12th May 2016 08:32
LONDON (Alliance News) - Titon Holdings PLC said on Thursday its pretax profit fell in the first half, despite seeing revenue growth, as the company said it was difficult to make predictions about its prospects in the UK due to the current uncertainty ahead of the EU referendum.
Titon, which designs, manufactures and markets ventilation products, door and window fittings, said pretax profit fell to GBP735,000 in the six months to March 31 from GBP792,000 for the same period a year earlier, as cost of sales rose to GBP8.0 million from GBP7.9 million, and administrative expenses came in at GBP1.93 million from GBP1.87 million.
These cost increases offset the rise in revenue to GBP10.9 million from GBP10.7 million.
Titon said sales were up in the US during the period, although this is the region where it takes least revenue, whilst sales in Korea fell by 2.0% as competition increased.
The company noted that in Korea, due to this competition, it expects a lower rate of growth for this year, but said it remains positive about the Korean economy.
Titon added that in its largest region, the UK, the performance of its timber and PVCu window and door hardware division has been disappointing as both sales and profit contribution have fallen below last year, although its aluminium division saw a very good first half.
"We are now within six weeks of the referendum to decide if the United Kingdom should remain within the EU and the decision will have significant implications for the UK economy. Markets generally prefer stability and we are the same," said Chairman Keith Ritchie.
"Additionally, we want to continue to have unrestricted access to EU markets both for our suppliers and customers and we also want a good supply of people from Europe as our own unemployment rate moves down towards 5.0% of the workforce," the chairman said.
"Accordingly, it is difficult to make many predictions about our own prospects in the UK with the current uncertainty, but the shortage of housing in the UK will remain whatever the result of the referendum. We do anticipate that sales of mechanical ventilation systems will continue to expand in the second half," Ritchie added.
Titon will pay an interim dividend of 1.25 pence per share, in line with the previous year.
Shares in Titon were down 13% at 96.75p on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Titon