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24 Jul 2008 11:00
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Titon Holdings PlcΒ ("Titon" or the "Company")
Interim Management StatementΒ and Joint VentureΒ Announcement
Β
Interim Management StatementΒ
Titon Holdings Plc today provides its interim management statement in respect of the period 1Β AprilΒ 2008Β to 30 June 2008, as required by the UK Listing Authority's Disclosure and Transparency rules.
The downturn in theΒ UKΒ house-building sector, as referred to in the Company's InterimΒ Results announcement on 8 May 2008,Β hasΒ had a further adverseΒ impactΒ on the Company's sales and profitability over the past 3 months. Revenues during theΒ thirdΒ quarter were 6.4% down on the corresponding period last year.Β
In response to the deterioration in market activity, further reductions inΒ Titon'sΒ cost base have been necessary and,Β in May, the Company announced plans to makeΒ 33Β employees redundant. This programme of cost reduction is now nearing completion and will result in annual savings ofΒ approximatelyΒ Β£450,000Β with effect from next month,Β but will give rise to exceptionalΒ costs ofΒ Β£90,000 during the current year.
The Directors believe that trading conditions will becomeΒ increasingly difficultΒ over the next six months and will continue to seek opportunities for new and profitableΒ business,Β whilst actively reducing costs and working capitalΒ requirements.
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Joint Venture Announcement
The Company is pleased to announce aΒ joint venture with its South Korean distributor, Browntech Sales Co. Ltd ("Browntech Sales") to manufacture and market ventilation products for theΒ South Korean marketplace.
UnderΒ the agreement, the Company will invest Β£225,000 for a 49% shareholding in Browntech Sales and will provide a further Β£100,000 of loan capital.Β
The Company has also invested Β£350,000 in a new Korean subsidiary, Titon Korea Co. Ltd ("TitonΒ Korea")Β and will have a 51% holding after the completion of the joint venture. The remaining 49% of TitonΒ KoreaΒ will be held by a non-trading sister company to Browntech Sales, Browntech Co. Ltd, which will contribute its intellectual property interests to the business.Β TitonΒ KoreaΒ will manufacture product exclusively for Browntech Sales.
24Β July 2008
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