<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
     xmlns:media="http://search.yahoo.com/mrss/"
     xmlns:content="http://purl.org/rss/1.0/modules/content/"
     xmlns:wfw="http://wellformedweb.org/CommentAPI/"
     xmlns:dc="http://purl.org/dc/elements/1.1/"
     xmlns:atom="http://www.w3.org/2005/Atom"
     xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
     xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
    xmlns:company="http:/purl.org/rss/1.0/modules/company" xmlns:fool="http://fool.com/rss/extensions"     >

    <channel>
        <title>Churchill China News | The Twelfth Magpie</title>
        <atom:link href="https://www.twelfthmagpie.com/tag/churchill-china/feed/" rel="self" type="application/rss+xml" />
        <link>https://www.twelfthmagpie.com/tag/churchill-china/</link>
        <description>Share Tips, Investing and Stock Market News</description>
        <lastBuildDate>Wed, 01 Jul 2026 07:15:00 +0000</lastBuildDate>
        <language>en-GB</language>
                <sy:updatePeriod>hourly</sy:updatePeriod>
                <sy:updateFrequency>1</sy:updateFrequency>
        <generator>https://wordpress.org/?v=7.0</generator>

<image>
	<url>https://www.twelfthmagpie.com/wp-content/uploads/2026/05/cropped-Magpie_Icon_Black_RGB-1-32x32.png</url>
	<title>Churchill China News | The Twelfth Magpie</title>
	<link>https://www.twelfthmagpie.com/tag/churchill-china/</link>
	<width>32</width>
	<height>32</height>
</image> 
            <item>
                                <title>3 of the best stocks to buy on &#8216;Freedom Day&#8217;</title>
                <link>https://www.twelfthmagpie.com/2021/07/18/3-of-the-best-stocks-to-buy-on-freedom-day/</link>
                                <pubDate>Sun, 18 Jul 2021 11:14:13 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[Diageo]]></category>
		<category><![CDATA[FTSE 100]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=231111</guid>
                                    <description><![CDATA[<p>As Boris Johnson's road-map ends, Paul Summers picks out three of what he considers to be the best stocks for him to buy when the market opens on Monday.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/07/18/3-of-the-best-stocks-to-buy-on-freedom-day/">3 of the best stocks to buy on &#8216;Freedom Day&#8217;</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>As you probably know, tomorrow marks &#8216;Freedom Day&#8217; &#8212; the lifting of all Covid-19 restrictions in England. Despite concerns over rebounding Covid-19 infection levels and rising <a href="https://www.bbc.co.uk/news/uk-57858864">hospital admissions</a>, Boris Johnson has maintained that this step will be irreversible. With this in mind, here are what I consider to be three of the best stocks I could buy when the market opens on Monday.</p>
<h2>Quality&#8230; at a price</h2>
<p>No more table service. No more sitting outside (unless you want to!). The full re-opening of bars, pubs and nightclubs should play into the hands of <strong>FTSE 100</strong> drinks giants <strong>Diageo</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-dge/">LSE: DGE</a>). As such, I&#8217;d be happy to buy its shares on Monday.</p>
<p>For me however, Diageo&#8217;s appeal goes beyond the Covid recovery. I think it&#8217;s a great defensive stock to hold at the heart of a portfolio.</p>
<p>While trading will never be completely consistent year-to-year, its portfolio of premium brands and clout within the sector makes earnings (and dividend hikes) far more predictable than at other companies. High returns on capital and pricing power also make this a <a href="https://www.twelfthmagpie.com/investing/2021/07/08/3-ways-to-beat-inflation-with-stocks/">good hedge against inflation</a>, in my opinion.</p>
<p>Sure, the valuation &#8212; a P/E of 27, as I type &#8212; is punchy. There&#8217;s a risk investors will prioritise value stocks in the months ahead, meaning some recent share price gains may be given up.</p>
<p>As a long-term investor, that wouldn&#8217;t bother me. As blue-chip companies go, I reckon Diageo is one of the best stocks to buy.</p>
<h2>Summer holiday winner</h2>
<p>Another stock that should benefit from the lifting of restrictions is <strong>Hollywood Bowl</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bowl/">LSE: BOWL</a>). This might seem an odd choice as sites have been open for some time now. BOWL&#8217;s shares have also climbed 65% in value since this time last year.</p>
<p>However, I suspect the firm could benefit even more from the ongoing controversy and confusion surrounding overseas travel. Right now, booking a holiday abroad feels risky in both a health-related and financial sense.</p>
<p>Having probably exhausted streaming services over the multiple lockdowns, parents will also be looking for relatively cheap ways to entertain children over the school holidays. Step forward Hollywood Bowl.</p>
<p>Based on the numbers available to me, BOWL trades on a fairly attractive 17 times predicted FY22 earnings. Sure, nothing is nailed on and the company certainly carries more debt than it used to. Nevertheless, the above points and the ordinarily decent profit margins make the stock a ‘buy’ for me. </p>
<h2>Time to dine</h2>
<p>A final stock I&#8217;d consider buying on Freedom Day &#8212; and one I already own &#8212; is small-cap <strong>Churchill China</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>). Like Diageo, the tabletop manufacturer could/should see another rebound in trading as more people feel confident to return to restaurants and attend events. </p>
<p>This month&#8217;s update was encouraging. Revenue in both May and June was back at 2019 levels. News that an interim dividend will be paid also suggests management is confident in the outlook. </p>
<p>Having also increased by 65% in 12 months, Churchill&#8217;s share price now looks up to date with events. Moreover, the company&#8217;s small-cap status means the valuation could prove more volatile than your typical blue-chip if Covid takes hold again. As a result, I&#8217;m not sure I&#8217;d throw excessive amounts of cash at the firm now.</p>
<p>Notwithstanding this, I’d consider a small top-up, bearing in mind the company&#8217;s order book may receive another boost as vaccination programmes overseas pick up speed. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/07/18/3-of-the-best-stocks-to-buy-on-freedom-day/">3 of the best stocks to buy on &#8216;Freedom Day&#8217;</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/30/newsflash-the-diageo-share-price-just-climbed/">Newsflash: the Diageo share price just climbed!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/28/which-british-dividend-shares-could-supercharge-a-passive-income-portfolio-in-2026/">Which British dividend shares could supercharge a passive income portfolio in 2026?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/21/has-the-turnaround-finally-started-for-diageo-shares/">Has the turnaround finally started for Diageo shares?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/21/how-much-longer-can-the-diageo-share-price-stay-this-low/">How much longer can the Diageo share price stay this low?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/18/is-it-finally-game-on-for-the-diageo-share-price/">Is it finally game on for the Diageo share price?</a></li></ul><p><em>Paul Summers owns shares in Churchill China. The Motley Fool UK has recommended Churchill China, Diageo, and Hollywood Bowl. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 bargain small-cap stocks I&#8217;ve been buying for my ISA</title>
                <link>https://www.twelfthmagpie.com/2020/06/11/2-bargain-small-cap-stocks-ive-been-buying-for-my-isa/</link>
                                <pubDate>Thu, 11 Jun 2020 06:32:44 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Live: Coronavirus Market Crash Coverage]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[ISA]]></category>
		<category><![CDATA[market crash]]></category>
		<category><![CDATA[recession]]></category>
		<category><![CDATA[Small Caps]]></category>
		<category><![CDATA[Somero Enterprises]]></category>
		<category><![CDATA[Stocks and Shares ISA]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=151748</guid>
                                    <description><![CDATA[<p>Risky they may be, but Paul Summers couldn't resist buying these small-cap stocks for his ISA this month.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2020/06/11/2-bargain-small-cap-stocks-ive-been-buying-for-my-isa/">2 bargain small-cap stocks I&#8217;ve been buying for my ISA</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Scared you&#8217;ve missed the market recovery boat? Don&#8217;t panic &#8212; I think there are still a few quality stocks available at great prices. Here, for example, are two from lower down the market spectrum that I&#8217;ve been buying for my ISA this month. They&#8217;re certainly not risk-free, but the rewards could worth waiting for. </p>
<h2>ISA buy</h2>
<p>My first ISA purchase has been a small stake in small-cap ceramic tableware manufacturer and distributor <strong>Churchill China</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>).</p>
<p>At first sight, this might seem a very odd move. After all, the company&#8217;s biggest customers are pubs, restaurants and hotels &#8212; the very places that have been closed for months. And yes, even if <a href="https://www.independent.co.uk/news/uk/politics/coronavirus-pubs-restaurants-open-date-hospitality-beer-garden-a9553621.html">the government allows some of these sites to open in late June</a>, trading could be very tough for quite a while.</p>
<p>Nevertheless, I still think quite a lot of this is priced in. The share price is, after all, <em>still</em> down 40% from the highs hit at the start of the year. If you believe current estimates, this leaves Churchill trading on 13 times forecast earnings. That&#8217;s cheap relative to its five-year average of a little under 19.</p>
<p>Second, this firm has shown all the hallmarks of a quality business, namely fat margins and decent (and rising) returns on capital employed. It&#8217;s also got a sound balance sheet with net cash of £15.6m in April. </p>
<p>Third, a large proportion of the company is still owned by the Roper family. That&#8217;s something I really like to see because it implies their interests will always be aligned with those of your typical retail investor. Another tick in the box.</p>
<p>Let&#8217;s be clear on this: Churchill&#8217;s 2020 numbers will likely be very poor and the shares <em>could</em> fall again when it next reports to the market.</p>
<p>As a medium-to-long-term recovery play, however, I&#8217;m cautiously optimistic that the margin of safety is now sufficient to begin investing.</p>
<p>Sometimes, you just have to press the buy button.  </p>
<h2>Cost-cutting</h2>
<p>A second market minnow I&#8217;ve been buying for my ISA in June has been laser-guided equipment manufacturer <strong>Somero Enterprises</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-som/">LSE: SOM</a>). Fortunately, this purchase went through before the recent trading update that saw the shares rise almost 4.3% on the day. </p>
<p class="bd">In response to uncertainty over how long the coronavirus will be with us and what impact it will have on business, Somero announced another range of cost-cutting measures last week, designed to save around $5m. Roughly 20% of its staff have been furloughed and all bonus-related pay has been cancelled. Capital expenditure has also been reduced further, although product development is still ongoing. </p>
<p class="bd">That&#8217;s not to say the small-cap is in financial distress. Management believes the company will have $24m in net cash at the end of this month. And while current revenues are already 25% below the $90m originally targeted by analysts in 2020, they reckon it will still be cash generative if they tumble <em>another</em> 20% from here.</p>
<p>Naturally, <a href="https://www.twelfthmagpie.com/investing/2020/05/25/stock-market-crash-round-2-may-be-coming-heres-what-im-doing-now/">no one knows what happens next with Covid-19</a>. Like Churchill, there&#8217;s always a chance the stock could fall in value. With its focus on construction projects, Somero is also undeniably cyclical, which explains why the market has long been reluctant to slap a high price on its shares. </p>
<p>Even so, I can&#8217;t help but think that a company like this trading on less than eight times earnings already offers great value. Time will tell. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2020/06/11/2-bargain-small-cap-stocks-ive-been-buying-for-my-isa/">2 bargain small-cap stocks I&#8217;ve been buying for my ISA</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em><a href="https://boards.fool.com/profile/psummers/info.aspx">Paul Summers</a> owns shares of Churchill China and Somero Enterprises, Inc. The Motley Fool UK has recommended Churchill China and Somero Enterprises, Inc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>This growth stock has thrashed the FTSE 250. Is there more to come?</title>
                <link>https://www.twelfthmagpie.com/2020/02/13/this-growth-stock-has-thrashed-the-ftse-250-is-there-more-to-come/</link>
                                <pubDate>Thu, 13 Feb 2020 11:50:00 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[FTSE Small Cap]]></category>
		<category><![CDATA[Growth]]></category>
		<category><![CDATA[Safestore Holdings]]></category>
		<category><![CDATA[Small Caps]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=143202</guid>
                                    <description><![CDATA[<p>Paul Summers takes a closer look at a FTSE 250 (LON:INDEXFTSE:MCX) stock that has been anything but dull for holders. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2020/02/13/this-growth-stock-has-thrashed-the-ftse-250-is-there-more-to-come/">This growth stock has thrashed the FTSE 250. Is there more to come?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Dull companies can be a source of great profits. Indeed, investors can often make far <em>better</em> returns backing these kinds of stocks over <a href="https://www.twelfthmagpie.com/investing/2020/01/27/forget-penny-stocks-heres-how-id-invest-100/">those that traditionally quicken their pulses</a> (oil and gas or technology minnows).</p>
<p>Today, I&#8217;m looking at a rarely-discussed firm that has done seriously well for those that were willing to back it. </p>
<h2>Outperformer</h2>
<p>In the last 12 months, shares in self-storage business <strong>Safestore</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-safe/">LSE: SAFE</a>) have climbed 40% in value. For comparison, the FTSE 250 index &#8212; of which the company is a constituent &#8212; is up &#8216;just&#8217; 15%. </p>
<p>Can this form continue? Quite possibly. </p>
<p>This morning, the company revealed an 8.3% rise in total revenue (at constant exchange rates) over the three months from November to January. <span class="gt">Like-for-like revenue for the quarter was up 5.9%</span><em><span class="gt">.</span></em></p>
<p class="jf">Broken down, trading in the UK was particularly stellar. Aided by new acquisitions and store openings, revenue here was 8.2% higher (to £30.3m) compared to over the same period a year earlier. The firm&#8217;s operations in Paris also did well with revenue rising 6.7% to €11.1m.</p>
<p>Based on these numbers, CEO <span class="gt">Frederic Vecchioli stated that the company is on course to meet its expectations for the full year. </span>With new locations in Gateshead and Sheffield scheduled to open in the next few months (and another being unveiled in central Paris before the end of 2020), I certainly wouldn&#8217;t bet against this happening.</p>
<p>The only issue is that Safestore&#8217;s stock now looks expensive, trading as it does on 27 times forecast earnings. This &#8212; combined with lack of reaction in early trading &#8212; leads me to think that <a href="https://www.twelfthmagpie.com/investing/2020/01/31/i-think-these-3-small-cap-growth-stocks-are-the-real-deal-but-are-they-too-expensive/">gains might be less impressive going forward</a>.</p>
<p>So, while our penchant for accumulating more and more stuff makes this an area of the market worth following, the relatively low barriers to entry (listed competitors include <strong>Big Yellow </strong>and<strong> Lok &#8216;n Store</strong>) highlights the importance of not paying too much to get exposure. </p>
<p>One for the watchlist, perhaps?</p>
<h2>Bull in a china shop</h2>
<p>Another example of a &#8216;boring&#8217; company that&#8217;s been doing all the right things for its shareholders is ceramic tableware supplier <strong>Churchill China</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>). The Stoke-on-Trent-based firm&#8217;s customers range from pub, restaurant and hotel chains to contract caterers to health and education organisations. </p>
<p>Again, this a company that has outperformed its index. In the last year alone, the valuation has climbed 64%. The FTSE Small-Cap is up 11% in comparison.</p>
<p>January&#8217;s trading update for the whole of 2019 was encouraging with the company stating that it had seen decent trading in the UK and its overseas markets. Indeed, things have been going so well that management reported operating performance would likely be <em>&#8220;slightly ahead of current market estimates</em>&#8220;. </p>
<p class="ap">With decent margins, rising returns on the capital it puts to work, no debt and consistent dividend hikes, Churchill ticks a lot of my boxes when looking for great potential investments. The fact that a decent proportion of its shares are still owned by the Roper family &#8212; some of whom serve on the board &#8212; also gives me confidence that the business will continue to be managed with its shareholders in mind.   </p>
<p class="ap">Like Safestore, however, Churchill&#8217;s shares now trade on a lofty valuation (23 times expected earnings). Although short-term movements in the market are pretty much impossible to predict, this at least <em>suggests</em> to me that the share price may need to cool down a bit before moving higher.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2020/02/13/this-growth-stock-has-thrashed-the-ftse-250-is-there-more-to-come/">This growth stock has thrashed the FTSE 250. Is there more to come?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/20/1-reit-i-bought-for-a-lifetime-of-passive-income/">1 REIT I&#8217;ve bought for a lifetime of passive income!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/02/how-are-these-ftse-100-and-ftse-250-dividend-stocks-so-cheap/">How are these FTSE 100 and FTSE 250 dividend stocks so cheap?!</a></li></ul><p><em><a href="https://boards.fool.com/profile/psummers/info.aspx">Paul Summers</a> has no position in any of the shares mentioned. The Motley Fool UK has recommended Churchill China. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>A top growth share I’d consider today</title>
                <link>https://www.twelfthmagpie.com/2019/03/27/a-top-growth-share-id-consider-today/</link>
                                <pubDate>Wed, 27 Mar 2019 11:44:53 +0000</pubDate>
                <dc:creator><![CDATA[Kevin Godbold]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=125047</guid>
                                    <description><![CDATA[<p>This company’s transition from value to growth proposition steams ahead with more robust results today.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/03/27/a-top-growth-share-id-consider-today/">A top growth share I’d consider today</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>The shares of ceramic products manufacturer <strong>Churchill China </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>) look perky today on the release of the firm’s full-year results. That’s not surprising because the figures are good. Revenue rose 7% compared to the year before, cash flow from operations lifted almost 8% and adjusted earnings per share shot up 26%.</p>
<p>The company has been a big growth success story over recent years, but I can remember in the early years of the century the share used to <a href="https://www.twelfthmagpie.com/investing/2016/08/31/should-you-buy-churchill-china-plc-or-hss-hire-group-plc-after-todays-results/">pop up on value filters </a>because of its poor growth outlook and low valuation. How times have changed! Over the past five years, earnings have increased by more than 160%, the dividend is up nearly 100% and the share price has soared more than 200% higher.</p>
<h2><strong>Five years of stunning growth</strong></h2>
<p>What a great investment Churchill would have been if you’d bought the shares on value grounds in, say, 2005 and simply held on until today. But it’s hard to pick value winners that go on to transition into growth. I reckon some value shares go the other way and cause investors to lose money.</p>
<p>But Churchill has grown its business well, expanding into Europe, America and to other countries. In 2018, 40% of overall revenue came from the UK market, 37% from the rest of Europe, 12% from North America and 11% from the rest of the world. Chairman Alan McWalter said in the report that the business and financial performance in 2018 exceeded the directors’ expectations and the new year has <em>“started well.” </em>Management expressed confidence in the outlook by pumping up the total dividend for the year by 18%.</p>
<p>The company’s revenues from export rose 17% in the period. Churchill has come a long way since its origins as a regional potter more than 200 years ago. McWalter explained in today’s narrative that the company has transformed itself over a long time period.  The business <em>“has developed substantially over the last five years,” </em>and sales to Hospitality customers have increased from £32.7m to £52.4m <em>“at a compound annual rate of almost 10%.” </em>The export story is impressive, I reckon. Over five years, trade overseas has risen from 39% to 60% of the firm’s business. On top of that, McWalter explained that the proportion of hospitality revenue from <em>“added value products with higher margins” </em>has increased from 10% to 44%, which has driven the operating margin up from 8% to more than 16%. </p>
<h2><strong>More to come?</strong></h2>
<p>I’d always considered Churchill to be a cyclical business. It seems likely that trade in hospitality tableware would fluctuate along with prevailing general economic conditions. But I can’t deny that the company has delivered barnstorming growth within its cyclical sector. Looking forward, McWalter acknowledged that the trading environment in the UK is <em>“</em><em>subject to increased uncertainty,” </em>but he said he believes the company has <em>“a robust business model” </em>and the directors will continue to aim for growing the export market.</p>
<p>City analysts following the firm are predicting single-digit percentage increases in earnings ahead. Meanwhile, the forward-looking price-to-earnings ratio is running just above 18 for 2020. It seems that Churchill has moved from a value rating to a growth rating over the years, and I reckon we could see a lot more expansion in operations ahead.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/03/27/a-top-growth-share-id-consider-today/">A top growth share I’d consider today</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 top growth stocks I&#8217;d buy right now</title>
                <link>https://www.twelfthmagpie.com/2018/08/30/2-top-growth-stocks-id-buy-right-now-2/</link>
                                <pubDate>Thu, 30 Aug 2018 14:50:18 +0000</pubDate>
                <dc:creator><![CDATA[G A Chester]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[Growth stocks]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=115978</guid>
                                    <description><![CDATA[<p>G A Chester reveals two smaller companies with terrific histories of earnings growth and strong prospects for the future.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/08/30/2-top-growth-stocks-id-buy-right-now-2/">2 top growth stocks I&#8217;d buy right now</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><strong>Churchill China </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>), which released its half-year results today, and fellow small-cap <strong>XP Power </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-xpp/">LSE: XPP</a>) are two stocks that have delivered terrific earnings growth and share price gains. Investors in the former have enjoyed a five-year annualised total return of 23.9% and those in the latter have seen 19.5%. These returns have smashed the <strong>FTSE 100</strong>&#8216;s 7.1%. Can they continue to deliver growth and are their shares good value right now?</p>
<h3>Export-led growth</h3>
<p>Churchill today reported a strong performance in the first six months of the year. Group revenue was up 6% and a rise in operating margin to 11.9% from 10.3% saw operating profit up by 22%. Earnings per share (EPS) climbed 24% and the board hiked the interim dividend 18%.</p>
<p>Churchill is largely focused on selling its ceramic products into hospitality markets worldwide, where it enjoys a high level of repeat sales and long-term relationships with its customers. Revenue in this business increased 9% to £24.9m and now represents over 90% of total group revenue. In its shrinking retail business, revenue declined 19% to £2.4m, as anticipated.</p>
<p>Geographically, export revenues were up 17% and exports now represent 63% of total group takings. The company still has a relatively low market share outside the UK, giving it considerable scope to continue increasing its turnover. Add to the top-line growth a trend of improving profit margins (as a result of a rising proportion of sales of added-value product) and you&#8217;ve got very nice dynamics for continuing strong earnings and dividend growth.</p>
<p>The shares are up 1.2% on the day, as I&#8217;m writing, and at 1,012p, the company&#8217;s market cap is £110m. With its strong balance sheet (net cash and deposit balances of £13.7m at the period end) and excellent growth prospects, this AIM-listed stock is one I&#8217;d happily buy at its current rating of 16.8 times trailing 12-month EPS of 60.1p. There&#8217;s also a well-covered 25.9p dividend, giving a running yield of 2.6%.</p>
<h3>Serving global blue-chips</h3>
<p>XP Power develops and manufactures critical power control solutions for the electronics industry and has a global blue-chip customer base. It&#8217;s one of the larger companies in the FTSE SmallCap index, with a market value of close to £600m at a share price of 3,110p.</p>
<p>Net debt at the half-year-end was £46.5m when it released its results last month. This is relatively modest and came after a £33.4m acquisition in May that will further increase its addressable market. As it is, it&#8217;s growing strongly with new design wins entering their production phase.</p>
<p><a href="https://www.twelfthmagpie.com/investing/2018/07/30/two-hot-growth-stocks-you-could-buy-with-1000-today/">First-half revenue increased 16%</a>, underlying diluted EPS rose 24% and the board lifted the interim dividend 6%. At today&#8217;s share price, XP trades on 19 times trailing 12-month EPS of 163.4p and has a well-covered 80p dividend, giving a running yield that matches Churchill&#8217;s 2.6%.</p>
<p>With strong organic growth to come and earnings from the recent acquisition set to kick in, this is another stock I&#8217;d be happy to buy today.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/08/30/2-top-growth-stocks-id-buy-right-now-2/">2 top growth stocks I&#8217;d buy right now</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended XP Power. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 growth stars that could make you brilliantly rich</title>
                <link>https://www.twelfthmagpie.com/2017/08/31/2-growth-stars-that-could-make-you-brilliantly-rich-2/</link>
                                <pubDate>Thu, 31 Aug 2017 13:57:09 +0000</pubDate>
                <dc:creator><![CDATA[G A Chester]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[On The Beach]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=101550</guid>
                                    <description><![CDATA[<p>These growth stocks are trading at attractive valuations, says G A Chester.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/31/2-growth-stars-that-could-make-you-brilliantly-rich-2/">2 growth stars that could make you brilliantly rich</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Shares of <strong>Churchill China</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>) are up over 5% today after the company released excellent first-half results and said: <em>&#8220;Trading momentum has been maintained since 30 June and we approach the key trading period in the year with confidence.&#8221;</em></p>
<p>At a share price of 1,014p this AIM-listed manufacturer and global distributor of performance ceramics to hospitality and retail markets is valued at £111m. Its current valuation and that of another growth stock &#8212; listed in the FTSE SmallCap index &#8212; have a great deal of appeal to my eye. They&#8217;re two businesses I&#8217;d be happy to buy a slice of today.</p>
<h3>Performance ceramics</h3>
<p>Churchill has delivered earnings growth of between 20% and 30% in each of the last four years. The company, noting today <em>&#8220;our record of improved performance established over several years,&#8221;</em> reported another strong performance for the first half of the current year, with an earnings increase of 32%.</p>
<p>Helped by favourable currency rates, Churchill posted 8% higher revenue in the period. Growth across its hospitality export markets more than offset a more muted performance in the UK and in the retail segment generally. The impressive earnings growth on the single-digit revenue increase was driven by improved gross and operating margins, the latter increasing to 10.3% from 8.4%.</p>
<p>The earnings performance and strong balance sheet (net cash and deposit balances of £10.3m), together with management&#8217;s confidence in the future, led the board to increase the interim dividend by 17%.</p>
<h3>Attractive valuation</h3>
<p>Churchill&#8217;s trailing 12-month earnings per share (EPS) is 53p, with a well-covered dividend of 22.2p. At the current share price, the trailing price-to-earnings (P/E) ratio is just over 19 and the running yield is 2.2%.</p>
<p>The company has considerable scope for increasing export sales. For example, hospitality sales to North America and the Rest of the World grew by 20% and 27% in the first half. And with the company also increasing the proportion of higher margin added-value products, the earnings rating looks attractive and the dividend is a bonus for a growth stock.</p>
<h3>Sea, sand and scalable business</h3>
<p>With its shares trading at 429p, FTSE SmallCap firm <strong>On The Beach</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-otb/">LSE: OTB</a>) is valued at £560m and is another growth stock that I reckon is an attractive proposition for investors today.</p>
<p>One of the UK&#8217;s largest online retailers of beach holidays, with a 20% share of the online short-haul beach holiday market, On The Beach has been growing fast since joining the stock market in 2015. With its scalable, flexible technology and low cost base, its business model is asset-light, profitable and cash-generative.</p>
<h3>Multiple opportunities for growth</h3>
<p>We&#8217;ve already witnessed its acquisition of Sunshine.co.uk, to consolidate its leading UK position, and the launch of websites in Sweden and Norway. And management sees <em>&#8220;multiple opportunities to generate further growth.&#8221;</em></p>
<p>The company is forecast to deliver EPS of 17.4p for its financial year ending 30 September, giving a P/E of near to 25. That may sound a bit rich, but with EPS growth of 34%, the price-to-earnings growth (PEG) ratio of 0.7 is well on the value side of the fair value PEG marker of one. And, as with Churchill China, this growth stock also comes with the bonus of a modest dividend. A forecast payout of 2.9p, giving a yield of 0.7%, has scope for considerable future growth.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/31/2-growth-stars-that-could-make-you-brilliantly-rich-2/">2 growth stars that could make you brilliantly rich</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.</em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Is today&#8217;s 10% riser Churchill China plc the perfect way to profit from Brexit?</title>
                <link>https://www.twelfthmagpie.com/2017/01/05/is-todays-10-riser-churchill-china-plc-the-perfect-way-to-profit-from-brexit/</link>
                                <pubDate>Thu, 05 Jan 2017 10:42:44 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[GlaxoSmithKline]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=91143</guid>
                                    <description><![CDATA[<p>Churchill China plc (LON:CHH) has surged higher after a strong 2016 so Roland Head asks: is this home-grown exporter a Brexit buy?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/01/05/is-todays-10-riser-churchill-china-plc-the-perfect-way-to-profit-from-brexit/">Is today&#8217;s 10% riser Churchill China plc the perfect way to profit from Brexit?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>With Brexit firmly on the agenda in 2017, where should you invest your cash? Today I&#8217;m going to look at two companies which could each help you deliver an investment profit in 2017, regardless of what happens at home.</p>
<p>The first of these stocks is catering tableware manufacturer <strong>Churchill China </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>). Its shares rose by 10% this morning after the firm said that its 2016 results would be ahead of expectations.</p>
<p>Profits from strong export performance have been boosted by the weaker pound. Management now expects operating profits to be <em>&#8220;ahead of market estimates and well ahead of 2015&#8221;</em>. The group&#8217;s net cash balance is also expected to be higher than expected.</p>
<h3>Is Churchill &#8216;Brexit safe&#8217;?</h3>
<p>Today&#8217;s statement &#8212; just three working days into the New Year &#8212; suggests to me that Churchill is a well-run company with good financial controls.</p>
<p>As a UK exporter, the firm is benefitting from the weaker pound, but this business was already profitable and cash generative before last year&#8217;s devaluation. Churchill has reported a net cash balance every year since at least 2010, during which time its dividend has risen by 35% and its share price has tripled.</p>
<p>The group exports to Europe, as well as to Australasia and the Americas. One risk is that the terms of these exports could change when Britain leaves the EU. For example, in last year&#8217;s results, the company said that anti-dumping duties on cheap Chinese ceramics were helping to make its products more competitive in Europe. UK exporters may lose this kind of protection outside the EU.</p>
<p>The other consideration is that Churchill shares already look quite fully priced. The firm&#8217;s stock trades on a 2017 forecast P/E of about 20 after today&#8217;s gains, with a prospective yield of 2.3%.</p>
<p>I&#8217;d hold onto Churchill shares, but I wouldn&#8217;t buy more at current levels.</p>
<h3>A different approach</h3>
<p>Churchill is a relatively small business, with a market cap of just £103m. If the UK heads for a hard Brexit, its export trade could face some short-term disruption.</p>
<p>That&#8217;s why my second Brexit stock suggestion is pharmaceutical giant <strong>GlaxoSmithKline </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-gsk/">LSE: GSK</a>). This £77bn behemoth is a genuine multinational. Truly global companies such as this have dedicated teams whose job is to manage political and currency risks. A localised event such as Brexit is unlikely to have much effect on long-term growth.</p>
<p>Glaxo stock also looks good value to me. The shares have pulled back from October&#8217;s high of 1,745p, and currently trade at about 1,580p. This puts the group on a forecast P/E of 15.7, with a prospective yield of 5.2%.</p>
<p>If you&#8217;re a growth investor, you may think Glaxo is too large and stodgy to suit your portfolio. But earnings per share are expected to rise by 8% in 2017 &#8212; that&#8217;s only 2% less than the 10% earnings growth forecast for Churchill.</p>
<p>I believe Glaxo is likely to be a profitable medium-term buy at current levels. The stock also offers the added bonus of a 5% yield. In my view, this could provide excellent protection from the unpredictable effects of Brexit.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/01/05/is-todays-10-riser-churchill-china-plc-the-perfect-way-to-profit-from-brexit/">Is today&#8217;s 10% riser Churchill China plc the perfect way to profit from Brexit?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Roland Head owns shares of GlaxoSmithKline. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Should you buy Churchill China plc or HSS Hire Group plc after today’s results?</title>
                <link>https://www.twelfthmagpie.com/2016/08/31/should-you-buy-churchill-china-plc-or-hss-hire-group-plc-after-todays-results/</link>
                                <pubDate>Wed, 31 Aug 2016 10:29:28 +0000</pubDate>
                <dc:creator><![CDATA[Kevin Godbold]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[Cyclicals]]></category>
		<category><![CDATA[HSS Hire Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=85929</guid>
                                    <description><![CDATA[<p>Today’s interims reveal progress for Churchill China plc (LON: CHH) and HSS Hire Group plc (LON: HSS).</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/31/should-you-buy-churchill-china-plc-or-hss-hire-group-plc-after-todays-results/">Should you buy Churchill China plc or HSS Hire Group plc after today’s results?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>I can remember <b>Churchill China </b>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>) languishing on value lists with its difficult trading conditions and low growth prospects around 11 years ago.</p>
<p>Things have clicked for the ceramics manufacturer since those dark days and today’s upbeat interim results follow some impressive double-digit advances in earnings over the last few years.</p>
<h3><b>Priced for growth?</b></h3>
<p>For the six months to the end of June, revenue gained 12% over the equivalent period last year, operating profit and earnings per share both rose 30%, and the directors hiked the interim dividend by 12.5%.</p>
<p>The company retains some value characteristics, such as a £9.6m cash pile, zero borrowings and a still-manageable pension deficit, but the price-to-earnings (P/E) ratio now seems high. At the current share price around 807p, the forward P/E rating runs at just over 18 for 2017 and the forward dividend yield sits just under 2.7%.</p>
<p>Churchill China is now priced for growth, it seems, and the share price has certainly delivered for investors with a 367% uplift since 2009. City analysts following the firm expect earnings to rise 10% this year and 9% during 2017. In today’s statement, the directors confirmed the firm is on course to meet expectations.   </p>
<h3><b>Shining in hospitality</b></h3>
<p>The firm seems to be driving its best results in the area of hospitality — revenue and profits are growing as the company pushes into export markets. But trading in its retail operation remains challenging, which reminds me of the situation 11 years ago. However, tough control of costs and a shift away from licensed ranges to Churchill-branded products drove up margins and earnings despite a small decline in revenue.</p>
<p>The directors mentioned that Britain’s journey along the Brexit process brings further uncertainty and it’s worth remembering that there&#8217;s a large element of cyclicality fired into Churchill China’s business, so with forward earnings growth slowing, I’m cautious about the firm’s high-looking valuation.  </p>
<h3><b>Hoping for a turnaround</b></h3>
<p>Investors looking for a turnaround in the fortunes of tool and equipment hire firm <b>HSS Hire Group</b> (LSE: HSS) will see positives in today’s half-year report. Revenue is up 13.5% on the year-ago figure, adjusted earnings per share came in at 0.1p compared to a loss of 2.27p last year, and the directors held the interim dividend at 0.57p.</p>
<p>The firm’s business model had previously seemed to collapse in terms of its viability. Although the sector is cyclical, the problems appeared to be more about the way the firm executed its operations than about falling demand generally. But management is busy restructuring and changing the way the firm goes about its business, although that involves yet more investment. </p>
<p>One unwelcome outcome is a rise in the company’s already-gargantuan net debt from around £218m at the end of 2015 to £238.7m today, a figure almost one-and-a-half times the level of half-year revenue. That could be why the share price has struggled to advance this year despite rosy City analysts’ forecasts for earnings. HSS Hire Group could reward investors well from here, but it&#8217;s risky.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/08/31/should-you-buy-churchill-china-plc-or-hss-hire-group-plc-after-todays-results/">Should you buy Churchill China plc or HSS Hire Group plc after today’s results?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Kevin Godbold has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Paysafe Group Plc, Churchill China plc And Nichols plc: Today&#8217;s Top Growth Buys?</title>
                <link>https://www.twelfthmagpie.com/2016/01/08/paysafe-group-plc-churchill-china-plc-and-nichols-plc-todays-top-growth-buys/</link>
                                <pubDate>Fri, 08 Jan 2016 12:00:26 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Churchill China]]></category>
		<category><![CDATA[Nichols]]></category>
		<category><![CDATA[Paysafe Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=74598</guid>
                                    <description><![CDATA[<p>Can top growth performers Paysafe Group Plc (LON:PAYS), Churchill China plc (LON:CHH) and Nichols plc (LON:NICL) continue to climb?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/01/08/paysafe-group-plc-churchill-china-plc-and-nichols-plc-todays-top-growth-buys/">Paysafe Group Plc, Churchill China plc And Nichols plc: Today&#8217;s Top Growth Buys?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Three of last year&#8217;s top growth stocks have issued trading updates today. Are they still hot buys, or is growth likely to slow this year?</p>
<h3>Churchill China</h3>
<p>Shares in crockery firm <strong>Churchill China </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-chh/">LSE: CHH</a>) rose by as much as 13% on Friday morning. Churchill, which makes tableware for restaurants, said that trading during the second half of 2015 had been ahead of expectations.</p>
<p>The firm&#8217;s board is now confident that operating performance for last year will be ahead of market forecasts and <em>&#8220;well ahead of 2014&#8221;</em>.</p>
<p>The latest analyst forecasts for Churchill suggest earnings of 33.6p per share, 9% above 2014 results. Today&#8217;s announcement suggests to me that 2015 earnings are now likely to be 15% to 20% ahead of 2014. I&#8217;d guess that 35p to 36p per share is more realistic, putting Churchill stock on a forecast P/E of 23 after today&#8217;s gains.</p>
<p>That doesn&#8217;t seem cheap, but this is a well-run and growing company. Operating margins have risen from 5% in 2010 to 9.5% in 2014 and Churchill has delivered steady dividend growth. Most importantly, the group has proved its ability to thrive in the face of cheap Chinese competition.</p>
<p>In my view the shares remain a strong hold and a reasonable buy.</p>
<h3>Paysafe Group</h3>
<p><strong>Paysafe Group </strong>(LSE: PAYS) gained more than 6% this morning. The group, which was formerly known as Optimal Payments, said that revenue and adjusted earnings for 2015 would be ahead of expectations.</p>
<p>Revenue for the full year is now expected to be around $600m, ahead of current forecasts of $585m. Adjusted earnings before interest, tax, depreciation and amortisation are expected to be $150m, of which $100m was generated during the second half of the year.</p>
<p>Paysafe&#8217;s earnings have been boosted by the acquisition of Skrill in 2015. The group&#8217;s shares now trade on 16 times 2016 forecast earnings, which doesn&#8217;t seem excessive if growth can be maintained.</p>
<p>However, Paysafe took on $548m of long-term debt and scrapped its dividend when it acquired Skrill. In my view, the valuation looks reasonably full. I wouldn&#8217;t rush to buy this stock at the moment.</p>
<h3>Nichols</h3>
<p>Soft drinks producer <strong>Nichols </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-nicl/">LSE: NICL</a>) said this morning that despite <em>&#8220;challenging&#8221; </em>UK market conditions it expects to deliver results in line with expectations for 2015.</p>
<p>The group&#8217;s performance has been helped by strong export sales, which rose by 1.5%, or £0.4m, to £24.4m. However, exports only account for around 25% of revenue and the group&#8217;s UK business saw sales fall by 0.3% to £84.9m.</p>
<p>Nichols is expected to report adjusted earnings of 60p per share this year, putting the stock on a forecast P/E of almost 24. A dividend yield of 1.7% also suggests that the valuation is now quite demanding.</p>
<p>Although earnings per share are expected to rise by 8% in 2016, Nichols&#8217; lacklustre revenue growth concerns me. The group&#8217;s operating margin has risen from 17% to 24% since 2009 and the firm reconfirmed its strategy of pursuing <em>&#8220;value over volume&#8221;</em> in today&#8217;s announcement.</p>
<p>However, my view is that quite a lot of growth is already priced into the shares, which have risen by 188% over the last five years. I&#8217;d need to do more research into the outlook for sales growth before committing to a buy.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/01/08/paysafe-group-plc-churchill-china-plc-and-nichols-plc-todays-top-growth-buys/">Paysafe Group Plc, Churchill China plc And Nichols plc: Today&#8217;s Top Growth Buys?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Roland Head has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                    </channel>
</rss>
