Titon Holdings PLC COVID-19 Guidance (4156H)
March 24 2020 - 9:45AM
UK Regulatory
TIDMTON
RNS Number : 4156H
Titon Holdings PLC
24 March 2020
24 March 2020
Titon Holdings Plc
COVID-19 GUIDANCE
Titon Holdings Plc ("Titon", the "Group" or the "Company"), a
leading international manufacturer and supplier of ventilation
systems, and window and door hardware, makes a statement on the
COVID-19 pandemic.
Trading to date
Following the trading update issued at the time of the Company's
AGM on 18 February 2020, trading since then has been in line with
the Board of Directors' expectations and has not been significantly
impacted as a result of COVID-19. In the UK and Rest of the World
trading has continued without interruption; in Titon Korea there
was a short period during which the factory was closed to allow a
deep clean to take place.
Operational actions following the Prime Minister's address on 23
March 2020
Following the broadcast by the Prime Minister on 23 March 2020,
and in accordance with the UK Government's edict requiring travel
for work only when absolutely necessary, the Board has decided to
undertake, during the course of this week, an orderly wind down of
its factory in Haverhill, Suffolk and accordingly to pause
production in the UK, Europe and Rest of the World, excluding South
Korea. This closure will remain in place until further notice. The
Board acknowledges that this is a step that the Company did not
wish to take but has no choice given the national emergency and the
overriding need to consider the safety of employees and other
stakeholders.
From a financial perspective the Company will be focused on cash
preservation and will take advantage of the UK Government's
measures to support businesses, whenever necessary. It will also
endeavour to retain all employees, wherever possible, as requested
by the UK Government. All necessary steps will be taken to mitigate
the impact of the close down for the necessary period.
Operations continue in South Korea; in Titon Korea operating
costs were substantially reduced as a result of the slowdown in
trading experienced in 2019 and further cost-cutting measures will
be taken, where necessary.
Capital Structure
At present the Group has a strong balance sheet with no
indebtedness. The Group currently has cash balances of
approximately GBP3.4 million, following the payment of the final
dividend to shareholders in February 2020, amounting to GBP332,000,
and the regular quarterly VAT payment to HMRC amounting to
GBP302,000 in the same month.
We will be considering all routes open to us for additional
financing should this be required, including the Government's
support measures announced recently. This will depend on the length
of the closure.
Future Impact
At this time it is very difficult for anyone to forecast when
the COVID-19 pandemic will abate such that normal life can
re-start. The Company's revenues, as with many other UK businesses
in the building materials and construction sector, will be
significantly impacted by such shutdowns. Titon is also mindful of
the impact that further global public health policy measures could
have on the Group's future operations around the world, as well as
the broader potential impact of COVID-19 on the economy and the
liquidity and solvency positions of the Group's customers in
relation to future sales and trading debtors. Accordingly, the
Group does not consider it appropriate to provide guidance on
current and future year performance at this stage.
The Company will provide further updates to the market as and
when there is greater clarity on the impact of COVID-19 on the
trading environment and the UK Government's public health policy
measures. The next scheduled reporting event is the Company's
Interim Report, which is due to be published on 14 May 2020.
Keith Ritchie, Executive Chairman commented:
"It goes without saying that the health and safety of the
Group's employees, customers, suppliers and all other stakeholders
is a key priority of the Group and all decisions during this period
will be taken with this in mind. The Group has taken measures to
protect its employees wherever possible and will continue to do so.
Titon has a robust balance sheet and we remain committed to
supplying our customers with our full range of window and door
hardware and mechanical ventilation products when normal business
activities can resume.
Although this is a period of extreme uncertainty for everybody,
we remain optimistic that the actions of European, US and the South
Korean governments will successfully counter the COVID-19 epidemic
and restore economic activity in due course."
For further information please contact:
Titon Holdings Plc
Keith Ritchie Tel: +44 (0)1206
713821
Shore Capital Tel: +44 (0)20 7408
Edward Mansfield 4090
Daniel Bush
ENDS
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END
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