IT Holding sees loss deepens on higher financial charges in 2005
30 Mar '06
3 min read
The year 2005 recorded a net loss of €18.7 million and was influenced by an increase in financial charges due to the refinancing of the notes due in the year. The year 2004 recorded a net loss of €11.2 million. However, net of the gain of €24.5 million realized upon disposal of the fragrance and eyewear businesses, the net loss has decreased from €35.7 million in 2004 to €18.7 million in 2005.
Tonino Perna, Chairman and CEO of IT Holding SpA, said, “The results for the year 2005 and the first indications for 2006 confirm the validity of our strategy to focus on the development and enhancement of two brands such as Ferré and Malo, which will permit us to further strengthen our position within the production and distribution of luxury apparel and accessories.”
“The signs of growth coming from the major Western economies, the constant growth of emerging markets, in which our Group is present, together with the continued increase in notoriety of our brands permit us to be optimistic about the future. In 2006 we estimate the increase in revenues will be in the order of 4 percent (+10 percent on a like-for-like basis ie considering the already announced termination of a license agreement) and expect to further improve both profitability and cashflows,” concluded Perna.
The Board of Directors also approved the financial statements of the parent company IT Holding SpA. The parent company's activities consist primarily in strategy setting and coordinating activities for the Group. IT Holding SpA recorded revenues amounting to €8.7 million (2004: €8.8 million) and a net loss amounting to €33.8 million (2004: €7.0 million). No dividends are expected to be distributed.
IT Holding SpA is one of the leading players in the luxury goods sector, and controls a group of companies that design, produce and distribute high-quality products (ready-to-wear and accessories, eyewear and perfumes) under owned brands - Ferré, Malo, Extè - as well as under license agreements - D&G, Versus, Versace Jeans Couture, Just Cavalli, C'N'C Costume National.
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