21 March 2008 16:35
Price Sensitive economic-financial results

The Board of Directors approves the results at 31 december 2007

  • Production value: €77.06 million, not comparable with the €106.00 million in 2006
  • EBITDA: €47.92 million (+11.2% vs. 2006)
  • EBIT: €78.28 million (-21.4% vs. 2006, due to lower contribution from fair value valuation of the real estate portfolio)
  • Net profit: €52.32 million (-7.70% vs. 2006)
  • Dividend of €0.056 per share proposed (+60% vs. 2006)
  • Market value at December 31st, 2007 brought up to € 1007.80 mn including the independent valuation of the plot of land in San Benedetto del Tronto of €3,8 million.

The Board of Directors of IGD S.p.A., Blue Chip active in the retail real estate sector and listed on the MIDEX segment of the Italian Stock Exchange, met today to examine the full year 2007 results which confirm the Group’s 2008-2012 Business Plan.

Full year 2007 closed with a production value of € 77.06 million (mn). In the prior year this amounted to €106.00 mn and was significantly impacted by the €43.63 mn generated by the sale of the addition onto the Centro Leonardo shopping mall in Imola in November 2006. This transaction resulted in a capital gain of €3.47 mn. Net this sale, the total revenues in 2007 of €77.06 mn would have shown an increase of 16.1% over the €66.41 mn reported in 2006.

The revenues in 2007 benefited from an enlarged perimeter of consolidation when compared to 2006, which included a twelve month contribution from Centro Sarca versus 3 in 2006, a contribution of 10 months from Millenium Gallery and a 50% contribution from the joint venture RGD as of the end of March 2007 and, finally, the centre at Mondovì, opened on November 7th, 2007.

Revenues from services also had a positive impact on total revenues of €4.27 mn, an increase of 34.34% when compared to 2006 thanks to a series of new facility mandates and 4 new agency mandates achieved in 2007. Revenues from services, therefore, reach a 5.97% margin on total revenues, a level far superior to the 5% indicated in the 2008-2012 Business Plan. The percentages mentioned, 5.97% and 5% respectively, are not recognizable in the financial statements as they do not reflect pilotage revenues from the opening of centres: these reclassified revenues from operations are not considered as they are offset by pilotage expenses.

EBITDA, equal to €47.92 mn, is up 11.2% when compared to the €43.08 mn reported in 2006.

EBIT, equal to €78.28 mn, fell 21.4% when compared to the €99.56 mn in 2006, due to the lower contribution from the fair value valuation of IGD’s real estate portfolio. After the extremely high growth in 2006, due to the particularly favourable market, market values in 2007 were more stable.

The pre-tax profit reached €63.71 mn, while the net profit of €52.32 mn fell 7.70% when compared to the €56.68 reported in 2006, due to the fair value impact described above.

Net debt at December 31st, 2007 amounted to €341.62 mn, basically in line with the €338.06 mn at December 31st, 2006.

Following the capital increase in May 2007, the gearing ratio (debt/net equity ratio) is 0.46x, compared to 0.58x at the end of 2006, indicative of ample capacity to finance future growth when compared to the 1.5x gearing target indicated in the 2008-2012 Business Plan.

“The 2007 results – stated IGD’s CEO Filippo Carbonari, – indicate that our more selective development policy focused on new commercial centres and formats paid off. The growth in revenues, driven also by the development of the existing real estate portfolio, is also testimony to our ability to optimise the space available to us. The accelerated investments – the CEO continued – were made possible by or balanced debt-equity structure which today represents a competitive advantage”.

The Board of Directors resolved to propose that the Shareholders’ Meeting, which will be held in first call on April 23rd, 2008 and in second call on April 24th, 2008, approve the payment of a dividend of €0.056 per share, payable on May 2nd, 2008 with detachment of coupon on April 28th, 2008.

The proposed dividend for 2007 of €0.056 per share is 60% higher when compared to 2006 (€0.035 per share).

IGD Market Value at December 31st 2007 is equal to €1,007.80mn and not to €1,004.00mn as stated in the press release as of March 13th 2008.This higher Market Value takes into account the acquisition, missed in the previous release, of the plot of land close to the shopping mall in San Benedetto del Tronto in order to expand it, which CBRE evaluated € 3,8 mn.