On 20 May 2016, 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, resolved to increase the Company’s target dividend payout range from the current level of 15%-30% to 30%-50% of consolidated IFRS net income.
Based on this new range, the Board of Directors will continue to consider semi-annual dividend payments, taking into account the pre-sales performance and funding needs for the Company’s development programme. This policy will take effect starting with Etalon Group’s IFRS financial results for the first half of 2016.
Etalon Group Chairman Viacheslav Zarenkov said:
“When we first adopted a dividend policy in 2013, we planned to gradually increase the payout ratio going forward. While we had to be more cautious due to the challenging external factors affecting the Russian economy in 2014-2015, we have adhered to the policy and recent dividend payments have been at the high end of the original range.
“This year, with the stabilisation of the real estate market and Etalon Group maintaining a strong financial position, I suggested to the Board of Directors that it consider an update to our dividend policy, increasing the payout range to 30%-50% of net profit. I think that now is the right time to take this step, with new sales back on a growth trajectory and our forecasts calling for sustainable generation of positive operating cash flows in the near future.
“The Board has supported this proposal, which is a reflection of our confidence in the sustainability of Etalon Group’s business model, and because it gives our shareholders an additional means to monetise growing shareholder value.”
This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/
Etalon Group IR Team
T: +44 (0) 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 LenSpetsSMU subsidiaries. With a 28-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 million sqm. Etalon Group's CAGR for deliveries in 2010-2015 was 19%.
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 2015 was RUB 7,397 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 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.
As of 31 December 2015, Etalon Group's portfolio comprised 28 projects, with a total of 2.72 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 104,384 million.
For the year ended 31 December 2015, Etalon Group's new contract sales totalled 385 ths sqm, or RUB 35,080 million. Deliveries in 2015 totalled 502 ths sqm.
The Company recorded revenue of RUB 42.4 billion and EBITDA of RUB 7.7 billion for the year ended 31 December 2015.
Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.