Titon Holdings Plc Hat-trick

Hardman & Co ReportIndeterminate derivation but unambiguous in contemporary vernacular – and Titon Holdings Plc (LON:TON) scored a beauty with its third set of record annual results in a row. It also delivered double digit growth in pretax, earnings and dividend. The shares rose 15% on the day to 108 pence but remain second cheapest in their Sector. Team Titan is playing on a good wicket, has strength in depth and clear ability.
► Results: pre-tax profits in the full year to 30 September 2016 rose 14% to £2.14 million with EPS up 21% and dividends ahead 17% (including +29% in the final). Liquidity remained similarly strong and the Group closed the year with £2.44 million of net cash. In the first two months of the new fiscal year, too, sales in the UK and continental were ahead year-on-year.

► Ethos and track record: this is the third year in a row that Titon has produced record results (in fiscal 2013, pre-tax profits were around £500,000). In the Group’s core ventilations market, too, the quality of indoor air is recognised as a major health issue.

► Valuation: Titon Holdings Plc is the second cheapest stock (to Samuel Heath) in the Hardman UK Building Materials Sector at 4.0x historic EV/EBITDA plus it sports a yield in excess of 3%; and this after generating a Total Return to Shareholders (TSR) of 22.5% over the past 12 months based on Bloomberg data.

► Risks: the geopolitical climate remains unsettled at home and close-to-home, in Asia and in the US. Specifically on the Brexit vote, though, Titon said: “to date, however, there has been little impact on our business and we remain optimistic that satisfactory exit terms can be negotiated”. The Chairman’s statement also said: “we will continue to look for new opportunities within our target markets. I look forward to another year of progress”.

► Investment summary: the fiscal 2016 results are an important line in the sand for Titon and investor perception. It is important, too, to see its premier TSR numbers coming through. Expect the Group to build on this team performance as it bucks for promotion.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Hardman & Co

    More articles like this

    Hardman & Co

    Titon Holdings Condititoning

    Initiation of our coverage was 16 March 2016 at 101.5p. In February 2018, the price was 215p and it stayed north of £2 for another year. In fiscal 2019, though, Titon Holdings (LON:TON) weathered a perfect

    Hardman & Co

    Titon Holdings Electiton

    Tis rare that a company reports on the same day as a general election. Okay, Titon Holdings (LON:TON) gestation was the longer ‒ but the conclusions are the same. “It’s over and yet it has only

    Hardman & Co

    Titon Holdings Plc You need hands

    Titon Holdings Plc (LON:TON), Failure to applaud is the original meaning of the idiom ‘to sit on your hands’; it originated in the theatre, when an unimpressed audience refused to clap. In the modern lexicon, it

    Hardman & Co

    Titon Holdings Plc Good moon rising

    Titon Holdings Plc (LON:TON), Titan is the largest moon of Saturn. It is blessed with a generally smooth surface and few impact craters. It would also look 11.4 times larger than our moon in the night sky.

    Hardman & Co

    Titon Holdings Plc My aim is true

    The Platinum-certified album of the same name by Elvis Costello is widely held to be the most impressive debut in popular music history; and it ranks 80 in the greatest records of all time. It was

    Hardman & Co

    Titon Holdings Plc Justice and favour

    Kim Jong-un, North Korea’s Supreme leader, has been in rehab and is finally living up to the English translation of his christian names: justice-and-favour. The World is a different place with a Trump/Kim summit pending. South

    Hardman & Co

    Titon Holdings Plc Small, fresh and perfectly formed

    Demand for the Group’s core ventilation products is benefiting from dynamic building methods, tightening regulation and increasing focus on healthy buildings. What is more, almost half of Group revenue is international, including, unusually, a manufacturing and