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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Titon Holdings Plc | LSE:TON | London | Ordinary Share | GB0008941402 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 75.00 | 70.00 | 80.00 | 75.00 | 75.00 | 75.00 | 0.00 | 08:00:12 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Manufacturing Industries,nec | 22.33M | -686k | -0.0610 | -12.30 | 8.44M |
From Apr 2019 to Apr 2024
TIDMTON
RNS Number : 7834E
Titon Holdings PLC
11 May 2017
Thursday 11 May 2017
Titon Holdings Plc
Interim Results for the six months ending 31 March 2017
TITON DELIVERS A 60% RISE IN FIRST HALF PROFIT BEFORE TAX
Financial Results
Six months ending 31 March 2017 31 March 2016 % change
Net Revenue GBP14.0m GBP10.9m +29
EBITDA GBP1.17m GBP0.83m +41
Operating Profit GBP0.85m GBP0.55m +56
Profit before Tax GBP1.18m GBP0.74m +61
EPS 6.09p 4.55p +34
DPS 1.50p 1.25p +20
Financial Highlights
-- Net Revenue rose 29% to a record GBP14.0 million (2016: GBP10.9 million)
-- EBITDA increased 41% to GBP1.17 million, which is also a half year record (2016: GBP0.83 million)
-- Profit before Tax of GBP1.18 million up 61% (2016: GBP0.74 million) -- Earnings per share (EPS) rose 34% to 6.09 pence (2016: 4.55 pence) -- 20% increase in the Interim Dividend per share (DPS) to 1.5 pence (2016: 1.25 pence) -- Net cash of GBP2.71 million (31 March 2016: GBP2.46 million)
Operational highlights
-- Good performances from core businesses in the UK, albeit offset by the decision to discontinue commercial ducting fabrication business
-- Strong performance from South Korea, which accounts for the largest share of Profit before Tax
-- Good result from Titon Inc. in the US -- Increased exports to continental Europe and additional resources committed
Keith Ritchie, Chairman of Titon, said:
"I am very pleased to report a record half year for Titon with revenue growth of 29% and a 61% increase in Profit before Tax. Earnings per share also rose significantly (+34%) and the Interim Dividend is raised by 20%. This performance would have been even better without the costs associated with the Group's exit from commercial ducting fabrication in the UK.
In the UK, both the Brexit negotiations and the imminent General Election create degrees of uncertainty. Nonetheless, we expect our core UK businesses to continue to grow in the second half. Another strong performance is also expected from South Korea and, while the US is a smaller region for Titon right now, it is doing well and we intend to commit further resources there. The same goes for the Group's exports to continental Europe.
This geographical diversity is a strength and, particularly, when it is combined with great products, great people and a strong balance sheet. I am confident that we will have a good result for the year".
For further information please contact Keith Ritchie, Chairman.
Tel: +44 (0) 1206 713821
Titon Holdings Plc
Business Review
Financial performance
I am very pleased to report a record half year for Titon, with a 61% increase in Profit before Tax and top line growth of 41%. Earnings per share also rose significantly (+34%) and the Interim Dividend is to be raised 20%. This performance would have been even better, too, without the costs associated with the Group's exit from commercial ducting fabrication in the UK referred to under Operations below.
Income Statement
In six months ended 31 March 2017, Titon's net revenue (which excludes inter-segment activity) rose 29.1% to GBP14.01 million. On a constant currency basis, however, the increase was 20.4%.
The Gross Margin was sustained at 28.4% (2016: a restated 28.7% due to a re-classification of Research and Development expenses). EBITDA was GBP1.17 million (2016: GBP0.83 million) while Operating Profit or EBIT (Earnings before interest and tax) rose 56% to GBP0.85 million with operating margins at 6.1% (2016: 5.1%).
Net interest contributed GBP7,000 (2016: GBP4,000) while the share of profits from the Group's associate soared 75% to GBP320,000 (2016: GBP183,000) resulting in Profit before Tax of GBP1.18 million which was an increase of 61% year-on-year (2016: GBP0.74 million). The weakness of the British Pound added GBP143,000 to Profit before Tax, which means that on a constant currency basis, it would have been GBP1.04 million and 41% higher year-on-year.
Earnings per share for the half year increased 34% to 6.09 pence (2016: 4.55 pence). Taxation was sharply higher at 23.8% (2016: 16.8%) due to the higher proportion of profits made outside the UK in the period while the Non-controlling Interest's share of group profits almost doubled from GBP130,000 to GBP237,000.
An Interim Dividend in respect of the six months ended 31 March 2017 of 1.50 pence per share was approved by the Directors of Titon Holdings Plc on 10 May 2017. The Interim Dividend will be payable on 24 June 2017 to shareholders on the Register at 3 June 2017. The ex-dividend date is 2 June 2017.
Balance Sheet and Cash Flow
Total Equity rose GBP2.92 million to GBP15.61 million with net cash at GBP2.71 million (31 March 2016: GBP2.46 million) which is equivalent to 17.3% of net assets (31 March 2016: 19.4%). There was a net cash inflow in the half year of GBP247,000 (2016: inflow of GBP45,000) which was driven primarily by cash generated from operations. Total capital expenditure in the half year was GBP279,000 (2016: GBP422,000).
Net current assets were GBP9.57 million (2016: GBP7.64 million).
Operations
In the UK, the performance of our window and door hardware business has improved, with the value of sales from the Timber, PVCu and Aluminium divisions exceeding last year by 14% and also making good contributions to profits. Similarly, we have seen encouraging sales of the new hardware products which have been developed in the last few years and this should continue in the second half.
Sales in the Ventilation Systems division have continued to grow with UK revenue up 13% year on year with Export Sales more than doubling. We continue to achieve good sales of our MVHR products (Mechanical Ventilation with Heat Recovery) and the Group's increasingly wide range of such products affords a significant competitive advantage in the market place.
As already noted, sales of our core products in the UK were good in the half year. However, their profit contribution has been eroded by a decision to withdraw from a new venture which commenced some 12 months ago. Its focus was the fabrication, in partnership, of a new commercial ducting product. However, it was not embraced by the market at the prices that we had expected and would only have done so, we believe, with a greater focus on specification selling and significant investment by Titon. Both strategies would have been expensive and would have had no guarantee of success. As a result, and in conjunction with our partners, it was decided to cease our activities in this market. In turn, we have had to make provisions for stock, fixed assets and debts which we may not recover in the future totalling GBP234,000. This combined with the initial losses of the project means that Titon Hardware made a small loss in the first half.
Page 1
Titon Holdings Plc
Business Review (continued)
The performance by our South Korean businesses, however, has been very positive in the period and Profit before Tax for Titon Korea (51% owned) nearly doubled. This reflects increased penetration, by the Company, of the domestic market in natural ventilation products and credit goes to our team on the ground. Our second South Korean business is the Associate company, Browntech Sales or BTS (49% owned) which distributes ventilation products in South Korea and invests in and develops schemes in the domestic residential real estate market. BTS recently purchased a greenfield site in an exclusive area of Seoul and expects to start work in the June quarter. We remain cognisant, of course, of both the geopolitical tensions on the Korean Peninsula at large and South Korea's complex domestic politics. Be that as it may, in Q1 of 2017, South Korea's GDP expanded at its fastest quarterly rate (0.9%) since Q2 2016. It was also 2.7% up on a year ago.
In the US, we have seen another good contribution to the Group's Profit before Tax. The US market for natural ventilation is small and the Group has developed a good domestic reputation and trades profitably. Titon also continues to develop new products specifically for the American market and new opportunities continue to emerge.
Investors
The Group's initiative with Hardman & Co., the corporate research house, is more than a year old now and continues very satisfactorily for shareholders. Note, too, that its reports can be accessed via the London Stock Exchange Regulatory News Service or RNS (http://www.investegate.co.uk). In addition, I was interviewed by Lord John Lee, who is also a shareholder, for his programme on Share Radio. This is the first UK national radio station dedicated to business, finance and money. Later this month, too, I am due to present Titon to a group of investors at an event organised by the UK Shareholders' Association, which is the oldest shareholder campaigning organisation in the UK. Indeed, we welcome all contact with shareholders or potential shareholders.
Outlook
In the UK, both the Brexit negotiations and the imminent General Election create degrees of uncertainty. Nonetheless, we expect our core UK businesses to continue to grow in the second half. Another strong performance is also expected from South Korea and, while the US is a smaller region for Titon right now, it is doing well and we intend to commit further resources here. The same goes for the Group's exports to continental Europe.
This geographical diversity is a strength and, particularly, when it is combined with great products, great people and a strong balance sheet. I am confident that we have will have a good result for the year.
Principal risk and uncertainties
The key financial and non-financial risks faced by the Group are disclosed in the Group's Annual Report and Accounts for the year ended 30 September 2016 within the Strategic Report (page 5) available at www.titonholdings.com. The Board considers that these remain a current reflection of the risks and uncertainties facing the business. The Board also considers that it is appropriate to adopt the going concern basis of accounting in preparing these financial statements and has not identified any material uncertainties which would prevent us so doing.
Responsibility Statement
The Directors confirm that, to the best of their knowledge, this condensed set of consolidated financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that this Interim Report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.
The Directors of Titon Holdings Plc are listed on page 15 of this document. A list of current directors is maintained on the Group's website www.titonholdings.com.
On behalf of the Board
KA Ritchie
Chairman
10 May 2017
Page 2
Titon Holdings Plc
Consolidated Interim Income Statement
for the six months ended 31 March 2017
Hot Features
Premium
6 months 6 months Year to
to 31.3.17 to 31.3.16 30.9.16
unaudited unaudited audited
& restated*
Note GBP'000 GBP'000 GBP'000
Revenue 2 14,012 10,850 23,721
Cost of sales 1 (10,032) (7,736)* (16,673)
---------- ------------------ --------
Gross profit 3,980 3,114 7,048
Distribution costs (488) (341) (756)
Administrative expenses (2,361) (1,938) (3,998)
Research and development expenses 1 (282) (295)* (539)
Other income 5 8 17
---------- ------------------ --------
Operating profit 854 548 1,772
Finance income 7 4 8
Share of profits from associates 320 183 356
---------- ------------------ --------
Profit before tax 1,181 735 2,136
Income tax expense 3 (281) (120) (184)
Profit after income tax 900 615 1,952
---------------------------------------- ---- ---------- ------------------ --------
Attributable to:
Equity holders of the parent 663 485 1,635
Non-controlling interest 237 130 317
---------------------------------------- ---- ---------- ------------------ --------
Profit for the period 900 615 1,952
---------------------------------------- ---- ---------- ------------------ --------
Earnings per share attributed to equity
holders of the parent :
Basic 5 6.09p 4.55p 15.21p
Diluted 5 5.99p 4.46p 14.95p
Consolidated Interim Statement of Comprehensive Income
for the six months ended 31 March 2017
6 months 6 months Year to
to 31.3.17 to 31.3.16 30.9.16
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Profit for the period 900 615 1,952
Other comprehensive income - items
which may be reclassified to profit
or loss in subsequent periods:
Exchange difference on re-translation
of net assets of overseas operations 143 76 917
-------------------------------------- ---------- ---------- -------
Total comprehensive income for the
period 1,043 691 2,869
Attributable to:
Equity holders of the parent 757 511 2,198
Non-controlling interest 286 180 671
-------------------------------------- ---------- ---------- -------
1,043 691 2,869
-------------------------------------- ---------- ---------- -------
The notes on pages 7 to 14 form an integral part of this condensed interim information.
Page 3
Titon Holdings Plc
Consolidated Statement of Financial Position
at 31 March 2017
31.3.17 31.3.16 30.9.16
unaudited unaudited audited
Note GBP'000 GBP'000 GBP'000
Assets
Property, plant and equipment 6 3,576 3,443 3,511
Intangible assets 529 563 627
Investments in associates 1,824 979 1,464
Deferred tax 154 83 158
Total non-current assets 6,083 5,068 5,760
Inventories 4,976 3,884 4,586
Trade and other receivables 6,772 5,426 6,702
Cash and cash equivalents 2,705 2,458 2,438
--------- --------- ------------------
Total current assets 14,453 11,768 13,726
Total Assets 20,536 16,836 19,486
------------------------------ ------------- --------- --------- ------------------
Liabilities
Deferred tax 40 19 25
Total non-current liabilities 40 19 25
Trade and other payables 4,706 4,015 4,526
Corporation tax 176 112 161
Total current liabilities 4,882 4,127 4,687
Total Liabilities 4,922 4,146 4,712
------------------------------ ------------- --------- --------- ------------------
Equity
Share capital 1,095 1,085 1,091
Share premium reserve 975 939 950
Capital redemption reserve 56 56 56
Treasury shares (27) (27) (27)
Translation reserve 605 (26) 511
Retained earnings 10,910 9,440 10,479
------------------------------ ------------- --------- --------- ------------------
Total Equity attributable
to the equity holders
of the parent 13,614 11,467 13,060
Non-controlling Interest 2,000 1,223 1,714
Total Equity 15,614 12,690 14,774
Total Liabilities and
Equity 20,536 16,836 19,486
------------------------------ ------------- --------- --------- ------------------
The notes on pages 7 to 14 form an integral part of this condensed interim information.
Page 4
Titon Holdings Plc
Consolidated Interim Statement of Changes in Equity
at 31 March 2017
Share Share Capital Translation Treasury Retained Total Non- Total
capital premium redemption reserve Shares earnings controlling Equity
reserve reserve interest
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October
2015 1,063 891 56 (52) (27) 9,119 11,050 1,043 12,093
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Translation
differences
on overseas
operations - - - 26 - - 26 50 76
Profit for the
period - - - - - 485 485 130 615
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Total
comprehensive
income for
the
period - - - 26 - 485 511 180 691
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Dividends paid - - - - - (188) (188) - (188)
Share-based
payment
expense - - - - - 24 24 - 24
Ordinary
shares
issued 22 48 - - - - 70 - 70
At 31 March
2016 1,085 939 56 (26) (27) 9,440 11,467 1,223 12,690
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Translation
differences
on overseas
operations - - - 537 - - 537 304 841
Profit for the
period - - - - - 1,150 1,150 187 1,337
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Total
comprehensive
income for
the
period - - - 537 - 1,150 1,687 491 2,178
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Dividends paid - - - - - (136) (136) - (136)
Share-based
payment
expense - - - - - 25 25 - 25
Ordinary
shares
issued 6 11 - - - - 17 - 17
At 30
September
2016 1,091 950 56 511 (27) 10,479 13,060 1,714 14,774
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Translation
differences
on overseas
operations - - - 94 - - 94 49 143
Profit for the
period - - - - - 663 663 237 900
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Total
comprehensive
income for
the
period - - - 94 - 663 757 286 1,043
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
Dividends paid - - - - - (245) (245) - (245)
Share-based
payment
expense - - - - - 13 13 - 13
Ordinary
shares
issued 4 25 - - - - 29 - 29
At 31 March
2017 1,095 975 56 605 (27) 10,910 13,614 2,000 15,614
--------------- -------- -------- ----------- ------------ --------- --------- -------- ------------ --------
The notes on pages 7 to 14 form an integral part of this condensed interim information.
Page 5
Titon Holdings Plc
Consolidated Interim Statement of Cash Flows
for the six months ended 31 March 2017
6 months 6 months Year to
to 31.3.17 to 31.3.16 30.9.16
unaudited unaudited audited
Note GBP'000 GBP'000 GBP'000
Cash generated from operating activities
Profit before tax 1,181 735 2,136
Adjustments for:
Depreciation of property, plant
& equipment 214 197 400
Amortisation of intangible assets 98 82 156
Increase in inventories (330) (44) (370)
Decrease / (increase) in receivables 24 (354) (1,061)
Increase / (decrease) in payables
and other current liabilities 129 (174) (79)
Profit on sale of plant & equipment (7) (5) (19)
Share based payment - equity settled 13 24 49
Interest received (7) (3) (8)
Share of associate's profit (320) (183) (356)
-------
Cash generated from operations 995 275 848
----------------------------------------- ---- ------------------ ------------------ -------
Income taxes paid (247) (133) (217)
----------------------------------------- ---- ------------------ ------------------ -------
Net cash generated from operating
activities 748 142 631
----------------------------------------- ---- ------------------ ------------------ -------
Cash flows from investing activities
Purchase of plant & equipment 6 (279) (422) (721)
Purchase of intangible assets - (22) (163)
Proceeds from sale of plant & equipment 7 5 50
Interest received 7 3 8
----------------------------------------- ---- ------------------ ------------------ -------
Net cash used in investing activities (265) (436) (826)
----------------------------------------- ---- ------------------ ------------------ -------
Cash flows from financing activities
Exercise of share options 29 70 87
Dividends paid to equity shareholders 4 (245) (188) (324)
Net cash used in financing activities (216) (118) (237)
----------------------------------------- ---- ------------------ ------------------ -------
Net increase / (decrease) in cash
& cash equivalents 267 (412) (432)
Cash & cash equivalents at beginning
of the period 2,438 2,870 2,870
----------------------------------------- ---- ------------------ ------------------ -------
Cash & cash equivalents at end of
the period 2,705 2,458 2,438
----------------------------------------- ---- ------------------ ------------------ -------
Cash & cash equivalents comprise:
Cash at bank 2,705 2,458 2,438
Cash & cash equivalents at end of
the period 2,705 2,458 2,438
----------------------------------------- ---- ------------------ ------------------ -------
The notes on pages 7 to 14 form an integral part of this condensed interim information.
Page 6
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
1 Basis of preparation
Titon Holdings Plc (the 'Company') is a company domiciled in England. The condensed consolidated interim financial statements of the Group for the six months ended 31 March 2017 comprise the Company and its subsidiaries (together referred to as the 'Group').
The IASB has issued revised and updated IFRIC amendments which have been adopted, with the exception of IAS 7, IAS 12 and IFRSs 9, 15 and 16 which are effective for reporting periods beginning after 1 January 2017.
The Group has commenced its evaluation of the impact of IFRS 15 and currently expects the impact on the UK business may be limited, but is working with its Korean operations to determine the effect on the timing of revenue recognition in both Titon Korea and the Group's associate, Browntech Sales Co. Ltd. With the exception of IFRSs 9, 15 and 16, where the Group is still assessing the possible future effects of these standards, the Group does not currently believe the adoption of these standards or interpretations would have a material impact on the consolidated results or financial position of the Group.
Effective
date
(periods
beginning)
1 January
* IFRS 9 Financial Instruments. This IFRS replaces IAS 2018
39 Financial Instruments: Recognition and Measurement
in its entirety and uses a single approach to
determine whether a financial asset is measured at
amortised cost or fair value.
* IFRS 15 Revenue from Contracts with Customers. IFRS 1 January
15 is intended to clarify the principles of revenue 2018
recognition and establish a single framework for
revenue recognition. IFRS 15 supersedes: IAS 11
Construction Contracts, IAS 18 Revenue, IFRIC 13
Customer Loyalty Programmes, IFRIC 15 Agreements for
the Construction of Real Estate, IFRIC 18 Transfers
of Assets from Customers and SIC-31 Revenue-Barter
Transactions Involving Advertising Services.
The core principle is that an entity should recognise
revenue to depict the transfer of promised goods
or services to customers in an amount that reflects
the consideration to which the entity expects to
be entitled in exchange for those goods or services.
Expected
* IFRS 16 Leases. This IFRS sets out the principles for Q4 2017
the recognition, measurement, presentation and
disclosure of leases for both parties to a contract,
i.e. the customer ('lessee') and the supplier
('lessor').
IFRS 16 eliminates and replaces the classification
of leases as either operating leases or finance
leases as is required by IAS 17 and, instead, introduces
a single lessee accounting model. The amendments
are not yet endorsed for use in the EU as the expected
date of endorsement is not yet determined.
Otherwise, the condensed interim financial statements have been prepared using accounting policies set out in the Report and Accounts 2016 and have been applied consistently to all periods presented in these financial statements. They are in accordance with IAS 34. The six months results for both 31 March 2016 and 2017 have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the year end 30 September 2016 does not constitute the full statutory accounts for that period. The Company's Report and Accounts 2016 have been delivered to the Registrar of Companies. The independent auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
The condensed interim financial statements do not constitute full accounts within the meaning of Section 434 of the Companies Act 2006.
The prior period figures for the six months to 31 March 2016 for Cost of Sales and Research and Development Expenses shown in the Consolidated Income Statement on page 6 have been restated to provide a comparable cost basis with the costs and expenses reported in the six month period to 31 March 2017 and the year ended 30 September 2016. Cost of Sales for the year to 31 March 2016 have been restated at GBP7,736,000 (previously reported as GBP8,031,000) and Research and Development Expenses have been restated at GBP295,000. The Research and Development Expenses were included within the figure for Cost of Sales and were not reported separately for the period ending 31 March 2016.
This restatement has had no effect on the profits recorded for the six month period to 31 March 2017 or for the year to 30 September 2016.
The interim report was approved by the Board and authorised for issue on 10 May 2017. Copies of the interim report will be sent to shareholders in the next few weeks.
This statement is being sent to shareholders, will be available on the Group's website at www.titonholdings.com and from the Company's registered office at 894 The Crescent, Colchester Business Park, Colchester, Essex CO4 9YQ.
Page 7
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
2 Revenue and segmental information
In identifying its operating segments, management generally follows the Group's reporting lines, which represent the main geographic markets in which the Group operates. The segment reporting below is shown in a manner consistent with the internal reporting provided to the Board, which is the Chief Operating Decision Maker (CODM). These operating segments are monitored and strategic decisions are made on the basis of segment operating results.
The Group operates three main business segments which are:
Segment Activities undertaken include:
United Kingdom Sales of passive and powered ventilation products
to house builders, electrical contractors and window
and door manufacturers. In addition to this, it
is a leading supplier of window and door hardware.
South Korea Sales of passive ventilation products to construction
companies.
All other Sales of passive and powered ventilation products
countries to distributors, window manufacturers and construction
companies
Inter-segment revenue is transacted on an arm's length basis and charged at prevailing market prices for a specific product and market or cost plus where no direct comparative market price is available. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Research and development entity-wide financial expenses are allocated to the business activities for which R&D is specifically performed. Sales Administration and Other Expenses are currently allocated to operating segments in the Group's reporting to the CODM. Other Expenses include mainly central and parent company overheads relating to group management, the finance function and regulatory requirements.
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its financial statements.
The total assets for the segments represent the consolidated total assets attributable to these reporting segments. Parent company results and consolidation adjustments reconciling the segmental results and total assets to the consolidated financial statements, are included within the United Kingdom segment figures stated over page.
Page 8
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
2 Revenue and segmental information (continued)
Operating segment United South North All other Total
Kingdom Korea America countries
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 31 March
2017
Segment revenue 7,137 4,520 1,047 1,308 14,012
Inter-segment revenue 375 - - - 375
------------------------------- --------- -------- --------- ----------- --------
Total Revenue 7,512 4,520 1,047 1,308 14,387
------------------------------- --------- -------- --------- ----------- --------
Segment profit 998 913 261 150 2,322
Allocated expenses
Research and Development
expenses (189) - - (93) (282)
Sales Administration expenses (471) - - (17) (488)
Other Expenses (347) - - (31) (378)
Finance income 7 - - - 7
Profit before tax (2) 913 261 9 1,181
Tax expense (281)
------------------------------- --------- -------- --------- ----------- --------
Profit for the period 900
------------------------------- --------- -------- --------- ----------- --------
Depreciation and amortisation 278 33 1 - 312
------------------------------- --------- -------- --------- ----------- --------
Total assets 12,048 7,906 582 - 20,536
------------------------------- --------- -------- --------- ----------- --------
Total assets include:
Investments in associates 1,824 - - - 1,824 Additions to non-current assets (other than financial instruments and deferred tax assets and excluding changes in value of the non-current asset investment in the associate) 255 24 - - 279 ------------------------------- --------- -------- --------- ----------- --------
The South Korean Segment profit includes the Group's share of the profits from the Associate.
Page 9
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
2 Revenue and segmental information (continued)
Operating segment United South North All other Total
Kingdom Korea America countries
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 31 March
2016
Segment revenue 6,031 3,365 685 769 10,850
Inter-segment revenue 263 - - - 263
------------------------------- --------- -------- --------- ----------- --------
Total Revenue 6,294 3,365 685 769 11,113
------------------------------- --------- -------- --------- ----------- --------
Segment profit 1,194 499 159 - 1,852
Allocated expenses
Research and Development
expenses (205) - - (90) (295)
Sales Administration expenses (311) - - (30) (341)
Other Expenses (468) - - (17) (485)
Finance income 4 - - - 4
Profit before tax 214 499 159 (137) 735
Tax expense (120)
------------------------------- --------- -------- --------- ----------- --------
Profit for the period 615
------------------------------- --------- -------- --------- ----------- --------
Depreciation and amortisation 253 26 - - 279
------------------------------- --------- -------- --------- ----------- --------
Total assets 11,443 4,950 443 - 16,836
------------------------------- --------- -------- --------- ----------- --------
Total assets include:
Investments in associates 979 - - - 979
Additions to non-current
assets (other than financial
instruments and deferred
tax assets and excluding
changes in value of the
non-current asset investment
in the associate) 420 23 1 - 444
------------------------------- --------- -------- --------- ----------- --------
The South Korean Segment profit includes the Group's share of the profits from the Associate.
Page 10
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
2 Revenue and segmental information (continued)
Operating segment United South North All other Total
Kingdom Korea America countries
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
12 months ended 30 September
2016
Segment revenue 12,901 7,110 1,715 1,995 23,721
Inter-segment revenue 750 - - - 750
------------------------------- --------- -------- --------- ----------- --------
Total Revenue 13,651 7,110 1,715 1,995 24,471
------------------------------- --------- -------- --------- ----------- --------
Segment profit 2,843 1,158 281 196 4,478
Allocated expenses
Research and Development
expenses (327) (23) (21) (168) (539)
Sales Administration expenses (559) - - (62) (621)
Other Expenses (1,155) - - (35) (1,190)
Finance income 8 - - - 8
------------------------------- --------- -------- --------- ----------- --------
Profit before tax 810 1,135 260 (69) 2,136
Tax expense (184)
------------------------------- --------- -------- --------- ----------- --------
Profit for the period 1,952
------------------------------- --------- -------- --------- ----------- --------
Depreciation and amortisation 508 47 1 - 556
------------------------------- --------- -------- --------- ----------- --------
Total assets 12,786 6,098 602 - 19,486
------------------------------- --------- -------- --------- ----------- --------
Total assets include:
Investments in associates 1,464 - - - 1,464
Additions to non-current
assets (other than financial
instruments and deferred
tax assets and excluding
changes in value of the
non-current asset investment
in the associate) 839 43 2 - 884
------------------------------- --------- -------- --------- ----------- --------
The South Korean Segment profit includes the Group's share of the profits from the Associate.
Page 11
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
2 Revenue and segmental information (continued)
IFRS 8 requires entity-wide disclosures to be made about the regions in which it earns its revenues and holds its non-current assets which are shown below.
6 months ended United Europe North Asia All other Total 31 March 2017 Kingdom America regions Revenues GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 by entities' country of domicile 8,445 - 1,047 4,520 - 14,012 by country from which derived 7,110 1,266 1,047 4,585 4 14,012 ---------------------- --------- -------- --------- -------- ---------- -------- Non-current assets By entities' country of domicile 4,245 - 2 1,836 - 6,083 ---------------------- --------- -------- --------- -------- ---------- --------
One customer accounted for more than 10% of Group revenue and sales to this customer totalled GBP4.520m (included within South East Asia).
6 months ended United Europe North Asia All other Total 31 March 2016 Kingdom America regions Revenues GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 by entities' country of domicile 6,800 - 685 3,365 - 10,850 by country from which derived 6,024 723 685 3,365 53 10,850 ---------------------- --------- -------- --------- -------- ---------- -------- Non-current assets By entities' country of domicile 4,065 - 2 1,001 - 5,068 ---------------------- --------- -------- --------- -------- ---------- --------
One customer accounted for more than 10% of Group revenue and sales to this customer totalled GBP3.365m (included within South East Asia).
12 months ended United Europe North Asia All other Total 30 September 2016 Kingdom America regions Revenues GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 by entities' country of domicile 14,896 - 1,715 7,110 - 23,271 by country from which derived 12,848 1,934 1,715 7,155 69 23,721 ---------------------- --------- -------- --------- -------- ---------- -------- Non-current assets By entities' country of domicile 4,272 - 3 1,485 - 5,760 ---------------------- --------- -------- --------- -------- ---------- --------
Sales to Browntech Sales Co. Ltd (the Group's associate undertaking in South Korea) of GBP7.110m represent 30.0% of Group Revenue. There are no other concentrations of revenue above 10% during the year (see Note 7 - Related party transactions).
Page 12
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
3 Tax
6 months 6 months Year to
to 31.3.17 to 31.3.16 30.9.16
GBP'000 GBP'000 GBP'000
Current income tax:
Corporation tax expense (219) (120) (256)
Adjustment in respect of prior years (43) - 3
---------- ---------- -------
(262) (120) (253)
---------- ---------- -------
Deferred tax:
Origination and reversal of temporary
differences (19) - 69
Income tax expense (281) (120) (184)
-------------------------------------- ---------- ---------- -------
Tax for the interim period is charged at 25.4% (six months to 31 March 2016: 25.0%) representing the best estimate of the average annual effective income tax rate for the full financial year.
4 Dividends
An interim dividend in respect of the six months ended 31 March 2017 of 1.50p per share, amounting to a total dividend of GBP164,000 was approved by the Directors of Titon Holdings Plc on 10 May 2017. These consolidated interim statements do not reflect the dividend payable.
The interim dividend will be payable on 23 June 2017 to the shareholders on the register on 2 June 2017. The ex-dividend date is 1 June 2017.
The following dividends have been recognised and paid by the Company:
6 months 6 months Year
to
to 31.3.17 to 31.3.16 30.9.16
Date Pence
Paid per GBP'000 GBP'000 GBP'000
share
Final in respect of the
year end 30.09.15 19.02.16 1.75 - 188 188
Interim in respect of the
year end 30.09.16 24.06.16 1.25 - - 136
Final in respect of the
year end 30.09.16 21.02.17 2.25 245 - -
---------- ---------- ---------
245 188 324
---------- ---------- ---------
Page 13
Notes to the Condensed Consolidated Interim Statements
at 31 March 2017
5 Earnings per ordinary share
Basic earnings per share has been calculated by dividing the profits attributable to shareholders by the weighted average number of ordinary shares in issue during the period, being 10,878,695 (six months ended 31 March 2016: 10,663,414; year ended 30 September 2016: 10,752,964).
Diluted earnings per share has been calculated by dividing the profits attributable to shareholders by the weighted average number of ordinary shares and potential dilutive ordinary shares during the period, being 11,077,090 (six months ended 31 March 2016: 10,877,509; year ended 30 September 2016: 10,937,093).
6 Property, plant and equipment
Additions and disposals
During the six months ended 31 March 2017, the Group acquired assets with a cost of GBP279,000 (six months to 31 March 2016: GBP444,000; year ended 30 September 2016: GBP721,000).
7 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
Transactions between subsidiary companies and the associate company, which is a related party, were as follows:
Sale of goods Amount owed by related
party
6 months 6 months Year 6 months 6 months Year
to 31.3.17 to 31.3.16 to to 31.3.17 to 31.3.16 to
to 30.9.16 to 30.9.16
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Browntech Sales
Co. Ltd 4,520 3,365 7,110 2,879 1,985 2,575
------------ ------------ ------------ ------------ ------------ ------------
There have been no additional significant or unusual related party transactions to those disclosed in the Group's Annual Report for 30 September 2016.
8 Liability statement
Neither the Group nor the Directors accept any liability to any person in relation to the Interim Statement except to the extent that such liability could arise under English Law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.
Page 14
Directors and Advisors
Directors
Executive
KA Ritchie (Chairman)
D A Ruffell (Chief Executive)
T N Anderson
T D Gearey
N C Howlett
Non-executive
J N Anderson (Deputy Chairman)
K Sargeant
Secretary and registered office
D A Ruffell
894 The Crescent
Colchester Business Park
Colchester
Essex CO4 9YQ
COMPANY REGISTRATION NUMBER
1604952 (Registered in England & Wales)
WEBSITE
www.titonholdings.com
auditors REGISTRARS AND TRANSFER
BDO LLP OFFICE
55 Baker Street Capita Registrars Ltd
London Northern House
W1U 7EU Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA
BANKERS
Barclays Bank Plc
Witham Business Centre
Witham, Essex
CM8 2AT
Page 15
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KMGMKKGNGNZM
(END) Dow Jones Newswires
May 11, 2017 02:00 ET (06:00 GMT)
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