The Board of Directors of ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, has recommended to the Annual General Meeting of Shareholders (the AGM) to approve the payment of a final dividend for FY 2018 in the amount of USD 0.19 per share or GDR.
The Board of Directors approved a one-off deviation from the Company’s dividend policy due to the unrepresentative base for dividend distribution in FY 2018. The Company’s current dividend policy, which calls for 40% to 70% of IFRS net income to be paid out on a semi-annual basis, remains intact for future periods.
Etalon Group Board of Directors Chairman Oleg Mubarakshin said:
“Etalon Group’s net income for 2018, which serves as the basis for dividends under our current dividend policy, was affected by a number of provisions, adjustments and non-cash items and therefore does not represent the Company’s underlying, strong cash flow performance. Thanks to robust demand for Etalon Group’s projects, the Company reported record free cash flow of RUB 14.6 billion in FY 2018. Moreover, our 1Q 2019 results show that the Company has maintained its high level of free cash flow generation. Taking into account the non-cash nature of a number of the factors affecting Etalon Group’s reported 2018 net income, as well as the Company’s strong financial position, the Board of Directors has recommended that the AGM approve a final dividend payment of USD 0.19 per share or GDR. This deviation from the current dividend policy to recommend the highest final dividend payment in Etalon Group’s history reflects the confidence of the Board of Directors in Etalon Group’s sound financial standing and ability to achieve strong results in the future.”
This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/
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, 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 more than 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 6.3 million sqm.
Etalon Group's traditionally conservative approach managing its financial position, solid cash generation and strict working capital management have enabled the company to maintain a secure liquidity position: net cash as of 31 December 2018 was RUB 2.2 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 58 Russian cities.
As of 30 June 2018, Etalon Group's assets comprised 39 projects and a construction and maintenance division, with a total of 2.73 million sqm of unsold net sellable area. Knight Frank valued the Company’s assets at RUB 132,487 million.
For the year ended 31 December 2018, Etalon Group's new contract sales totalled 628 ths sqm, or RUB 68,731 million. Deliveries in 2018 amounted to 479 ths sqm.
The Company recorded revenue of RUB 72.3 billion and EBITDA of RUB 5.7 billion for the year ended 31 December 2018.
Etalon Group’s GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.
In February 2019 Etalon Group acquired 51% of the shares of Leader-Invest, one of Moscow’s largest residential developers in terms of land bank and number of projects currently available for sale. Leader-Invest’s primary focus is on infill development projects and integrated development of large-scale mixed use projects in the comfort-, business- and premium-class segments. Leader-Invest's portfolio includes 31 projects under construction or at the design stage, unsold inventory at eight completed residential complexes, and commercial real estate, with a total NSA of 1.3 million sqm. As of 1 October 2018, Colliers International valued Leader-Invest's portfolio at RUB 66,645 million.
As a result of the acquisition of Leader-Invest, Etalon Group will become the largest residential developer in Moscow in terms of number of projects offered to the market, and the second-largest in terms of sales and construction volumes. In St Petersburg the Company will maintain its position among the market leaders.