Churchill China (AIM:CHH), the AIM-listed maker of performance ceramics for hospitality markets, reported external sales of £37.4m for the six months to 30 June, down from £38.5m a year earlier.
The company said the figure represents a resilient performance against subdued demand in several hospitality markets, with sales broadly flat year on year.
Cash balances rose to £8.8m at the period end, up from £5.6m a year earlier, which Churchill China attributed to operational efficiency and disciplined working capital management.
Added-value hospitality product sales, including pressure cast lines, showed stability during the period, which the company linked to new business wins and market share gains.
Manufacturing yields improved in the first half, partly offsetting cost pressures in distribution, and a capital investment programme targeting productivity and automation continues to progress, with a new flat plate making machine already showing gains in output and waste reduction.
Energy requirements are largely hedged for the year, limiting exposure to short-term price swings.
"Following a difficult market environment in 2025, we are reassured by the stability demonstrated across our key markets during the first half of 2026," said David O'Connor, chief executive.
The board flagged the Middle East situation as an ongoing risk to performance, while sales visibility remains heading into the final quarter.
Churchill China will publish its half-year results in early September.
News Intelligence what this means for the company
Churchill China reported first-half sales of £37.4m, down 3% year-on-year but described as resilient and broadly flat given subdued hospitality demand. The company offset revenue pressure with cash generation—balances rose 57% to £8.8m from £5.6m a year earlier—and operational gains including improved manufacturing yields and new business wins in added-value products, though distribution costs remain pressured and Middle East risk clouds visibility into the final quarter.
The stabilisation in sales and material cash build suggest operational discipline and cost control are working, but the 3% revenue decline and management's own flagging of subdued market conditions and geopolitical risk mean the company is treading water rather than growing; the investment case hinges on whether the productivity investments and market share gains can drive growth once hospitality demand recovers.
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