Written 2 Nov 2026, 17:11
Churchill China makes tough ceramic plates, bowls and cups for hotels, restaurants and pub chains, and sells them in Europe, the UK, the US and beyond. It earned £10.8m before tax in 2023, then lost ground for two years as hospitality markets shrank and costs rose: 2025 profit before tax was £6.0m and the dividend was cut. The first half of 2026 showed sales steadying, but profit was still lower and a new chief executive has just taken over.
Plates for pubs, hotels and restaurants
Churchill is a UK manufacturer of performance tableware, sold mainly to hospitality. It uses a hardwearing vitreous (glass-like) ceramic body. Revenue was £76.3m in 2025. In the first half of 2026 Europe brought in £16.3m, UK hospitality £11.8m, the US £4.3m and the rest of the world £2.7m.
A large share of sales comes from replacement orders. Venues re-order broken or worn pieces, which is steadier than winning new fit-outs. The company holds large stocks so it can ship from the shelf. It reported 97% same or next day delivery from stock in 2024. Higher-priced 'added value' lines, made by pressure casting and inkjet decoration, were 45% of volumes in early 2025.
A smaller business, Furlong Mills, supplies body, glaze and colour to the rest of the Stoke-on-Trent pottery industry. Its external sales were £2.5m in the first half of 2026. 13 Apr 2026 7 Sep 2026 3 Sep 2025 9 Apr 2025
2023: Yields up, stock built, shares peak
In 2023 revenue was flat but profit before tax rose 12% to £10.8m. Management credited better factory yields, meaning less waste, with inventory up 38% to £21.9m. A total dividend of 36p was paid for the year. The shares ended December 2023 at 1,450p. 10 Apr 2024 17 Jan 2024
2024: Markets shrink, costs rise, first warning
Hospitality customers faced higher labour, energy and food costs, and fewer new installations and replacements followed. In 2024 revenue fell 4.9% to £78.3m and profit before tax to £8.5m. The October 2024 UK Budget added to employment costs. On 20 November 2024 the company warned that profit would be materially below market expectations for 2024 and 2025. The shares fell from 1,150p in August to 712p at the end of November.
The 2024 final dividend was still raised, to 26.5p, for a 38p total. 9 Apr 2025 20 Nov 2024 5 Sep 2024
2025: Second warning, lower output, dividend cut
In July 2025 a second warning said demand was weaker than expected, with Europe and the rest of the world behind. In Europe, buyers traded down from dearer pressure-cast shapes to cheaper round ones. The April 2025 rise in employer National Insurance and the minimum wage added about £1.5m a year to costs. The company also cut production below sales to reduce stock, which left factory overheads spread over fewer pieces. The shares dropped from 665p in June to 420p in July.
Profit before tax for 2025 was £6.0m, and stock fell £2.0m. The board cut the final dividend to 14p, making 21p for the year, down from 38p. 17 Jul 2025 3 Sep 2025 13 Apr 2026
“Given the current challenging trading backdrop, the Board has taken the difficult but prudent decision to reduce the dividend.” 13 Apr 2026
What went wrong: shrinking customers and fixed costs
The main cause was outside Churchill's control. Independent restaurants and pub groups were squeezed, so new projects slowed and the most profitable product mix suffered. The second cause was that lower volumes and higher wages hit a cost base that is partly fixed. In 2026 the European distribution centre's rent stepped up after a co-tenant left, and Middle East freight costs rose.
The company's response was to improve what it controls, mainly factory yield and automation. Those gains were real, but they did not offset falling volumes in 2024 or 2025. 9 Apr 2025 3 Sep 2025 7 Sep 2026
New chief executive, cost work and a smaller dividend
James Roper became chief executive in August 2026, succeeding David O'Connor after 14 years. He holds about 9% of the shares and says he continues his family's long association with the company. The finance director, Michael Cunningham, has resigned but stays until early 2027. A search for a successor is under way. PwC was not retained as auditor, and Forvis Mazars was appointed in June 2026. Panmure Liberum became sole broker and nominated adviser in September 2026.
On operations, a new plate-making machine and an automated packing line have cut waste and labour. About 200 staff are trained in Six Sigma, a waste-reduction method. In April 2024 the company planned capital spending of £4m-£5m a year. The 2026 plan is £3.2m, mostly on productivity. It is also reviewing non-ceramic products to sell through its sales network, by acquisition or exclusive distribution, and has given no detail. 26 Aug 2026 21 Aug 2026 17 Jun 2026 7 Sep 2026 10 Apr 2024 13 Apr 2026
Sales steady, profit still lower
In the first half of 2026 revenue was £37.4m, down 2.9%. Europe and the US were slightly ahead, while UK hospitality fell 3.3% and materials sales fell 16.5%. Operating profit before exceptional items fell 18% to £2.3m, and the interim dividend stayed at 7p. Management says profit improved in the second quarter.
Net cash and deposits were £8.5m, against £5.6m a year earlier but below £10.8m at the end of 2025. A new ERP system (business software) will cost about £1.6m to replace software that loses support in March 2028. The latest close, in October 2026, was 365p. 7 Sep 2026 31 Jul 2026 13 Apr 2026
Fourth quarter decides the year
Management says it expects full-year profit in line with its expectations, but that depends on revenue in the fourth quarter. Carriage surcharges, better factory yields and 84% of 2026 energy bought forward are meant to help margins in the second half. A second flat-making machine was ordered in August. Roper's stated priority is faster sales growth and more market share.
Open questions are whether European gains continue and whether UK hospitality recovers. The dividend aim is still to rise, but the board says capital allocation decisions are under consideration. Visibility beyond the near term is limited. Details of the £120m UK government support for ceramics are not yet known. 7 Sep 2026 26 Aug 2026
“As we move towards Q4, our most significant trading period, we continue to expect full year profitability to be in line with expectations.” 7 Sep 2026
Written by AI from Churchill China's own announcements since Oct 2023 · every paragraph links to its sources