Last checked at 24 Jul 2008 11:00
Titon Holdings Plc ("Titon" or the "Company")
Interim Management Statement and Joint Venture Announcement
Interim Management Statement
Titon Holdings Plc today provides its interim management statement in respect of the period 1 April 2008 to 30 June 2008, as required by the UK Listing Authority's Disclosure and Transparency rules.
The downturn in the UK house-building sector, as referred to in the Company's Interim Results announcement on 8 May 2008, has had a further adverse impact on the Company's sales and profitability over the past 3 months. Revenues during the third quarter were 6.4% down on the corresponding period last year.
In response to the deterioration in market activity, further reductions in Titon's cost base have been necessary and, in May, the Company announced plans to make 33 employees redundant. This programme of cost reduction is now nearing completion and will result in annual savings of approximately £450,000 with effect from next month, but will give rise to exceptional costs of £90,000 during the current year.
The Directors believe that trading conditions will become increasingly difficult over the next six months and will continue to seek opportunities for new and profitable business, whilst actively reducing costs and working capital requirements.
Joint Venture Announcement
The Company is pleased to announce a joint venture with its South Korean distributor, Browntech Sales Co. Ltd ("Browntech Sales") to manufacture and market ventilation products for the South Korean marketplace.
Under the agreement, the Company will invest £225,000 for a 49% shareholding in Browntech Sales and will provide a further £100,000 of loan capital.
The Company has also invested £350,000 in a new Korean subsidiary, Titon Korea Co. Ltd ("Titon Korea") and will have a 51% holding after the completion of the joint venture. The remaining 49% of Titon Korea 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. Titon Korea will manufacture product exclusively for Browntech Sales.
24 July 2008