Poetic use dates back to 1718. Spoken or scribed, though, ‘over the moon’ is a reference to jubilation and now commandeered by English footballers. Titon United, though, can justifiably use it to describe its result in fiscal 2017. The same applies to its largest earner, South Korea, which played a blinder. Here, though, it is ‘under the Moon’ as embodied by skilful new President Moon Jae-in.

  • Result: net revenue in fiscal 2017 rose 18% to £28 million and – without a yellow card in terms of a one unit closure cost – operating margins would have been 7.9% (2016: 7.5%). Profit before Tax increased 17% £2.49 million, EPS were up 9% and the dividend was confidently raised 20% to 4.20 pence per share with cover at 3.9x (2016: 4.1x)
  • The UK is a little like a tardy Goldilocks: not too hot; but perhaps the wrong side of lukewarm. But even pessimistic forecasts are at circa 1% or so for GDP growth per annum 2017 through 2019. Similarly, Experian is forecasting construction output to grow at an average 1.3% per annum 2017-19.
  • South Korea: is the largest net profit contributor and had a super year despite a stadium of domestic/international issues. Positively, a new President Moon Jae-in was elected on 9 May (after his predecessor was red carded) albeit there is no change in North Korea and Kim Jong-un’s continued bellicosity.  ►     South Korea 2: Q3 GDP growth was Premier League at 3.6% (after 2.7% in Q2). At the same time, FocusEconomics is forecasting GDP growth of 2.8% in 2018 (an upward in November of 0.1%) and 2.7% in 2019. President Moon has also visited the US; and Mr Trump has done the reverse. The smart money, too, assumes that there will not be a war (and there is more at stake here than just Titon profits).
  • Moonshot: the unique Hardman UK Building Materials Sector comprises 22 companies with a market value of £8.3 billion and a valuation of 9.6x EV/EBITDA on a trailing 12 month basis. Titon is fifth cheapest at 5.8x despite a first team Total Shareholder Return of 52% over 12 months which compares with a Sector average TSR score over the past year of 26%.


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