Record figures for Titon Holdings
Essex ventilation systems specialist Titon Holdings has hoisted revenue, profits and dividend for the year to September 30.
The Colchester-based AIM-quoted business increased net revenue seven per cent to a record £29.9 million and pre-tax profit by 20 per cent to £2.98m. The proposed final dividend of 3.0 pence per share is up 11 per cent, taking dividends for the full year to 4.75 pence – an increase of 13 per cent.
Executive chairman Keith Ritchie said: “It was another record year for Titon and this was the sixth consecutive year of rising dividends underpinned by a robust balance sheet and a growing cash position.
“The UK economy continues to grow at a modest rate in both historic and relative terms with consensus forecasts for GDP growth clustered around 1.5 per cent per annum in both 2019 and 2020.
“These forecasts, too, are made assuming that the UK reaches an agreement with the EU about withdrawing in an orderly manner and any continuing uncertainty is unwelcome to our business.
“In the first two months of the new fiscal year, we have been pleased with UK and Continental European trading, which is in line with the same period in 2017, when October and November were particularly good months.
“In South Korea, the world’s 12th largest economy and the group’s largest net profit contributor, Q3 of calendar 2018 saw slightly slower GDP growth in relative terms at 2.0 per cent compared with 2.8 per cent in Q2 due largely to weaker construction and business investment.
“We anticipate that increasing levels of air pollution may raise demand for mechanical ventilation units over natural ventilation products in fiscal 2019, resulting in a slowdown in our core natural ventilation business.
“We are, however, in the process of developing new solutions for the South Korean ventilation market. Most importantly, the trajectory of the South Korean economy remains enviably positive with FocusEconomics forecasting GDP growth of 2.6 per cent in both 2019 and 2020 as gGovernment spending increases and monetary policy remains accommodative. We are therefore positive on the medium-term outlook for our South Korean business.
“Titon builds and delivers popular products across a unique geographical spread. It has good people and a perennially strong balance sheet.
“We also continue to look for new opportunities for growth within our target markets. 2019 may be a more testing year in South Korea and the UK, compounded by the continuing uncertainty over Brexit.
“However, provided that Brexit doesn’t negatively impact the UK economy we expect another year of growth in revenue and profits for Titon in line with market expectations.”