REG - Titon Holdings PLC - Completion of Disposal and Update on FY24 Results

Titon HoldingsAnnouncement

16/12/2024 07:00

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RNS Number : 1190Q  Titon Holdings PLC  16 December 2024

LEI: 213800ZHXS8G27RM1D97

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of the Market Abuse Regulation (EU) No.596/2014, which forms
part of UK law by virtue of the European Union (Withdrawal) Act 2018.

16 December 2024

 

Titon Holdings Plc

 

Completion of Disposal of Interests in South Korean Operations and Update on
FY24 Results

 

 

Completion of Disposal of Interests in South Korean Operations

 

Titon Holdings Plc ("Titon", the "Group" or the "Company") is pleased to
announce that, further to the Company's announcement on 24 October 2024, it
has received the cash proceeds for the disposal of its interests in its 51%
owned South Korean subsidiary company, Titon Korea Co. Ltd, and its 49% owned
South Korean associate company, Browntech Sales Co. Limited, (together, the
"Disposal") following the satisfaction of the applicable conditions to the
Disposal.

As a result of the Disposal, the Group ceases to have an operating and
reportable South Korean business segment. The net cash consideration received
after Korean securities and capital tax and costs related to the transaction,
was £710,178.

Update on financial results for the year ended 30 September 2024 ("FY24")

 

On 24 October 2024, the Company provided a trading update on its UK operations
(which included all operations except South Korea), stating that before
exceptional items, loss before tax for the year ended 30 September 2024 was
slightly better than forecast. The Group now confirms that the South Korean
entity also performed marginally ahead of the Group's expectations.

 

As part of its year-end audit process, the Board has reviewed the current
inventory balance, applying the Group's inventory valuation policy which makes
provision for slow-moving and obsolete inventory. During the Covid pandemic,
under previous leadership, the business ordered a significant amount of excess
inventory to counteract extended supply lead times. Whilst heightened
purchasing activity was justifiable during the global supply chain crisis, the
Group believes that it is now necessary to address and recalibrate the
purchasing strategy. Accordingly, on further review and considering the
decline in trading conditions and performance expectations over the past year,
the Group expects to make a one-off, non-cash inventory write off, of
approximately £1.3m in its results for FY24. The Group continues to believe
that it will potentially be able to utilise and realise value from this
inventory, particularly when trading activity recovers, but it considers it
appropriate and prudent to write-off this slower moving inventory. This
write-off is expected to be treated as an exceptional item in the FY24 results
but is still subject to audit.

The Group expects to report its final results for FY24 in January 2025.

For further information please contact:

 Titon Holdings Plc                            Tel: +44 (0)1206 713 800

 Tom Carpenter

 Carolyn Isom

 Shore Capital (Nominated Adviser and Broker)  Tel: +44 (0)20 7408 4090

 Daniel Bush

 Tom Knibbs

 

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