Last checked at 7 Nov 2008 10:00
Titon Holdings Plc (the "Company")
Trading Update
The Company wishes to update shareholders on trading for the year ended 30th September 2008.
Revenues for the 4th Quarter were 10.6% lower than for the corresponding period last year. This compares to the 6.4% reduction experienced in the 3rd Quarter.
In response to the lower volumes, the Company has made further reductions in staffing levels at an additional cost of £61,000 to that reported at the end of the 3rd Quarter. The total exceptional cost of redundancies since the half year end is now £151,000 which will give rise to annual savings of approximately £600,000.
These redundancy costs, along with some £100,000 of start up costs associated with our Korean Joint Venture and an exceptionally high bad debt charge for the year of approximately £150,000 will lead to the Company reporting a small net loss for the full year ended 30 September 2008.
The Board has maintained a strict control over working capital during the year, which has resulted in an improvement in net cash balances, which stood at £2.5 million as at 30 September 2008. The net asset position of the Company also remains strong, at £10.4 million as at 30 September 2008.
The preliminary results for the full year ended 30th September 2008 will be released to shareholders on 11th December 2008.
6 November 2008