Churchill China PLC reported full-year sales of approximately A376 million for 2025 and said profit before tax is expected to be in line with market expectations of A36 million. Management confirmed trading in the second half of the financial year met expectations.
European activity in the latter half of the year outpaced the same period in 2024, with the region finishing broadly level with 2024 on an overall basis. The company highlighted that its sales and marketing initiatives in Europe are generating positive results.
In the UK, Churchill remains the market leader, although it said end users faced challenging macroeconomic conditions throughout the year. The business recorded an encouraging pre-Christmas period as pub groups invested ahead of the holiday season, and the order pipeline at year-end was above the prior year level.
U.S. operations ended the year ahead of 2024 despite the dollar weakening during the period. In contrast, the Rest of the World segment was softer, with a number of large projects deferred into future periods, reducing near-term revenues in that geography.
The materials division performed well despite lower volumes across the sector. Churchill cautioned, however, that a significant UK customer has chosen to source materials directly, a decision that will reduce future materials revenue. The company said it expects to take mitigating actions to limit the impact on profitability.
Balance-sheet metrics improved during the year, with a closing cash balance of A310.8 million, higher than the opening cash position.
Operational context
- Second-half trading met company expectations.
- European sales gained versus the prior-year second half; year-end European performance was broadly in line with 2024.
- U.S. activity finished ahead of the prior year despite currency headwinds.
Financial highlights
- Reported turnover for 2025: approximately A376 million.
- Profit before tax expected to be around A36 million, aligned with market expectations.
- Year-end cash balance: A310.8 million, up from the opening position.
The company statement points to a mix of geographic outcomes and business-line dynamics: solid domestic leadership, improving European trade driven by sales and marketing efforts, resilience in the U.S. despite currency movement, and project timing pressures in other global markets. Management also flagged a specific customer decision in the materials side that will reduce future revenue but said actions are planned to mitigate profit impact.