- Consolidated turnover of 153.6 million Euros in 2004 (up 16.5% over 2003)[1].
- Consolidated net profit is doubled at 6.6 million Euros (+98.1%).
- Dividend of a 0.14 Euro.
The Shareholders’ Meeting of Targetti Sankey S.p.A., met today in Florence under the chairmanship of Paolo Targetti, approved annual accounts for 2004.
Summary of primary figures in the 2004 financial statement
In 2004, the Group achieved a consolidated turnover of 153.6 million Euros, showing an increase of 16.5% (in comparison with 131.8 million Euros in 2003), 15.6% of which can be attributed to organic growth and 0.9% to the different consolidation area.
Growth was spurred by increased turnover in all sectors of activity: architectural lighting (up 8.3%), which accounts for 56.5% of total turnover, exterior public lighting (up 23.8%) and lighting sources (up 46.4%).
EBITDA amounted to 21.9 million Euros, up 30.7% over the figure of 16.8 million Euros in 2003, and giving a margin of 14.3% of turnover (as opposed to 12.7% in 2003), a continued improvement with regard to preliminary consolidated results, in which it came in at 13.8% of turnover.
EBIT reached 15.8 million Euros, showing an 54.6% increase over the 2003 figure of 10.2 million Euros, while the consolidated net profit amounted to 6.6 million Euros, compared to 3.4 million Euros in 2003 (+ 98.1%).
The net financial position stood at 22.0 million Euros as at 31 December 2004, a clear improvement, as compared with 24.8 million Euros as at 31 December 2003, which was due to the positive trend in cash flow.
At the same date, net equity stood at 55.0 Euros million, an upturn compared to the figure of 49.0 million Euros as at 31 December 2003, thanks to a 6.6 million Euros profit for the period and to a capital increase of 1.4 million Euros, net of the 1.6 million Euros dividend paid out in 2004.
Dividend distribution
The Shareholders’ Meeting approved the distribution of a gross dividend of 0.14 Euro per share, equal to a 37,9% payout.
The dividend will become payable starting on 12 May 2005; its registration on coupon no. 7 is set for 9 May.
Other Shareholders’ Meeting resolutions
The Shareholders’ Meeting appointed Ms. Stella Targetti as a new member of the company’s Board of Directors, with a change in the total number of Board members.
A brief overview of Stella Targetti’s CV is available at the company; she currently holds 635,910 shares in Targetti Sankey S.p.A., amounting to 3.5% of share capital.
In addition, the Meeting renewed authorisation for the purchase and sale of own shares.
Acquisition of A2 S.r.l
Today the company finalised the acquisition of 75% of the share capital of A2 S.r.l., a manufacturer of commercial lighting fixtures, with specific expertise in the area of hospital lighting.
This acquisition, for a sum of approximately 1.3 million Euros (in cash), will allow Targetti to expand and supplement its product range, extending it to include products for hospitals and nursing homes, such as bed units and fixtures for sterile environments (operating rooms).
Comments of the Managing Director
Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A, stated: “we can file away 2004 as a year that gave great satisfaction from all points of view. We are confident that 2005 will be a positive year for us, with further consolidation of growth, even though the general market context is still characterised by uncertainty."
Attached to this press release are the primary consolidated economic and financial figures for 2004, approved today by the Board of Directors.
Targetti Sankey S.p.A. are among the leading industrial groups in Europe in the indoor and outdoor lighting sector. A network of nine highly specialized companies that draws its strength from a long history and a natural vocation for research. Thanks to the perfect synthesis of technology and design, Targetti equipment lights universal masterpieces of art like Michelangelo’s David, Leonardo da Vinci’s Last Supper and Notre Dame Cathedral, and finds application in a wide range of other environments: from the Opera House in Singapore to the airports of Madrid, Canton and Paris; from the showrooms of Bulgari, Benetton, Celine, Diesel to the Formula 1 boxes of McLaren; from corporate companies like Peugeot, Citroën, Alfa Romeo to the world’s most prestigious hotel chains. And the more than 4000 small and large urban centres where lighting … means Targetti.
Contact: Marco Cisbani - Targetti Sankey S.p.A - Ph.: 055/3791.203
Massimiliano Parboni - Barabino&Partners - Ph.: 06/679.29.29
[1] The consolidation area included the stakes in Hangzhou Duralamp Electronics Co. Ltd. and Ningbo Si Kang International Trading Co. Ltd., which in 2003 were consolidated for only the last four months of the year. Moreover, 2004 does not include the 50% of Tivoli LLC, which was completely consolidated in 2003 as it was absorbed by Targetti North America Inc.
RECLASSIFIED BALANCE SHEET
The reclassified balance sheet can be summed in the following terms:
|
Data expressed in thousands of Euros |
At 31.12.04 |
At 31.12.03 |
|
|
|
|
|
Intangible fixed assets |
|
8,843 |
|
Tangible fixed assets |
22,271 |
22,276 |
|
Investments and other financial fixed assets |
2,057 |
422 |
|
Other medium/long-term assets |
2,202 |
1,743 |
|
Non-current Assets A |
33.498 |
33,284 |
|
|
|
|
|
Inventories |
34,650 |
29,757 |
|
Trade receivables |
53,597 |
46,509 |
|
Other receivables |
5,137 |
6,118 |
|
Short-term assets B |
93,384 |
82,384 |
|
Trade payables |
(28,540) |
(24,691) |
|
Other payables |
(14,536) |
(10,916) |
|
Short-term liabilities C |
(43,076) |
(35,607) |
|
Net working capital D = B + C |
50,308 |
46,777 |
|
|
|
|
|
Employee severance indemnity E |
(4,778) |
(4,236) |
|
Other medium/long-term liabilities F |
(2,057) |
(2,018) |
|
Net capital employed A + D + E + F |
76,971 |
73,807 |
Financed by:
|
Shareholders' equity pertaining to the Group G |
50,476 |
45,977 |
|
Shareholders' equity pertaining to Minority Interests H |
4,474 |
3,055 |
|
Total Shareholders’ Equity L=G+H |
54,950 |
49,032 |
|
|
|
|
|
Medium/long-term financial debt M |
7,020 |
9,809 |
|
Short-term financial debt |
22,119 |
21,502 |
|
Liquid assets |
(7,118) |
(6,536) |
|
Net short-term financial debt N |
15,001 |
14,966 |
|
Total net financial debt P=M+N |
22,021 |
24,775 |
|
|
|
|
|
Equity and financial debt L+P |
76,971 |
73,807 |
ECONOMIC AND FINANCIAL DATA
The following chart shows the reclassified income statement.
|
Data expressed in thousands of Euros |
Year 2004 |
Year 2003 |
|
Net sales |
153,578 |
131,805 |
|
|
|
|
|
Other revenues |
1,840 |
1,373 |
|
Consumption and other operating costs |
(103,152) |
(87,477) |
|
Value added |
52,266 |
45,701 |
|
|
|
|
|
Personnel costs |
(30,367) |
(28,940) |
|
Gross operating margin |
21,899 |
16,761 |
|
|
|
|
|
Amortisation/depreciation, and write-downs |
(4,660) |
(4,980) |
|
Goodwill amortisation |
(1,435) |
(1,561) |
|
Operating results |
15,804 |
10,220 |
|
|
|
|
|
Financial income and charges |
(1,995) |
(2,422) |
|
Value adjustments to financial assets |
(8) |
(6) |
|
Extraordinary income and charges |
171 |
60 |
|
Income before taxes |
13,972 |
7,852 |
|
|
|
|
|
Income taxes for the period |
(7,331) |
(4,499) |
|
Net income for the period |
6,641 |
3,353 |
|
|
|
|
|
Net income pertaining to Minority Interests |
(1,690) |
(556) |
|
Net income pertaining to the Group |
4,951 |
2,797 | |
