Bosses at pottery firm Churchill China say the business is ‘well placed to recover strongly’ when economic conditions improve.
The Stoke-on-Trent company has revealed that the last quarter of 2020 was affected by the increasing restrictions around covid-19, but that it ‘traded profitably’ in the second half of the year.
Over the last 12 months, the Sandyford business has invested in sales and product development which it says has helped to improve its position in key markets.
Now the company is looking forward to improved trading conditions in 2021 despite the ongoing pandemic and Brexit.
In a trading update to the stock exchange, the company said: “The business has continued to address the impact of covid on our hospitality markets and operations. Following the update provided in August 2020, we have maintained good progress against our revised plans.
“Although the fourth quarter was affected by increasing covid-related restrictions in all our markets, Churchill traded profitably in the second half of the year.
“We believe we have improved our position in key markets through further investment in sales and new product development. Our financial position remains robust and whilst cash and deposit levels have reduced slightly from the half year, as anticipated, we retain comfortable levels of liquidity. This position will support our forward performance.
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“We expect improved trading conditions in 2021, although the first quarter of the year will be affected by ongoing government restrictions across our markets. Our preparations for Brexit are in place and we welcome the conclusion of a trade agreement between the United Kingdom and the European Union. Our internal targets for the next year reflect our focus on the longer term and on supporting the continued development of the Churchill business.
“Churchill is a resilient business with an ability to respond quickly to changes in our operating environment. We believe that we remain well placed to recover strongly when market conditions improve.”