Etalon Group Board Recommends Dividend of USD 0.12/share

26 April 2015

 

The Board of Directors of Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, held a meeting at the Old Government House Hotel in St Ann’s Place, St Peter Port, Guernsey, on 24 April 2015.

Dividends

The Board of Directors recommended a final dividend of USD 0.12 per share for the year ended 31 December 2014, which represents 24% of the Company’s consolidated net profit for 2H 2014 (based on the official Central Bank of Russia exchange rate on 24 April 2015).

The Directors of Etalon Group have recommended the payment of a final dividend in accordance with the Company’s dividend policy, and the recommendation will be subject to shareholder approval at the Company’s Annual General Meeting of Shareholders (“AGM”) to be held on 22 May 2015.

Assuming shareholders approve the Board’s recommendation, the dividend will be paid on 29 May 2015.  The ex-dividend date for holders of the Company’s Global Depositary Receipts is 14 May 2015, and the record date is 15 May 2015. 

Pending AGM approval of the final 2014 dividend, Etalon Group’s total dividend payout for 2014 will amount to USD 0.14 per share, representing 25% of the Group’s net profit for FY 2014 (based on the official Central Bank of Russia exchange rates on 7 November 2014 and 24 April 2015).

Appointments

The Board of Directors appointed Kirill Bagachenko, a member of the Board of Directors and Head of Corporate Investments and Investor Relations, to the Strategy Committee with effect from 24 April 2015.

Etalon Group Chairman of the Board of Directors Viacheslav Zarenkov said: “We continue to adhere to the dividend policy adopted in 2013, despite the challenging macroeconomic environment, because we are absolutely confident in the stability and sustainability of our business.  With AGM approval, total dividend payments for 2014 will amount to USD 0.14 per share, an increase in cash paid out to shareholders of 87% compared to 2013. At the same time we maintain an exceptionally strong balance sheet supported by our successful and flexible pre-sales model and a land bank sufficient to implement our construction programme. All these factors make us well-positioned to continue creating value for our shareholders going forward.”

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 <br/>E: info@etalongroup.com 

EM

Sam VanDerlip <br/>T: +44 7554 993 032<br/>T: +7 499 918 3134<br/>E: vanderlip@em-comms.com

 

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 LenSpetsSMU subsidiaries. With a 27-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 4.5 million sqm. Etalon Group's CAGR for deliveries in 2010-2014 was 29%.

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 2014 was RUB 636 million.

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 over 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.

As of 31 December 2014, Etalon Group's portfolio comprised 29 projects, with a total of 3.11 million sqm of unsold net sellable area. Jones Lang LaSalle valued this portfolio at RUB 104,286 million, a 17% increase in the market value from YE 2013.

For the year ended 31 December 2014, Etalon Group's new contract sales totalled 457 ths sqm, or RUB 39,961 million. Deliveries in 2014 totalled 580 ths sqm.

The Company recorded revenue of RUB 51.5 billion and EBITDA of RUB 10.6 billion, with an EBITDA margin of 21% for the year ended 31 December 2014.

Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

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27 April 2015