Churchill China value collapses to pounds 10 million
Tuesday 10 November 1998
The trend continued in the fourth quarter, the recovery predicted six months ago has failed to materialise and profits for the calendar year will be significantly below market forecasts, which had already been halved to just pounds 3m.
The company, which is based in Stoke-on-Trent, also warned that the final dividend may be cut and the shares promptly slumped from 117.5p to 87.5p. They were trading at almost 500p a year ago, since when the company has lost more than 80 per cent of its market value.
The company, which was founded in 1795, is now valued at less than pounds 10m, although it has virtually no gearing and net assets of pounds 25m, according to the chief executive Stephen Roper.
Sales and especially profits have been successively hit by the strength of sterling, and the Asia crisis, which wiped out sales in the Far East. Technical problems with new automatic platemaking machinery also affected the production quality.
The company spent pounds 20m over the last four years on automated plate-making, moulding and decorating machinery in an effort to cut costs and take production more up-market.
The technical problems are now seven eighths solved according to Mr Roper; new line management has been brought in and costs are now reducing, but improving quality controls and customer service alone cost pounds 750,000 in the second half of the year.
The strong pound continues to affect export markets, which take 35 per cent of hotelware and 65 per cent of tableware sales, and frustrated exports are depressing prices in the UK market.
Churchill intends to try and hold on to export sales in the hope of returning to profit when sterling weakens, but capital expenditure will be slashed from pounds 5m to pounds 1.5m-2m next year.
- 1 Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
- 2 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 3 People who sleep more than eight hours are more likely to have a stroke, research shows
- 4 Kanye West climbs on table at Nando's to crowd chants of 'Yeezus' before Brit Awards 2015 performance of 'All Day'
- 5 Muslim women's rights campaigner writes heartfelt letter to girls thinking of joining Isis
Ukraine crisis: Putin will cut gas to Europe unless Russia is paid by the end of the week
Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
Isis burns thousands of books and rare manuscripts from Mosul's libraries
Missing Mexico teachers: Protests organised by union quashed in violent police crackdown
Mohammed Emwazi: Nine things we now know about man named as Isis militant 'Jihadi John'
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...