- Consolidated turnover of 176.9 million euros (+12.4%).

 

- EBITDA of 19.9 million euros.

- Group net profit of 4.9 million euros.

                         

The Shareholders’ Meeting of Targetti Sankey S.p.A., chaired by Paolo Targetti, today approved the financial statements at 31 December 2006.

 

 

In 2006 Targetti’s consolidated turnover was 176.9 million euros, a 12.4% increase over 2005 (157.4 million euros), due to overall growth of 10.6% and a 1.8% increase through acquisitions.

 

Growth was led by the architectural lighting sector, the Group's core business, which registered a 9.9% increase, and the public outdoor lighting sector, which reported a 7.9% increase for the year. The light source sector’s turnover dropped by 11.6%, while the telecommunications sector confirmed a strong increase in revenues (153.8%).

 

Moreover, the growth is spread over all the main target markets, especially Italy (+18.3%), the other EU countries (+10.5%) and the U.S. (+7.1%), while a 0.3% increase was seen in other countries.

 

The consolidated gross operating margin (EBITDA) stood at 19.9 million euros, up 3.4% compared to 19.2 million euros in 2005, while the consolidated operating result (EBIT) totalled 14.0 million euros compared to 14.4 million euros in 2005.

 

EBIT was affected by an approximately 1.0 million euro increase in depreciation, amortisation and allowances, mainly due to an increase in investment, especially for the implementation of the Group's new management system.

 

The Group’s share of consolidated net profit totalled 4.9 million euros, compared to 6.1 million euros in 2005, and was impacted by the 0.8 million euro increase in financial charges compared to 2005, mainly due to greater investments for the period.

 

The net financial position at 31 December 2006 stood at 40.2 million euros, compared to 34.3 million euros at the end of 2005. The increase (5.8 million euros) was due to larger investments made during the year such as the purchase of the plot of land where the Group’s new registered office will be located.

 

Equity at 31 December 2006 stood at 63.8 million euros compared to 61.0 million euros at 31 December 2005.

 

 

The Shareholders’ Meeting approved the distribution of a gross dividend of 0.14 euros per share, the equivalent of a 53.9% payout.

 

The dividend will become payable as from 10 May 2007; its registration on coupon no. 9 is set for 7 May 2007.

 

 

“2006 was a growth year but also a year of investments for the future – stated Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A. – The performance during the early part of 2007 is confirming the strengthening of our competitive position, as can also be seen from the start-up of the key project involving lighting for the Safeway chain in the United States".

 

“With the future in mind – continued Targetti – we can confirm our optimism for the coming months, also in view of the trend in the orders backlog and the positive results achieved during our recent participation in the International Furniture Show in Milan (Euroluce)”.

 

 

The Meeting appointed Prof. Paolo Blasi, who was already co-opted into the Board of Directors as from September 2006, as an independent member of said Board. [1]

 

Paolo Blasi, 67, is a full professor of Physics at the University of Florence. He also held the positions of Chancellor of the University of Florence from 1991 to 2000, Chairman of the Conference of Italian University Chancellors, and Director of the laboratories of the National Institute of Nuclear Physics. In addition, he has been a member of Banca d'Italia's highest Board of Directors since 1999.

 

 

The Shareholders' Meeting also appointed the new Board of Statutory Auditors, confirming Prof. Mario Alberto Galeotti Flori’s appointment as Chairman[2], and as Statutory Auditors  Mr. Nazario Montevecchi and Prof. Umberto Tombari the latter, 40 years old, is a full professor of Commercial Law at Florence University's Faculty of Law.

 

 

KPMG S.p.A. was appointed to perform auditing of the Targetti Sankey S.p.A. and on the consolidated reports for the period 2007-2015.

 

 

The Shareholders’ Meeting also renewed authorisation to purchase and sell own shares (buy-back) for a maximum number of ordinary shares for which the number of own shares held does not exceed 10% of the shares forming the whole share capital, which currently corresponds to 1,888,000 ordinary shares with a unitary face value of 0.52 euros.

The buy-back plan – that will be in force until the date in which the Meeting will approve the Company’s financial statements at 31 December 2007 and, however, for no more than 18 months – is aimed at facilitating the stabilisation of stock and supporting liquidity.

 

In order to implement and pursue the aims of the resolution passed by the Shareholders’ Meeting in 2006 regarding share buy-back, the company purchased on the market, on several occasions, 186,359 own shares, equal to 1.0% of the share capital, while it sold 443,914 own shares, equal to 2.4% of the share capital. At today’s date, the company's portfolio includes 170,190 own shares, equal to 0.9% of the share capital.

 

 

Lastly, a resolution was passed during an Extraordinary Shareholders’ Meeting for two paid share capital increases, excluding first refusal, in relation to two separate stock option plans for 2007-2011, respectively reserved for executive directors of the parent company and subsidiaries and employees of the parent company and subsidiaries.

 

The purpose of the share capital increases will also be the issue, in several instalments, of a maximum number of 1,500,000 ordinary shares with a face value of 0.52 euros each, equal to approximately 7.9% of Targetti Sankey S.p.A.’s current share capital formed of 18,880,000 shares.

 

The deadline for beneficiaries to subscribe the shares is set for 31 December 2011 and the shares will be issued at a price per share of:

 

-  the greater between the arithmetical average of official share prices recorded in the month prior to distribution of the shares and a minimum price of 5.79 euros as regards the stock option plan for executive directors;

 

-  the greater between the arithmetical average of official share prices recorded in the month prior to distribution of the shares and a minimum price of 4.00 euros as regards the stock option plan for employees.

                                                                                                       

 

 

Contact:    Marco Cisbani                          Massimiliano Parboni

                   Targetti Sankey S.p.A              Barabino&Partners

                   Ph.: +39 055/3791.203           Ph.: +39 06/679.29

 

€/000	2006	2005
Net turnover	176,888	157,382
Other revenues	1,550	2,024
Consumption and other operating costs	(122,506)	(108,326)
Added value[3]	55,932	51,080
Personnel costs	(36,031)	(31,842)
Gross operating margin[4]	19,901	19,238
Amortisation, depreciation and provisions	(5,932)	(4,884)
Operating result	13,969	14,354
Net financial income (expenses)	(2,745)	(1,974)
Pre-tax result	11,224	12,380
Tax on income for the period	(6,152)	(6,294)
Net results of continuing operations	5,072	6,086
Net result of discontinued operations[5]	545	758
Net result for the period	5,617	6,844
Minority interest for the period	(753)	(750)
Group result for the period	4,864	6,094
Group per share result for the period	0.27	0.34

 

€/000	As at 31.12.06	As at 31.12.05
Tangible assets	38,140	28,196
Intangible assets	13,405	10,982
Non current financial assets	1,182	124
Other non current assets	3,361	3,591
Fixed assets A	56,088	42,893
Inventories	45,310	41,091
Trade receivables	59,151	56,151
Financial assets and other current assets	9,648	4,830
Short term operating assets B	114,109	102,072
Trade payables	(39,081)	(30,780)
Financial liabilities and other current liabilities	(18,351)	(14,083)
Short term operating liabilities C	(57,432)	(44,863)
Net working capital D=B+C	56,677	57,209
Severance indemnity provision E	(5,191)	(4,514)
Financial Liabilities and other non current liabilities F	(3,640)	(3,557)
Total G=E+F	(8,831)	(8,071)
Net asset held for sale H	-	3,237
Net invested capital A+D+G+H	103,934	95,268

 

Group net equity I	60,469	55,926
Minority net equity L	3,300	5,013
Total net equity M=I+L	63,769	60,939
Medium and long-term borrowing N	10,507	18,208
Short term borrowing	36,754	24,042
Current financial assets	(10)	(18)
Financial assets held for trading	87	(21)
Cash and equivalents	(7,173)	(7,882)
Net short-term borrowing O	29,658	16,121
Total net borrowing P=N+O	40,165	34,329
Own funds and borrowed funds M+P	103,934	95,268

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