· Consolidated turnover at € 157.4 million for 2005.
· The Group’s consolidated net profit equal to € 6.1 million.
· € 0.14 per share dividend.
The Shareholders’ Meeting of Targetti Sankey S.p.A., chaired by Paolo Targetti, approved today the financial statements and consolidated financial statements as at 31 December 2005.
Primary figures in the 2005 financial statements
In 2005, the Group’s consolidated turnover totalled € 157.4 million, showing a 7.6% increase compared to € 146.3 million in 2004.
Said growth mainly referred to the architectural lighting sector – the Group’s core business – which registered a 18.1% increase for the period. The outdoor public lighting market showed a drop of 15.7%, and light sources dropped by 3.2%, while the telecommunications sector – which accounts for approximately 3.7% of overall turnover – grew by 47.0%.
Revenues increased in all geographic areas: Growth in EU countries, including Italy, equalled 8.4%, growth in the USA was at 4.9%, and in the rest of the world stood at 4.3%.
The consolidated gross operating margin (EBITDA) stood at € 19.2 million compared to € 20.2 million in 2004, while the operating result (EBIT) stood at € 14.3 million compared to € 15.8 million in 2004.
The Group’s consolidated net profit totalled € 6.1 million compared to € 6.2 million in 2004. A positive difference with respect to figure published in the fourth quarter 2005 (€ 5.5 million) was noted. This is largely due to the lower tax incidence estimated when drafting the preliminary report.
The net financial position was equal to € 34.4 million as at 31 December 2005, compared to the € 21.5 million as at 31 December 2004. This increase is due to the change in consolidation area (A2 S.r.l) and to strong investments, including the start of construction for new production plants.
Net equity stood at € 60.9 million, showing an increase compared to € 56.8 million as at 31 December 2004.
The dividend distribution
The Shareholders’ Meeting approved the distribution of a gross dividend of € 0.14 per share, the equivalent of 41.6% payout.
The dividend will become payable starting on 11 May; its registration on coupon no. 8 is set for 8 May 2006.
Other resolutions of the Meeting
The Meeting appointed the new Board of Directors for the next three years, confirming Giampaolo Targetti as Chairman and Alvaro Andorlini, Giancarlo Lippi, Carlo Marchi (Independent), Antonio Neri, Antonio Orlandi (Independent), Luciano Sorbi, Lorenzo Targetti, and Stella Targetti as Directors. Moreover, Isacco Neri and Andrea Piccaluga (Independent) – whose CVs are available at the Company’s office – were appointed as Directors. They replaced Domenico Neri and Riccardo Varaldo respectively.
The Meeting also renewed authorisation for the sale and purchase of own shares (buy-back) for up to 10% of the share capital, presently equal to 1,847,345 ordinary shares with a face value of € 0,52 each.
The buy-back plan – that will be in force until the date in which the Meeting will approve the Company’s financial statements as at 13 December 2006 and, however, for no more than 18 months – is aimed at facilitating the stabilisation of its stock and support its liquidity.
Comments of the Managing Director
“2005 was a positive year for the Group – commented Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A. –, a trend confirmed also in the first months of 2006 in our various business areas, thanks to the numerous projects we are working on”.
The primary consolidated economic and financial figures for 2005, approved today by the Board of Directors, are attached to this press release.
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 Massimiliano Parboni
Targetti Sankey S,p,A Barabino&Partners
Ph.: +39 (0) 553791,203 Ph.: +39 (0) 6679,29,29
CONSOLIDATED INCOME STATEMENT
|
€/000 |
2005 |
2004 |
|
Net turnover |
157,382 |
146,285 |
|
|
|
|
|
Other revenues |
1,979 |
4,035 |
|
Consumption and other operating costs |
(108,289) |
(100,992) |
|
Added value |
51,072 |
49,328 |
|
|
|
|
|
Personnel costs |
(31,842) |
(29,171) |
|
Gross operating margin |
19,230 |
20,157 |
|
|
|
|
|
Amortisation, depreciation and provisions |
(4,884) |
(4,316) |
|
Operating result |
14,346 |
15,841 |
|
|
|
|
|
Net financial income (expenses) |
(1,974) |
(2,296) |
|
Pre-tax result |
12,372 |
13,545 |
|
|
|
|
|
Tax on income for the period |
(6,303) |
(7,240) |
|
Net results of continuing operations |
6,069 |
6,305 |
|
|
|
|
|
Net result of discontinued operations |
758 |
1,247 |
|
|
|
|
|
Net result for the period |
6,827 |
7,552 |
|
|
|
|
|
Minority interest for the period |
(750) |
(1,379) |
|
Group result for the period |
6,077 |
6,173 |
|
|
|
|
|
Group per share result for the period |
0.34 |
0.35 |
CONSOLIDATED BALANCE SHEET
|
€/000 |
As at 31.12.05 |
As at 31.12.04 |
|
|
|
|
|
Tangible assets |
28,196 |
23,726 |
|
Intangible assets |
10,982 |
8,491 |
|
Non current financial assets |
124 |
623 |
|
Other non current assets |
3,591 |
2,454 |
|
Fixed assets A |
42,893 |
35,294 |
|
|
|
|
|
Inventories |
41,091 |
34,894 |
|
Trade receivables |
56,151 |
53,845 |
|
Financial assets and other current assets |
4,831 |
5,196 |
|
Short term operating assets B |
102,073 |
93,935 |
|
Trade payables |
(30,777) |
(28,577) |
|
Financial liabilities and other current liabilities |
(14,056) |
(15,344) |
|
Short term operating liabilities C |
(44,833) |
(43,921) |
|
Net working capital D=B+C |
57,240 |
50,014 |
|
|
|
|
|
Severance indemnity provision E |
(4,514) |
(4,040) |
|
Financial Liabilities and other non current liabilities F |
(3,549) |
(2,967) |
|
Total G=E+F |
(8,063) |
(7,007) |
|
|
|
|
|
Net asset held for sale H |
3,237 |
- |
|
|
|
|
|
Net invested capital A+D+G+H |
95,307 |
78,301 |
Financed by:
|
Group net equity I |
55,927 |
52,586 |
|
Minority net equity L |
5,013 |
4,218 |
|
Total net equity M=I+L |
60,940 |
56,804 |
|
|
|
|
|
Medium and long-term borrowing N |
18,208 |
7,088 |
|
Short term borrowing |
24,042 |
22,049 |
|
Cash and equivalents |
(7,883) |
(7,640) |
|
Net short-term borrowing O |
16,159 |
14,409 |
|
Total net borrowing P=N+O |
34,367 |
21,497 |
|
|
|
|
|
Own funds and borrowed funds M+P |
95,307 |
78,301 | |
