Preliminary Results - 30.9.04

Titon Holdings PLC 09 December 2004 Titon Holdings Plc Preliminary Results for the year ended 30 September 2004 CHAIRMAN'S STATEMENT FINANCIAL RESULTS Profit before taxation for the year was 30.3% lower than last year at £1.06 million (2003: £1.52 million), on turnover 0.6% higher at £16.40 million (2003: £16.31 million). Interest income has decreased slightly and, at the operating level, profits were 31.4% down at £0.94 million (2003: £1.37 million). Earnings per share are 29.4% lower at 7.19p (2003: 10.19p). Reflecting the Group's strong cash position, the Directors are proposing a final dividend of 4.8p per ordinary share (2003: 4.8p), making a total of 7.1p for the year (2003: 7.1p). The dividend will be payable on 18 February 2005 to shareholders on the register on 28 January 2005. The ex-dividend date will be 26 January 2005. SALES COMMENTARY Year on year sales growth, which was running at 5.4% at the half year, stalled during the second half as activity levels within the UK window market slowed. This situation was not peculiar to Titon and was experienced by other major suppliers to the window industry. Whilst overall turnover for the year has been maintained, pricing pressures and a change in our product mix have had an adverse impact on our margins. In response to this declining profitability, the Company has taken measures to reduce its costs in many areas of the business. Although our traditional UK business has come under pressure, I am pleased to record certain areas of improvement. Our export sales have again increased and now account for 10% of Group turnover. The weakness of the US dollar has, however, affected the profitability of our business in the USA. It is also pleasing to note that our Commercial Department, which mainly services the higher value aluminium window and door market, has shown continued growth. We are currently recruiting extra staff to increase our market penetration in this area of the business. In my Interim Report I announced the introduction of several exciting new powered ventilation products. Additional lines have been added during the second half as we pursue our aim of becoming total domestic ventilation solutions providers. In order to effectively promote this image and these product ranges, Titon has restructured its operations to launch the new Ventilation Division early in the new financial year. Specialist staff have been recruited from within the powered ventilation industry, and we are encouraged by initial reactions from the market. MANUFACTURING I reported at the previous year-end that we had purchased and refurbished a unit adjacent to our existing factory premises. The move into this 'new' warehouse and distribution unit took place during the year and I am pleased to report that the unit is now functioning effectively. It now provides the capacity necessary to stock and distribute our new Ventilation Division products as well as all our traditional window hardware product ranges. Additionally, during the year, we have invested £500,000 in a new powder coating paint plant. The anticipated cost savings in terms of direct labour, power usage and operational efficiency will provide a quick pay back on this investment. At the same time it will improve our response times and reduce our stock levels. This plant has been installed in the freehold building vacated by moving the warehouse facility. The lease on the building that housed the old plant expired at the end of the financial year providing us with an annual rent savings of £70,000. We are committed to UK manufacturing wherever possible, and we will continue to improve our manufacturing efficiency through considered investment in quality plant, through automation of our assembly processes and through rationalisation of our product ranges. PERSONNEL It is with much regret that the efficiency and cost saving measures introduced towards the end of the financial year have led to job losses throughout the business. We begin the new 2004/5 financial year with 265 employees compared to 296 a year ago. One-off costs associated with restructuring during the year amounted to £60,000. In the light of the reduced profits, our workforce, staff and Directors will not be receiving an inflationary pay increase this year. I should like to thank them all for their loyalty and commitment during this difficult period. PROSPECTS As already stated, certain cost saving measures have been implemented towards the latter part of the year. In addition, the Directors have undertaken, and will continue to evaluate, an in-depth business review to enable the Company to operate more efficiently and to pursue a more focused strategy. Like many companies within our industry, we have been deeply involved in analysing the Building Regulations Part F consultation documents that were released in July 2004. Although benefits may accrue, the proposals within the consultation document are wide-ranging and complex and it is too early to comment on what their overall impact on Titon might be. The outcome of the consultation exercise and the final scope of the Regulation changes will be announced during the spring of 2005. Whilst we are confident that the efficiency of our business will improve, the UK window marketplace in which we predominantly operate, remains competitive due to overcapacity. Our cost reductions will, however, begin to have an impact and we anticipate that this, combined with our strategies of diversification and focusing resources, will enable us to halt the recently experienced profit declines. John Anderson Chairman 9 December 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT Preliminary Results for the year ended 30 September 2004 2004 2003 £'000 £'000 Turnover 16,401 16,310 Cost of sales 12,505 11,889 ------- ------- Gross profit 3,896 4,421 Distribution costs 561 669 Administrative expenses 2,398 2,383 ------- ------- 2,959 3,052 ------- ------- Operating profit 937 1,369 Interest receivable 131 153 Interest payable and similar charges -6 -3 ------- ------- Profit on ordinary activities before taxation 1,062 1,519 Taxation on profit on ordinary activities 305 433 ------- ------- Profit on ordinary activities after taxation attributable to the members of Titon Holdings Plc 757 1,086 Dividends 749 718 ------- ------- Retained profit for the financial year 8 368 ======= ======= Earnings per share - basic 7.19p 10.19p - diluted 7.14p 10.16p All amounts relate to continuing activities. There are no recognised gains and losses other than the profit attributable to the shareholders of the Company of £757,000 in the year ended 30 September 2004 and the profit of £1,086,000 in the year ended 30 September 2003. CONSOLIDATED BALANCE SHEET Preliminary Results for the year ended 30 September 2004 2004 2003 £'000 £'000 Fixed asset Tangible assets 4,291 4,025 Current assets Stocks 2,580 2,442 Debtors 3,201 3,248 Cash at bank and in hand 4,017 3,897 ------- ------- 9,798 9,587 Creditors: Amounts falling due within one year -3,463 -3,046 ------- ------- Net current assets 6,335 6,541 ------- ------- Total assets less current liabilities 10,626 10,566 Deferred taxation -95 -68 ------- ------- 10,531 10,498 ======= ======= Capital and reserves Called up share capital 1,053 1,050 Share premium account 841 819 Share capital redemption reserve 56 56 Profit and loss account 8,581 8,573 ------- ------- Equity shareholders' funds 10,531 10,498 ======= ======= COMPANY BALANCE SHEET Preliminary Results for the year ended 30 September 2004 2004 2003 £'000 £'000 Fixed assets Tangible assets 2,906 2,813 Investments 202 204 ------- ------- 3,108 3,017 Current assets Debtors 3,623 2,103 Cash at bank and in hand 3,300 3,800 ------- ------- 6,923 5,903 Creditors: Amounts falling due within one year -1,307 -730 ------- ------- Net current assets 5,616 5,173 ------- ------- Total assets less current liabilities 8,724 8,190 Deferred taxation -190 -174 ------- ------- 8,534 8,016 ======= ======= Capital and reserves Called up share capital 1,053 1,050 Share premium account 841 819 Share capital redemption reserve 56 56 Profit and loss account 6,584 6,091 ------- ------- Equity shareholders' funds 8,534 8,016 ======= ======= CONSOLIDATED CASH FLOW STATEMENT Preliminary Results for the year ended 30 September 2004 2004 2003 £'000 £'000 Net cash inflow from operating activities 1,545 1,667 ------- ------- Returns on investments and servicing of finance Interest received 131 153 Interest paid -6 -3 ------- ------- 125 150 ------- ------- Taxation UK corporation tax -431 -449 ------- ------- Capital expenditure Purchase of tangible fixed assets -940 -1,309 Sale of tangible fixed assets 66 43 ------- ------- -874 -1,266 ------- ------- Equity dividends paid -745 -746 ------- ------- Cash outflow before use of management of liquid resources and financing -380 -644 Management of liquid resources Disposal of treasury deposits 500 1,100 Financing Purchase of ordinary share capital - -560 Shares issued under the Company's share option scheme 25 - ------- ------- Decrease in cash -145 -104 ======= ======= Notes to the Preliminary Results for the year ended 30 September 2004 1 Earnings per share has been calculated in accordance with FRS14. Basic earnings per share has been calculated by dividing the profit attributable to shareholders of £757,000 (2003: £1,086,000) by the weighted average number of ordinary shares in issue during the year of 10,523,878 (2003: 10,657,159). The diluted earnings per share has been calculated by dividing the profit attributable to shareholders of £757,000 (2003: £1,086,000) by the weighted average number of ordinary shares and potential dilutive ordinary shares during the year of 10,597,741 (2003: 10,693,452). all dilutive ordinary shares relate to share options. 2 Reconciliation of operating profit to net cash inflow from operating activities 2004 2003 £'000 £'000 Operating profit 937 1,369 Depreciation 607 602 Increase in stocks -138 -205 Decrease/(increase) in debtors 47 -7 Increase/(decrease) in creditors 93 -78 Profit on sale of fixed assets -1 -14 ------- ------- Net cash inflow from operating activities 1,545 1,667 ======= ======= 3 Reconciliation of net cash flow to movement in net funds 2004 2003 £'000 £'000 Increase/(decrease) in cash in the year 145 -104 Decrease in liquid resources -500 -1,100 ------- ------- Change in net funds resulting from cashflows and movement in net funds in the year -355 -1,204 Opening net funds 3,666 4,870 ------- ------- Closing net funds 3,311 3,666 ======= ======= 4 The Preliminary Announcement does not constitute statutory accounts. The auditors' report on the full accounts for the year ended 30 September 2004 has yet to be signed. 5 The actual results for the year ended 30 September 2003 as shown in this statement are an abridged version of the Group's 2003 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 2004 have been prepared on a basis consistent with the accounting policies set out in the statutory accounts for the year ended 30 September 2003. 6 The Preliminary Announcement was approved by the Board of Directors on 08 December 2004. 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

Companies

Titon Holdings (TON)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today