Titon Holdings Plc (TON.L), a ventilation systems manufacturer, Friday, reported that its loss widened for the first half ending March 31 2023, impacted by cost inflations. However, revenues improved slightly.
First-half loss before tax widened 80% to 0.45 million pounds from 0.25 million pounds for the same period of prior year.
Net loss widened to 0.39 million pounds from 0.21 million pounds of last year. Loss per share was 2.86 pence per share compared to 1.44 pence per share of prior year.
EBITDA decreased 35.7% to 0.18 million pounds from 0.28 million pounds for the same period last year, due to cost inflation in labour, material and energy.
Revenue, however increased 5.2% to 12.08 million pounds from 11.48 million pounds due to strong trading in UK and Europe.
Ventilation systems sales rose by 31% against the prior year, driven by strong European performance where sales rose 124%.
The company declared an interim dividend of 0.5 pence per share payable on July 7.
According to the company, the Office for Budget Responsibility has forecasted two quarters of negative growth in GDP before the economy starts growing again in Q3 2023. The Construction Products Association, has forecasted that private housebuilding output will fall by 17% in 2023 before recovering by 4% in 2024.
Looking ahead to the second half of 2023, the company expects the revenue from UK and Europe to be slightly lower than the revenue in the first half of 2023, as the slowdown in housing market activity occurs.
For the whole year, the company expects trading at the European and UK market to be in line with prior expectations, supported by the performance in the first half of this year.
Currently, shares of Titon are trading at 75.00 pence down 13.79% or 12.00 pence on the London Stock Exchange.
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