"The grand tour I took across England at the end of May is becoming a distant memory, but before I file away my notes from the day, some observations about LSE:PMP:Portmeirion, a company that, judging by its febrile share price, is giving ..."
"What do we do about LSE:CHH:Churchill China. The company has ramped up return on capital every year since 2010, putting it in a special category of growth stock. Not only has Churchill made more money, it's got better at making more money.This ..."
"Rarely has LSE:CHH:Churchill China had it so good. Certainly shareholders will never have felt richer in all of the Stoke-on-Trent potter's 220-year history.Shares in the tableware manufacturer have just rocketed as much as 14% to 850p, an ..."
"Like Portmeirion, Churchill China has emerged as one of UK manufacturing's more dependable Â businesses. Unlike Portmeirion, the manufacture of tableware is focussed on dining out.Last week, Share Sleuth portfolio candidate LSE:CHH:Churchill China ..."
Churchill China (CHH) reported a solid half-year performance, led by robust growth at the group's main hospitality division - which sells crockery to hotels and restaurants. Moreover, Churchill's operating margin rose 1.5 percentage points to 5.8 per cent, helped by a better sales mix, increased manufacturing volumes and a more favourable sterling/euro exchange rate.
The hospitality business boosted operating profit by 27 per cent in the period to £2.01m, even though sales rose by a more modest 8 per cent up at £15m. Spain was a star market with sales there having risen 18 per cent thanks in part to some local rivals going bust. Churchill is now benefiting from having targeted Europe with new products that are more appropriate for that market - such as light-weight crockery, and more varied bowl shapes.
In contrast, however, the retail division continued to report falling sales and operating profit here fell 35 per cent to £314,000. Performance was significantly affected by November's introduction of the EU anti-dumping levy on imported Chinese crockery - that meant a £100,000 hit. Management expects sales here to remain subdued for the remainder of the year.
Broker N+1 Singer expects full-year pre-tax profit of £3.1m, giving EPS of 21.9p (2012: £3.1m/19.6p).
CHURCHILL CHINA (CHH)
ORD PRICE: 380p MARKET VALUE: £41.8m
TOUCH: 370-380p 12-MONTH HIGH: 380p LOW: 302.5p
DIVIDEND YIELD: 3.8% PE RATIO: 17
NET ASSET VALUE: 239p NET CASH: £4.8m
Half-year to 30 Jun Turnover (£m) Pre-tax profit (£000) Earnings per share (p) Dividend per share (p)
2012 19.2 686 4.80 4.80
2013 19.7 1,067 7.60 4.90
% change +3 +56 +58 +2
Ex-div: 4 Sep
Payment: 3 Oct
There's a reasonable dividend yield but - despite impressive progress at the hospitality side - profits are still expected to be flat this year. Moreover, the shares have jumped over 20 per cent since the start of the year and now trade on a hardly cheap 17 times forecast earnings. That's well up with events. Hold.
Last IC view: Hold, 335p, 26 March 2013
I see that with only 2 trades, 1 buy, 1 sell the price is up 4%. The bid / offer spread seems huge but I don't know if this is supposed to put people off buying, selling or both.
Does anyone have a view on CHH as a recovery stock when the economy picks up?
I Have still not found out if the large trades where sell or buys but the intra day chart seems to show an upswing in the price when the big trades go through. Looks to me like they could therefore be buys and if so someone is putting large wedges into this stock at this low price with that mutch money at stake surely they know what they are doing?
If only somone could confirm the trades.
If anyone has level 2 does this show. if so could you tell me?
Maybe, but this is the second collapse in less than 6 months, so despite some of the fundamental data looking good, it still does not perform well. The company has never really performed strongly apart from circa 5 years or so ago, so would see this one as a risky bet, even despite what you say. However, current holders may benefit from a rebound, although I have a feeling that it is unlikely to be sustained in the short to mid term.
Well - Fancy meeting you here!
Had this company on my danger list for last couple of weeks as price fell.
Couldn't agree more. These guys took their options and sold instead of holding. Got to be a sell signal.
Shame as I liked the Company profile.
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