Import taxes hit Churchill China retail sales

Churchill China boosted annual profits but said price increases caused by import taxes hit sales in its retail business.The group, which supplies tableware to department stores and makes ceramic mugs, gifts and dinnerware for brands including Jamie Oliver, Cath Kidston and Disney, said 2013 was another good year with pre-tax profits rising 24% to £3.4m in the year to December 31st.Earnings per share improved by 29% to 25.2p and the company increased its final dividend by 0.3p to 9.7p per share, giving a total of 14.6p for the year against 14.2p in 2012.Churchill did particularly well in its hospitality division, which sells products to the hospitality industry through national and regional distributors. Total divisional sales increased by £3.4m to an all-time-high of £32.8m.But operating profits in the group's retail arm fell to £1.2m from £1.4m a year ago amid higher costs on imported ranges due to EU anti-dumping duties, which are designed to prevent Europe being flooded with unfairly subsidised imports.Retail sales fell 14% to £10.4m as the group increased prices to cover the new taxes, resulting in reduced volumes.Chairman Alan McWalter said: "Despite uncertainties with the global economy and unfavourable currency rates, the board expects Churchill will continue to achieve further shareholder value in 2014."Shares in Churchill fell 12.5p or 2.7% to 445p by 14:42 in London.PW