·          Consolidated profit before tax: 1.2 million euro (+7.5%)

·          Consolidated operating result (EBIT): 1.8 million euro (+5.3%)

·          Consolidated turnover stable at 31.2 million euro

Meeting today in Florence, the Board of Directors of Targetti Sankey S.p.A. approved the consolidated results of the first quarter 2003. Notwithstanding the general weakness that characterized demand in the lighting sector, the Targetti Group managed to chalk up another positive quarter.
 

The principal consolidated results as of 31 March 2003

The profit before tax recorded a growth of 7,5% in the first quarter of 2003, reaching 1.23 million euro as compared with 1.14 million euro in 2002. This result is all the more satisfactory when one bears in mind that 2002 – year that saw Targetti turn in a record balance sheet – had been characterized by a particularly positive trend.

The turnover as of 31 march 2003 amounted to 31.17 million euro and was practically unchanged as compared with the 31.26 million euro of the first quarter of 2002, which enjoyed the benefit of the positive contribution of the order for the realization of the lighting of the new MacLaren headquarters.

The gross operating margin (EBITDA) reached 3.41 million euro, which compares with 3.52 million euro in 2002 – and represented 10,9% of the turnover, while the operating result (EBIT) amounted to 1.81 million euro, a growth of 5.3% as compared with the corresponding figure of 2002 (1.72 million euro). 

The asset situation

The net financial position as of 31 March 2003 stood at 28.59 million euro, which compared with 26.18 million euro on 31 December 2002, the upturn being due to investments effected during the quarter. Indebtedness, on the other hand, records a marked improvement over a year ago: it now stands at 59% of the Company’s own means, whereas the 30.74 million euro as of 31 March 2002 still represented 69%.

Furthermore, the Group’s net assets have now reached 46.24 million euro, which represents an increase of 2% with respect to the 45.33 million euro on 31 December 2002.

Results of the individual Group companies

The results achieved during the quarter reflect differentiated performances of the individual Group companies.

In particular, the group leader Targetti Sankey S.p.A. realized a quarterly revenue of 11.83 million euro (which compares with 13.70 million euro in 2002) and a before-tax profit of 0.41 million euro (0.94 million euro in 2002), the downturn being principally due to the market difficulties experienced in the interior architectural lighting sector.

Neri Group (external lighting and urban lighting fixtures), on the other hand, closed the quarter with extremely positive results, recording consolidated earnings of 6.20 million euro – which represents an increase of 37.6% over the same period of the previous year – and thus confirmed the growing importance that is now being assumed by the external lighting sector (26.8% of Group turnover).

Duralamp S.p.A. and Victoria-MLE s.r.l. likewise achieved important successes, with turnover increases amounting to, respectively, 22.9% and 78.3%.

Comment of the Board Chairman

“The beginning of 2003 – commented Paolo Targetti, Board Chairman of Targetti Sankey S.p.A. – confirmed the validity of our choice to aim at such high-potential sectors as external lighting and urban lighting equipment.  Although the national and international market context remained very difficult, this made it possible for us to achieve more than satisfactory results and lay the bases for continuing this development”.

The quarterly report approved today will be available to the public at the Company’ headquarters and the Italian Stock Exchange as from tomorrow onwards, when it will also be published at Targetti’s Internet site www.targetti.com. The present press release will be available at the Internet site already today.
 

N.B.     The principal figures contained in the quarterly report approved today by the Board of Directors are appended to the present communiqué.

For further information please contact:

Fabio Norcini

Investor Relator

Targetti Sankey S.p.A.

055 3791.299 

CONSOLIDATED ECONOMIC AND FINANCIAL DATA – TARGETTI GROUP
Consolidated balance sheets – (euro/000)	31/03/2003	31/12/2002
Assets
Short-term securities	84.689	84.356
Net fixed assets	22.468	22.782
Intangible assets	10.257	9.589
Financial assets	659	1.198
Other medium- and short-term assets	1.650	1.434
Total assets	119.723	119.359
Liabilities and net assets
Short-term liabilities	50.852	50.844
Medium- and long-term liabilities	20.742	21.385
Net assets*	48.129	47.130
Total medium- and short-term liabilities	119.723	119.359
Net financial position	(28.592)	(26.184)
Investments of the period	1.370	5.000
* The results of March 31, 2003 take no account of income tax due in respect of this period.
Consolidated statements of income – (euro/000)	31/03/2003	31/03/2002
Net turnover	31.173	31.259
Other earnings	244	316
Consumables and other operating costs	(20.831)	(21.232)
Value added	10.586	10.343
Personnel costs	(7.177)	(6.828)
Gross operating margin	3.409	3.515
Depreciation and devaluations	(1.212)	(1.466)
Goodwill	(388)	(331)
Operating result	1.809	1.718
Financial income and charges	(567)	(548)
Value adjustments of financial assets	-	-
Extraordinary income and charges	(14)	(28)
Profit before tax	1.228	1.142
Taxes on income for the year (period)	-	-
Profit for the year (period)*	1.228	1.142
Profit due to third parties	(169)	(124)
Profit remaining within the Group*	1.059	1.018