19th Mar 2019 18:03
LONDON (Alliance News) - Titon Holdings PLC on Tuesday said it has investigated the reduced trading performance of its Titon Korea unit and found accounting errors.
Shares in Titon closed down 4.6% at 155.00 pence on Tuesday.
Some of the costs associated with its products sold in earlier accounting periods, including in its year to September, were not "fully take into account" with gross profit on those products not recorded correctly.
"This was due to the incorrect accounting apportionment of costs and revenues between first and second fix installations of products manufactured by Titon Korea and sold by Browntech Sales, our associate company," Titon said.
Given this, the total equity attributable to equity holders of the company as at 30 September as it appears in the company's 2018 annual financial statement is incorrect and will be reduced by approximately GBP1.1 million to GBP15.1 million.
The correct result will be reflected in Titon's interim statement and its 2019 annual financial statement.
"The accounting adjustments detailed above have no effect on the profile of historic or anticipated future operating cash flows and they are expected to have a marginally positive effect on consolidated operating profit in 2019," said Titon.
The the ventilation system, window and door hardware firm said its financial 2019 trading is still "in line with management expectations".
Back in February, Titon warned that trading in South Korea would be well below market forecasts as South Koreans chose mechanical rather than natural units to tackle air pollution.
Related Shares:
Titon