ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces the results of its asset valuation as of 31 December 2017, conducted by Knight Frank.
The total value of the Company’s assets reached RUB 135 billion, or USD 2.3 billion at the Central Bank of Russia exchange rate as of 31 December 2017, which amounts to USD 8.0 per GDR.
The asset valuation includes the valuation of the Company’s project portfolio, which increased by 10% from RUB 116 billion as of 31 December 2016 to RUB 127 billion as of 31 December 2017. Furthermore, the integration of a number of Etalon Group’s smaller business units into a single construction and maintenance business carried out in 2017 enabled Knight Frank to conduct a valuation of the unified company, valuing it at RUB 8.3 billion.
Details of the updated valuation are available on Etalon Group’s website: www.etalongroup.com/investors/presentations
Etalon Group President Viacheslav Zarenkov said:
“We are pleased to report a 10% increase in the open market value of our project portfolio in rouble terms, which was supported by the acquisition of high-quality projects in Moscow and St Petersburg, as well as further progress at existing sites.
“Our 2017 acquisitions included three business class projects that will enable Etalon Group to further diversify its portfolio into the higher-end market segment in both Moscow and St Petersburg.
“In accordance with previously announced plans, in 2017 we consolidated our construction, maintenance and service entities into a separate division with centralised management and KPIs that are tied to Etalon Group’s overall strategic goals. With the process of integration complete, we can now treat the new business unit as an asset for valuation. We expect that increases in operating efficiency and a common marketing strategy will help this division to deliver on its great potential for further growth.”
This and other recent announcements are available on the Etalon Group website:
Etalon Group IR Team
T: +44 20 8123 1328
T: +44 7554 993 032
T: +7 499 918 3134
About Etalon Group
Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas, where it operates through Etalon Invest and Etalon LenSpetsSMU subsidiaries. With a 30-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry - since its inception, Etalon Group has commissioned 5.8 million sqm.
Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2016 was RUB 7.8 billion.
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5 thousand people, and its nationwide sales and marketing network covers 52 Russian cities.
As of 31 December 2017, Etalon Group's assets comprised 38 projects, with a total of 2.82 million sqm of unsold net sellable area, and a construction and maintenance division. Knight Frank valued the Company’s assets at RUB 135,197 million.
For the year ended 31 December 2017, Etalon Group's new contract sales totalled 512 ths sqm, or RUB 50,240 million. Deliveries in 2017 amounted to 423 ths sqm.
Etalon Group’s GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.
12 March 2018