(Alliance News) - Churchill China PLC on Wednesday said the company improved profitability in 2023, despite its core customers in the hospitality market struggling with rising costs.
The Stoke-on-Trent, England-based ceramic products manufacturer reported a 12% increase in pretax profit to GBP10.8 million from GBP9.6 million the year before.
The company's revenue was largely unchanged, falling 0.2% to GBP82.3 from GBP82.5.
A final dividend of 25.0 pence per share was declared, representing a 19% increase from 2022's final payout of 21.0p. This brings Churchill China's full-year dividend to 36.0 pence, up from 31.5p.
Despite largely unchanged revenues and challenging macroeconomic conditions, Churchill China said it successfully improved productivity and the efficiency of its operations through a focus on factory performance.
Looking ahead, the company aims to improve profitability, though it expects softer demand to persist into the first half of the year.
Chair Robin Williams added: "We are confident that the continuous improvement in our product range and market position, backed up by our ongoing investment programme, has placed the company in a strong position to take advantage of a market recovering from current weakness, which we expect to see in the second half of 2024."
Churchill China shares were up 12% to 1,132.00 pence each in London on Wednesday morning.
By Elijah Dale, Alliance News reporter
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Churchill China (CHH)