Trading Statement

Churchill China PLC
9 July 2002


For Immediate Release                             9 July 2002


                              CHURCHILL CHINA plc

                               TRADING STATEMENT


In the light of current and forecast trading conditions the Board of Churchill
China plc have concluded that there will be a material shortfall against market
expectations in respect of profit before taxation and exceptional items for the
year to 31 December 2002 due to underperformance in the Dining In division.


The Board envisaged a slow down in sales volumes within the Dining In division
in the first half year but this has been compounded by reduced demand,
particularly in Europe and promotional markets.  Sales of volume dinnerware are
likely to remain under pressure for year as a whole.  This has masked good sales
performance in target sections of the business, namely premium dinnerware, James
Sadler collectables and licensed products.  Management action to reposition this
benefits of efficiency improvements arising from actions implemented in the
early part of 2002 will be realised over the next six months.


The Group's Dining Out divisions continues to perform robustly with sales and
margins in line with last year.  We have continued to win market share in the UK
based on our reputation for service and innovation.  Growth in the full year and
thereafter will be underpinned by recent investment in successful new product
launches and increases sales and marketing resource, particularly in export
markets.


It is expected that overall Group profit before taxation and exceptional items
for the year to 31 December 2002 will be substantially lower than last year.
The Group remains profitable and continues to generate cash at an operating
level.  The Board remains confident that the reduction in current year
profitability will not affect the Group's longer term prospects and as such its
ability to maintain its dividend policy.


Stephen Roper
Chairman
9 July 2002


Further information:


Churchill China plc                                        01782 577 566
Stephen Roper
David Taylor


Buchanan Communications                                    020 7466 5000
Tim Anderson

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