9th Oct 2020 10:24
(Alliance News) - Titon Holdings PLC on Friday said it expects revenue for financial 2020 to be significantly lower year-on-year due to a drop in quarterly sales but noted an improvement in the fourth quarter.
The company - which manufactures and supplies ventilation systems as well as window and door hardware - said revenue for the 12 months ended September 30 will be down by around 23% year-on-year at GBP21 million. It blamed the underperformance on a decline in sales during its third and fourth quarter following the decision to temporarily suspend UK manufacturing operations in March as a result of the UK lockdown restrictions.
Titon however, noted that it recommenced limited UK production operations in April, increasing production levels steadily during the third and fourth quarter as demand returned, adding that manufacturing operations are now back to normal levels. It highlighted that while sales in the quarter ended June 30 were down 43% year-on-year, it saw an improvement in the fourth quarter with sales down just 7% on the year prior.
Turning to current trading, the Colchester-based company said its South Korean subsidiary Titon Korea, has continued to experience more challenging trading conditions, exacerbated by a particularly wet summer which delayed many construction projects.
Looking ahead, Executive Chair Keith Ritchie said: "It is impossible to predict what the next 12 months will throw at us. The ongoing pandemic and public health restrictions to tackle it, are likely to continue to impact the economies and therefore housing markets, for our customers wherever they are based. These factors give us reason for short-term caution but, in the longer term, there is a continuing focus on good indoor air quality in the UK and Europe, which we believe will lead to increased sales, particularly of our mechanical ventilation products. This trend, combined with the strong financial position of the Group gives us reassurance and strong conviction about our future".
As at September 30, Titon had cash of around GBP4.5 million and no debt.
Shares in Titon Holdings were trading 9.0% higher at 88.85 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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