Sign In
Last checked at 
10 Dec 2009 10:00
ο»Ώ
Titon Holdings Plc
PreliminaryΒ Announcement for the year ended 30 September 2009
Business Review
Financial Performance
Loss before Tax for the year to 30 September 2009 was Β£210,000 (2008: loss Β£59,000), on Revenue 14.2% lower at Β£14.05 million (2008: Β£16.38 million).Β Β Losses per share were 1.91p (2008: 2.50p); the prior year figure having been adversely affected by a high deferred tax charge.
As reported at the interim stage, the loss for the first six months of the year was Β£366,000 as the sharp downturn in construction activity had a major impact on profitability. Difficult trading conditions continued into the third quarter but the fourth quarter saw some confidence return to the market and sales volumes improved. This increase in sales activity, combined with a much-reduced cost base, has allowed a modest profitΒ of Β£156,000 toΒ be recorded for the second half of the year.
One of our key objectives throughout the recession has been to preserve cash resources. We are pleased to report that Net Cash Balances at the yearΒ end were Β£3.10Β million compared to Β£2.54 million at the start of the year. This has been achieved despiteΒ providingΒ a further Β£400,000Β working capital toΒ the Korean manufacturing operation and maintaining the interim dividend.Β Tight control over our inventory levels has been necessary and these have fallen by Β£450,000 (18%) over the year to a level of Β£2.06 million (2008: Β£2.51 million).
Given the loss for the full year the Directors have considered very carefully the level of final dividend that should be paid and are proposing 1.0p per share (2008: 1.0p). This, when added to the interim dividend paid on 24 June 2009 makes a total for the year of 2.0p (2008: 2.0p). If approved by shareholders, at the forthcoming Annual General Meeting, the dividend will be payableΒ on 22 February 2010 to shareholders on the register on 22 January 2010. The ex dividend date is 20 January 2010.
Trading Commentary
Trading resultsΒ for the yearΒ reflect the severe conditions experienced across the majority of the markets in which we operate. Whilst the first half of the year for the industry continued to be tough, by June there wereΒ someΒ signs of recovery. Even though it was still evident that many of our customers were experiencing difficulties, a measured optimism began to emerge. An increase in activity began to occur in the market, and those who were benefiting from this slight improvement started to place increased orders with us.Β In turn,Β this increase began to put stress on our reduced production capabilities, and consequently a small number of new temporary staffΒ wereΒ employed.
Sales of our in-house manufactured mechanical ventilation range have shown strong growth throughout the year, albeit from a low base. We have steadily increased our mechanical ventilation sales team and our technical back up team over the year in order to capitalise on the market leading products that we have designed. Titon is now recognised as a significant player in the growing market of energy efficient ventilation systems and we anticipate building on this in the coming year.
OurΒ 'jointΒ venture'Β with our South Korean distributor, Browntech Sales Co. Ltd., isΒ developingΒ into a vibrant operation. It is understandable that there was a temporary slowdown in demand for its products during the early part of this year due to theΒ globalΒ recession, but the businessΒ isΒ nowΒ movingΒ forward. Although this operation has been loss-making over the year, the increase in new contracts for our Titon Korea factory indicatesΒ a promising future for our investment.
Β
Page 1Β Β
Titon Holdings Plc
PreliminaryΒ Announcement for the year ended 30 September 2009
Business ReviewΒ (continued)
Employees
AsΒ reported at the interim stage, furtherΒ redundancies have been made during the year mainly as a result of the decline inΒ ourΒ window and door hardware sales.Β The total number of redundancies was 19 at a cost of Β£136,000. The downsizing that we have undertaken has beenΒ part ofΒ a traumatic period for the Group and those who have had to take redundancy, along with their families, have naturally suffered from this difficult process. Once again, we express our gratitude and best wishes to them.Β
The total number of employees was 171 as at 30 September 2009, 24 lower than at the end of September 2008. This decrease is in addition to the reduction of 61 in the previous financial year.Β
Prospects
Market conditions continue to be uncertain, and forecasting remains extremely difficult. However, Titon remains financially strong and is well positioned to take maximum advantage of theΒ UKΒ market when it eventually emerges out of recession. We now have a highly focused work force, and a very exciting and competitive range of new powered ventilation products. Our in-house design and development team continues toΒ developΒ innovative products toΒ take advantage ofΒ the changing trends in domestic ventilation, and all of our sales teams are proactively seeking out new areas of opportunity. The next revision of the Building Regulations forΒ EnglandΒ andΒ WalesΒ isΒ expected to be announced over the coming weeks and to take effect some time in 2010. These Regulations are likely to increase the requirement for energy efficient ventilation systems over the next few years as building quality levels are further enhanced. The inclusion of trickle ventilators in all replacement windows is, once again, being considered.
Our global markets, whilst mirroring the problems experienced in our home market, have also shown a slight improvement in the last quarter, and we have shown our further commitment to this vital part of our business by increasing our export sales staff. Further initiatives to increase our overseas sales are planned for the coming year.
Whilst there are now a few encouraging signs in most of our markets, we acknowledge that 2009/2010 will still be a challenging one for Titon, but one which we approach with cautious enthusiasm.
On behalf of the BoardΒ
JΒ N Anderson D A Ruffell
Chairman Chief Executive
9Β December 2009
Β
Page 2Β Β
Titon Holdings Plc
PreliminaryΒ Announcement for the year ended 30 September 2009
UnauditedΒ Consolidated Income Statement
for the year ended 30 September 2009
|
Β
|
Β
|
Β
|
Unaudited
|
Β
|
|
Β
|
Β
|
Β
|
2009
|
2008
|
|
Β
|
Β
|
Β
|
Β£'000
|
Β£'000
|
|
Revenue
|
Β
|
Β
|
14,053
|
16,375
|
|
Cost of sales
|
Β
|
Β
|
(10,993)
|
(12,803)
|
|
Gross profit
|
Β
|
Β
|
3,060
|
3,572
|
|
Distribution costs
|
Β
|
Β
|
(625)
|
(762)
|
|
Administrative expenses
|
Β
|
Β
|
(2,654)
|
(2,958)
|
|
Finance income
|
Β
|
Β
|
37
|
101
|
|
Share of losses from associate
|
Β
|
Β
|
(28)
|
(12)
|
|
Loss before tax
|
Β
|
Β
|
(210)
|
(59)
|
|
Tax credit / (expense)
|
Β
|
Β
|
8
|
(205)
|
|
Loss for the year attributable to the equity holders of the parent
|
Β
|
Β
|
Β
(202)
|
Β
(264)
|
|
Loss per share - basic - basic
|
Β
|
Β
|
(1.91p)
|
(2.50p)
|
|
- diluted
|
Β
|
Β
|
(1.91p)
|
(2.50p)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
|
|
|
UnauditedΒ Consolidated Statement of Recognised Income and ExpenseΒ
for the year ended 30 September 2009
|
Β
Β
|
Unaudited
2009
Β£000
|
Β
2008
Β£000
|
|
Loss for the year attributable to the
equity holders of the parent
|
(202)
|
(264)
|
|
Exchange difference on retranslation
of overseas operations
|
(14)
|
(32)
|
|
Total recognised income and expense for the year attributable to equity holders of the parent
|
(216)
|
(296)
|
Β
Page 3
Titon Holdings Plc
PreliminaryΒ Announcement for the year ended 30 September 2009
UnauditedΒ Consolidated Balance Sheet
at 30 September 2009
Β
|
Β
|
Β
|
Β
|
Unaudited
|
Β
|
|
|
Β
|
Β
|
2009
|
2008
|
|
Β
|
Β
|
Β
|
Β£'000
|
Β£'000
|
|
Assets
|
Β
|
Β
|
Β
|
Β
|
|
Property, plant and equipment
|
Β
|
Β
|
3,972
|
4,395
|
|
Intangible assets
Investments in associates
Financial assets
|
Β
|
Β
|
88
185
103
|
61
213
100
|
|
Total non-current assets
|
Β
|
Β
|
4,348
|
4,769
|
|
Inventories
|
Β
|
Β
|
2,057
|
2,507
|
|
Trade and other receivables
|
Β
|
Β
|
2,947
|
3,224
|
|
Corporation tax
|
Β
|
Β
|
8
|
-
|
|
Cash and cash equivalents
|
Β
|
Β
|
3,096
|
2,546
|
|
Total current assets
|
Β
|
Β
|
8,108
|
8,277
|
|
Total Assets
|
Β
|
Β
|
12,456
|
13,046
|
|
Liabilities
|
Β
|
Β
|
Β
|
Β
|
|
Deferred tax
|
Β
|
Β
|
361
|
366
|
|
Total non-current liabilities
|
Β
|
Β
|
361
|
366
|
|
Trade and other payables
|
Β
|
Β
|
2,266
|
2,427
|
|
Bank overdraft
|
Β
|
Β
|
23
|
18
|
|
Corporation taxΒ
|
Β
|
Β
|
-
|
5
|
|
Total current liabilities
|
Β
|
Β
|
2,289
|
2,450
|
|
Total Liabilities
|
Β
|
Β
|
2,650
|
2,816
|
|
Equity
|
Β
|
Β
|
Β
|
Β
|
|
Share capital
|
Β
|
Β
|
1,056
|
1,056
|
|
Share premium reserve
|
Β
|
Β
|
865
|
865
|
|
Capital redemption reserve
|
Β
|
Β
|
56
|
56
|
|
Translation reserve
|
Β
|
Β
|
(13)
|
1
|
|
Share schemes reserve
|
Β
|
Β
|
9
|
6
|
|
Retained earnings
|
Β
|
Β
|
7,833
|
8,246
|
|
Total Equity attributable to equity holders of the parent
|
Β
|
Β
|
9,806
|
10,230
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Total Liabilities and Equity
|
12,456
|
13,046
|
||
Β
Page 4
Titon Holdings Plc
PreliminaryΒ Announcement for the year ended 30 September 2009
UnauditedΒ Consolidated Cash Flow Statement
for the year ended 30 September 2009
|
Β
|
Β
|
Unaudited
|
Β
|
|
|
Β
|
2009
|
2008
|
|
Β
|
Β
|
Β£'000
|
Β£'000
|
|
Cash generated from operating activities
|
Β
|
Β
|
Β
|
|
Loss before tax
|
Β
|
(210)
|
(59)
|
|
Depreciation of property, plant & equipment
|
Β
|
616
|
641
|
|
Amortisation on intangible assets
|
Β
|
30
|
37
|
|
Decrease in inventories
|
Β
|
437
|
476
|
|
Decrease in receivables
|
Β
|
274
|
541
|
|
(Decrease) / increase in payables and other current liabilities
|
Β
|
(161)
|
225
|
|
Loss / (profit) on sale of plant & equipment
|
Β
|
8
|
(11)
|
|
Share based payment - equity settled
|
Β
|
3
|
3
|
|
Interest received
|
Β
|
(37)
|
(101)
|
|
Share of associate loss
|
Β
|
28
|
12
|
|
Cash generated from operations
|
Β
|
988
|
1,764
|
|
Income taxes (paid) / refunded
|
Β
|
(11)
|
27
|
|
Net cash generated from operating activities
|
Β
|
977
|
1,791
|
|
Cash flows from investing activities
|
Β
|
Β
|
Β
|
|
Acquisition of shares in associate
|
Β
|
-
|
(225)
|
|
Purchase of property, plant & equipmentΒ
|
Β
|
(206)
|
(405)
|
|
Purchase of intangible assets
|
Β
|
(57)
|
(40)
|
|
Proceeds from sale of plant & equipment
|
Β
|
5
|
42
|
|
Interest received
|
Β
|
37
|
101
|
|
Net cash used in investing activities
|
Β
|
(221)
|
(527)
|
|
Cash flows from financing activities
|
Β
|
Β
|
Β
|
|
Dividends paid to equity shareholders
|
Β
|
(211)
|
(301)
|
|
Issue of loan to associate
|
Β
|
-
|
(100)
|
|
Net cash used in financing activities
|
Β
|
(211)
|
(401)
|
|
Β
|
Β
|
Β
|
Β
|
|
Net increase in cash & cash equivalents
|
Β
|
545
|
863
|
|
Cash & cash equivalents at beginning of the year
|
Β
|
2,528
|
1,665
|
|
Cash & cash equivalents at end of the year
|
Β
|
3,073
|
2,528
|
Β
Page 5
Titon Holdings Plc
Notes to theΒ PreliminaryΒ Announcement for the year ended 30 September 2009
1Β Β LossΒ per ordinary share
The calculation of the basic and dilutedΒ lossΒ per share is based on the following data:
Β
|
Β
|
Unaudited
|
Β
|
|
Β
|
2009
|
2008
|
|
Β
|
Β£'000
|
Β£'000
|
|
Numerator
|
Β
|
Β
|
|
LossΒ for the purposes of basicΒ lossΒ per shareΒ being loss
after taxΒ attributable toΒ members of Titon Holdings Plc
|
(202)
|
(264)
|
|
Β
|
Β
|
Β
|
|
Denominator
|
Number
|
Number
|
|
Weighted average number of ordinary shares for the purposes of
|
Β
|
Β
|
|
basicΒ lossΒ per share - at the beginning and end of the year
|
10,555,650
|
10,555,650
|
|
LossΒ per share (pence)
|
Β
|
Β
|
|
Basic
|
(1.91p)
|
(2.50p)
|
|
Diluted
|
(1.91p)
|
(2.50p)
|
2Β Β Β Dividends
Β
|
Β
|
Unaudited
|
Β
|
|
Β
|
2009
|
2008
|
|
Β
|
Β£'000
|
Β£'000
|
|
Final dividend ofΒ 1.0Β pence (2008:Β 2.3Β pence) per ordinary share paid and proposed during the year relating to theΒ previous year's results
Β
|
106
|
196
Β
|
|
Interim dividend of 1.0 pence (2008:Β 1.0Β pence) per ordinaryshare paid during the year
|
105
|
106
Β
|
|
Unclaimed dividend returned
|
-
|
(1)
Β
|
|
Β
|
211
|
301
|
Β
The Directors are proposing a final dividend of 1.0 pence (2008:Β 1.0Β pence) per share. This will result in a final dividend totalling Β£106,000 (2008: Β£106,000), subject to approval by the shareholders at the Annual General Meeting. This dividend has not been accrued at the balance sheet date.
Page 6
Titon Holdings Plc
Notes to theΒ PreliminaryΒ Announcement for the year ended 30 September 2009
3Β Β Β Analysis of cash and cash equivalents
The table below provides an analysis of net cash and cash equivalents during the year ended 30 September 2009:
Β
|
Β
|
Unaudited
|
Β
|
|
Β
|
2009
|
2008
|
|
|
Β£'000
|
Β£'000
|
|
Cash available on demand
|
221
|
1,046
|
|
Short-term deposits
|
2,875
|
1,500
|
|
Cash at bank
|
3,096
|
2,546
|
|
Overdraft
|
(23)
|
(18)
|
|
Β
|
3,073
|
2,528
|
|
Β
|
Β
|
Β
|
|
NetΒ increase in cash equivalents
|
545
|
863
|
|
Cash and cash equivalents at beginning of year
|
2,528
|
1,665
|
|
Cash and cash equivalents at end of year
|
3,073
|
2,528
|
4 Revenue and segmental information
For management and internal reporting purposes, the Group's operations are currently analysed according toΒ geographical regions. This is the basis on which the Group reports its primary segment information.
The Group's business is comprised of the following reportable geographic segments:
United Kingdom
Rest of the World
Inter-segment pricing is determined on an arm's length basis. Segment results include items directly attributableΒ to a segment as well as those that can be allocated on a reasonable basis.
Β
Page 7
Titon Holdings Plc
Notes to the Preliminary Announcement for the year ended 30 SeptemberΒ 2009
Revenue and segmentalΒ informationΒ (continued)
Segment information about the geographic regions is presented below.
Geographic segmentsΒ
Β
|
Β
|
United Kingdom
|
Rest of the World
|
Consolidated
|
|||
|
Β
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|
Β
|
Β£'000
|
Β£'000
|
Β£'000
|
Β£'000
|
Β£'000
|
Β£'000
|
|
External
|
11,864
|
14,538
|
2,189
|
1,837
|
14,053
|
16,375
|
|
Intercompany
|
-
|
-
|
177
|
300
|
177
|
300
|
|
Total Revenue
|
11,864
|
14,538
|
2,366
|
2,137
|
14,230
|
16,675
|
|
Segment result
|
1,551
|
2,080
|
44
|
74
|
1,595
|
2,154
|
|
Unallocated expenses
|
Β
|
Β
|
Β
|
Β
|
(1,814)
|
(2,302)
|
|
Losses from associate
|
Β
|
Β
|
Β
|
Β
|
(28)
|
(12)
|
|
Finance income
|
Β
|
Β
|
Β
|
Β
|
37
|
101
|
|
Loss before tax
|
Β
|
Β
|
Β
|
Β
|
(210)
|
(59)
|
|
Tax credit / (expense)
|
Β
|
Β
|
Β
|
Β
|
8
|
(205)
|
|
Loss for the year attributable to the equity holders of the parent
|
Β
|
Β
|
Β
|
(202)
|
(264)
|
|
Β
|
Balance Sheet
|
2009
|
2008
|
|
Β
|
Β£'000
|
Β£'000
|
|
Assets -Β Segment total assets
|
Β
|
Β
|
|
United Kingdom
|
11,544
|
12,604
|
|
Rest of World
|
904
|
442
|
|
Consolidated
|
12,448
|
13,046
|
|
LiabilitiesΒ - Segment total liabilities
|
Β
|
Β
|
|
United Kingdom
|
2,403
|
2,668
|
|
Rest of World
|
239
|
148
|
|
Consolidated
|
2,642
|
2,816
|
Page 8
Titon Holdings Plc
Notes to the Preliminary Announcement for the year ended 30 September 2009
5 Tax (credit) / expense
Β
|
|
Β
|
2009
|
2008
|
|
Β
|
Β
|
Β£'000
|
Β£'000
|
|
UK corporation tax credit
|
Β
|
(8)
|
(26)
|
|
Adjustment in respect of under provision in prior years
|
Β
|
6
|
5
|
|
Total UK corporation tax
|
Β
|
(2)
|
(21)
|
|
Total overseas tax
|
Β
|
-
|
31
|
|
Total current tax
|
Β
|
(2)
|
10
|
|
Deferred taxΒ
|
Β
|
(6)
|
195
|
|
Total taxΒ (credit) / expense
|
Β
|
(8)
|
205
|
Β
Β
|
The charge for the year can be reconciled to the loss
|
Β
|
Β
|
|
Β per the income statement as follows:
|
2009
|
2008
|
|
|
Β£'000
|
Β£'000
|
|
Loss before tax
Effect of:
Β
|
(210)
|
(59)
|
|
Expected tax charge based on the standard rate of
|
Β
|
Β
|
|
corporation tax in the UK of 21% (2008: 20.5%)
|
(44)
|
(12)
|
|
Additional deduction for R&D expenditureΒ
|
(29)
|
(33)
|
|
Expenses not deductible for tax purposes
|
40
|
31
|
|
Unrelieved tax losses and other deductions
|
27
|
19
|
|
Adjustment in respect of IBAs
|
(6)
|
221
|
|
Effect of difference in exchange rates
|
(2)
|
-
|
|
Adjustments in respect of prior periods
|
6
|
(21)
|
|
Total tax (credit) / expense for the year
|
(8)
|
205
|
The effective tax rate for the year is 3.8% (2008:Β 347%)
TheΒ totalΒ tax chargeΒ forΒ 2008 wasΒ affected by the adjustment for Industrial Buildings Allowances (IBAs)Β whichΒ will be phased out over a period of four years.
Β
Page 9
Titon Holdings Plc
Notes to the Preliminary Announcement for the year ended 30 September 2009
6 Basis ofΒ preparation
The accounting polices of the Group under International Financial Reporting StandardsΒ (IFRSs) are set out in detail in the 2008Β Financial Statement which is available from the Group's websiteΒ atΒ www.titonholdings.com.Β There have been no changes to the accounting policies during the year.
The information in this preliminary announcement does not constitute the statutory accounts of the Group within the meaning of Section 435 of the Companies Act 2006 for the year ended 30 September 2009 or 2008.
The financial information for the year ended 30 September 2008Β is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies.Β The auditors have reported on those accounts; their reportΒ wasΒ unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under the Companies Act 1985, s 237(2) or (3). The statutory accounts for 2009, on which the auditors have not yet reported, will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General MeetingΒ whichΒ will be held on 17 February 2010.
Β
Titon Holdings Plc
Registered Office: International House,Β Peartree Road, Stanway, Colchester,Β EssexΒ CO3 0JL.Β Registered inΒ EnglandΒ andΒ WalesΒ (registered no. 1604952).
Page 10
Follow the stocks
