14th May 2020 16:29
(Alliance News) - Titon Holdings PLC on Thursday said it will not pay an interim divided as it reported a deterioration in its first-half performance.
Shares in the company - which manufactures and supplies ventilation systems as well as window and door hardware - were untraded on Thursday afternoon in London, last quoted at 81.50 pence each.
For the six months ended March 31, Titon posted revenue of GBP11.2 million, down 22% from GBP14.3 million reported in the comparative period the year prior. The company posted pretax loss of GBP270,000 compared to a profit of GBP1.1 million the year before.
The revenue decline was attributed to weak trading conditions and the outbreak of Covid-19. Earnings before interest, tax, depreciation and amortization fell to GBP320,000 on exceptional costs arising from a higher bad debt provision, as well as a staff restructuring.
"Although the coronavirus pandemic only started to affect the UK and Europe from March 2020 onwards, it had already impacted on our operations in South Korea. These results also include costs of redundancies that we had already made before March as we reacted to the weaker market conditions in the first half and additional provisions for higher bad debts that we anticipate in the second half year," said Executive Chair Keith Richie.
Gross margin fell to 27% from 29%.
Revenue from the UK and Continental Europe fell 9.2% to GBP7.0 million, South Korea revenue dived by 41% to GBP2.8 million. Revenue in the US fell to USD397,000, reflecting a 22% decline.
Looking ahead, Titon said it expects revenue for the remainder of its financial year to be "significantly" hurt, adding that in efforts to conserve cash, it has reduced expenditure, cut salaries and furloughed staff under the UK government's coronavirus job retention scheme.
It also said that it has decided against paying an interim dividend, a u-turn from 1.75 pence paid for the same period the year prior.
As at he end of March, Titon had cash of GBP3.7 million.
By Ife Taiwo; [email protected]
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