill said its total revenues increased to £82.5m, up 36% from the previous year, with hospitality revenue rising 40%, and materials revenue increasing 37%.
The company attributed the revenue growth to the execution of its strategy, and solid demand from distributors and end-users.
Despite the positive results, cash generated from operations decreased to £4.9m from £10.6m year-on-year, due to a "substantial" investment in inventory to optimise service levels and efficiency.
However, the company maintained a strong net cash and deposits position of £14.7m at the end of the year.
The firm also reported that manufacturing efficiency was improving, adding that it was continuing to invest in added-value product capacity, process automation, and energy efficiency.
It had also significantly developed its board succession plan.
The company said it was optimistic looking ahead, reporting that 2023 started well with first quarter targets met, while the investment programme was maintained.
"Churchill is a resilient, adaptable business that benefits from a clear focus on delivering outstanding performance products, value and service to its customers and prospers as a result," said chairman Alan McWalter.
"We have a clear strategy and a long term approach to business which underpins our confidence in our future prospects."
At 1326 BST, shares in Churchill China were up 2.82% at 1,275p.
Reporting by Josh White for Sharecast.com.