Prelim. Results 30 Sept 2002

Titon Holdings PLC
12 December 2002


Titon Holdings Plc

Preliminary Results for the year ended 30 September 2002


Chairman's Statement

FINANCIAL RESULTS

Profit before taxation for the year was 14.4% lower than last year at £1.55
million (2001: £1.81 million), on Turnover 3.7% higher at £15.28 million (2001:
£14.74 million). Basic earnings per share were 12.4% lower at 9.85p (2001:
11.25p).

As mentioned in my interim report, despite only modest sales growth this year we
are fully committed to our longer term growth plans and this is reflected in the
increase in our cost base.

Net capital expenditure for the year was again fairly modest at £0.40 million
(2001: £0.55 million) and has contributed to an improvement in our net cash
position to £ 4.87 million (2001: £4.28 million).

The Directors are proposing a final dividend of 4.8p per ordinary share (2001:
4.7p), making a total of 7.1p for the year (2001: 7.0p). The dividend will be
payable on 21 February 2003 to shareholders on the register on 24 January 2003.
The ex-dividend date will be 22 January 2003.


SALES COMMENTARY

I am pleased to record an improvement in our second half trading result,
following an uncertain first half that experienced significant fluctuations in
demand.

The considerable increase in ventilation sales that we anticipated, as a result
of the introduction of Part L of the Building Regulation code, has not yet
materialised. Whilst the initial draft of the Regulation indicated that trickle
ventilators were to be fitted to all replacement windows, this was amended in
the final document and the requirements are now much less prescriptive in terms
of the use of background ventilation products.

The increase in overhead spend has been primarily in the area of sales and
marketing, where we have invested in additional people and also undertaken a
major marketing initiative to increase awareness of the Titon name and brands.
We believe we have already seen some benefit from this investment during the
last few months through increased demand.

Our enlarged sales team has allowed us to target specific sectors of the market
with the emphasis being placed on specification selling and on longer term
partnership formation.

Our export sales have continued to show improvement in Europe and Scandinavia,
however, the market in the USA still remains slow after the trauma in the
economy last year. We are tempted to record that there are signs of improvement,
but we have offered this statement in previous years, and we will refrain, in
this report, from showing too much optimism. We will see how the market
progresses in the coming months.


MANUFACTURING

We have continued the improvement and expansion of our manufacturing facilities.
The specialist automatic assembly machines were virtually completed during this
period, and extensive product trials have shown that our decision to invest in
automation of major product lines has been correct.

It has also been a difficult period for judging customer product requirement,
with significant fluctuations in the level of demand throughout the year. This
situation proved very testing for our manufacturing facilities, and it is to the
credit of our workforce that these extremes in requirement were satisfied.


Titon Holdings Plc
Preliminary Results for the year ended 30 September 2002

Chairman's Statement

PERSONNEL

I am pleased to announce that Mr Nick Howlett has joined the Board of Titon
Holdings Plc. Nick has been with the company for 11 years and will be
responsible for driving new designs of product through development stages and
into production; this to meet the varying demands of new and evolving Building
Regulations. He has gained much knowledge in our manufacturing division, and his
vision, enthusiasm and expertise will provide further benefits to the Board.

On 1 October 2002, Emeritus Professor Patrick O'Sullivan OBE was appointed to
the Board as a Non-Executive Director. Professor O'Sullivan is holder of the
Haden-Pilkington Chair of Environmental Engineering and Design at the Bartlett
School of Graduate Studies, University College London.  Throughout his
distinguished career, he has been a leading academic advisor to Governments and
Industry and his knowledge on health and energy efficiency in the 'Built
Environment' will be of immense value to the Company.

The whole Titon team has continued to provide us with much dedication and drive
and, on behalf of the Board, I wish to extend my thanks for their effort during
this challenging year.

PROSPECTS

As previously recorded, the changes to Building Regulation Part L have yet to
impact significantly on our sales, and there still remains uncertainty in
interpretation. However, we continue to be encouraged by indications of further
use of background ventilation systems and believe that this trend will continue.
We remain totally focused in our aim of developing new products and ranges to
meet further proposed Regulations, and this is likely to advance Titon into
areas of new technology, and subsequently new markets.

We may consider entering further product trading partnerships as we increase the
range and requirement of our product types. Therefore, the Board may consider
the necessity of a further increase in facilities. I will be pleased to report
any progress made in this area, as the Company continues to prepare for the
changing requirement of the new Regulations both at home and abroad.

Titon is building a team for the future, and with it we expect success. We have
developed a structure that is resilient to the changing demands in the market,
and in so doing, will take full advantage of the opportunities that will be
forthcoming.


John Anderson
Chairman
12 December 2002


Titon Holdings Plc
Preliminary Results for the year ended 30 September 2002
Consolidated Profit And Loss Account


                                                                                        2002            2001
                                                                                       £'000           £'000

Turnover                                                                              15,283          14,737
Cost of sales                                                                         10,979          10,265

Gross profit                                                                           4,304           4,472

Distribution costs                                                                       681             719
Administrative expenses                                                                2,237           2,160

                                                                                       2,918           2,879

Operating profit                                                                       1,386           1,593
Interest receivable                                                                      171             225
Interest payable and similar charges                                                     (4)             (4)

Profit on ordinary activities before taxation                                          1,553           1,814
Taxation on profit on ordinary activities                                                463             570

Profit on ordinary activities after taxation
attributable to the members of Titon Holdings Plc                                      1,090           1,244
Dividends                                                                                785             774

Retained profit for the financial year                                                   305             470


Earnings per share - basic                                                             9.85p          11.25p
                   - diluted                                                           9.83p          11.23p
Dividends per share
Interim paid                                                                           2.30p           2.30p
Final proposed                                                                         4.80p           4.70p

                                                                                       7.10p           7.00p

All amounts relate to continuing activities.


Consolidated Statement of Total Recognised Gains and Losses
For the year ended 30 September 2002
                                                                                     2002            2001
                                                                                    £'000           £'000

Profit for the year and total recognised gains                                      1,090           1,244
    and losses relating to the year

Prior year adjustment                                                                   -            (67)

Total gains and losses recognised since the last annual report                      1,090           1,177



Titon Holdings Plc
Preliminary Results for the year ended 30 September 2002
Consolidated Balance Sheet


                                                                                       2002              2001
                                                                                      £'000             £'000
Fixed assets
Tangible assets                                                                       3,347             3,550

Current assets
Stocks                                                                                2,237             2,235
Debtors                                                                               3,241             3,186
Cash at bank and in hand                                                              5,004             4,462

                                                                                     10,482             9,883
Creditors:
Amounts falling due within one year                                                 (3,043)           (2,961)

Net current assets                                                                    7,439             6,922


Total assets less current liabilities                                                10,786            10,472
Deferred taxation                                                                      (98)              (89)

                                                                                     10,688            10,383


Capital and reserves
Called up share capital                                                               1,106             1,106
Share premium account                                                                   819               819
Profit and loss account                                                               8,763             8,458

Equity shareholders' funds                                                           10,688            10,383



Titon Holdings Plc
Preliminary Results for the year ended 30 September 2002
Consolidated Cash Flow Statement


                                                                                       2002              2001
                                                                                      £'000             £'000

Net cash inflow from operating activities                                             2,114             2,061


Returns on investments and servicing of finance
Interest received                                                                       171               225
Interest paid                                                                           (4)               (4)

                                                                                        167               221


Taxation
UK corporation tax                                                                    (520)             (527)



Capital expenditure
Purchase of tangible fixed assets                                                     (429)             (588)
Sale of tangible fixed assets                                                            33                37

                                                                                      (396)             (551)


Equity dividends paid                                                                 (774)             (752)


Net cash inflow before use of management of                                             591               452
liquid resources and financing

Management of liquid resources
Purchase of treasury deposits                                                         (600)             (600)


Decrease in cash                                                                        (9)             (148)



Titon Holdings Plc
Notes to the Preliminary Results for the year ended 30 September 2002


1.   Earnings per share has been calculated in accordance with FRS14.  Basic 
     earnings per share has been calculated by dividing the profit attributable 
     to shareholders of £1,090,000 (2001: £1,244,000) by the weighted average 
     number of ordinary shares in issue during the year of 11,062,200 (2001:
     11,062,200)

     The diluted earnings per share has been calculated by dividing the profit
     attributable to shareholders £1,090,000 (2001: £1,244,000) by the weighted
     average number of ordinary shares and dilutive ordinary shares during the 
     year of 11,090,291 (2001: 11,074,916).  All dilutive ordinary shares relate 
     to share options.

2.   Reconciliation of Operating Profit to Net Cash Inflow from Operating 
     Activities
                                                                                   2002              2001
                                                                                  £'000             £'000
Operating profit                                                                  1,386             1,593
Depreciation                                                                        603               640
Increase in stocks                                                                  (2)             (116)
Increase in debtors                                                                (76)             (273)
Increase in creditors                                                               207               227
Profit on sale of fixed assets                                                      (4)              (10)

Net cash inflow from operating activities                                         2,114             2,061


3.   Reconciliation of Net Cash Inflow to Movement in Net Funds
     
                                                                                   2001              2001
                                                                                  £'000             £'000

Decrease in cash in the year                                                        (9)             (148)
Increase in liquid resources                                                        600               600

Change in net funds resulting from cashflows and   movement in net                  591               452
funds in the year

Opening net funds                                                                 4,279             3,827

Closing net funds                                                                 4,870             4,279


4.   The Preliminary Announcement does not constitute statutory accounts.  The 
     auditors' report on the full accounts for the year ended 30 September 2002 
     has yet to be signed.




Titon Holdings Plc
Notes to the Preliminary Results for the year ended 30 September 2002


5.   The actual results for the year ended 30 September 2001 as shown in this 
     statement are an abridged version of the Group's 2001 accounts which have
     been filed with the Registrar of Companies and which received an 
     unqualified audit report.

     The results for the year ended 30 September 2002 have been prepared on a 
     basis consistent with the accounting policies set out in the statutory 
     accounts for the year ended 30 September 2001.

6.   The Preliminary Announcement was approved by the Board of Directors on 11 
     December 2002.

     This statement is being sent to shareholders and will be available from the
     Company's registered office at International House, Peartree Road, Stanway,
     Colchester, Essex CO3 0JL.


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