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Titon Holdings PLC  -  TON   

Interim Statement - 6m to 31 March 2017

Released 07:00 11-May-2017

RNS Number : 7834E
Titon Holdings PLC
11 May 2017
 

Thursday 11 May 2017

Titon Holdings Plc                                                                                                             

Interim Results for the six months ending 31 March 2017

 

TITON DELIVERS A 60% RISE IN FIRST HALF PROFIT BEFORE TAX

Financial Results

Six months ending                             31 March 2017                    31 March 2016    % change

Net Revenue                                          £14.0m                                  £10.9m                  +29

EBITDA                                                  £1.17m                                  £0.83m                  +41

Operating Profit                                      £0.85m                                  £0.55m                  +56

Profit before Tax                                     £1.18m                                 £0.74m                   +61

EPS                                                          6.09p                                     4.55p                   +34

DPS                                                          1.50p                                     1.25p                   +20

Financial Highlights

·     Net Revenue rose 29% to a record £14.0 million (2016: £10.9 million)

·     EBITDA increased 41% to £1.17 million, which is also a half year record (2016: £0.83 million)

·     Profit before Tax of £1.18 million up 61% (2016: £0.74 million)

·     Earnings per share (EPS) rose 34% to 6.09 pence (2016: 4.55 pence)

·     20% increase in the Interim Dividend per share (DPS) to 1.5 pence (2016: 1.25 pence)

·     Net cash of £2.71 million (31 March 2016: £2.46 million)

 

Operational highlights

·     Good performances from core businesses in the UK, albeit offset by the decision to discontinue commercial ducting fabrication business

·     Strong performance from South Korea, which accounts for the largest share of Profit before Tax

·     Good result from Titon Inc. in the US

·     Increased exports to continental Europe and additional resources committed

 

Keith Ritchie, Chairman of Titon, said:

"I am very pleased to report a record half year for Titon with revenue growth of 29% and a 61% increase in Profit before Tax. Earnings per share also rose significantly (+34%) and the Interim Dividend is raised by 20%. This performance would have been even better without the costs associated with the Group's exit from commercial ducting fabrication in the UK.

In the UK, both the Brexit negotiations and the imminent General Election create degrees of uncertainty. Nonetheless, we expect our core UK businesses to continue to grow in the second half. Another strong performance is also expected from South Korea and, while the US is a smaller region for Titon right now, it is doing well and we intend to commit further resources there. The same goes for the Group's exports to continental Europe.

This geographical diversity is a strength and, particularly, when it is combined with great products, great people and a strong balance sheet. I am confident that we will have a good result for the year".

For further information please contact Keith Ritchie, Chairman.

Tel: +44 (0) 1206 713821

 

 

 

Titon Holdings Plc          

Business Review                                                                          

Financial performance

 I am very pleased to report a record half year for Titon, with a 61% increase in Profit before Tax and top line growth of 41%. Earnings per share also rose significantly (+34%) and the Interim Dividend is to be raised 20%. This performance would have been even better, too, without the costs associated with the Group's exit from commercial ducting fabrication in the UK referred to under Operations below.

Income Statement

In six months ended 31 March 2017, Titon's net revenue (which excludes inter-segment activity) rose 29.1% to £14.01 million. On a constant currency basis, however, the increase was 20.4%.

The Gross Margin was sustained at 28.4% (2016: a restated 28.7% due to a re-classification of Research and Development expenses). EBITDA was £1.17 million (2016: £0.83 million) while Operating Profit or EBIT (Earnings before interest and tax) rose 56% to £0.85 million with operating margins at 6.1% (2016: 5.1%).

Net interest contributed £7,000 (2016: £4,000) while the share of profits from the Group's associate soared 75% to £320,000 (2016: £183,000) resulting in Profit before Tax of £1.18 million which was an increase of 61% year-on-year (2016: £0.74 million). The weakness of the British Pound added £143,000 to Profit before Tax, which means that on a constant currency basis, it would have been £1.04 million and 41% higher year-on-year.

Earnings per share for the half year increased 34% to 6.09 pence (2016: 4.55 pence). Taxation was sharply higher at 23.8% (2016: 16.8%) due to the higher proportion of profits made outside the UK in the period while the Non-controlling Interest's share of group profits almost doubled from £130,000 to £237,000.

An Interim Dividend in respect of the six months ended 31 March 2017 of 1.50 pence per share was approved by the Directors of Titon Holdings Plc on 10 May 2017. The Interim Dividend will be payable on 24 June 2017 to shareholders on the Register at 3 June 2017. The ex-dividend date is 2 June 2017.

Balance Sheet and Cash Flow

Total Equity rose £2.92 million to £15.61 million with net cash at £2.71 million (31 March 2016: £2.46 million) which is equivalent to 17.3% of net assets (31 March 2016: 19.4%). There was a net cash inflow in the half year of £247,000 (2016: inflow of £45,000) which was driven primarily by cash generated from operations. Total capital expenditure in the half year was £279,000 (2016: £422,000).

Net current assets were £9.57 million (2016: £7.64 million).

Operations

In the UK, the performance of our window and door hardware business has improved, with the value of sales from the Timber, PVCu and Aluminium divisions exceeding last year by 14% and also making good contributions to profits. Similarly, we have seen encouraging sales of the new hardware products which have been developed in the last few years and this should continue in the second half.

Sales in the Ventilation Systems division have continued to grow with UK revenue up 13% year on year with Export Sales more than doubling. We continue to achieve good sales of our MVHR products (Mechanical Ventilation with Heat Recovery) and the Group's increasingly wide range of such products affords a significant competitive advantage in the market place.

As already noted, sales of our core products in the UK were good in the half year. However, their profit contribution has been eroded by a decision to withdraw from a new venture which commenced some 12 months ago.  Its focus was the fabrication, in partnership, of a new commercial ducting product. However, it was not embraced by the market at the prices that we had expected and would only have done so, we believe, with a greater focus on specification selling and significant investment by Titon. Both strategies would have been expensive and would have had no guarantee of success. As a result, and in conjunction with our partners, it was decided to cease our activities in this market. In turn, we have had to make provisions for stock, fixed assets and debts which we may not recover in the future totalling £234,000. This combined with the initial losses of the project means that Titon Hardware made a small loss in the first half.

 

                                                                                Page 1

 

Titon Holdings Plc          

Business Review (continued)

The performance by our South Korean businesses, however, has been very positive in the period and Profit before Tax for Titon Korea (51% owned) nearly doubled. This reflects increased penetration, by the Company, of the domestic market in natural ventilation products and credit goes to our team on the ground. Our second South Korean business is the Associate company, Browntech Sales or BTS (49% owned) which distributes ventilation products in South Korea and invests in and develops schemes in the domestic residential real estate market. BTS recently purchased a greenfield site in an exclusive area of Seoul and expects to start work in the June quarter. We remain cognisant, of course, of both the geopolitical tensions on the Korean Peninsula at large and South Korea's complex domestic politics. Be that as it may, in Q1 of 2017, South Korea's GDP expanded at its fastest quarterly rate (0.9%) since Q2 2016. It was also 2.7% up on a year ago.

In the US, we have seen another good contribution to the Group's Profit before Tax. The US market for natural ventilation is small and the Group has developed a good domestic reputation and trades profitably. Titon also continues to develop new products specifically for the American market and new opportunities continue to emerge.

Investors

The Group's initiative with Hardman & Co., the corporate research house, is more than a year old now and continues very satisfactorily for shareholders. Note, too, that its reports can be accessed via the London Stock Exchange Regulatory News Service or RNS (http://www.investegate.co.uk).  In addition, I was interviewed by Lord John Lee, who is also a shareholder, for his programme on Share Radio. This is the first UK national radio station dedicated to business, finance and money. Later this month, too, I am due to present Titon to a group of investors at an event organised by the UK Shareholders' Association, which is the oldest shareholder campaigning organisation in the UK. Indeed, we welcome all contact with shareholders or potential shareholders.

Outlook

In the UK, both the Brexit negotiations and the imminent General Election create degrees of uncertainty. Nonetheless, we expect our core UK businesses to continue to grow in the second half. Another strong performance is also expected from South Korea and, while the US is a smaller region for Titon right now, it is doing well and we intend to commit further resources here. The same goes for the Group's exports to continental Europe.

This geographical diversity is a strength and, particularly, when it is combined with great products, great people and a strong balance sheet. I am confident that we have will have a good result for the year.

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 2016 within the Strategic Report (page 5) 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                                                                                             

10 May 2017

 

                                                            Page 2

 

 

Titon Holdings Plc

Consolidated Interim Income Statement

for the six months ended 31 March 2017

 

 

6 months

6 months

Year to

 

 

to 31.3.17

to 31.3.16

30.9.16

 

 

unaudited

unaudited

 & restated*

audited

 

Note

£'000

£'000

£'000

Revenue

2

14,012

10,850

23,721

Cost of sales

1

(10,032)

(7,736)*

(16,673)

Gross profit

 

3,980

3,114

7,048

Distribution costs

 

(488)

(341)

(756)

Administrative expenses

 

(2,361)

(1,938)

(3,998)

Research and development expenses

1

(282)

(295)*

(539)

Other income

 

5

8

17

Operating profit

 

854

548

1,772

Finance income

 

7

4

8

Share of profits  from associates

 

320

183

356

Profit before tax

 

1,181

                735

2,136

Income tax expense

3

(281)

(120)

(184)

Profit after income tax

 

900

615

1,952

Attributable to:

 

 

 

 

Equity holders of the parent

 

663

485

1,635

Non-controlling interest

 

237

130

317

Profit for the period

 

900

615

1,952

Earnings per share attributed to equity holders of the parent :

 

 

 

Basic

5

6.09p

4.55p

15.21p

Diluted

5

5.99p

4.46p

14.95p

Consolidated Interim Statement of Comprehensive Income

for the six months ended 31 March 2017

 

6 months

6 months

Year to

 

to 31.3.17

to 31.3.16

30.9.16

 

unaudited

unaudited

audited

 

£'000

£'000

£'000

Profit for the period

900

615

1,952

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

 

143

 

76

 

917

Total comprehensive income for the period

1,043

691

2,869

Attributable to:

 

 

 

Equity holders of the parent

757

511

2,198

Non-controlling interest

286

180

671

 

1,043

691

2,869

 

 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 2017

               

 

31.3.17

31.3.16

30.9.16

 

 

unaudited

unaudited

audited

 

          Note

£'000

£'000

£'000

Assets

 

 

 

 

Property, plant and equipment

6

3,576

3,443

3,511

Intangible assets

 

529

563

627

Investments in associates

 

1,824

979

1,464

Deferred tax

 

154

83

158

Total non-current assets

 

6,083

5,068

5,760

 

 

 

 

 

Inventories

 

4,976

3,884

4,586

Trade and other receivables

 

6,772

5,426

6,702

Cash and cash equivalents

 

2,705

2,458

2,438

Total current assets

 

14,453

11,768

13,726

 

 

 

 

 

Total Assets

 

20,536

16,836

19,486

 

 

 

 

 

Liabilities

 

 

 

 

Deferred tax

 

40

19

25

Total non-current liabilities

 

40

19

25

 

 

 

 

 

Trade and other payables

 

4,706

4,015

4,526

Corporation tax

 

176

112

161

Total current liabilities

 

4,882

4,127

4,687

 

 

 

 

 

Total Liabilities

 

4,922

4,146

4,712

Equity

 

 

 

 

Share capital

 

1,095

1,085

1,091

Share premium reserve

 

975

939

950

Capital redemption reserve

 

56

56

56

Treasury shares

 

(27)

(27)

(27)

Translation reserve

 

605

(26)

                511

Retained earnings

 

10,910

 

9,440

 

10,479

Total Equity attributable to the equity holders of the parent

 

13,614

11,467

13,060

Non-controlling Interest

 

1,714

Total Equity

 

14,774

Total Liabilities and Equity

 

20,536

16,836

19,486

 

 

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 2017

 

 

Share

capital

Share

premium

 reserve

Capital

 redemption reserve

Translation reserve

Treasury

Shares

Retained

 earnings

Total

Non-

controlling

interest

Total

Equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

At 1 October 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

Translation differences on overseas operations

-

-

-

537

-

-

537

304

841

Profit for the period

-

-

-

-

-

1,150

1,150

187

1,337

Total comprehensive income for the period

-

-

-

537

-

1,150

1,687

491

2,178

Dividends paid

-

-

-

-

-

(136)

(136)

-

(136)

Share-based payment expense

-

-

-

-

-

25

25

-

25

Ordinary shares issued

6

11

-

-

-

-

17

-

17

At 30 September 2016

1,091

950

56

511

(27)

10,479

13,060

1,714

14,774

Translation differences on overseas operations

-

-

-

94

-

-

94

49

143

Profit for the period

-

-

-

-

-

663

663

237

900

Total comprehensive

income for the period

-

-

-

94

-

663

757

286

1,043

Dividends paid

-

-

-

-

-

(245)

(245)

-

(245)

Share-based payment expense

-

-

-

-

-

13

13

-

13

Ordinary shares issued

4

25

-

-

-

-

29

-

29

At 31 March 2017

1,095

975

56

605

(27)

10,910

13,614

2,000

15,614

 

 

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 2017

 

 

 

6 months

6 months

Year to

 

 

to 31.3.17

to 31.3.16

30.9.16

 

 

unaudited

unaudited

audited

 

Note 

£'000

£'000

£'000

Cash generated from operating activities

 

 

 

 

Profit before tax

 

1,181

735

2,136

Adjustments for:

 

 

 

 

Depreciation of property, plant & equipment

 

214

197

400

Amortisation of intangible assets

 

98

82

156

Increase in inventories

 

(330)

(44)

(370)

Decrease / (increase) in receivables

 

24

(354)

(1,061)

Increase / (decrease) in payables and other current liabilities

 

129

(174)

(79)

Profit on sale of plant & equipment

 

(7)

(5)

(19)

Share based payment - equity settled

 

13

24

49

Interest received

 

(7)

(3)

(8)

Share of associate's profit

 

(320)

(183)

(356)

Cash generated from operations

 

                995

                275

848

Income taxes paid

 

(247)

(133)

(217)

Net cash generated from operating activities

 

748

142

631

Cash flows from investing activities

 

 

 

 

Purchase of plant & equipment

  6

(279)

(422)

(721)

Purchase of intangible assets

 

-

(22)

(163)

Proceeds from sale of plant & equipment

 

7

5

50

Interest received

 

7

3

8

Net cash used in investing activities

 

(265)

(436)

(826)

Cash flows from financing activities

 

 

 

 

Exercise of share options

 

29

70

87

Dividends paid to equity shareholders

4

(245)

(188)

(324)

Net cash used in financing activities

 

    (216)

    (118)

(237)

Net increase / (decrease) in cash & cash equivalents

 

267

(412)

(432)

Cash  & cash equivalents at beginning of the period

 

2,438

2,870

2,870

Cash & cash equivalents at end of the period

 

2,705

2,458

2,438

Cash & cash equivalents comprise:

 

 

 

 

Cash at bank

 

2,705

2,458

2,438

Cash & cash equivalents at end of the period

 

2,705

2,458

2,438

 

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 2017

 

 

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 2017 comprise the Company and its subsidiaries (together referred to as the 'Group').

The IASB has issued revised and updated IFRIC amendments which have been adopted, with the exception of IAS 7, IAS 12 and IFRSs 9, 15 and 16 which are effective for reporting periods beginning after 1 January 2017.

The Group has commenced its evaluation of the impact of IFRS 15 and currently expects the impact on the UK business may be limited, but is working with its Korean operations to determine the effect on the timing of revenue recognition in both Titon Korea and the Group's associate, Browntech Sales Co. Ltd.  With the exception of IFRSs 9, 15 and 16, where the Group is still assessing the possible future effects of these standards, the Group does not currently believe the adoption of these standards or interpretations would have a material impact on the consolidated results or financial position of the Group.

 

Effective date

(periods beginning)

·    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.

1 January 2018

·    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.

 

1 January 2018

·    IFRS 16 Leases. This IFRS sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer ('lessee') and the supplier ('lessor').

IFRS 16 eliminates and replaces the classification of leases as either operating leases or finance leases as is required by IAS 17 and, instead, introduces a single lessee accounting model. The amendments are not yet endorsed for use in the EU as the expected date of endorsement is not yet determined.

 

Expected Q4 2017

Otherwise, the condensed interim financial statements have been prepared using accounting policies set out in the Report and Accounts 2016 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 2016 and 2017 have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the year end 30 September 2016 does not constitute the full statutory accounts for that period. The Company's Report and Accounts 2016 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 prior period figures for the six months to 31 March 2016 for Cost of Sales and Research and Development Expenses shown in the Consolidated Income Statement on page 6 have been restated to provide a comparable cost basis with the costs and expenses reported in the six month period to 31 March 2017 and the year ended 30 September 2016. Cost of Sales for the year to 31 March 2016 have been restated at £7,736,000 (previously reported as £8,031,000) and Research and Development Expenses have been restated at £295,000. The Research and Development Expenses were included within the figure for Cost of Sales and were not reported separately for the period ending 31 March 2016.

This restatement has had no effect on the profits recorded for the six month period to 31 March 2017 or for the year to 30 September 2016.

The interim report was approved by the Board and authorised for issue on 10 May 2017. 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 894 The Crescent, Colchester Business Park, Colchester, Essex CO4 9YQ.

                                                                                               

                                                                                            Page 7

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2017

 

2   Revenue and segmental information

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 allocated to the business activities for which R&D is specifically performed. Sales Administration and Other Expenses are currently allocated to operating segments in the Group's reporting to the CODM. 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 over page.

 

 

 

 

 

Page 8

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2017

 

2   Revenue and segmental information (continued)

 

Operating segment

United

Kingdom

South

Korea

North

America

All other countries

Total

 

£'000

£'000

£'000

£'000

£'000

6 months ended 31 March 2017

 

 

 

 

 

Segment revenue

7,137

 

4,520

 

1,047

1,308

14,012

Inter-segment revenue

375

-

-

-

375

Total Revenue

7,512

4,520

1,047

1,308

14,387

Segment profit

998

913

261

150

2,322

Allocated expenses

 

 

 

 

 

Research and Development expenses

(189)

-

-

(93)

(282)

Sales Administration expenses

(471)

-

-

(17)

(488)

Other Expenses

(347)

-

-

(31)

(378)

Finance income

7

-

-

-

7

Profit before tax

(2)

913

261

9

1,181

Tax expense

 

 

 

 

(281)

Profit for the period

 

 

 

 

900

Depreciation and amortisation

278

33

1

-

312

Total assets

12,048

7,906

582

-

20,536

Total assets include:

 

 

 

 

 

Investments in associates

1,824

-

-

-

1,824

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)

255

24

-

-

279

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 2017

 

2   Revenue and segmental information (continued)

 

Operating segment

United

Kingdom

South

Korea

North

America

All other countries

Total

 

£'000

£'000

£'000

£'000

£'000

6 months ended 31 March 2016

 

 

 

 

 

Segment revenue

6,031

 

3,365

 

685

769

10,850

Inter-segment revenue

263

-

-

-

263

Total Revenue

6,294

3,365

685

769

11,113

Segment profit

1,194

499

159

-

1,852

Allocated expenses

 

 

 

 

 

Research and Development expenses

(205)

-

-

(90)

(295)

Sales Administration expenses

(311)

-

-

(30)

(341)

Other Expenses

(468)

-

-

(17)

(485)

Finance income

4

-

-

-

4

Profit before tax

214

499

159

(137)

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 10

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2017

 

2  Revenue and segmental information (continued)

 

 

Operating segment

United Kingdom

South

Korea

 

North

America

All other countries

Total

 

£'000

£'000

£'000

£'000

£'000

12 months ended 30 September 2016

 

 

 

 

 

Segment revenue

12,901

7,110

1,715

1,995

23,721

Inter-segment revenue

750

-

-

-

750

Total Revenue

13,651

7,110

1,715

1,995

24,471

Segment profit

2,843

1,158

281

196

4,478

Allocated expenses

 

 

 

 

 

Research and Development expenses

(327)

(23)

(21)

(168)

(539)

Sales Administration expenses

(559)

-

-

(62)

(621)

Other Expenses

(1,155)

-

-

(35)

(1,190)

Finance income

8

-

-

-

8

Profit before tax

810

1,135

260

(69)

2,136

Tax expense 

 

 

 

 

(184)

Profit for the period

 

 

 

 

1,952

Depreciation and amortisation

508

47

1

-

556

Total assets

12,786

6,098

602

-

19,486

Total assets include:

 

 

 

 

 

Investments in associates

1,464

-

-

-

1,464

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)

839

43

2

-

884

 

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 2017

 

2  Revenue and segmental information (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 2017

United Kingdom

Europe

North America

 

Asia

 

All other regions

 

Total

Revenues

£'000

£'000

£'000

£'000

£'000

£'000

by entities' country of domicile

8,445

-

1,047

4,520

-

14,012

by country from which derived

7,110

1,266

1,047

4,585

4

14,012

Non-current assets

 

 

 

 

 

 

By entities' country of domicile

4,245

-

2

1,836

-

6,083

 

One customer accounted for more than 10% of Group revenue and sales to this customer totalled £4.520m (included within South East Asia).

 

6 months ended

31 March 2016

United Kingdom

Europe

North America

 

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).

 

 

12 months ended

30 September 2016

United Kingdom

Europe

North America

 

Asia

 

All other regions

Total

Revenues

£'000

£'000

£'000

£'000

£'000

£'000

by entities' country of domicile

14,896

-

1,715

7,110

-

23,271

by country from which derived

12,848

1,934

1,715

7,155

69

23,721

Non-current assets

 

 

 

 

 

 

By entities' country of domicile

4,272

-

3

1,485

-

5,760

 

Sales to Browntech Sales Co. Ltd (the Group's associate undertaking in South Korea) of £7.110m represent 30.0% 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 2017

 

3   Tax

 

6 months

6 months

Year to

 

to 31.3.17

to 31.3.16

30.9.16

 

£'000

£'000

£'000

Current income tax:

 

 

 

Corporation tax expense

(219)

(120)

(256)

Adjustment in respect of prior years

(43)

-

3

 

(262)

(120)

(253)

Deferred tax:

 

 

 

Origination and reversal of temporary differences

(19)

-

69

Income tax expense

(281)

(120)

(184)

 

Tax for the interim period is charged at 25.4% (six months to 31 March 2016: 25.0%) 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 2017 of 1.50p per share, amounting to a total dividend of £164,000 was approved by the Directors of Titon Holdings Plc on 10 May 2017. These consolidated interim statements do not reflect the dividend payable.

 

The interim dividend will be payable on 23 June 2017 to the shareholders on the register on 2 June 2017. The ex-dividend date is 1 June 2017.

 

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

 

 

 

 

6 months

6 months

Year to

 

 

 

to 31.3.17

to 31.3.16

30.9.16

 

Date

Paid

Pence

per share

 

£'000

 

£'000

 

£'000

Final in respect of the year end 30.09.15

19.02.16

1.75

-

188

188

Interim in respect of the year end 30.09.16

24.06.16

1.25

-

-

136

Final in respect of the year end 30.09.16

21.02.17

2.25

245

-

-

 

 

 

245

188

324

 

  

 

 

                                                                        Page 13

 

 

Notes to the Condensed Consolidated Interim Statements

at 31 March 2017

 

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 10,878,695 (six months ended 31 March 2016: 10,663,414; year ended 30 September 2016: 10,752,964).

 

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 11,077,090 (six months ended 31 March 2016: 10,877,509; year ended 30 September 2016: 10,937,093). 

 

6   Property, plant and equipment

Additions and disposals

During the six months ended 31 March 2017, the Group acquired assets with a cost of £279,000 (six months to 31 March 2016: £444,000; year ended 30 September 2016: £721,000).

 

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 31.3.17

6 months

to 31.3.16

Year to

to 30.9.16

6 months

to 31.3.17

6 months

to 31.3.16

Year to

to 30.9.16

 

£'000

£'000

£'000

£'000

£'000

£'000

Browntech Sales Co. Ltd

4,520

3,365

7,110

2,879

1,985

2,575

 

 

There have been no additional significant or unusual related party transactions to those disclosed in the Group's Annual Report for 30 September 2016.

 

 

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

T D Gearey

N C Howlett

Non-executive

J N Anderson (Deputy Chairman)

K Sargeant

 

Secretary and registered office

D A Ruffell

894 The Crescent

Colchester Business Park

Colchester

Essex CO4 9YQ

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                          Page 15


This information is provided by RNS
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Interim Statement - 6m to 31 March 2017 - RNS