Trading Update

08/01/2002

GROUP MEETS MARKET EXPECTATIONS

EXCEPTIONAL PROFIT ON DISPOSAL OF LAND

Further to our announcement of 9 November 2001, Churchill China plc is now pleased to announce that following a strong trading performance in the final weeks of the year it expects to meet current market forecasts for the period ended 31 December 2001 and that profits will be well ahead of the corresponding figures for last year.

The last quarter of the year is always an important time for sales to the catering industry from Churchill's Dining Out division. The Board is pleased to report that the division has met its sales targets despite more challenging conditions facing the Group's customers in the London and US hotel markets. Churchill has maintained its strong position within the general UK catering market and has achieved further growth in mainland Europe.

The Dining In division, which supplies the retail sector, has also met expectations with strong pre-Christmas sales including the Harry Potter range of ceramic products.

In addition to expecting to achieve current market expectations, the Group's 2001 results will also include an exceptional gain of approximately £300,000 on a disposal of land. This sale is part of an ongoing disposal programme of surplus assets.

Stephen Roper, Chairman said :-

"Despite a number of adverse market events during 2001 the Group remains in robust health and we continue to grow both turnover and profit. I congratulate all our team and look forward to more progress in 2002".