Preliminary Results 30/09/05

Titon Holdings PLC 08 December 2005 TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 CHAIRMAN'S STATEMENT Financial Performance I am pleased to report that profit before taxation for the year to 30 September 2005 was up by 11.1% at £1.18 million (2004: £1.06 million). The improvement in profit was achieved on a relatively unchanged turnover of £16.44 million (2004: £16.40 million). Earnings per share are up by 12.5% at 8.09p (2004: 7.19p). Net cash as at 30 September 2005 was £3.36 million (2004: £3.31 million) and the Directors are proposing a final dividend of 4.8p per ordinary share (2004: 4.8p), making a total of 7.1p for the year (2004: 7.1p). The dividend will be payable on 24 February 2006 to shareholders on the register on 3 February 2006. The ex-dividend date will be 1 February 2006. The Directors recognise the importance of the dividend to many shareholders and are committed to maintaining the current level of dividends provided that the Company's financial position allows. Trading Commentary Sales into our traditional UK window market have fallen slightly this year as the demand for windows has reduced in line with the general slow down in the economy. The indications are that this downturn is across certain market segments and has affected both timber and PVCu manufacturers. Our improved profit performance has been assisted by the measures taken last year to reduce our cost base and improve our manufacturing efficiency. The readily available supply of products from outside the UK dictates that ongoing reductions in manufacturing costs must continue if we are to substantially maintain our manufacturing base in this country. To this end, we have invested in further significant automation of our production and packaging processes, which will continue in 2006. In parallel with UK manufacturing investment, we will continue to seek cost effective supply options from overseas where appropriate. Towards the end of the reporting period we have actively pursued a policy of investment in our Sales and Marketing activities. Our Commercial team, with its focus on the less price sensitive aluminium window market, has been expanded by the provision of two additional sales personnel. Similarly, we are building on the early signs of promise from our Ventilation Division with a further two experienced sales staff. These additional appointments, and the re-organisation that has accompanied them, will allow the remainder of our sales team to better focus on the opportunities that will occur when the much discussed changes in Building Regulations are finalised. In addition to the increase in front-line sales personnel, we have recently commenced a major marketing initiative, which will culminate in the launch of new trickle ventilator products early in 2006. I am also pleased to announce that our Export Sales have increased yet again during the year and now account for 11% of Group Sales. New opportunities have been identified and additional resources will be allocated to this important part of our business over the coming year. Employees The changes that the Company has initiated over the past two years have required increased effort and resolve from our employees in all areas of the business. Our employees are all very much part of these improved results and I should like to thank them all most sincerely for their considerable efforts. Employee numbers are 255 at 30 September 2005, down from 265 at 30 September 2004. Regulation Change For the past two years I have been advising Shareholders of the forthcoming changes to Part F of the Building Regulations for England and Wales. It is this Regulation that is the driver for sales of many of our ventilation products, and I am now able to report that the Interim Draft of the document was published in September with a proposed implementation date of April 2006. Although the document is still in draft form, it has given the Company some direction as to future market requirements and has enabled us to commence the development of major new product lines. Although the draft document calls for trickle ventilators to be installed in domestic replacement windows, it is too early to be sure that there will be an overall favourable outcome for the Company. Prospects As we enter a new trading period, it is increasingly clear that the UK domestic window market is being affected by a general weakening of consumer confidence and by reduced capital spending. However, predicted growth in our exports, our powered ventilation and our commercial sales activities gives us some optimism for the future. As explained above, the effect of UK Regulation change on our business is not yet apparent and is causing some uncertainty in the marketplace in the short term. This, combined with the general slowdown, will ensure that 2006 is a challenge for the Company. The Board of Directors believe that the Company is well placed to meet this challenge. John Anderson Chairman 7 December 2005 TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT 2005 2004 £'000 £'000 Turnover 16,436 16,401 Cost of sales 12,372 12,505 -------- -------- Gross profit 4,064 3,896 Distribution costs 648 561 Administrative expenses 2,387 2,398 -------- -------- 3,035 2,959 -------- -------- Operating profit 1,029 937 Interest receivable 152 131 Interest payable and similar charges (1) (6) -------- -------- Profit on ordinary activities before taxation 1,180 1,062 Taxation on profit on ordinary activities 328 305 -------- -------- Profit on ordinary activities after taxation attributable to the members of Titon Holdings Plc 852 757 Dividends 747 749 -------- -------- Retained profit for the financial year 105 8 -------- -------- Earnings per share - basic 8.09p 7.19p - diluted 8.06p 7.14p All amounts relate to continuing activities. TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 GROUP STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES 2005 2004 £'000 £'000 Profit for the financial year attributable to members of the parent company 852 757 Exchange difference on retranslation of net assets of subsidiary undertaking (3) - Total recognised gains and losses relating to the period 849 757 ------- ------ TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 CONSOLIDATED BALANCE SHEET 2005 2004 £'000 £'000 Fixed assets Tangible assets 4,248 4,291 Current assets Stocks 2,511 2,580 Debtors 3,695 3,201 Cash at bank and in hand 3,380 4,017 ------- ------- 9,586 9,798 Creditors: Amounts falling due within one year (3,097) (3,463) ------- ------- Net current assets 6,489 6,335 ------- ------- Total assets less current liabilities 10,737 10,626 Deferred taxation (104) (95) ------- ------- 10,633 10,531 ------- ------- Capital and reserves Called up share capital 1,053 1,053 Share premium account 841 841 Capital redemption reserve 56 56 Profit and loss account 8,683 8,581 ------- ------- Equity shareholders' funds 10,633 10,531 ------- ------- TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 COMPANY BALANCE SHEET 2005 2004 £'000 £'000 Fixed assets Tangible assets 2,889 2,906 Investments 202 202 ------- ------- 3,091 3,108 Current assets Debtors 3,575 3,623 Cash at bank and in hand 3,262 3,300 ------- ------- 6,837 6,923 Creditors: Amounts falling due within one year (637) (1,307) ------- ------- Net current assets 6,200 5,616 ------- ------- Total assets less current liabilities 9,291 8,724 Deferred taxation (210) (190) ------- ------- 9,081 8,534 ------- ------- Capital and reserves Called up share capital 1,053 1,053 Share premium account 841 841 Capital redemption reserve 56 56 Profit and loss account 7,131 6,584 ------- ------- Equity shareholders' funds 9,081 8,534 ------- ------- TITON HOLDINGS PLC Preliminary Results for the year ended 30 September 2005 CONSOLIDATED CASH FLOW STATEMENT 2005 2004 £'000 £'000 Net cash inflow from operating activities 1,454 1,545 ------- ------- Returns on investments and servicing of finance Interest received 152 131 Interest paid (1) (6) ------- ------- 151 125 ------- ------- Taxation UK corporation tax (271) (431) ------- ------- Capital expenditure Purchase of tangible fixed assets (569) (940) Sale of tangible fixed assets 30 66 ------- ------- (539) (874) ------- ------- Equity dividends paid (747) (745) ------- ------- Cash inflow/(outflow) before use of management of liquid resources and financing 48 (380) Management of liquid resources Disposal of treasury deposits 38 500 Financing Shares issued under the Company's share option scheme - 25 ------- ------- Increase in cash 86 145 ------- ------- TITON HOLDINGS PLC Notes to the Preliminary Results for the year ended 30 September 2005 1 Basic earnings per share has been calculated by dividing the profit attributable to shareholders of £852,000 (2004: £757,000) by the weighted average number of ordinary shares in issue during the year of 10,528,800 (2004: 10,523,878). The diluted earnings per share has been calculated by dividing the profit attributable to shareholders of £852,000 (2004: £757,000) by the weighted average number of ordinary shares and potential dilutive ordinary shares during the year of 10,575,902 (2004: 10,597,741). All dilutive ordinary shares relate to share options. 2 Reconciliation of operating profit to net cash inflow from operating activities 2005 2004 £'000 £'000 Operating profit 1,029 937 Depreciation 599 607 Decrease/(increase) in stocks 69 (138) (Increase)/decrease in debtors (494) 47 Increase in creditors 270 93 Profit on sale of fixed assets (19) (1) ------- ------- Net cash inflow from operating activities 1,454 1,545 ------- ------- 3 Reconciliation of net cash flow to movement in net funds 2005 2004 £'000 £'000 Increase in cash in the year 86 145 Decrease in liquid resources (38) (500) ------- ------- Change in net funds resulting from cashflows and movement in net funds in the year 48 (355) Opening net funds 3,311 3,666 ------- ------- Closing net funds 3,359 3,311 ------- ------- 4 The Preliminary Announcement does not constitute statutory accounts. The auditors' report on the full accounts for the year ended 30 September 2005 has yet to be signed. 5 The actual results for the year ended 30 September 2004 as shown in this statement are an abridged version of the Group's 2004 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 2005 have been prepared on a basis consistent with the accounting policies set out in the statutory accounts for the year ended 30 September 2004. 6 The Preliminary Announcement was approved by the Board of Directors on 7 December 2005. 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. This information is provided by RNS The company news service from the London Stock Exchange

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