- Consolidated turnover of € 41.3 million (+19.3%).
- EBITDA of € 5.3 million (+37.4%); EBIT of € 4.0 million (+38.6%).
- Group net profits of € 1.4 million (+29.6%).
The Board of Directors of Targetti Sankey S.p.A. met today in Florence to approve the consolidated results related to the first quarter of 2006.
The main consolidated results of first quarter of 2006
In first quarter 2006 the Group had a consolidated turnover of € 41.3 million, an increase of 19.3% over first quarter 2005 (€ 34.6 million), due to organic growth of 14.8% and growth through acquisitions (A2 s.r.l.) of 4.5%.
The period also witnessed continuing positive performance in the architectural lighting sector, the Group’s core business, which posted an increase of 21.0%, while growth in the light source sector was confirmed (7.7%). The public exterior lighting sector has in substance come out of the negative phase that limited decrease to 3.5% over the period, while the telecommunications sector posted excellent results (+165.4%) due to the acquisition of new clients on the national and foreign markets.
Breakdown of revenue by geographic area shows growth in all areas and an increase of market share on the main reference markets: specifically, increase in revenue was 29.3% in Italy, 11.7% in other EU countries, 8.9% in the USA and 8.3% in other countries.
Margin trends were also very positive, a fact which confirms the effectiveness of the company’s business plan: the consolidated gross operating margin (EBITDA) stood at € 5.3 million, up 37.4% compared to € 3.8 million in 2005, while the consolidated operating result (EBIT) stood at € 4.0 million, up 38.6% compared to € 2.9 million in 2005.
The Group’s consolidated net profits were € 1.4 million, an increase of 29.6% over the € 1.0 million of 2005.
Financial position as at 31.03.06
The net financial position as at 31 March 2006 stood at € 36.6 million, compared to € 34.4 million at 31 December 2005, while net equity stood at € 62.3 million, an upturn compared to € 60.9 million of the end of 2005 [1].
Comments of the Managing Director
“First quarter performance was very satisfying, especially with regard to architectural lighting, which is the most important sector for us,” said Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A., “and confirms in full the validity of our development model.”
“We believe that we have laid the foundations for a positive 2006 with growth compared to last year,” Targetti continued. “This positive evaluation is also strengthened by the significant interest shown for the Group’s new product lines at Light+Building 2006 in Frankfurt, the recent international trade fair that is a point of reference for companies in this sector.”
Company management will present first quarter results to the financial community via conference telephone call on Tuesday 17 May at 15:30 (access number: 02/8020911).
Attached to this press release are the main consolidated figures included in the quarterly report and 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 Massimiliano Parboni
Targetti Sankey S,p,A Barabino&Partners
Ph.: +39 (0) 553791,203 Ph.: +39 (0) 6679,29,29
[1] “Net results of continuing operations”, calculated net of discontinued operations, was equal to € 1.5 million (compared to € 1.1 million in 2005). Discontinued operations include Duralamp International S. A. activities since Targetti – through its subsidiary Dura Lamp S.p.A., for which it holds 51% - resolved to reduce participation in future, with the resulting loss of control.
CONSOLIDATED INCOME STATEMENT
|
ۓ/000 |
1st Quarter |
Year |
|
|
2006 |
2005 |
2005 |
|
Net turnover |
41,278 |
34,608 |
157,382 |
|
|
|
|
|
|
Other revenues |
216 |
364 |
1,979 |
|
Consumption and other operating costs |
(27,501) |
(23,553) |
(108,289) |
|
Added value |
13,993 |
11,419 |
51,072 |
|
|
|
|
|
|
Personnel costs |
(8,719) |
(7,580) |
(31,842) |
|
Gross operating margin |
5,274 |
3,839 |
19,230 |
|
|
|
|
|
|
Amortisation, depreciation and provisions |
(1,306) |
(977) |
(4,884) |
|
Operating result |
3,968 |
2,862 |
14,346 |
|
|
|
|
|
|
Net financial income (expenses) |
(623) |
(322) |
(1,974) |
|
Pre-tax result |
3,345 |
2,540 |
12,372 |
|
|
|
|
|
|
Tax on income for the period |
(1,887) |
(1,391) |
(6,303) |
|
Net results of continuing operations |
1,458 |
1,149 |
6,069 |
|
|
|
|
|
|
Net result of discontinued operations |
171 |
91 |
758 |
|
|
|
|
|
|
Net result for the period |
1,629 |
1,240 |
6,827 |
|
|
|
|
|
|
Minority interest for the period |
(276) |
(196) |
(750) |
|
Group result for the period |
1,353 |
1,044 |
6,077 |
|
|
|
|
|
|
Group per share result for the period |
0,075 |
0,058 |
0,34 |
CONSOLIDATED BALANCE SHEET
|
€/000 |
As at 31,03,06 |
As at 31,03,05 |
As at 31,12,05 |
|
|
|
|
|
|
Tangible assets |
28,206 |
24,245 |
28,196 |
|
Intangible assets |
11,481 |
8,532 |
10,982 |
|
Non current financial assets |
134 |
550 |
124 |
|
Other non current assets |
3,545 |
3,262 |
3,591 |
|
Fixed assets A |
43,366 |
36,589 |
42,893 |
|
|
|
|
|
|
Inventories |
41,074 |
37,939 |
|
|
Trade receivables |
59,885 |
52,280 |
|
|
Financial assets and other current assets |
5,871 |
5,733 |
|
|
Short term operating assets B |
106,830 |
95,952 |
|
|
Trade payables |
(30,048) |
(28,278) |
|
|
Financial liabilities and other current liabilities |
(16,248) |
(15,333) |
|
|
Short term operating liabilities C |
(46,296) |
(43,611) |
|
|
Net working capital D=B+C |
60,534 |
52,341 |
|
|
|
|
|
|
|
Severance indemnity provision E |
(4,674) |
(4,140) |
|
|
Financial Liabilities and other non current liabilities F |
(3,721) |
(3,068) |
|
|
Total G=E+F |
(8,395) |
(7,208) |
|
|
|
|
|
|
|
Net asset held for sale H |
3,332 |
2,543 |
|
|
|
|
|
|
|
Net invested capital A+D+G+H |
98,837 |
84,265 |
|
Financed by:
|
Group net equity I |
57,181 |
53,636 |
55,927 |
|
Minority net equity L |
5,075 |
4,548 |
|
|
Total net equity M=I+L |
62,256 |
58,184 |
|
|
|
|
|
|
|
Medium and long-term borrowing N |
15,978 |
6,173 |
18,208 |
|
Short term borrowing |
25,113 |
25,365 |
|
|
Cash and equivalents |
(4,510) |
(5,457) |
|
|
Net short-term borrowing O |
20,603 |
19,908 |
|
|
Total net borrowing P=N+O |
36,581 |
26,081 |
|
|
|
|
|
|
|
Own funds and borrowed funds M+P |
98,837 |
84,265 |
| |
