- 2006 consolidated turnover of 176.2 million euros (+12.0%).
- EBITDA of 20.2 million euros.
- Group net profit of 5.0 million euros.
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 31 December 2006.
The main consolidated results of 2006
In 2006 Targetti’s consolidated turnover was 176.2 million euros, a 12.0% increase over 2005 (157.4 million euros), due to 10.2% organic growth and growth through acquisitions for 1.8%.
Growth was led by the architectural lighting sector, the Group's core business, which registered a 9.4% increase, and the public outdoor lighting sector, which reported a 8.0% increase for the year and 27.5% in the fourth quarter only. The light source sector’s turnover decreased by 11.6%, while the telecommunications sector confirmed a strong increase in revenues (150.3%).
Moreover, the growth is spread over all the main reference markets, especially Italy (+18.0%), the other EU countries (+10.5%), the U.S. (+3.5%), while a slight 0.4% decrease was seen in the other countries.
The consolidated gross operating margin (EBITDA) stood at 20.2 million euros, up 5.0% compared to 19.2 million euros in 2005, while the consolidated operating result (EBIT) reached 14.0 million euros compared to 14.3 million euros in 2005.
EBIT was affected by an around 1.3 million euro increase in depreciation, amortization and provisions, due mainly to an increase in investment, especially for the implementation of the Group's new management system.
The consolidated Group result for the period totalled 5.0 million euros, compared to 6.1 million euros in 2005, and was impacted by the 0.7 million euro increase in net financial charges compared to 2005, 0.4 million euros of which are due to greater financial charges due to the increase of net financial position.
Cash flow[1] generated for the period totalled 11.4 million euros, up 4.1% compared to the same period of 2005.
Financial position as at 31 December 2006
The net financial position as at 31 December 2006 stood at 40.4 million euros, showing an improvement compared to 43.8 million as at 30 September 2006.
Net equity as at 31 December 2006 stood at 63.9 million euros compared to 62.9 million euros as at 30 September 2006.
The main consolidated results of the fourth quarter (October-December)
In the fourth quarter consolidated turnover stood at 44.4 million euros, up 3.2% over the 43.0 million euros of the fourth quarter of 2005.
In the same period, EBITDA stood at 5.3 million euros, basically in line with 2005, while EBIT, influenced by the new investments (increase in amortization and depreciation), stood at 3.5 million euros, compared to 3.8 million euros in 2005.
The Group’s consolidated net profit totalled 1.3 million euros, compared to 1.4 million euros in 2005.
Cash flow for the quarter totalled 3.1 million euros, i.e. a 9.4% growth compared to the fourth quarter of 2005.
Comments of the CEO
“We are satisfied with the progress made during the last quarter and in 2006 in general,” stated Lorenzo Targetti, CEO of Targetti Sankey S.p.A. “The confirmed growth of our original core business of architectural lighting, and the strong comeback taking place in public outdoor lighting are both very positive elements. The Group is being rewarded for the strategic decisions it has made in recent years, and these elements allow us to evaluate the prospects for 2007 with an optimistic outlook.”
“Even in the fourth quarter, margins were affected some by the new investments,” added Targetti, “which prove to be essential projects in the area of continuous development, and will start to generate positive results now, in 2007.”
Attached to this press release are the main consolidated figures included in the quarterly report as at 31 December 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
Ph.: +39 055/3791.203 Ph.: +39 06/679.29
CONSOLIDATED INCOME STATEMENT
|
€/000 |
4th Quarter |
Year |
|
|
2006 |
2005 |
2006 |
2005[2] |
|
|
|
|
|
|
|
Net turnover |
44,371 |
42,997 |
176,221 |
157,382 |
|
|
|
|
|
|
|
Other revenues |
541 |
1,295 |
1,599 |
1,979 |
|
Consumption and other operating costs |
(30,702) |
(30,354) |
(122,025) |
(108,289) |
|
Added value |
14,210 |
13,938 |
55,795 |
51,072 |
|
|
|
|
|
|
|
Personnel costs |
(8,874) |
(8,630) |
(35,605) |
(31,842) |
|
Gross operating margin |
5,336 |
5,308 |
20,190 |
19,230 |
|
|
|
|
|
|
|
Amortisation, depreciation and provisions |
(1,812) |
(1,553) |
(6,180) |
(4,884) |
|
Operating result |
3,524 |
3,755 |
14,010 |
14,346 |
|
|
|
|
|
|
|
Net financial income (expenses) |
(791) |
(604) |
(2,687) |
(1,974) |
|
Pre-tax result |
2,733 |
3,151 |
11,323 |
12,372 |
|
|
|
|
|
|
|
Tax on income for the period |
(1,400) |
(1,830) |
(6,104) |
(6,303) |
|
Net results of continuing operations |
1,333 |
1,321 |
5,219 |
6,069 |
|
|
|
|
|
|
Net result of discontinued operations[3] |
- |
104 |
545 |
758 |
|
|
|
|
|
|
|
Net result for the period |
1,333 |
1,425 |
5,764 |
6,827 |
|
|
|
|
|
|
|
Minority interest for the period |
(73) |
(48) |
(763) |
(750) |
|
Group result for the period |
1,260 |
1,377 |
5,001 |
6,077 |
|
|
|
|
|
|
|
Group per share result for the period |
0.07 |
0.08 |
0.27 |
0.34 |
CONSOLIDATED BALANCE SHEET
|
€/000 |
As at 31.12.06 |
As at 30.09.06 |
As at 31.12.05 |
|
|
|
|
|
|
Tangible assets |
38,171 |
34,824 |
28,196 |
|
Intangible assets |
13,421 |
11,853 |
10,982 |
|
Non current financial assets |
1,216 |
1,044 |
124 |
|
Other non current assets |
2,634 |
3,058 |
3,591 |
|
Fixed assets A |
55,442 |
50,779 |
42,893 |
|
|
|
|
|
|
Inventories |
44,209 |
44,553 |
41,091 |
|
Trade receivables |
61,162 |
63,964 |
56,151 |
|
Financial assets and other current assets |
10,540 |
8,007 |
4,785 |
|
Short term operating assets B |
115,911 |
116,524 |
102,027 |
|
Trade payables |
(39,502) |
(33,763) |
(30,777) |
|
Financial liabilities and other current liabilities |
(19,092) |
(18,416) |
(14,049) |
|
Short term operating liabilities C |
(58,594) |
(52,179) |
(44,826) |
|
Net working capital D=B+C |
57,317 |
64,345 |
57,201 |
|
|
|
|
|
|
Severance indemnity provision E |
(5,001) |
(4,813) |
(4,514) |
|
Financial Liabilities and other non current liabilities F |
(3,467) |
(3,632) |
(3,549) |
|
Total G=E+F |
(8,468) |
(8,445) |
(8,063) |
|
|
|
|
|
|
Net asset held for sale H |
- |
- |
3,237 |
|
|
|
|
|
|
Net invested capital A+D+G+H |
104,291 |
106,679 |
95,268 |
Financed by:
|
Group net equity I |
60,495 |
59,783 |
55,927 |
|
Minority net equity L |
3,434 |
3,124 |
5,013 |
|
Total net equity M=I+L |
63,929 |
62,907 |
60,940 |
|
|
|
|
|
|
Medium and long-term borrowing N |
10,507 |
11,282 |
18,208 |
|
Short term borrowing |
37,380 |
38,303 |
24,042 |
|
Current financial assets |
(14) |
(34) |
(18) |
|
Financial assets held for trading |
93 |
44 |
(21) |
|
Cash and equivalents |
(7,604) |
(5,823) |
(7,883) |
|
Net short-term borrowing O |
29,855 |
32,490 |
16,120 |
|
Total net borrowing P=N+O |
40,362 |
43,772 |
34,328 |
|
Own funds and borrowed funds M+P |
104,291 |
106,679 |
95,268 |
[1] Cash flow is the sum of the net profit from continuing operations, depreciation and amortization, and provisions.
[2] Consolidatd audited financial statement data for year 2005.
[3] 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. |
