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Consolidated turnover equal to 131.8 million euro (+1.2% as compared with 2002).
Proposed dividend equal to 0.09 euro, payout of 47.5%.
The Board of Directors of Targetti Sankey S.p.A. met today under the chairmanship of Paolo Targetti.
Among others, the agenda included approval of the annual accounts for the financial year closed on 31 December 2003. The definitive consolidated results examined by the Board are substantially in line with the preliminary already published following approval of the fourth quarter of 2003 on February 13.
The 2003 Balance Sheet in a nutshell
Amounting to 131.8 million euro, the consolidated revenue for 2003 was in line with the turnover realized the previous year (130.2 million euro and represents a growth of 1.2%). Mention should be made of the growth of the external lighting sector, which achieved an increase of 15.9% as compared with 2002.
The consolidated gross operating margin (EBITDA) was equal to 16.8 million euro, a downturn as compared with the 20.8 million euro of 2002. This downturn is to be attributed primarily to the reduction of the gross operating margin recorded by the internal lighting sector, which was affected by the critical situation of our target market.
As far as the other economic indicators are concerned, the consolidated net operating result (EBIT) amounted to 10.2 million euro and compares with 13.8 million euro achieved the previous year.
The consolidated net profit reached 3.4 million euro as compared with the 2002 profit of 5.3 million euro.
Indebtedness was reduced, passing from 26.2 million euro to 24.8 million euro, a reduction of 5.4%. This result confirms the Group’s capacity of producing positive net cash flows.
Proposed dividend
The Board of Directors decided to propose to the Shareholder Meeting the distribution of a gross dividend of 0.09 euro per share, with a payout amounting to 47.5%. The dividend yield for 2003, calculated on the present value of the share, is therefore equal to 2.9%.
The dividend is due to be paid as from May 13 onwards; detachment of Coupon No.6 has been fixed for May 10.
The Shareholder meeting called upon to approve the accounts for the year closed on 31 December 2003 will meet in first convocation at 11.00 a.m. in Florence, Via Volterrana No.82.
Comment by the Chairman
"During last year we pursued a developing strategy focused on technology innovation , - commented Paolo Targetti, Chairman of Targetti Sankey S.p.A. – as confirmed by the recent agreement of teamwork with the University of Torino (Politecnico). The intense R&D process, undertaken over last few years, together with our visibility, makes us feel optimistic about the growing prospects of the Group in 2004, especially in foreign markets".
The Group companies
Targetti Sankey S.p.A., the Group leader, achieved a turnover of 47,2 million euro in 2003 as compared with 54,5 million euro in 2002. This result is a consequence of the turnover decreasing on domestic and European market, partially compensated by the rising up of sales in the rest of the world.
Among the subsidiary companies, Neri, leaders in the sector of external lighting and urban lighting systems, confirmed previous growth trends and achieved excellent results also in 2003: in fact, turnover reached 30.4 million euro, an upturn of 17,0% as compared with the previous year.
40,7% was the growth, compared to 2002, of Duralamp, specialized in the production of lighting sources. This result has benefited also from the first consolidation of Chinese business. In particular, Hangzhou Duralamp Electronic Co. Ltd., a joint venture realized in collaboration with a Chinese Government Institution, was included in the consolidation scope during the last four months of the year and during this period produced a turnover of 2.0 million euro and a net profit of 119,000 euro. These results suggest an excellent development potential for the years ahead.
The principal economic and financial data of the consolidated accounts for 2003 approved by the Board today are attached to the present communiqué.
The Targetti Group, with headquarters in Florence, are one of the leading protagonists in the sector of architectural lighting for both interiors and exteriors. The group companies produce and market sophisticated equipment – a perfect synthesis of technology and design – that illumines important works of art, including Michelangelo’s David, Leonardo da Vinci’s Last Supper and the Roman National Archaeological Museum and finds application in wide variety of different environments, among them Piazza della Scala in Milan, Amsterdam’s railway station, the Bilbao Underground, the showrooms of Bulgari, Benetton, Bang & Olufsen, Alfa Romeo and Peugeot and, not least, West McLaren Mercedes Technology Centre.
Contact: Massimiliano Parboni
Giovanni Sanfelice
Barabino&Partners
Tel.: 06/679.29.29
Florence, 30 March 2003
CONSOLIDATED ECONOMIC AND ASSET DATA
TARGETTI GROUP
|
Asset data – thousands of euro |
31/12/2003 |
31/12/2002 |
|
Assets |
|
|
|
Short term assets |
88.919 |
84.356 |
|
Net material assets |
22.276 |
22.782 |
|
Intangible assets |
8.843 |
9.589 |
|
Financial assets |
422 |
1.198 |
|
Other medium- and short-term assets |
1.743 |
1.434 |
|
Total assets |
122.203 |
119.359 |
|
|
|
Liabilities and net assets |
|
Short-term liabilities |
57.108 |
50.844 |
|
Medium- and long-term liabilities |
16.063 |
21.385 |
|
Net assets |
49.032 |
47.130 |
|
Total medium- and long-term liabilities |
122.203 |
119.359 |
|
|
|
Net financial position |
(24.774) |
(26.184) |
|
Investments during the period |
5411 |
5.000 |
|
Economic data – thousands of euro |
31/12/2003 |
31/12/2002 |
|
Net turnover |
131.805 |
130.240 |
|
Other revenue |
1.373 |
1.326 |
|
Consumptions and other operating charges |
(87.477) |
(84.793) |
|
Added value |
45.701 |
46.773 |
|
Personnel costs |
(28.940) |
(25.927) |
|
Gross operating margin |
16.761 |
20.846 |
|
Depreciations and write-offs |
(4.980) |
(5.694) |
|
Good will depreciation |
(1.561) |
(1.324) |
|
Operating result |
10.220 |
13.828 |
|
Financial revenue and charges |
(2.422) |
(2.773) |
|
Value rectifications of financial assets |
(6) |
(253) |
|
Extraordinary revenue and charges |
60 |
631 |
|
Profit before taxation |
7.852 |
11.433 |
|
Taxes on earnings of the financial year |
(4.499) |
(6.111) |
|
Profit for the year |
3.353 |
5.322 |
|
Profit distributed to third parties |
(556) |
36 |
|
Profit earned by Group |
2.797 |
5.358 | |
