The aggregate sales of BasicNet’s network of licensees jumped by 16.29 percent to €130.6 million in the first half but net profits slipped to €4,168,000 from €26,169,000 as last year’s bottom line was boosted by a €27,083,000 pre-tax gain stemming from the sale of the Kappa and Robe di Kappa brand rights for the Chinese mainland and Macau.

The group’s net consolidated sales rose by 2.1 percent to €41.7 million, while the gross profit jumped by 25.6 percent to €18.4 million as production costs fell to €23.3 million from €26.2 million.

Earnings before interest, tax, depreciation and amortization (EBITDA) increased to €9,061,000 from €2,675,000, while operating earnings after depreciation and amortization (EBIT) fell to €6,633,000 from €27,227,000. Last’s year EBIT was bloated by the capital gain.

Net debt dropped to €38.3 million from €44.4 million at the end of last December, as the company generated €6,596,000 in cash flow.

BasicNet expects to maintain the growth and profitability levels achieved in the first half during the rest of the year. It also plans to open a total of 14 stores for the RdK, Superga and K-Way brands in Italy by the close of 2007, boosting the door count to 75.