goldfinger
- 16 Apr 2004 01:43
Ok Ok, yes I know its not sexy, china you ask cups and saucers, weres the money in them?.
Well theres plenty I can tell you and as long as you are prepared to be patient and even see your investment drop a little, Im sure you will be rewarded in the long run.
Churchill is a classic VALUE share, and Im going to prove it to you.
The company manufactures and distributes ceramic tableware and if you look at the last few years it as gone through difficult times. The company as two main divisions, 'dining in' and 'dining out' ceramics.
The problems the company as faced have always been with the dining in division were cheapo imports have hit its sales hard. To counter act this the management have now restructured the division and now outsource manufacturing and are concentrating on higher priced classic English designs.
The dining out division, where they sell pots, crockery etc, to pubs, hotels, cafes etc, as been doing very well and at the last report was making a margin in the region of 20%.
The chairman had this to say at the last results on the 31st of December 2003,
Stephen Roper, Chairman, said:
'2003 was a year of immense challenge to which we successfully responded and met
all our key objectives. Our restructuring programme is now complete and has
brought considerable cost savings to the company. We look forward to a year of
strong growth and the continued success of Alchemy and related ranges.
As you will see from the year end result the company scores very highly on value, and lets not forget we are looking at P/E, Dividend, Assets and Debt.
Here are the financial highlights,
Sales of 49.5m (2002: 50.9m)
• Pre-tax profits before exceptional items of 2.8m (2002: 2.0m)
• Pre-tax profits after exceptional items of 1.2m (2002: 1.8m)
• Adjusted earnings per share of 18.2p (2002: 15.0p)
• Earnings per share of 5.7p (2002: 13.4p)
• Full year dividend increased 11% to 10p per ordinary share
• Strong operating cash generation of 2.9m (2002 : 2.0m) after 0.9m (2002:
0.3m) of exceptional cash costs.
• Restructuring programme complete on time and below budget.
If one goes into the results further with a calculator you will find that the companys P/E is now 11.3, the Divi Yield is at 4.8% (10p)and is above the market average and well above what you would get in an instant savings access bank account, the price to book (tangible book ratio) is 0.86 and the shares are trading at below NAV, plus the company as a positive net cash position and as no debt.
Looking further forward we have Churchills broker forecasting 24.2p EPS placing the shares on a very cheap forward P/E of 8.5.
Things are looking really upbeat for Churchill and I rate them a medium to long term purchase.
Please do your own research, you are responsible for your own buying and selling actions.
cheers Goldfinger
Ruthies Fund
- 16 Apr 2004 17:17
- 3 of 8
GF
I thought it had started to move last week after press comment so jumped in a bit early but am quite happy to sit on it for a while. Nice to see someone else thinks so too!
Ruthie
goldfinger
- 16 Apr 2004 23:19
- 4 of 8
Hi Ruthie, think youve got yourself a bargain here. P/E of just over 11 going down on the foward P/E to 8, wont be long before this one gets noticed.
Its value all the way for me now, just think the momentum stocks have had there day for the time being and gradually easing out of them.
Well done and good luck.
cheers Gf. PS, dont forget I think its this coming week when it goes ex-divi and a nice divi it pays aswell.
goldfinger
- 17 Apr 2004 01:15
- 5 of 8
From the Motley Fool...............
Churchill China (LSE: CHH)
One of the world's leading manufacturers and distributors of high quality ceramic tableware. Yet to recover fully from a calamitous drop in profits and share price in 1997/8, which gave new meaning to the term 'mug punter stock'. However, signs of life have been emerging from Churchill of late: the latest figures revealed positive sales news and a substantial company restructure. Brokers believe the revival should provide earnings growth of 11% this year and 36% next, giving a 2004 P/E of 8. Also worth noting is Churchill's net cash and historic price to book ratio of 0.7.
WHAT THE BROKERS SAY
Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
cheers GF.
goldfinger
- 14 May 2004 12:02
- 6 of 8
I did warn you lol. Superb Value play. Well worth buying into in these choppy markets.
Churchill China PLC
14 May 2004
For Immediate Release 14 May 2004
CHURCHILL CHINA plc
AGM Trading Statement
At the Company's Annual General Meeting later today, Stephen Roper, Chairman,
will make the following statement.
'At the time of our Preliminary Results in March I expressed confidence in the
future prospects of the Group. This confidence was based on our expectation that
we would grow our sales to hotel and hospitality customers, increase our focus
on key volume market retail chains and realise the benefits of the restructuring
we completed at the end of 2003. I am pleased to report that in the year to date
we have continued to make progress in all these areas. The sale of products into
hotel and hospitality markets is well ahead of the corresponding period in 2003
and whilst overall sales to retail customers have fallen following the reduction
in capacity implemented in 2003, sales of sourced products to target accounts
are also significantly ahead of last year.
At this early stage of the year, the Board is confident that the Group will meet
its targets. We look forward to reporting further progress against these
objectives at our Interim Results announcement in August.'
For further information, please contact:
Stephen Roper 01782 577566
David Taylor
Churchill China plc
Tim Anderson/Lisa Baderoon/Rebecca Dietrich 020 7466 5000
Buchanan Communications
This information is provided by RNS
The company news service from the London Stock Exchange
cheers GF.
goldfinger
- 05 Jul 2004 10:35
- 7 of 8
Churchill China PLC
05 July 2004
CHURCHILL CHINA PLC
HOLDING IN COMPANY
In accordance with sections 198 to 204 of the Companies Act 1985, as amended,
HSBC Guyerzeller, on Friday 2 July 2004 notified the Company that Landfinance
Limited, a British Virgin Islands company now has an interest in 635,000 shares
representing 5.9 per cent of the issued share capital.
This information is provided by RNS
The company news service from the London Stock Exchange MLTMMIMMPI
cheers GF
dave leach
- 11 May 2007 14:21
- 8 of 8
just appeared on my breakout list and have added a few more, spread 288-293 but can sell above mid as i've just tried dummy trades with Barclays online. Bit of research suggests this is a little gem like LTHM again full of cash. Chart looks a belter.