13th Dec 2018 12:09
LONDON (Alliance News) - Titon Holdings PLC said on Thursday that annual revenue has reached a record level, prompting a 13% increase in interim dividend.
Titon, which makes ventilation systems and window and door hardware, posted revenue of GBP29.9 million for the 12 months to September, 7% higher year-on-year.
Pretax profit was 20% higher at GBP3.0 million, while earnings before interest, tax, depreciation, and amortisation increased 16% to GBP2.9 million.
Titon, which moved to London's AIM market earlier this week, is paying a final dividend of 3.0 pence per share, taking the year's total to 4.75p, up from 4.20p a year before.
In the UK & Europe, Titon's revenue rose 7%, driven by a strong performance in its Hardware business. in the Ventilation Systems business, sales increased 7.5%, with export demand strong.
Titon also has a 51%-owned South Korean subsidiary, which recorded revenue growth of 21% and post-tax profit of 24% to GBP1.0 million. This performance, it said, was driven by higher demand for its products in the private sector.
Titon's US revenue fell almost two-thirds year-on-year, but the segment only made up 2% of company revenue.
Looking ahead, Titon expects UK economic growth to be modest going ahead, assuming a Brexit deal is reached. In South Korea, rising air pollution may boost demand for ventilation units, and new products are being developed in the country.
"Titon builds and delivers popular products across a unique geographical spread. It has good people and a perennially strong balance sheet," said Executive Chairman Keith Ritchie.
"We also continue to look for new opportunities for growth within our target markets. 2019 may be a more testing year in South Korea and the UK, compounded by the continuing uncertainty over Brexit," he continued.
"However, provided Brexit doesn't negatively impact the UK economy we expect another year of growth in revenue and profits for Titon in line with market expectations."
Shares were 2.5% lower Thursday midday at 175.50 pence each.
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