Full Year Results
30 September 2024
Titon Holdings plc
January 2025
Titon Holdings plc | Full Year Results 30 September 2024 |
Titon Holdings Board
Titon Holdings plc | Full Year Results 30 September 2024 |
Introducing Titon
Titon Holdings plc | Full Year Results 30 September 2024 |
A leading supplier of ventilation systems and window and door hardware
Established Industry Player
- Over fifty years of experience and reputation
Two Business Units
- Window and Door Hardware
- Mechanical Ventilation Systems
Markets46% supported54% by regulatory requirements
- Predominantly supply into Residential New Build; diversifying into RMI, commercial and social housing
- Building regulations drive demand for both business units
Market Leading products
- Broad range of award-winning products for both business units
- Continued Investment in new products
Vertically Integrated Manufacturing
- Own 100,000+ sq.ft. manufacturing plan in Haverhill, Suffolk
- Excess machine capacity to facilitate growth
Potential for significantly increased shareholder value
- Strong balance sheet vs market capitalisation
Percentage split of revenue FY2024
46% | 54% | 29% | 71% |
Mechanical | Window and | 3rd Party | Own |
Ventilation | Door Hardware | Products | Manufactured |
Products | |||
Systems | |||
Door and Hardware revenue (%)
UK 80% | Export 20%
Ventilation Systems revenue (%)
UK 81% | Export 19%
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Titon plcHoldings plc
2024 Highlights
A year of significant strategic progress
Appointment of Tom Carpenter, CEO
Initiation of a comprehensive 5-year strategic plan
- Business restructured - simplified structure & improved operating costs.
- Gross Margin improvement program commenced
- Reorganised Ventilations Systems commercial organisation to focus on system level wins.
- Recruitment of new Sales Director (Ventilation Systems) as a key strategic hire
- Progress towards solution selling
- Reviewed our go-to-market methodologies with the Window & Door Hardware business
- Pivot towards aluminum and systems market
- Focus on higher margin product mix
- Revised marketing and value proposition launched
- New website to be introduced Q2 2025
Continued innovation; new products released across both business units
(e.g. Hexalok, HRV Cool Plus)
Disposed loss making South Korean business for £0.7m
Full Year Results 30 September 2024
HRV 4
Titon HRV Cool Plus
Hexalok5
Titon Holdings plc | Full Year Results 30 September 2024 |
Financial Review
Titon Holdings plc | Full Year Results 30 September 2024 |
FY2024 Income Statement Summary
Continuing operations
- FY24 sales £15.5m (FY23 £19.9m) reduced by 22%.
- Window & Door Hardware Sales £8.3m (FY23 £10.0m)
- Mechanical Ventilation Systems £7.1m (FY23 £9.8m)
- Gross margins maintained at 28.0% (FY23 28.4%)
- Underlying operating loss before exceptionals £0.9m (FY23 £0.2m loss)
- EBITDA breakeven for the year
- Business restructured - c. £0.6m p.a. of savings
- Continued focus on careful cost management
Continuing operations | FY 2024 | FY 2023 |
Net revenue | £15.5m | £19.8m |
Gross profit | £4.3m | £5.6m |
Gross margin | 28.0% | 28.4% |
Underlying loss before exceptional | £(0.9)m | £(0.2)m |
costs and tax | ||
Underlying EBITDA | £0.01m | £0.81m |
Exceptional Costs Incurred During Year | ||
Restructuring costs | £0.2m | £0.04m |
Allowance for slow moving | £1.3m | - |
inventory | ||
Total | £1.5m | £0.04m |
Underlying profits excludes all exceptional costs incurred
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Titon Holdings plc
H2 vs H1 2024
Continuing operations - improving H2 trend
- Sales decline levelled off during the latter half of the year
- Growth in UK Ventilation Systems during year offset reduction in European OEM sales
- Gross margin in H2 2024 ahead of FY2023
- Product mix and margin improvement began to marginally improve overall gross profits during final months of year
- Cost reductions and restructuring during July improved operating losses - Company almost broke even during last two months of the year
- Underlying EBITDA flat during year - final months driving positive EBITDA in the second half
- Ventilation Systems Order book doubled during second half of year
- FY2024 Company Book-To-Bill of 1.12 vs. FY2023 of 0.92
Full Year Results 30 September 2024
H2 2024 | H1 2024 | Change | FY 2024 | |
(%) | ||||
Window & Door Hardware | £4.01m | £4.24m | (3.5%) | £8.33m |
Ventilation Systems | £3.35m | £3.58m | (0.6%) | £7.14m |
Total Net revenue | £7.65m | £7.82m | (2.2%) | £15.47m |
Gross Profit | £2.18m | £2.15m | 1.2% | £4.33m |
Gross Margin | 28.5% | 27.5% | 1.0% | 28.0% |
Operating Loss Before | £(0.36)m | £(0.53)m | 32% | £(0.90)m |
Exceptional Costs & Tax | ||||
Underlying EBITDA before | £0.07m | £(0.07)m | 207% | £0.01m |
exceptional costs |
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Titon Holdings plc | Full Year Results 30 September 2024 |
FY2024 Statement of Financial Position and Cash
Flow
- Strong balance sheet maintained with no borrowings and cash levels consistent across the year, at £2.3 million (2023: £2.2 million)
- Cash further strengthened since year end due to £0.7m funds received in respect of South Korean operations sale.
- The Group anticipates generating positive cash flows from operations in FY2025
- Continued progress on reduction of stock levels - stock reduced by £1.3m over the year (total reduction of £2.6m offset by £1.3m inventory write down)
- Non-currentassets includes property with a book value of £1.6m and a 30 September 2022 fair value of £5.4m
- Balance Sheet Highlights:
- No indebtedness except for lease liabilities
- Total Book Equity (£10.9m) remains higher than market capitalisation (£8.7m)
FY 2024 | FY 2023 | |
Non-current Assets | £4.7m | £7.2m |
Inventories | £3.5m | £6.1m |
Cash | £2.3m | £2.2m |
Total Assets | £14.3m | £19.4m |
Total Liabilities | £(3.4)m | £(4.6)m |
Total Equity | £10.9m | £14.8m |
FY 2024 | FY 2023 | |
Cash generated by operations | £0.6m | £1.2m |
Cash used in investing activities | £(0.3)m | £(0.3)m |
Cash used in financing activities | £(0.2)m | £(0.4)m |
Net increase in cash before exchange | £(0.08)m | £0.5m |
rate changes | ||
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Titon Holdings plc | Full Year Results 30 September 2024 |
Titon Transformation
Strategy and
Programmes for FY25