Titon FY performance seen in line with expectations as ventilation growth offsets hardware decline

(Sharecast News) - Ventilation systems manufacturer Titon Holdings said on Friday that its full-year performance was expected to be in line with internal expectations after both revenue and gross margins improved.

Titon said group revenues were up 2.1% at �15.8m, with mechanical ventilation revenues up 19.4% across the group and 26.8% in the UK, offsetting a 13.3% decline in window and door hardware revenue.

Building on margin improvement initiatives and higher-margin product and market focus reported in its interim results, the AIM-listed group said both business units delivered "meaningful improvements" in gross margins compared with the prior year.

As a result, Titon said FY25 underlying EBITDA and pre-tax losses were expected to be reported in line with the board's expectations, while reported pre-tax profits will reflect the sale of previously written down slow-moving stock, which provided a one-off benefit to its results.

Titon also said it continues to maintain "a healthy balance sheet" with no indebtedness and group cash of �3.5m as of 30 September. In September, Titon also received a revised valuation of its property assets of �5.8m, up from �5.4m in 2022.

Chief executive Tom Carpenter said: "Looking ahead to FY26, the board remains cautiously optimistic despite ongoing market headwinds. We recognise that the wider construction market is unlikely to offer much support, so our focus is firmly on creating our own success through market share gains.

"We remain vigilant to cost pressures (including labour, materials and energy) as well as the wider macroeconomic environment, both of which have the potential to influence demand and margins."

As of 0825 BST, Titon shares were down 0.77% at 90.80p.

Reporting by Iain Gilbert at Sharecast.com