Preliminary Announcement 2007

Titon Holdings PLC
06 December 2007

Titon Holdings Plc
Preliminary Announcement for the year ended 30 September 2007



Chairman's Statement


Financial Performance

Profit before tax for the year to 30 September 2007 was 48.3% down at £0.46
million (2006: £0.89 million), on Revenue 4.2% higher at £17.29 million (2006:
£16.60 million). Due to a lower tax charge, earnings per share were only 34%
lower at 4.2p (2006: 6.4p). Year end cash reserves have reduced to £1.67 million
(2006: £2.07 million).

The Directors have spent a considerable time this year on determining the amount
of the final dividend to be proposed to shareholders. We are aware of the
significance of the dividend to shareholders, as we have previously
acknowledged. However, the financial results for the year do not permit us to
maintain the final dividend at the same level as last year and unfortunately, it
is necessary for us to reduce it to an amount more closely aligned with this
year's earnings per share. We are also concerned about conserving the cash
reserves of the Group to ensure that we are positioned to take advantage of new
opportunities as they arise.

As a major shareholder in the Company, I have benefited from the dividends paid
to shareholders in recent years. Given this, and the need to reduce the final
dividend this year, I have decided that, on this occasion, I will waive my
entitlement to the final dividend on my personally owned 2,012,802 shares. This
means that the final dividend proposed can be increased to 2.3p per share (2006:
4.8p) for all other shareholders rather than 1.9p per share if I received the
final dividend on my shareholding. This final dividend of 2.3p per share, when
added to the interim dividend paid in May 2007, makes a total for the year of
4.6p (2006: 7.1p). The dividend will be payable on 22 February 2008 to
shareholders on the register on 1 February 2008. The ex dividend date is 30
January 2008.



Trading Commentary

This has been a disappointing trading year for Titon. Although the first
half-year was in line with market expectations, the second period showed very
low levels of profit, whilst sales growth was curtailed by subdued markets, both
at home and abroad. In August, the Company issued a trading update to make
shareholders aware of the disappointing second half performance and I am now
able to report that the final outcome for the year of Profit before tax of
£0.46m was in line with the forecast made at the time.

As reported at the time of the trading update, our margins during the year have
been adversely impacted by a number of factors. These include increases in raw
material prices, the knock on effects of the Building Regulation changes, the
initial costs of moving our zinc die casting production to Eastern Europe, and
the problems in the US housing market combined with the weakness of the US
Dollar.

The increases in raw material prices were significant in many instances, and
have been compounded by cost increases in other areas such as power and
carriage. I am pleased to report that, in response to this, as the financial
year ended, we were able to implement a price increase on our own manufactured
products, which will be fully effective during 2008. Furthermore, the Group
continues to seek reductions in prices from our suppliers to assist in improving
gross margins. The improved effects of both of these initiatives, together with
the savings forecast for outsourcing our die-casting operations, are
encouraging.

The changes to the Building Regulations that occurred in the previous year have
also had a major impact on profitability during 2006/7. In order to assist with
compliance with the new Regulations, we have introduced several new ranges of
background ventilators. These new ranges have higher ventilation flows and will
replace many of the existing ranges. During the year we have introduced these
new ranges running them concurrently with existing products in order to provide
a smooth changeover for our customers. The duplication of products has led to
inefficiencies within our production processes, which are now being eliminated
as the older products are withdrawn.

Our Export Sales have also been under pressure during the year, with the
weakness of the US Dollar and the housing market in the USA having a detrimental
effect on our trading. We have also experienced subdued trading in our European
market towards the latter part of the reporting year. Total Export Sales ended
the year at £2,010,000 (2006 : £2,173,000). In response to the continued dollar
weakness, we have implemented a substantial price increase on our US business
from January 2008.

The Board is committed to establishing Titon as a leading supplier of
ventilation systems and I am pleased to report continued growth in this respect.
The market for powered ventilation systems in the UK is expanding as increased
air tightness standards for dwellings make these systems more popular. The 'Code
for Sustainable Homes' will drive the market towards energy efficient solutions,
creating further opportunities for suppliers such as Titon to offer
professionally specified and expertly installed systems. We are continually
looking for new opportunities in this market.



Employees

Our average number of employees over the year increased slightly to 260 (2006 :
255). This increase was largely due to taking on temporary factory staff to
build up stocks prior to moving our die casting facilities and to dealing with
the product range changes explained above. Employee numbers have, however, been
reduced over recent months and currently stand at 246.

Due to the reduced level of profit we have postponed this year's October staff
pay award until April 2008, when it will be considered again. On behalf of the
Board I would like to thank all of our team for their patience and understanding
as we address the profitability issue.



Prospects

The increases in selling prices and the reduction in costs are being
aggressively driven and closely monitored by the Board. Further cost reductions
will occur during the year as current contractual commitments end.

The UK window market, into which we predominantly sell, remains subdued although
we do expect our export sales to return to growth next year. Although the UK new
build market is entering a period of uncertainty, we are confident that any
decline in sales of our traditional window ventilation products will be offset
by improved sales of powered ventilation systems.


John Anderson
Chairman

6 December 2007




Titon Holdings Plc
Preliminary Announcement for the year ended 30 September 2007


Unaudited Consolidated Income Statement
for the year ended 30 September 2007

                                                                2007      2006
                                                               £'000     £'000

Revenue                                                       17,285    16,600
Cost of sales                                                 13,482    12,439
--------------------------------------------------------------------------------
Gross profit                                                   3,803     4,161
Distribution costs                                               618       690
Administrative expenses                                        2,828     2,689
--------------------------------------------------------------------------------
                                                               3,446     3,379
                                                              ------------------
Operating profit                                                 357       782
Finance income                                                   102       112
--------------------------------------------------------------------------------
Profit before tax                                                459       894
Tax expense                                                       15       219
--------------------------------------------------------------------------------
Profit for the year attributable to the
equity holders of the parent                                     444       675
--------------------------------------------------------------------------------
Earnings per share - basic - basic                              4.21p     6.40p
                           - diluted                            4.21p     6.40p


Unaudited Consolidated Statement of Recognised Income and Expense
for the year ended 30 September 2007

                                                             2007         2006
                                                            £'000        £'000
Profit for the year attributable to the
equity holders of the parent                                  444          675

Exchange difference on retranslation of
net assets of subsidiary undertakings                          16           20
--------------------------------------------------------------------------------
Total recognised income and expense for the year              
attributable to equity holders of the parent                  460          695
--------------------------------------------------------------------------------



Titon Holdings Plc
Preliminary Announcement for the year ended 30 September 2007


Unaudited Consolidated Balance Sheet
at 30 September 2007

                                                              2007        2006
                                                             £'000       £'000
Assets

Property, plant and equipment                                4,662       5,009
Intangible assets                                               58          67
                                                            --------------------
Total non-current assets                                     4,720       5,076
                                                            --------------------
Inventories                                                  2,983       2,950
Trade and other receivables                                  3,785       3,624
Corporation tax                                                 31           -
Cash at bank                                                 1,678       2,078
                                                            --------------------
Total current assets                                         8,477       8,652
--------------------------------------------------------------------------------
Total Assets                                                13,197      13,728
--------------------------------------------------------------------------------
Liabilities

Deferred tax                                                   170         170
                                                            --------------------
Total non-current liabilities                                  170         170
                                                            --------------------
Trade and other payables                                     2,190       2,362
Bank overdraft                                                  13           9
Corporation tax                                                  -          75
                                                            --------------------
Total current liabilities                                    2,203       2,446
--------------------------------------------------------------------------------
Total Liabilities                                            2,373       2,616
--------------------------------------------------------------------------------
Equity

Share capital                                                1,056       1,056
Share premium reserve                                          865         865
Capital redemption reserve                                      56          56
Translation reserve                                             33          17
Share schemes reserve                                            3           2
Retained earnings                                            8,811       9,116
--------------------------------------------------------------------------------
Total Equity attributable to equity holders of the parent   10,824      11,112
--------------------------------------------------------------------------------
Total Liabilities and Equity                                13,197      13,728
--------------------------------------------------------------------------------



Titon Holdings Plc
Preliminary Announcement for the year ended 30 September 2007


Unaudited Consolidated Cash Flow Statement
for the year ended 30 September 2007
                                                             2007         2006
                                                            £'000        £'000
Cash generated from operating activities
Operating profit                                              357          782

Depreciation of property, plant & equipment                   675          682
Amortisation on intangible assets                              35           25
Increase in inventories                                       (33)        (424)
(Increase) / decrease in receivables                         (149)          76
Decrease in payables and other current liabilities           (168)         (66)
Profit on sale of plant & equipment                           (31)         (22)
Share based payment - equity settled                            1            1
--------------------------------------------------------------------------------
Cash generated from operations                                687        1,054
--------------------------------------------------------------------------------
Income taxes paid                                            (121)        (221)
--------------------------------------------------------------------------------
Net cash generated from operating activities                  566          833
------------------------- ------------------------------------------------------
Cash flows from investing activities

Purchase of property, plant & equipment                      (363)      (1,485)
Purchase of intangible assets                                 (26)         (86)
Proceeds from sale of plant & equipment                        66           58
Interest received                                             102          112
--------------------------------------------------------------------------------
Net cash used in investing activities                        (221)      (1,401)
--------------------------------------------------------------------------------
Cash flows from financing activities

Dividends paid to equity shareholders                        (749)        (749)
Proceeds from issue of share capital                            -           27
--------------------------------------------------------------------------------
Net cash used in financing activities                        (749)        (722)
--------------------------------------------------------------------------------

Net decrease in cash & cash equivalents                      (404)      (1,290)
Cash & cash equivalents at beginning of the year            2,069        3,359
--------------------------------------------------------------------------------
Cash & cash equivalents at end of the year                  1,665        2,069
--------------------------------------------------------------------------------





Titon Holdings Plc
Notes to the Preliminary Announcement for the year ended 30 September 2007


1 Earnings per ordinary share


The calculation of the basic and diluted earnings per share is based on the
following data:

                                                                 2007     2006
                                                                £'000    £'000
Earnings
Earnings for the purposes of basic earnings
per share being profit aftertaxation attributable
to members of Titon Holdings Plc                                  444      675
--------------------------------------------------------------------------------

Shares                                                    Number        Number
Weighted average number of ordinary shares for the
purposes of basic earnings per share                   10,555,650    10,547,501
Effect of dilutive potential
ordinary shares: share options                                  -         1,706
--------------------------------------------------------------------------------
Weighted average number of ordinary shares for the 
purposes of diluted earnings per share                 10,555,650    10,549,207
--------------------------------------------------------------------------------
Earnings per share (pence)
Basic                                                       4.21p         6.40p
Diluted                                                     4.21p         6.40p
--------------------------------------------------------------------------------





2 Dividends

                                                              2007        2006
                                                             £'000       £'000
Final dividend of 4.8 pence (2006 : 4.8 pence) per           
ordinary share paid and proposed during the year
relating totheprevious year's results                          506         506

Interim dividend of 2.3 pence (2006: 2.3 pence)
per ordinary share paid during the year                        243         243
--------------------------------------------------------------------------------
                                                               749         749
--------------------------------------------------------------------------------



The Directors are proposing a final dividend of 2.3 pence (2006: 4.8 pence) per
share. After the waiver of dividend on 2,012,802 shares this results in a final
dividend totalling £196,000 (2006: £507,000), subject to approval by the
shareholders at the Annual General Meeting. This dividend has not been accrued
at the balance sheet date.





3 Analysis of cash and cash equivalents


The table below provides an analysis of net cash and cash equivalents during the
year ended 30 September 2007:

                                                           2007          2006
                                                          £'000         £'000
Cash available on demand                                    378            58
Short-term deposits                                       1,300         2,020
                                                       -------------------------
Cash at bank                                              1,678         2,078
Overdraft                                                   (13)           (9)
--------------------------------------------------------------------------------
                                                          1,665         2,069
--------------------------------------------------------------------------------

Net cash decrease in cash and cash equivalents             (404)       (1,290)
--------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year            2,069         3,359
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at end of year                  1,665         2,069
--------------------------------------------------------------------------------





4 Basis of Preparation


The accounting polices of the Group under International Financial Reporting
Standards (IFRSs) are set out in detail in the 2006 Financial Statement which is
available from the Group's website at www.titonholdings.com.


The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30 September 2007 or 2006. The financial
information for the year ended 30 September 2006 is derived from the statutory
accounts for that year which have been delivered to the Registrar of Companies.
The auditors have reported on those accounts; their report was unqualified, did
not include references to any matters to which the auditors drew attention by
way of emphasis without qualifying their report and did not contain statements
under the Companies Act 1985, s 237(2) or (3). The statutory accounts for 2007,
on which the auditors have not yet reported, will be finalised on the basis of
the financial information presented by the Directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.





Registered Office: International House, Peartree Road, Stanway, Colchester,
Essex CO3 0JL. Registered in England and Wales (registered no. 1604952).




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