Shares in Churchill China (AIM:CHH) fell 15% after the ceramics manufacturer warned of weaker-than-expected profitability for 2024.
Despite solid operational performance, the company reported subdued revenue, particularly from independent hospitality clients, and a lack of the usual seasonal boost in orders.
The company now anticipates that profits for the year will fall significantly below market expectations.
Ongoing challenges in key markets, exacerbated by the UK budget and political uncertainty in Europe, are expected to persist into 2025, further affecting profitability.
Churchill China (AIM:CHH) plans to offset rising costs through price adjustments and cost-cutting measures but remains confident in its long-term potential, citing strong finances, differentiated products, and growth opportunities in underdeveloped markets as recovery takes hold.
The stock dropped 125p to 700p.