Consolidated EBITDA at 7.4 million euro (11.0 million in 2002) and consolidated EBIT at 4.3 million euro (7.3 million in 2002).

The principal consolidated results of the first half of the year

The first half of the year saw the Targetti Group substantially hold its ground notwithstanding the general weakness of the economic situation, which inevitably affected demand also in the lighting sector; the comparison with the first half of 2002 is influenced in a decisive manner by an exceptional order that had generated an extraordinary income flow in the first half of 2002 and had caused an atypical concentration of the margins in that part of the year.

More particularly, the consolidated turnover as of 30 June 2003, i.e. relating to the first half of the year, was equal to 63.51 million euro, which compares with 67.3 million euro in 2002 and represents a downturn of 5.4%, a goodly part of which is to be attributed to the unfavourable dynamics of the dollar/euro exchange rate: at a constant exchange rate, the turnover would have been substantially in line with that of the first half of the previous year (-3.6%).

The gross operating margin (EBITDA) amounted to 7.45 million euro (as compared with 10.98 million in 2002) and accounted for 11.7% of the turnover, while the operating result (EBIT),reached 4.26 million euro, the equivalent of 6.7% of turnover, and compared with 7.30 million the previous year. The profit before tax amounted to 2.63 million euro, which compares with 5.62 million in 2002.

These results nevertheless represent a considerable growth as compared with 2001 (EBITDA +16%, EBIT + 42%, and before-tax profit +28%) and all previous years that were not distorted by exceptional orders and therefore reflected the normal seasonal pattern of both the Group and the lighting sector as a whole.

The asset situation as of 30 June 2002

The net financial situation as of 30 June 2003 settled at 33.69 million euro and compares with 26.18 million as of 31 December 2002, the difference being mainly due to the dividends distributed and the new investments made during the period.

The net assets of the Group, which had stood at 47.13 million euro as of 31 December 2002, have now reached 47.73 million euro. 

Comment of the Board Chairman

“The enlargement of our offer, not least as a result of the purchases made in previous years – commented Paolo Targetti, Chairman of the Board of Directors of Targetti Sankey S.p.A. – made it possible for us to attain the objectives we had set ourselves at the beginning of the year, and this notwithstanding a very difficult market situation and the lack of any extraordinary orders. We cannot therefore but confirm our confidence in the growth prospects of the Group in the second half of the year, thanks to an intense activity in the international markets and a considerable  offer of products with a substantial and innovative technological content”.

The half-yearly report approved today will be at the disposal of the public at the Company’s registered office and the Italian Stock Exchange as from tomorrow onwards. At the same time it is also due to be published on the Company’s Internet site www.targetti.com, where the present press communiqué will be on view as from today.

The present press communiqué is  accompanied by the principal consolidated results contained in the half-yearly report approved today by the Board of Directors.

Florence, 23 September 2003