Strategy
Despite a more challenging trading period over the last two years due to shortages of materials and components as well overall cost increases, the business has continued with key investments for their future. As well as investing in strategic overhead to support growth of their higher margin Mechanical Ventiliation Systems area of the business, they have also implemented a new ERP system (Microsoft Dynamics) for UK and European operations. They focus closely on their ways of working, encouraging a culture of continuous improvement and efficiencies within manufacturing and production planning.
Titon have a strong balance sheet, excellent products and solid R&D platform to build upon. There are significant market opportunities in domestic ventilation, much of which is driven by legislation. Over the last 10 years in particular, awareness about the importance of Indoor Air Quality (IAQ) has continued to increase with revisions to the Building Regulations in June 2022. This has resulted in the requirement for increased rates of ventilation in new build properties and the inclusion of trickle vents in most replacement windows.
Titon launched the Titon FireSafe® Air Brick into the market to coincide with the response to Dame Judith Hackitt’s recommendations in her post Grenfell Tower review of building safety, for external walls of buildings. Titon Ventilation Systems won a coveted HVR Award in September 2022 and since its launch, the Titon FireSafe® Air Brick has become the in-demand metal air brick of choice for mechanical ventilation.
The future performance of the UK ventilation and air conditioning market will be influenced by overall trends in commercial construction and new house building, RMI activity, energy efficiency legislation, renewable technologies, plus climatic factors and air temperatures.
Therefore Titon’s ambition is to increase market share and double sales over a five year period, with particular emphasis on new product development and enhanced performance within mechanical ventilation in the UK and Europe. To achieve this, it has reshaped the Board and senior leadership team, investing in the right senior talent to drive increased performance, innovation and shareholder value. Over the last 12 months Keith Ritchie has transitioned from Executive Chair to Non-Executive Chair and Pure Executive have introduced two new Non-Executives to the Board to add further depth of commercial insight, governance and independent thinking. They have joined alongside existing NED Nick Howlett.
Although market conditions remain challenging, the demand for Titon’s products, both in new build and replacement, remains strong and forecasts for the second half of 2023/into 2024 are positive. The resilience and financial position of the business remains very strong with a solid balance sheet, robust cash balances and no debt.
