Pre-tax profits at Churchill China (CHH) were ahead of analysts' forecasts for 2014, increasing by 28 per cent to £4.3m. In fact, it is hard to find fault with the ceramics manufacturer's latest numbers, which showed stronger operating cash flows, cash deposits and capital investment. Shareholders have been rewarded with a 10 per cent dividend increase.
Export revenues were up 16 per cent and there was good growth in Europe, which the company has targeted for expansion. One potential headwind this year is likely to come from a falling euro, which finance director David Taylor expects to chip away at margins and take £300,000-£400,000 off 2015 profits.
Broker N+1 Singer has marginally upgraded full-year adjusted pre-tax profit forecasts to £4.8m, and adjusted earnings per share to 34.3p (2014: £4.4m/31.8p).
