Titon completed Korea disposal, plans to write down excess stock
By Josh White
Date: Monday 16 Dec 2024
(Sharecast News) - Titon Holdings announced on Monday that it has completed the disposal of its interests in its South Korean operations, ceasing activities in the region.
The AIM-traded firm said the disposal, which involved its 51% stake in Titon Korea Co Ltd and its 49% interest in Browntech Sales Co Ltd, generated net cash proceeds of £0.71m after taxes and related costs.
It said completion followed the satisfaction of all conditions, announced on 24 October.
The transaction marked the end of Titon's South Korean business segment, allowing the group to refocus on its remaining operations.
For the financial year ended 30 September 2024, Titon reports that both its UK operations and its South Korean entity performed slightly better than anticipated before exceptional items.
However, as part of its year-end audit, it identified the need to address excess inventory levels accumulated during the Covid-19 pandemic.
Under previous leadership, significant inventory was purchased to mitigate supply chain disruptions.
While the group believed some of that inventory could still generate value when trading conditions improved, it planned to write off about £1.3m in slow-moving stock.
The board said the one-off, non-cash charge would be treated as an exceptional item in the 2024 results, which were scheduled to be released in January.
Reporting by Josh White for Sharecast.com.
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