Titon issues profit warning

Building products maker, Titon, has announced that the financial performance for the full year to the end of September is likely to be below market expectations. However, trading in the first half to March was in line with expectations.

Since the interim period, operating margins have been affected by increases in raw material prices which the company has been unable to pass on to consumers due to tough market conditions.

Sales to Europe have been lower and US profits have been reduced due to the strength of the pound. In addition, overheads have been forced higher by the launch of new ventilation products as a result of building regulation changes that were scrapped without warning.

Action is being taken to gain market share and to cut costs considerably in the next financial year. The zinc die casting plant has been closed at a cost of £50,000 and components will be bought in.

Chief executive David Ruffell said that profit before tax will be no less than £400,000 and house broker Evolution Securities had been looking for £900,000.

Since profits of £490,000 were made in the first half, it is evident that the second half is likely to produce a slight loss. The final dividend must be at risk.

Titon designs and makes ventilation products and window fittings.