14 February 2006 9:19
Price Sensitive economic-financial results

Performance in the fourth quarter of 2005 examined by the Board of Directors

  • Value of production at Euro 14.0 million ( + 2.2%)
  • Gross Operating Margin at Euro 8.4 million ( -2.3%)
  • Operating Margin at Euro 27.7 million ( +85.9%)
  • Pre-tax results at Euro 26.8 million (+112.7%).

The Board of Directors of IGD S.p.A. – a company listed in the STAR division of the Italian Stock Exchange, operating in the retail real estate sector – met today in Bologna to examine figures for the fourth quarter of 2005, which proved to be growing and in keeping with forecasts.

The company’s real estate assets underwent significant revaluation and were above expectations during the last quarter of 2005, going from € 6.3 million in the fourth quarter of 2004 to € 19.1 million for the last quarter (Euro 33,4 M at the end of 2005).

This significant result – confirming the company’s consolidation and its continued growth – is primarily due the constant modernization and upgrading of its own structures as well as an improvement in the average cost of capital and an improvement in market conditions.

These factors, as well as the purchase of the “Malatesta” centre in Rimini, allowed IGD to reach a real estate assets of 646,6 M Euro.

Profits from sales totalled approximately € 14 million, a 2.2% increase compared to € 13.7 million for the same period in the previous year.

The gross operating margin (EBITDA) was equal to € 8.4 million, essentially in line with the € 8.6 million for 2004, notwithstanding the substantial increase in structural costs attributable to the company’s growth.

The operating margin (EBIT) registered a substantial increase, equal to 85.9%, going from € 14.9 million to € 27.6 million.

The company’s pre-tax profits totalled € 26.7 million compared to € 12.6 million for the same period in 2004.

The financial position of the IGD Group was equal to 115,7 million Euro.

During the fourth semester of 2005, the company – as already divulged during the IPO – finalised its purchase of the “Malatesta” centre in Rimini, and began its own investments in southern Italy by finalising a preliminary contract for a shopping centre in Palermo.

It is the purchase of the shopping centre in Palermo which allows IGD to be present in a highly strategic geographic area for market growth in southern Italy – and Sicily in particular.

“During the fourth quarter”, commented Filippo Carbonari, Managing Director of IGD, “our company’s great dynamism and its capacity to anticipate and obtain the objectives of the industrial plan, both from a financial and a business point of view, was confirmed”.