Interim Statement - 6m to 31 March 2016

RNS Number : 9906X
Titon Holdings PLC
12 May 2016
 

Titon Holdings Plc          

Business Review

 

Financial performance

Group Profit before Taxation for the six-month period ended 31 March 2016 was £735,000 (2015: £792,000) on Revenues 1.4% higher at £10,850,000 (2015: £10,699,000).

 

Earnings per share for the period were 4.55p (2015: 4.59p) and the Directors have declared an unchanged interim dividend of 1.25p per share (2015: 1.25p per share).

 

Net Cash Balances at 31 March 2016 were £2,458,000 (2015: £2,413,000).

 

Trading commentary

It is disappointing to report a small fall in Group Profit Before Tax for the six months ended 31st March 2016, down by
 
£57,000, although earnings per share for the period is only fractionally behind last year's result. In summary our performance in Korea has been lower than in the last period, the UK is largely flat but the results from our US business have risen.

 

Our overall revenue has risen slightly by 1.4% against the last period and we have seen sales rise in the UK marginally and a good rise in the USA. However, we have seen a slight fall in sales in Korea, down by about 2% in the period.

 

In the UK the performance of our Timber and PVCu Window and Door Hardware division has been disappointing as both sales and profit contribution have fallen below last year. There are a few one off factors that have contributed to this and the contribution from the new hardware products has continued to be disappointing but we are committed to improve our performance here. The Aluminium division has had a very good first half year with both sales and profits up. In our Ventilation Systems Division we saw a very weak start to the period in October 2015, which was echoed by other manufacturers in the sector. Sales have recovered from then and by March 2016 sales had largely recovered from the weak start, which is encouraging.

 

Outside the UK Ventilation Systems Export sales have risen strongly against the comparable period and we have now seen some consistent customer purchasing, which is pleasing. Sales to our Hardware customers in Europe have fallen slightly but sales by Titon Inc. in the USA have grown helped by a contract to install our products into a large refurbishment project.  Our Titon Korea sales are slightly below the prior period and the contribution from Titon Korea has fallen due to lower transfer prices on sales to our Associate, Browntech Sales ("BTS") and some higher administration costs. BTS sales to customers are slightly in front of the prior period as is the profit contribution from BTS.

 

 

Investor relations

I have thought for some time that Titon is "below the radar screen" as far as the London stock market is concerned and I am keen to change this to enhance Titon's value. Many shareholders will be aware that in early 2016 we appointed Hardman & Co. to write some research on Titon and to introduce the Company to a range of institutional and high net worth investors. Hardman & Co. published a comprehensive research report on Titon in March and David Ruffell and I have met with a number of institutions since then to introduce Titon to them. We also attended an investor evening organised by Hardman where we presented Titon to about 50 largely high net worth investors. We will continue to "bang the drum" for Titon in the second half year. If any shareholder would like to read this research then please let me know.

 

  

 

Page 1

 

 

Business Review (continued)

 

Prospects

We are now within 6 weeks of the referendum to decide if the United Kingdom should remain within the EU and the decision will have significant implications for the UK economy. If we remain in the EU then a major source of uncertainty about the future will be removed; if we vote to leave then the uncertainty we have now will be magnified and will remain a significant risk for the economy for several years to come, as has been pointed out by many commentators. Markets generally prefer stability and we are the same. This gives us, our customers and stakeholders a set of familiar circumstances to make decisions, which is not the same as certainty, I should add. Additionally, we want to continue to have unrestricted access to EU markets both for our suppliers and customers and we also want a good supply of people from Europe as our own unemployment rate moves down towards 5% of the workforce. Accordingly, it is difficult to make many predictions about our own prospects in the UK with the current uncertainty, but the shortage of housing in the UK will remain whatever the result of the referendum. We do anticipate that sales of mechanical ventilation systems will continue to expand in the second half.

In Korea, as we have previously indicated, we are expecting a lower rate of growth for this year as competition increases. However, we remain very positive about the Korean economy and have agreed with BTS that they will continue to look for interesting investments in the property sector. Elsewhere, we are expecting good sales in the USA and Europe and will continue to devote more resources to these markets.

Our balance sheet remains very strong and this gives us the opportunity to invest in new products and a strong research and development programme. I expect this to continue in the second half year. We have a good team of people who work for Titon and I would like to extend my thanks to all of them for the hard work and dedication that they have made and continue to show.

 

Principal risk and uncertainties

The key financial and non-financial risks faced by the Group are disclosed in the Group's Annual Report and Accounts for the year ended 30 September 2015 within the Report on Risk Management (pages 9 to 13) available at www.titonholdings.com.  The Board considers that these remain a current reflection of the risks and uncertainties facing the business. The Board also considers that it is appropriate to adopt the going concern basis of accounting in preparing these financial statements and has not identified any material uncertainties which would prevent us so doing.

 

Responsibility Statement

The Directors confirm that, to the best of their knowledge, this condensed set of consolidated financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that this Interim Report  includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

 

The Directors of Titon Holdings Plc are listed on page 15 of this document.  A list of current directors is maintained on the Group's website www.titonholdings.com. 

 

On behalf of the Board

                                            

 

 

KA Ritchie                                                                                           

Chairman                                                                                            

11 May 2016

 

 

 

 

 

                                                                                                Page 2  

Titon Holdings Plc

Consolidated Interim Income Statement

for the six months ended 31 March 2016

 

 

6 months

6 months

Year to

 

 

to 31.3.16

to 31.3.15

30.9.15

 

 

unaudited

unaudited

audited

 

Note

£'000

£'000

£'000

Revenue

2

10,850

10,699

22,258

Cost of sales

 

(8,031)

(7,850)

(16,280)

Gross profit

 

2,819

2,849

5,978

Distribution costs

 

(341)

(350)

(628)

Administrative expenses

 

(1,938)

(1,871)

(3,799)

Other income

 

8

-

11

Operating profit

 

548

628

1,562

Finance income

 

4

2

9

Share of profits  from associates

 

183

162

298

Profit before tax

 

                735

                792

1,869

Income tax expense

3

(120)

(116)

(160)

Profit after income tax

 

615

676

1,709

Attributable to:

 

 

 

 

Equity holders of the parent

 

485

482

1,333

Non-controlling interest

 

130

194

376

Profit for the period

 

615

676

1,709

 

 

 

 

 

Earnings per share - basic

5

4.55p

4.59p

12.60p

                               - diluted

5

4.46p

4.49p

12.27p

Consolidated Interim Statement of Comprehensive Income

for the six months ended 31 March 2016

 

6 months

6 months

Year to

 

to 31.3.16

to 31.3.15

30.9.15

 

unaudited

unaudited

audited

 

£'000

£'000

£'000

Profit for the period

615

676

1,709

Other comprehensive income - items which may be reclassified to profit or loss in subsequent periods:

 

 

 

Exchange difference on re-translation of

Net assets of overseas operations

 

76

 

83

 

(90)

Total comprehensive income for the period

691

759

1,619

Attributable to:

 

 

 

Equity holders of the parent

511

565

1,258

Non-controlling interest

180

194

361

 

691

759

1,619

 

 The notes on pages 7 to 14 form an integral part of this condensed interim information.

 

                                                                                                Page 3

 

Titon Holdings Plc

Consolidated Statement of Financial Position

at 31 March 2016

               

 

31.3.16

31.3.15

30.9.15

 

 

unaudited

unaudited

audited

 

          Note

£'000

£'000

£'000

Assets

 

 

 

 

Property, plant and equipment

6

3,443

3,252

3,218

Intangible assets

 

563

608

623

Investments in associates

 

979

660

796

Deferred tax

 

83

28

83

Total non-current assets

 

5,068

4,548

4,720

 

 

 

 

 

Inventories

 

3,884

3,820

3,786

Trade and other receivables

 

5,426

4,889

4,992

Cash and cash equivalents

 

2,458

2,413

2,870

Total current assets

 

11,768

11,122

11,648

 

 

 

 

 

Total Assets

 

16,836

15,670

16,368

 

 

 

 

 

Liabilities

 

 

 

 

Deferred tax

 

19

19

19

Total non-current liabilities

 

19

19

19

 

 

 

 

 

Trade and other payables

 

4,015

4,162

4,131

Corporation tax

 

112

185

125

Total current liabilities

 

4,127

4,347

4,256

 

 

 

 

 

Total Liabilities

 

4,146

4,366

4,275

Equity

 

 

 

 

Share capital

 

1,085

1,056

1,063

Share premium reserve

 

939

865

891

Capital redemption reserve

 

56

56

56

Treasury shares

 

(27)

(27)

(27)

Translation reserve

 

(26)

106

                (52)

Retained earnings

 

9,440

 

8,372

 

9,119

Total Equity attributable to the equity holders of the parent

 

11,467

10,428

11,050

Non-controlling Interest

 

1,223

876

1,043

Total Equity

 

12,690

11,304

12,093

Total Liabilities and Equity

 

16,836

15,670

16,368

 

 

The notes on pages 7 to 14 form an integral part of this condensed interim information.

            

 

 

 

 

 

                                                                                                Page 4

Titon Holdings Plc

Consolidated Interim Statement of Changes in Equity

at 31 March 2016

 

 

Share

capital

Share

premium

 reserve

Capital

 redemption reserve

Translation reserve

Treasury

Shares

Retained

 earnings

Total

Total

Equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

At 1 October 2014

1,056

865

56

23

(27)

8,023

9,996

682

10,678

Translation differences on overseas operations

-

-

-

83

-

-

83

-

83

Profit for the period

-

-

-

-

-

482

482

194

676

Total comprehensive income for the period

-

-

-

83

-

482

565

194

759

Dividends paid

-

-

-

-

-

(157)

(157)

-

(157)

Share-based payment expense

-

-

-

-

-

24

24

-

24

At 31 March 2015

1,056

865

56

106

(27)

8,372

10,428

876

11,304

Translation differences on overseas operations

-

-

-

(158)

-

-

(158)

(15)

(173)

Profit for the period

-

-

-

-

-

851

851

182

1,033

Total comprehensive income for the period

-

-

-

(158)

-

851

693

167

860

Dividends paid

-

-

-

-

-

(132)

(132)

-

(132)

Share-based payment expense

-

-

-

-

-

28

28

-

28

Ordinary shares issued

7

26

-

-

-

-

33

-

33

At 30 September 2015

1,063

891

56

(52)

(27)

9,119

11,050

1,043

12,093

Translation differences on overseas operations

-

-

-

26

-

-

26

50

76

Profit for the period

-

-

-

-

-

485

485

130

615

Total comprehensive

income for the period

-

-

-

26

-

485

511

180

691

Dividends paid

-

-

-

-

-

(188)

(188)

-

(188)

Share-based payment expense

-

-

-

-

-

24

24

-

24

Ordinary shares issued

22

48

-

-

-

-

70

-

70

At 31 March 2016

1,085

939

56

(26)

(27)

9,440

11,467

1,223

12,690

 

 

The notes on pages 7 to 14 form an integral part of this condensed interim information.

 

 

 

 

 

            

 

 

                                                                                                Page 5

Titon Holdings Plc

Consolidated Interim Statement of Cash Flows

for the six months ended 31 March 2016

 

 

 

6 months

6 months

Year to

 

 

to 31.3.16

to 31.3.15

30.9.15

 

 

unaudited

unaudited

audited

 

Note 

£'000

£'000

£'000

Cash generated from operating activities

 

 

 

 

Profit before tax

 

735

792

1,869

Depreciation of property, plant & equipment

 

197

198

403

Amortisation on intangible assets

 

82

83

163

Increase in inventories

 

(44)

(281)

(363)

Increase in receivables

 

(354)

(198)

(491)

(Decrease) / increase in payables and other current liabilities

 

(174)

350

454

Profit on sale of plant & equipment

 

(5)

(3)

(4)

Share based payment - equity settled

 

24

24

52

Interest received

 

(3)

(2)

(8)

Share of associate's profit

 

(183)

(162)

(298)

Cash generated from operations

 

              275

              801

1,777

Income taxes paid

 

(133)

(75)

(234)

Net cash generated from operating activities

 

142

726

1,543

Cash flows from investing activities

 

 

 

 

Purchase of plant & equipment

  6

(422)

(298)

(498)

Purchase of intangible assets

 

(22)

(33)

(128)

Proceeds from sale of plant & equipment

 

5

24

52

Interest received

 

3

2

8

Net cash used in investing activities

 

(436)

(305)

(566)

Cash flows from financing activities

 

 

 

 

Exercise of share options

 

70

-

33

Dividends paid to equity shareholders

4

(188)

(157)

(289)

Net cash used in financing activities

 

    (118)

    (157)

(256)

Net (decrease) / increase in cash & cash equivalents

 

(412)

264

721

Cash  & cash equivalents at beginning of the period

 

2,870

2,149

2,149

Cash & cash equivalents at end of the period

 

2,458

2,413

2,870

Cash & cash equivalents comprise:

 

 

 

 

Cash at bank

 

2,458

2,413

2,870

Cash & cash equivalents at end of the period

 

2,458

2,413

2,870

 

The notes on pages 7 to 14 form an integral part of this condensed interim information.

 

 

 

 

 

                                                                                                Page 6                                  

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

 

Basis of preparation

Titon Holdings Plc (the 'Company') is a company domiciled in England. The condensed consolidated interim financial statements of the Group for the six months ended 31 March 2016 comprise the Company and its subsidiaries (together referred to as the 'Group').

 

The IASB has issued the following revised and updated IFRIC amendments which have been adopted although, with the exception of IFRSs 9 and 15 where the Group is still assessing the possible future effect of these Standards, they have no impact on the Group's reporting:

·    Annual Improvements to IFRSs 2010-2012 Cycle. These amendments affect the following IFRSs - IFRS 2 Share-based Payment, IFRS 3 Business Combinations, IFRS 8 Operating Segments, IFRS 13 Fair Value Measurement, IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets, IAS 24 Related Party Disclosures and IAS 38 Intangible Assets.

·    Annual Improvements to IFRSs 2011-2013 Cycle. These amendments affect the following IFRSs: IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 3 Business Combinations, IFRS 13 Fair Value Measurement and IAS 40 Investment Property.

·    Accounting for Acquisitions of Interests in Joint Operations: Amendments to IFRS 11. The amendments require the acquirer of an interest in a joint operation in which the activity constitutes a business, as defined in IFRS 3 Business Combinations, to apply all of the principles on business combinations accounting in IFRS 3 and other IFRSs except for those principles that conflict with the guidance in IFRS 11. In addition, the acquirer shall disclose the information required by IFRS 3 and other IFRSs for business combinations.

·    Clarification of Acceptable Methods of Depreciation and Amortisation: Amendments to IAS 16 and IAS 38. The amendment to IAS 16 clarifies that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset.

·    Agriculture: Bearer Plants: Amendments to IAS 16 and IAS 41. The amendments change the financial reporting for bearer plants, such as grape vines, rubber trees and oil palms.

·    Equity Method in Separate Financial Statements (Amendments to IAS 27). The amendments introduce an option for an entity to account for its investments in subsidiaries, joint ventures, and associates using the equity method in its separate financial statements. The accounting approach that is selected is required to be applied for each category of investment.

·    Annual Improvements to IFRSs (2012-2014 Cycle). These amendments affect the following IFRSs: IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (Prospective application), IFRS 7 Financial Instruments: Disclosures (Retrospective application), IAS 19 Employee Benefits (Beginning of earliest period presented), IAS 34 Interim Financial Reporting (Retrospective application).

·    Disclosure Initiative: Amendments to IAS 1. The IASB has issued amendments to IAS 1 Presentation of Financial Statements as part of an initiative to improve presentation and disclosure in financial reports.

·    Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28). The narrow-scope amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures introduce clarifications to the requirements when accounting for investment entities. 

·    IFRS 15 Revenue from Contracts with Customers. IFRS 15 is intended to clarify the principles of revenue recognition and establish a single framework for revenue recognition. IFRS 15 supersedes: IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue-Barter Transactions Involving Advertising Services.

The core principle is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

·    IFRS 9 Financial Instruments. This IFRS replaces IAS 39 Financial Instruments: Recognition and Measurement in its entirety and uses a single approach to determine whether a financial asset is measured at amortised cost or fair value.

 

 

 

                                                                                      Page 7

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

1   Basis of preparation (continued)

Otherwise, the condensed interim financial statements have been prepared using accounting policies set out in the Report and Accounts 2015 and have been applied consistently to all periods presented in these financial statements. They are in accordance with IAS 34. The six months results for both 31 March 2015 and 2016 have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the year end 30 September 2015 does not constitute the full statutory accounts for that period. The Company's Report and Accounts 2015 have been delivered to the Registrar of Companies. The independent auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

The condensed interim financial statements do not constitute full accounts within the meaning of Section 434 of the Companies Act 2006.

The interim report was approved by the Board and authorised for issue on 11 May 2016. Copies of the interim report will be sent to shareholders in the next few weeks.

This statement is being sent to shareholders, will be available on the Group's website at www.titonholdings.com and from the Company's registered office at International House, Peartree Road, Stanway, Colchester, Essex CO3 0JL.

 

 

 

2   Segment reporting

In identifying its operating segments, management generally follows the Group's reporting lines, which represent the main geographic markets in which the Group operates. The segment reporting below is shown in a manner consistent with the internal reporting provided to the Board, which is the Chief Operating Decision Maker (CODM). These operating segments are monitored and strategic decisions are made on the basis of segment operating results. 

The Group operates three main business segments which are:

Segment

Activities undertaken include:

United Kingdom

Sales of passive and powered ventilation products to house builders, electrical contractors and window and door manufacturers. In addition to this, it is a leading supplier of window and door hardware.

South Korea

Sales of passive ventilation products to construction companies.

All other countries

Sales of passive and powered ventilation products to distributors, window manufacturers and construction companies

 

Inter-segment revenue is transacted on an arm's length basis and charged at prevailing market prices for a specific product and market or cost plus where no direct comparative market price is available.  Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.  Research and development entity-wide financial expenses are not allocated to the business activities for which R&D is specifically performed and it is not therefore reported as a separate operating segment. Sales Administration and Other Expenses are not currently allocated to operating segments in the Group's reporting to the CODM, and Other Expenses include mainly central and parent company overheads relating to group management, the finance function and regulatory requirements. 

The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its financial statements.

The total assets for the segments represent the consolidated total assets attributable to these reporting segments. Parent company results and consolidation adjustments reconciling the segmental results and total assets to the consolidated financial statements, are included within the United Kingdom segment figures stated below.

 

 

 

 

 

   

 

 

Page 8

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

2   Segment reporting (continued)

 

Business segment

United

Kingdom

South

Korea

All other countries

Total

 

£'000

£'000

£'000

£'000

6 months ended 31 March 2016

 

 

 

 

Segment revenue

6,031

 

3,365

1,454

10,850

Inter-segment revenue

-

-

263

263

Total Revenue

6,031

3,365

1,717

11,113

Segment profit

1,115

499

238

1,852

Unallocated expenses

 

 

 

 

Research and Development expenses

 

 

 

(295)

Sales Administration expenses

 

 

 

(341)

Other Expenses

 

 

 

(485)

Finance income

 

 

 

4

Profit before tax

 

 

 

735

Tax expense

 

 

 

(120)

Profit for the period

 

 

 

615

Depreciation and amortisation

253

26

-

279

Total assets

11,443

4,950

443

16,836

Total assets include:

 

 

 

 

Investments in associates

979

-

-

979

Additions to non-current assets (other than financial instruments and deferred tax assets and excluding changes in value of the non-current asset investment in the associate)

420

23

1

444

The South Korean Segment profit includes the Group's share of the profits from the Associate.

 

 

 

  

 

 

Page 9

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

2   Segment reporting (continued)

 

Business segment

United

Kingdom

South

Korea

All other countries

Total

 

£'000

£'000

£'000

£'000

6 months ended 31 March 2015

 

 

 

 

Segment revenue

6,094

 

3,445

1,160

10,699

Inter-segment revenue

-

-

265

265

Total Revenue

6,094

3,445

1,425

10,964

Segment profit

1,195

661

140

1,996

Unallocated expenses

 

 

 

 

Research and Development expenses

 

 

 

(278)

Sales Administration expenses

 

 

 

(349)

Other Expenses

 

 

 

(579)

Finance income

 

 

 

2

Profit before tax

 

 

 

792

Tax expense

 

 

 

(116)

Profit for the period

 

 

 

676

Depreciation and amortisation

265

16

-

281

Total assets

11,204

4,155

314

15,673

Total assets include:

 

 

 

 

Investments in associates

660

-

-

660

Additions to non-current assets (other than financial instruments and deferred tax assets and excluding changes in value of the non-current asset investment in the associate)

285

46

-

331

 

 

The South Korean Segment profit includes the Group's share of the profits from the Associate.

 

 

 

                                                                                                                                                                                           

  

 

Page 10

 

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

2  Segment reporting (continued)

 

 

Business segment

United Kingdom

South

Korea

 

All other countries

Total

 

£'000

£'000

£'000

£'000

12 months ended 30 September 2015

 

 

 

 

Segment revenue

12,461

7,161

2,636

22,258

Inter-segment revenue

-

-

601

601

Total Revenue

12,461

7,161

3,237

22,859

Segment profit

2,606

1,264

286

4,156

Unallocated expenses

 

 

 

 

Research and Development expenses

 

 

 

(535)

Sales Administration expenses

 

 

 

(568)

Other Expenses

 

 

 

(1,193)

Finance income

 

 

 

9

Profit before tax

 

 

 

1,869

Tax expense 

 

 

 

(160)

Profit for the period

 

 

 

1,709

Depreciation and amortisation

528

38

-

566

Total assets

11,352

4,600

416

16,368

Total assets include:

 

 

 

 

Investments in associates

796

-

-

796

Additions to non-current assets (other than financial instruments and deferred tax assets and excluding changes in value of the non-current asset investment in the associate)

527

99

-

626

 

The South Korean Segment profit includes the Group's share of the profits from the Associate.

 

 

 

  

 

 

 

Page 11

 

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

2  Segment reporting (continued)

 

IFRS 8 requires entity-wide disclosures to be made about the regions in which it earns its revenues and holds its non-current assets which are shown below.

 

6 months ended

31 March 2016

United Kingdom

Europe

USA

 

South East Asia

 

All other regions

 

Total

Revenues

£'000

£'000

£'000

£'000

£'000

£'000

by entities' country of domicile

6,800

-

685

3,365

-

10,850

by country from which derived

6,024

723

685

3,365

53

10,850

Non-current assets

 

 

 

 

 

 

By entities' country of domicile

4,065

-

2

1,001

-

5,068

 

One customer accounted for more than 10% of Group revenue and sales to this customer totalled £3.365m (included within South East Asia).

 

6 months ended

31 March 2015

United Kingdom

Europe

USA

 

South East Asia

 

All other regions

 

Total

Revenues

£'000

£'000

£'000

£'000

£'000

£'000

by entities' country of domicile

6,708

-

546

3,445

-

10,699

by country from which derived

6,094

600

546

3,445

14

10,699

Non-current assets

 

 

 

 

 

 

By entities' country of domicile

4,299

-

1

251

-

4,551

 

One customer accounted for more than 10% of Group revenue and sales to this customer totalled £3.445m (included within South East Asia).

 

 

12 months ended

30 September 2015

United Kingdom

Europe

USA

 

South East Asia

 

All other regions

Total

Revenues

£'000

£'000

£'000

£'000

£'000

£'000

by entities' country of domicile

13,906

-

1,191

7,161

-

22,258

by country from which derived

12,461

1,389

1,191

7,189

28

22,258

Non-current assets

 

 

 

 

 

 

By entities' country of domicile

3,898

-

1

821

-

4,720

 

Sales to Browntech Sales Co. Ltd (the Group's associate undertaking in South Korea), of £7.161m represent 32.2% of Group Revenue. There are no other concentrations of revenue above 10% during the year (see Note 7 - Related party transactions).

 

 

 

 

                                                                             Page 12

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

3   Tax

 

6 months

6 months

Year to

 

to 31.3.16

to 31.3.15

30.9.15

 

£'000

£'000

£'000

Current income tax:

 

 

 

Corporation tax expense

(120)

(127)

(208)

Adjustment in respect of prior years

-

29

11

 

(120)

(98)

(197)

Deferred tax:

 

 

 

Origination and reversal of temporary differences

-

(15)

37

Adjustment in respect of prior years

-

(3)

-

 

-

(18)

37

Income tax expense

(120)

(116)

(160)

 

Tax for the interim period is charged at 25.0% (six months to 31 March 2015: 22.6%) representing the best estimate of the average annual effective income tax rate for the full financial year.

 

 

4   Dividends

An interim dividend in respect of the six months ended 31 March 2016 of 1.25p per share, amounting to a total dividend of £135,000 was approved by the Directors of Titon Holdings Plc on 11 May 2016. These consolidated interim statements do not reflect the dividend payable.

 

The interim dividend will be payable on 24 June 2016 to the shareholders on the register on 3 June 2016. The ex-dividend date is 2 June 2016.

 

The following dividends have been recognised and paid by the Company:

 

 

 

 

6 months

6 months

Year to

 

 

 

to 31.3.16

to 31.3.15

30.9.15

 

Date

Paid

Pence

per share

 

£'000

 

£'000

 

£'000

Final in respect of the year end 30.09.14

20.02.15

1.50

-

157

157

Interim in respect of the year end 30.09.15

23.06.15

1.25

-

-

132

Final in respect of the year end 30.09.15

19.02.16

1.75

188

-

-

 

 

 

188

157

289

 

 

 

  

  

 

                                                                        Page 13

 

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2016

 

5   Earnings per ordinary share

Basic earnings per share has been calculated by dividing the profits attributable to shareholders by the weighted average number of ordinary shares in issue during the period, being 10,663,414 (six months ended 31 March 2015: 10,505,650; year ended 30 September 2015: 10,575,600).

 

Diluted earnings per share has been calculated by dividing the profits attributable to shareholders by the weighted average number of ordinary shares and potential dilutive ordinary shares during the period, being 10,877,509 (six months ended 31 March 2015: 10,746,848; year ended 30 September 2015: 10,863,888). 

 

6   Property, plant and equipment

Additions and disposals

During the six months ended 31 March 2016, the Group acquired assets with a cost of £444,000 (six months to 31 March 2015: £298,000; year ended 30 September 2015: £498,000).

 

7   Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

 

Transactions between subsidiary companies and the associate company, which is a related party, were as follows:

 

 

 

Sale of goods

 

Amount owed by related party

 

6 months

to 31.3.16

6 months

to 31.3.15

Year to

to 30.9.15

6 months

to 31.3.16

6 months

to 31.3.15

Year to

to 30.9.15

 

£'000

£'000

£'000

£'000

£'000

£'000

Browntech Sales Co. Ltd

3,365

3,445

7,161

1,985

2,104

1,976

 

 

There have been no additional significant or unusual related party transactions to those disclosed in the Group's Annual Report for 30 September 2015.

 

 

8   Liability statement

Neither the Group nor the Directors accept any liability to any person in relation to the Interim Statement except to the extent that such liability could arise under English Law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.

 

 

 

 

  

 

 

                                                                                                Page 14               

Directors and Advisors

 

Directors

 

Executive

KA Ritchie (Chairman)

D A Ruffell (Chief Executive)

T N Anderson

N C Howlett

Non-executive

J N Anderson (Deputy Chairman)

 

 

Secretary and registered office

D A Ruffell

International House

Peartree Road

Stanway

Colchester

Essex CO3 0JL

 

COMPANY REGISTRATION NUMBER

1604952 (Registered in England & Wales)

 

WEBSITE

www.titonholdings.com

 

 

auditors

BDO LLP

55 Baker Street

London

W1U 7EU

REGISTRARS AND TRANSFER OFFICE

Capita Registrars Ltd

Northern House

Woodsome Park

Fenay Bridge

Huddersfield

HD8 0LA

 

 

 

BANKERS

Barclays Bank Plc

Witham Business Centre

Witham, Essex

CM8 2AT

 

 

 

 

 

 

 

 

SOLICITORS

Barlow Robbins LLP

The Oriel

Sydenham Road

Guildford

GU1 3SR

 

 

 

 

 

 

 

 

 

                                                          Page 15


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