- Consolidated turnover of 131.9 million euros (+15.9%) in the first nine months of the year.
- EBITDA of 14.9 million euros and Group’s net profit of 3.7 million euros.
- Signed the agreement to acquire 80% of Targetti Philippines Inc.
The Board of Directors of Targetti Sankey S.p.A. met today in Florence to approve the consolidated results related to the quarter closed on 30 September 2006.
The main consolidated results of the first nine months (Jan-Sep)
For the first nine months of the year, Targetti’s consolidated turnover was 131.9 million euros, a 15.9% increase over the same period of 2005 (113.7 million euros), due to 13.3% organic growth and growth through acquisitions (A2 s.r.l.) for 2.6%.
Growth was led by the architectural lighting sector, the Group's core business, which registered a 15.1% increase in revenue. The turnaround of the public outdoor illumination sector was confirmed (+ 2.1%), while the light sources sector showed a decrease of 2.6%. The telecommunications sector confirmed a significant increase in revenues (+ 169.6%) due to the acquisition of new customers in the Italian and international markets.
Breakdown of revenues by geographic area stressed growth in all the main reference markets, especially Italy (+20.7%), the other EU countries (+20.0%), and the U.S. (+7.1%), while a decrease of 4.5% was seen in the other countries.
The consolidated gross operating margin (EBITDA) stood at 14.9 million euros, up 7.6% compared to 13.8 million euros in 2005, while the consolidated operating result (EBIT) reached 10.5 million euros compared to 10.6 million euros in 2005.
EBIT was affected by an around 1.2 million euros increase in depreciation and amortisation, due mainly to an increase in investment, especially for the implementation of the Group's new management and operating system.
The Group’s share of consolidated net profit totalled 3.7 million euros, compared to 4.4 million euros in 2005, and was impacted by the 0.8 million euros increase in financial charges compared to 2005, 0.6 million euros of which are due to the unfavourable change in the balance of currency management.
Cash flow[1] generated for the period totalled 8.3 million euros, up 8.4% compared to the corresponding period of 2005.
Financial position as at 30 September, 2006
Net financial position as at 30 September 2006 stood at 43.8 million euros, compared to 39.2 million euros as at 30 June 2006. The increase in indebtedness (4.5 million euros) is mainly due a plot of land purchase in July where the Group’s new registered office will be located. The investment totalled 5.9 million euros.
Net equity as at 30 September 2006 stood at 62.9 million euros compared to 59.1 million euros as at 30 June 2006.
The main consolidated results of the third quarter (Jul-Sep)
In the third quarter consolidated turnover stood at 42.6 million euros, up 13.1% over the 37.7 million euros of the third quarter of 2005.
In the same period EBITDA stood at 4.8 million euros, compared to 5.2 million euros in 2005, while EBIT, influenced by the new investments, totalled 2.9 million euros compared to 4.0 million euros in 2005.
The Group’s consolidated net profit totalled 1.1 million euros, compared to 1.8 million euros in 2005.
Cash flow for the quarter totalled 3.1 million euros, i.e. a 10.0% growth compared to the third quarter of 2005.
Events after the close of the quarter
In October Targetti Sankey S.p.A. signed an agreement to acquire an 80% stake in the company Targetti Philippines Inc., the Targetti Group’s current distributor in the Philippines and other countries in South East Asia, which registered turnover of 2.2 million euros in 2005. The overall investment is of about 560,000 USD.
The acquisition meets the Group’s need to continue to strengthen its coverage of Asian markets and is the Group's third investment in Asia after the production facilities in Canton and Hangzhou, in China.
Targetti Philippines also produces Stoneage, the line of lamps built in natural fossil stone.
Comments of the Managing Director
“The third quarter also shows sharply increased turnover volumes,” stated Lorenzo Targetti, the Managing Director of Targetti Sankey S.p.A. "This is very satisfying progress, which received significant support from the public illumination sector's double-digit growth, confirming that the turnaround has become a stable trend."
“Margins were impacted by new investments,” continued Targetti, “especially due to the implementation of the new management system, but also the new Neri facility and the land for the Group’s new offices, which are indispensable to the Group's ongoing development. Anyway we remain positive for the end of the year and are confident that double-digit revenue growth estimates will be realised.”
Attached to this press release are the main consolidated figures included in the quarterly report as at September 30 2006, 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
Tel.: +39 055/3791.203 Tel.: +39 06/679.29
CONSOLIDATED INCOME STATEMENT
|
Year |
€/000 |
3rd Quarter |
9 Months |
|
2005 |
|
2006 |
2005 |
2006 |
2005 |
|
|
|
|
|
|
|
|
157,382 |
Net turnover |
42,614 |
37,689 |
131,850 |
113,716 |
|
|
|
|
|
|
|
|
1,979 |
Other revenues |
245 |
71 |
1,058 |
534 |
|
(108,289) |
Consumption and other operating costs |
(29,299) |
(25,368) |
(91,323) |
(77,509) |
|
51,072 |
Added value |
13,560 |
12,392 |
41,585 |
36,741 |
|
|
|
|
|
|
|
|
(31,842) |
Personnel costs |
(8,794) |
(7,222) |
(26,731) |
(22,938) |
|
19,230 |
Gross operating margin |
4,766 |
5,170 |
14,854 |
13,803 |
|
|
|
|
|
|
|
|
(4,884) |
Amortisation, depreciation and provisions |
(1,900) |
(1,126) |
(4,368) |
(3,188) |
|
14,346 |
Operating result |
2,866 |
4,044 |
10,486 |
10,615 |
|
|
|
|
|
|
|
|
(1,974) |
Net financial income (expenses) |
(341) |
(671) |
(1,896) |
(1,138) |
|
12,372 |
Pre-tax result |
2,525 |
3,373 |
8,590 |
9,477 |
|
|
|
|
|
|
|
|
(6,303) |
Tax on income for the period |
(1,346) |
(1,700) |
(4,704) |
(5,052) |
|
6,069 |
Net results of continuing operations |
1,179 |
1,673 |
3,886 |
4,425 |
|
|
|
|
|
|
|
|
758 |
Net result of discontinued operations[2] |
- |
293 |
545 |
633 |
|
|
|
|
|
|
|
|
6,827 |
Net result for the period |
1,179 |
1,966 |
4,431 |
5,058 |
|
|
|
|
|
|
|
|
(750) |
Minority interest for the period |
(67) |
(127) |
(690) |
(665) |
|
6,077 |
Group result for the period |
1,112 |
1,839 |
3,741 |
4,393 |
|
|
|
|
|
|
|
|
0.34 |
Group per share result for the period |
0.06 |
0.10 |
0.21 |
0.24 |
CONSOLIDATED BALANCE SHEET
|
€/000 |
As at 30.09.06 |
As at 30.06.06 |
As at 31.12.05 |
|
|
|
|
|
|
Tangible assets |
34,824 |
28,499 |
28,196 |
|
Intangible assets |
11,853 |
11,693 |
10,982 |
|
Non current financial assets |
1,044 |
908 |
124 |
|
Other non current assets |
3,058 |
4,197 |
3,591 |
|
Fixed assets A |
50,779 |
45,297 |
42,893 |
|
|
|
|
|
|
Inventories |
44,553 |
42,827 |
41,091 |
|
Trade receivables |
63,964 |
66,985 |
56,151 |
|
Financial assets and other current assets |
8,007 |
7,182 |
4,785 |
|
Short term operating assets B |
116,524 |
116,994 |
102,027 |
|
Trade payables |
(33,763) |
(36,909) |
(30,777) |
|
Financial liabilities and other current liabilities |
(18,416) |
(18,725) |
(14,049) |
|
Short term operating liabilities C |
(52,179) |
(55,634) |
(44,826) |
|
Net working capital D=B+C |
64,345 |
61,360 |
57,201 |
|
|
|
|
|
|
Severance indemnity provision E |
(4,813) |
(4,683) |
(4,514) |
|
Financial Liabilities and other non current liabilities F |
(3,632) |
(3,653) |
(3,549) |
|
Total G=E+F |
(8,445) |
(8,336) |
(8,063) |
|
|
|
|
|
|
Net asset held for sale H |
- |
- |
3,237 |
|
|
|
|
|
|
Net invested capital A+D+G+H |
106,679 |
98,321 |
95,268 |
Financed by:
|
Group net equity I |
59,783 |
56,168 |
55,927 |
|
Minority net equity L |
3,124 |
2,927 |
5,013 |
|
Total net equity M=I+L |
62,907 |
59,095 |
60,940 |
|
|
|
|
|
|
Medium and long-term borrowing N |
11,282 |
12,239 |
18,208 |
|
Short term borrowing |
39,803 |
33,445 |
24,042 |
|
Current financial assets |
(34) |
(37) |
(18) |
|
Financial assets held for trading |
44 |
138 |
(21) |
|
Cash and equivalents |
(5,823) |
(6,559) |
(7,883) |
|
Net short-term borrowing O |
32,490 |
26,987 |
16,120 |
|
Total net borrowing P=N+O |
43,772 |
39,226 |
34,328 |
|
|
|
|
|
|
Own funds and borrowed funds M+P |
106,679 |
98,321 |
95,268 |
[1] Cash flow is the sum of the net profit from continuing operations, depreciation and amortisation, and provisions.
[2] The “Net results of discontinued operations” includes the economic results of Duralamp International S.p.A. until June 30, 2006. On this date Dura Lamp S.p.A. (controlled by Targetti Sankey S.p.A. at 51%) ceded 2% of Duralamp International S.p.A. Consequently, Duralamp International S.p.A. has been 49% owned since June 30 2006, and from this time is valued according to the net equity method. |
