Interim Results at 31/03/05

12 May 2005 07:00

Titon Holdings PLC12 May 2005 TITON HOLDINGS PLCInterim results for 6 months ended 31 March 2005 Chairman's Statement FINANCIAL RESULTSProfit before taxation for the six months was 1.6% lower than the same periodlast year at £559,000 (2004: £568,000) on turnover 6.1% lower at £7,917,000(2004: £8,434,000). Basic earnings per share were 1.9% lower at 3.71p (2004:3.78p) and the Directors have declared an unchanged interim dividend of 2.3p(2004: 2.3p). COMMENTARYThe reduction in sales experienced over the period relates wholly to the UKwhere demand has declined across a range of customer and product types,symptomatic of a general slow down in the market. This reduction in activity hasbeen widely acknowledged by our customers and by many of our competitors withinthe industry. Despite the slight decline, there are sectors of our operationsthat are showing solid progress, including some of our Export markets. A positive response has been received to our new domestic ventilation systemsand powered ventilation units, following their launch last year. We are alreadybeginning to gain some encouraging business from electrical contractors and fromsome well known house builders. We will be committing further sales andmarketing resources to this part of our business during the second half. The efficiency improvements and the cost saving measures, introduced during thelast financial year, have had a favourable impact during the period and haveenabled us to virtually hold our profits despite the fall in sales revenue.Additional savings from these initiatives should accrue during the second halfand further efficiency improvements are currently being implemented. PROSPECTSThe difficult trading conditions within the UK window and door industry havebeen widely reported and are not anticipated to improve significantly over thenext six months. We will continue our efforts to improve market share in thissector as well as developing our targeted niche markets. Whilst we fully expectsales of our ventilation systems to grow steadily, they are not expected tocontribute significantly to our results in the second half of our trading year.However, the longer term signs are more encouraging. The long awaited outcome of the Building Regulation changes for both domesticand commercial ventilation is now scheduled for the coming summer and I will beable to update shareholders in my year-end statement. I anticipate that full year earnings will be broadly similar to last year. If,thereafter, market conditions improve we are well placed to achieve profitgrowth. J N AndersonChairman12 May 2005 TITON HOLDINGS PLCInterim Resultsfor the 6 months ended 31 March 2005 Six Months Six Months Year to to 31.3.05 to 31.3.04 30.9.04 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Turnover 7,917 8,434 16,401 Operating profit 482 502 937 Interest receivable 77 66 131Interest payable and similar charges - - (6) -------- --------- -------- Profit on ordinary activities 559 568 1062before taxation Taxation on profit on ordinary (168) (170) (305)activities -------- --------- -------- Profit on ordinary activities aftertaxation attributable to the membersof Titon Holdings 391 398 757 Dividends (242) (242) (749) -------- --------- --------Retained profit 149 156 8 -------- --------- -------- Earnings per share - basic 3.71p 3.78p 7.19p - diluted 3.70p 3.74p 7.14p Ordinary dividend per share 2.3p 2.3p 7.1p Notes:1. Basic earnings per share has been calculated by dividing the Profitattributable to shareholders by the weighted average number of ordinary sharesin issue during the period, being 10,528,800 (Year ended 30 September 2004:10,523,878; Six months ended 31 March 2004: 10,518,956). Diluted earnings per share has been calculated by dividing the Profitattributable to shareholders by the weighted average number of dilutivepotential ordinary shares during the period, being 10,574,796 (Year ended 30September 2004: 10,597,741; Six months ended 31 March 2004: 10,629,489). 2. The actual results for the year ended 30 September 2004 are an abridgedversion of the Company's 2004 accounts which have been filed with the Registrarof Companies. The Report of the Auditors on the 2004 financial statements wasunqualified. The results for the six months ended 31 March 2005 have been prepared on a basisconsistent with the accounting policies set out in the financial statements forthe year ended 30 September 2004. 3. The interim dividend will be payable on 1 July 2005 to the shareholderson the register on 10 June 2005. The ex dividend date is 8 June 2005. 4. This statement is being sent to shareholders and will be available fromthe Company's registered office at International House, Peartree Road, Stanway,Colchester, Essex CO3 0JL. TITON HOLDINGS PLCConsolidated Balance Sheetat 31 March 2005 31.3.05 31.3.04 30.9.04 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Fixed assetsTangible assets 4,142 4,210 4,291 Current assetsStocks 2,563 2,574 2,580Debtors 3,468 3,701 3,201Cash at bank and in hand 3,154 3,242 4,017 -------- -------- -------- 9,185 9,517 9,798CreditorsAmounts falling due within one year 2,552 2,980 3.463 -------- -------- -------- Net current assets 6,633 6,537 6,335 Total assets less current liabilities 10,775 10,747 10,626Deferred taxation (95) (68) (95) -------- -------- -------- 10,680 10,679 10,531 -------- -------- --------Capital and reservesCalled up share capital 1,053 1,053 1,053Share premium 841 841 841Capital redemption reserve 56 56 56Profit and loss account 8,730 8,729 8,581 -------- -------- --------Equity shareholders' funds 10,680 10,679 10,531 -------- -------- -------- TITON HOLDINGS PLCConsolidated Cash Flow Statementfor the 6 months ended 31 March 2005 Six Months Six Months Year to to 31.3.05 to 31.3.04 30.9.04 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Net cash inflow from operating activities 499 660 1,545 ------- -------- ------- Return on investmentsInterest received 77 66 131Interest paid - - (6) ------- -------- ------- 77 66 125 ------- -------- -------TaxationUK corporation tax (82) (232) (431) ------- -------- ------- Capital expenditurePurchase of tangible fixed assets (151) (507) (940)Sale of tangible fixed assets 5 30 66 ------- -------- ------- (146) (477) (874) ------- -------- ------- Equity dividends paid (505) (504) (745) ------- -------- ------- Cash outflow before use of liquidresources (157) (487) (380) Management of liquid resourcesDisposal of treasury deposits 600 800 500 FinancingIssue of ordinary share capital - 25 25 ------- -------- -------Increase in cash 443 338 145 ------- -------- ------- This information is provided by RNS The company news service from the London Stock Exchange