Titon Holdings (AIM:TON), the ventilation systems and window and door hardware manufacturer, now expects revenue of approximately £17m for the year to 30 September, representing growth of around 7.5%.
Underlying EBITDA is expected to be approximately £0.3m, down from earlier expectations, as delayed customer projects and lower sales hit margins across both divisions.
The Mechanical Ventilation Systems division is still on track for mid-to-high-teens percentage revenue growth, driven by new product launches and project wins, but a number of customer projects have slipped into FY27, dragging on margins alongside the sales mix flagged at the half-year results.
Window and Door Hardware sales fell more than expected as residential construction remained subdued, though the June acquisition of G-Pack Manufacturing is performing in line with the board's expectations and a new product range is due in the first half of FY27.
"The delay to a number of MVS projects is disappointing, but we are encouraged by recent strength in our order book and a healthy pipeline supporting FY27," said Tom Carpenter, chief executive.
The group held cash of £2.2m at 31 July, after the £1m G-Pack acquisition payment, with no debt.
Titon expects improved MVS margins from the start of FY27 as delayed projects commence and re-engineered high-value products come online.
News Intelligence what this means for the company
Titon has slashed FY26 EBITDA guidance to £0.3m from prior expectations, citing delayed ventilation projects and weaker hardware sales. Revenue growth of 7.5% to £17m masks a profitability collapse: the Mechanical Ventilation Systems division, despite mid-to-high-teens revenue growth, is being dragged down by project slippage into FY27 and unfavorable sales mix, while the Window and Door Hardware division suffered worse-than-expected declines as residential construction remained subdued. Management pins recovery hopes on FY27 project commencement and new product launches, but near-term cash generation is severely impaired.
The company's cash position of £2.2m (after the £1.0m G-Pack acquisition payment) now sits against near-zero profitability, leaving minimal buffer for operational missteps or further project delays. Titon's ability to fund growth and service any future working capital needs depends entirely on FY27 project execution and margin recovery—a binary bet on management's timeline.
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