Consolidated Group profit of €1.8 million (+20.6%) in the third quarter.
Growth also seen in consolidated turnover (+7.3%) EBITDA (+7.6%), and EBIT (+6.5%).
The Board of Directors of Targetti Sankey S.p.A. met today in Florence to approve the group's consolidated results as at 30 September 2005.
Primary consolidated figures for the third quarter (July - September)
In the third quarter of 2005, Targetti reported consolidated turnover of €37.7 million, up 7.3% compared to the 2004 figure of €35.1 million.
In the same period, EBITDA amounted to €5.2 million (+7.6% compared to the 2004 figure of €4.8 million), whereas EBIT stood at €4.0 million (6.5% compared to the 2004 figure of €3.8 million).
The group share of net profit amounted to €1.8 million, up 20.6% from the figure of €1.5 million in the third quarter of 2004.
Primary consolidated figures for the first nine months (January - September)
In the first nine months of 2005, group turnover amounted to €113.7 million, up 7.0% compared to the figure of €106.2 million for the corresponding period of 2004.
Growth was particularly concentrated in the sector of architectural lighting, the group's core business, which showed an increase of 15.2% in the period. The sector of public outdoor lighting showed a drop of 11.3%, and lighting sources remained stable, whereas the telecommunications sector, which accounted for 3.6% of overall turnover, showed a 47.6% increase.
In geographical terms, EU countries (excluding Italy) showed a 22.1% increase in turnover, and sales grew 6.0% in the U.S., whereas sales in Italy and the rest of the world remained essentially unchanged from 2004.
In the first nine months of the year, EBITDA amounted to €13.8 million, compared to €14.2 million in the same period of 2004, whereas EBIT stood at €10.6 million, compared to €11.2 million in 2004.
The group's share of the net profit amounted to €4.3 million, up 1.2% compared to €4.2 million in 2004 [1].
Equity figures as at 30 September 2005
Net debt amounted to €35.2 million as at 30 September 2005, an improvement compared to the figure of €36.8 million as at 30 June 2005, due to the cash inflow generated by ordinary operations.
Net equity totalled €59.6 million, an increase compared to €57.5 million as at 30 June 2005.
Comments of the Managing Director
"The third quarter has been very positive for us," stated Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A., "and has contributed to an improvement in the group's overall performance since the beginning of the year, in terms of both profitability and volume."
"We are particularly pleased," continued Targetti, "to see that architectural lighting, our core business, is showing significant growth, despite a market context that is still difficult. Moreover, the sector of telecommunications, though a marginal part of overall operations, has been awarded significant orders and continues to show promising growth potential, through our subsidiary Duratel."
"We believe these factors support our stance of cautious optimism," concluded Targetti, "and our projections for the end of the year remain unchanged."
Own shares
On 3 October 2005, the parent company in the group, Targetti Sankey S.p.A., reported to CONSOB that it held 364,189 of its own shares, amounting to 2% of share capital.
Attached to this release are the primary consolidated economic and financial data for the third Quarter of 2005, as approved today by the Board of Directors.
The Targetti Group is one of the European leaders in the sector of interior and exterior lighting. A network of nine highly specialised companies, it draws its strength from its long history and from its natural talent for research. Thanks to its perfect blend of technology and design, Targetti equipment lights universal masterpieces of art such as Michelangelo's David, Leonardo's Last Supper, and the Notre Dame Cathedral, and is used in a wide range of environments: the Singapore Opera House, Madrid, Canton, and Paris airports, the Bulgari, Benetton, Celine, Diesel showrooms, the Formula 1 McLaren boxes, corporations such as Peugeot, Citröen, and Alfa Romeo, the world's most prestigious hotel chains, and over 4000 large and small urban environments, all places where light...means Targetti.
Contact:
Marco Cisbani
Targetti Sankey S.p.A
Tel.: +39 055/3791.203
Massimiliano Parboni
Barabino&Partners
Tel.: +39 06/679.29.
[1] The “Net result of continuing operations”, calculated net of discontinued operations, was €4.4 million (compared to €4.5 million in the first nine months of 2004). Discontinued operations include the activities of Duralamp International S. A., in that Targetti – through its subsidiary Duralamp S.p.A., which owns 51% of the company - has resolved to reduce its shareholding in the future, and will therefore no longer hold a controlling interest.
CONSOLIDATED INCOME STATEMENT
|
Year |
In €/000 |
3rd Quarter |
01.01 – 30.09 |
|
2004 |
|
2005 |
2004 |
2005 |
2004 |
|
|
|
|
|
|
|
|
146,285 |
Net turnover |
37,689 |
35,122 |
113,716 |
106,239 |
|
|
|
|
|
|
|
|
4,035 |
Other revenue |
71 |
178 |
534 |
3,024 |
|
(100,992) |
Consumption and other operating costs |
(25,368) |
(23,470) |
(77,509) |
(73,541) |
|
49,328 |
Added value |
12,392 |
11,830 |
36,741 |
35,722 |
|
|
|
|
|
|
|
|
(29,171) |
Personnel costs |
(7,222) |
(7,024) |
(22,938) |
(21,527) |
|
20,157 |
Gross operating margin |
5,170 |
4,806 |
13,803 |
14,195 |
|
|
|
|
|
|
|
|
(4,316) |
Amortisation, depreciation, and provisions |
(1,126) |
(1,010) |
(3,188) |
(3,041) |
|
15,841 |
Operating result |
4,044 |
3,796 |
10,615 |
11,154 |
|
|
|
|
|
|
|
|
(2,296) |
Net financial income (expenses) |
(671) |
(543) |
(1,138) |
(1,465) |
|
13,545 |
Pre-tax result |
3,373 |
3,253 |
9,477 |
9,689 |
|
|
|
|
|
|
|
|
(7,240) |
Taxes on income for the period |
(1,700) |
(1,791) |
(5,052) |
(5,145) |
|
6,305 |
Net result of continuing operations |
1,673 |
1,462 |
4,425 |
4,544 |
|
|
|
|
|
|
|
|
1,247 |
Net result of discontinued operations |
293 |
301 |
633 |
1,102 |
|
|
|
|
|
|
|
|
7,552 |
Net result for the period |
1,966 |
1,763 |
5,058 |
5,646 |
|
|
|
|
|
|
|
|
(1,535) |
Minority interest for the period |
(182) |
(284) |
(778) |
(1,418) |
|
6,017 |
Group result for the period |
1,784 |
1,479 |
4,280 |
4,228 |
|
|
|
|
|
|
|
|
0.34 |
Group per share result for the period |
0.10 |
0.08 |
0.24 |
0.24 |
CONSOLIDATED BALANCE SHEET
|
€/000 |
As at 30.09.05 |
As at 30.06.05 |
As at 31.12.04 |
|
|
|
|
|
|
Tangible assets |
27,935 |
27,074 |
23,726 |
|
Intangible assets |
10,214 |
10,215 |
8,500 |
|
Non current financial assets |
485 |
505 |
623 |
|
Other non current assets |
3,667 |
3,291 |
2,454 |
|
Fixed assets A |
42,301 |
41,085 |
35,303 |
|
|
|
|
|
|
Inventories |
41,981 |
42,710 |
34,894 |
|
Trade receivables |
54,278 |
58,196 |
53,845 |
|
Financial assets and other current assets |
6,411 |
7,775 |
5,196 |
|
Short-term operating assets B |
102,670 |
108,681 |
93,935 |
|
Trade payables |
(28,572) |
(33,393) |
(28,577) |
|
Financial liabilities and other current liabilities |
(16,691) |
(17,161) |
(14,991) |
|
Short term operating liabilities C |
(45,263) |
(50,554) |
(43,568) |
|
Net working capital D=B+C |
57,407 |
58,127 |
50,367 |
|
|
|
|
|
|
Severance indemnity provision E |
(4,576) |
(4,455) |
(4,040) |
|
Financial liabilities and other non current liabilities F |
(3,349) |
(3,182) |
(2,967) |
|
Total G=E+F |
(7,925) |
(7,637) |
(7,007) |
|
|
|
|
|
|
Net assets held for sale H |
3,006 |
2,790 |
- |
|
|
|
|
|
|
Net invested capital A+D+G+H |
94,789 |
94,365 |
78,663 |
Financed by:
|
Group net equity I |
54,302 |
52,401 |
52,586 |
|
Minority net equity L |
5,260 |
5,143 |
4,581 |
|
Total net equity M=I+L |
59,562 |
57,544 |
57,167 |
|
|
|
|
|
|
Medium and long-term borrowing N |
28,654 |
16,149 |
11,211 |
|
Short-term borrowing |
12,845 |
25,574 |
17,925 |
|
Cash and cash equivalents |
(6,272) |
(4,902) |
(7,640) |
|
Net short-term borrowing O |
6,573 |
20,672 |
10,285 |
|
Total net borrowing P=N+O |
35,227 |
36,821 |
21,496 |
|
|
|
|
|
|
Own funds and borrowed funds M+P |
94,789 |
94,365 |
78,663 | |
