Titon Regulatory News (TON)

8 Dec 2005 07:01

Titon Holdings PLC08 December 2005 TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 CHAIRMAN'S STATEMENT Financial PerformanceI am pleased to report that profit before taxation for the year to 30 September2005 was up by 11.1% at £1.18 million (2004: £1.06 million). The improvement inprofit was achieved on a relatively unchanged turnover of £16.44 million (2004:£16.40 million). Earnings per share are up by 12.5% at 8.09p (2004: 7.19p). Net cash as at 30 September 2005 was £3.36 million (2004: £3.31 million) andthe Directors are proposing a final dividend of 4.8p per ordinary share (2004:4.8p), making a total of 7.1p for the year (2004: 7.1p). The dividend will bepayable on 24 February 2006 to shareholders on the register on 3 February 2006.The ex-dividend date will be 1 February 2006. The Directors recognise theimportance of the dividend to many shareholders and are committed to maintainingthe current level of dividends provided that the Company's financial positionallows. Trading CommentarySales into our traditional UK window market have fallen slightly this year asthe demand for windows has reduced in line with the general slow down in theeconomy. The indications are that this downturn is across certain marketsegments and has affected both timber and PVCu manufacturers. Our improved profit performance has been assisted by the measures taken lastyear to reduce our cost base and improve our manufacturing efficiency. Thereadily available supply of products from outside the UK dictates that ongoingreductions in manufacturing costs must continue if we are to substantiallymaintain our manufacturing base in this country. To this end, we have investedin further significant automation of our production and packaging processes,which will continue in 2006. In parallel with UK manufacturing investment, wewill continue to seek cost effective supply options from overseas where appropriate. Towards the end of the reporting period we have actively pursued a policy ofinvestment in our Sales and Marketing activities. Our Commercial team, with itsfocus on the less price sensitive aluminium window market, has been expanded bythe provision of two additional sales personnel. Similarly, we are building onthe early signs of promise from our Ventilation Division with a further twoexperienced sales staff. These additional appointments, and the re-organisationthat has accompanied them, will allow the remainder of our sales team to betterfocus on the opportunities that will occur when the much discussed changes inBuilding Regulations are finalised. In addition to the increase infront-line sales personnel, we have recently commenced a major marketinginitiative, which will culminate in the launch of new trickle ventilatorproducts early in 2006. I am also pleased to announce that our Export Sales have increased yet againduring the year and now account for 11% of Group Sales. New opportunities havebeen identified and additional resources will be allocated to this importantpart of our business over the coming year. EmployeesThe changes that the Company has initiated over the past two years have requiredincreased effort and resolve from our employees in all areas of the business.Our employees are all very much part of these improved results and I should liketo thank them all most sincerely for their considerable efforts. Employee numbers are 255 at 30 September 2005, down from 265 at 30 September 2004. Regulation ChangeFor the past two years I have been advising Shareholders of the forthcomingchanges to Part F of the Building Regulations for England and Wales. It is thisRegulation that is the driver for sales of many of our ventilation products, andI am now able to report that the Interim Draft of the document was publishedin September with a proposed implementation date of April 2006. Although thedocument is still in draft form, it has given the Company some direction as tofuture market requirements and has enabled us to commence the development ofmajor new product lines. Although the draft document calls for trickle ventilators to be installed in domestic replacement windows, it is too early to be sure that there will be an overall favourable outcome for the Company. ProspectsAs we enter a new trading period, it is increasingly clear that the UK domesticwindow market is being affected by a general weakening of consumer confidenceand by reduced capital spending. However, predicted growth in our exports, ourpowered ventilation and our commercial sales activities gives us some optimismfor the future. As explained above, the effect of UK Regulation change on our business is notyet apparent and is causing some uncertainty in the marketplace in the shortterm. This, combined with the general slowdown, will ensure that 2006 is a challenge for the Company. The Board of Directors believe that the Company is well placed to meet this challenge. John AndersonChairman7 December 2005 TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT 2005 2004 £'000 £'000 Turnover 16,436 16,401Cost of sales 12,372 12,505 -------- --------Gross profit 4,064 3,896 Distribution costs 648 561Administrative expenses 2,387 2,398 -------- -------- 3,035 2,959 -------- -------- Operating profit 1,029 937Interest receivable 152 131Interest payable and similar charges (1) (6) -------- --------Profit on ordinary activities before taxation 1,180 1,062 Taxation on profit on ordinary activities 328 305 -------- --------Profit on ordinary activities after taxationattributable to the members of Titon Holdings Plc 852 757 Dividends 747 749 -------- --------Retained profit for the financial year 105 8 -------- -------- Earnings per share - basic 8.09p 7.19p - diluted 8.06p 7.14p All amounts relate to continuing activities. TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 GROUP STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES 2005 2004 £'000 £'000 Profit for the financial year attributable to members of the parent company 852 757 Exchange difference on retranslation ofnet assets of subsidiary undertaking (3) - Total recognised gains and losses relating to the period 849 757 ------- ------ TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 CONSOLIDATED BALANCE SHEET 2005 2004 £'000 £'000 Fixed assetsTangible assets 4,248 4,291 Current assetsStocks 2,511 2,580Debtors 3,695 3,201Cash at bank and in hand 3,380 4,017 ------- ------- 9,586 9,798Creditors:Amounts falling due within one year (3,097) (3,463) ------- -------Net current assets 6,489 6,335 ------- ------- Total assets less current liabilities 10,737 10,626 Deferred taxation (104) (95) ------- ------- 10,633 10,531 ------- ------- Capital and reservesCalled up share capital 1,053 1,053Share premium account 841 841Capital redemption reserve 56 56Profit and loss account 8,683 8,581 ------- -------Equity shareholders' funds 10,633 10,531 ------- ------- TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 COMPANY BALANCE SHEET 2005 2004 £'000 £'000 Fixed assetsTangible assets 2,889 2,906Investments 202 202 ------- ------- 3,091 3,108Current assetsDebtors 3,575 3,623Cash at bank and in hand 3,262 3,300 ------- ------- 6,837 6,923Creditors:Amounts falling due within one year (637) (1,307) ------- -------Net current assets 6,200 5,616 ------- ------- Total assets less current liabilities 9,291 8,724 Deferred taxation (210) (190) ------- ------- 9,081 8,534 ------- ------- Capital and reservesCalled up share capital 1,053 1,053Share premium account 841 841Capital redemption reserve 56 56Profit and loss account 7,131 6,584 ------- -------Equity shareholders' funds 9,081 8,534 ------- ------- TITON HOLDINGS PLCPreliminary Results for the year ended 30 September 2005 CONSOLIDATED CASH FLOW STATEMENT 2005 2004 £'000 £'000 Net cash inflow from operating activities 1,454 1,545 ------- ------- Returns on investments and servicing of financeInterest received 152 131Interest paid (1) (6) ------- ------- 151 125 ------- ------- TaxationUK corporation tax (271) (431) ------- ------- Capital expenditurePurchase of tangible fixed assets (569) (940)Sale of tangible fixed assets 30 66 ------- ------- (539) (874) ------- ------- Equity dividends paid (747) (745) ------- ------- Cash inflow/(outflow) before use of managementof liquid resources and financing 48 (380) Management of liquid resourcesDisposal of treasury deposits 38 500 FinancingShares issued under the Company'sshare option scheme - 25 ------- -------Increase in cash 86 145 ------- ------- TITON HOLDINGS PLCNotes to the Preliminary Results for the year ended 30 September 2005 1 Basic earnings per share has been calculated by dividing the profit attributable to shareholders of £852,000 (2004: £757,000) by the weighted average number of ordinary shares in issue during the year of 10,528,800 (2004: 10,523,878). The diluted earnings per share has been calculated by dividing the profit attributable to shareholders of £852,000 (2004: £757,000) by the weighted average number of ordinary shares and potential dilutive ordinary shares during the year of 10,575,902 (2004: 10,597,741). All dilutive ordinary shares relate to share options. 2 Reconciliation of operating profit to net cash inflow from operating activities 2005 2004 £'000 £'000 Operating profit 1,029 937 Depreciation 599 607 Decrease/(increase) in stocks 69 (138) (Increase)/decrease in debtors (494) 47 Increase in creditors 270 93 Profit on sale of fixed assets (19) (1) ------- ------- Net cash inflow from operating activities 1,454 1,545 ------- ------- 3 Reconciliation of net cash flow to movement in net funds 2005 2004 £'000 £'000 Increase in cash in the year 86 145 Decrease in liquid resources (38) (500) ------- ------- Change in net funds resulting from cashflows and movement in net funds in the year 48 (355) Opening net funds 3,311 3,666 ------- ------- Closing net funds 3,359 3,311 ------- ------- 4 The Preliminary Announcement does not constitute statutory accounts. The auditors' report on the full accounts for the year ended 30 September 2005 has yet to be signed. 5 The actual results for the year ended 30 September 2004 as shown in this statement are an abridged version of the Group's 2004 accounts which have been filed with the Registrar of Companies and which received an unqualified audit report. The results for the year ended 30 September 2005 have been prepared on a basis consistent with the accounting policies set out in the statutory accounts for the year ended 30 September 2004. 6 The Preliminary Announcement was approved by the Board of Directors on 7 December 2005. This statement is being sent to shareholders and will be available from the Company's registered office at International House, Peartree Road, Stanway, Colchester, Essex CO3 0JL. This information is provided by RNS The company news service from the London Stock Exchange