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 Amathus Hotel Limassol, 75 Amathounta Avenue, 4532 Limassol, Cyprus, on 29 April 2016.
The Board of Directors recommended a final dividend of USD 0.05 per share for the year ended 31 December 2015, which represents 29% of the Company’s consolidated net profit for 2H 2015 (based on the official Central Bank of Russia exchange rate on 29 April 2016).
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 20 May 2016.
Assuming shareholders approve the Board’s recommendation, the dividend will be paid on 7 June 2016. The ex-dividend date for holders of the Company’s Global Depositary Receipts is 12 May 2016, and the record date is 13 May 2016.
Pending AGM approval of the final 2015 dividend, Etalon Group’s total dividend payout for 2015 will amount to USD 0.08 per share, representing 28% of the Company’s net profit for FY 2015 (based on the official Central Bank of Russia exchange rates on 6 November 2015 and 29 April 2016).
The Board is pleased with the Company’s performance in what has been a volatile macro environment in 2014-2015. Etalon Group was able to quickly adapt its business to a rapidly evolving market, and was already back on a growth track by the second half of 2015. Even in these challenging conditions, Etalon Group met all of its obligations to clients, partners, authorities and shareholders, without exception, while maintaining one of the strongest financial positions in the residential real estate development and construction sectors.
In light of the stabilisation of market conditions, the Board of Directors has tasked Etalon Group management and the Strategy Committee of the Board of Directors with establishing new strategic directions to ensure sustainable shareholder value creation in the mid- and long-term.
The Board of Directors set out the following priorities for the strategic review:
- Focus on sustainable growth in net income and operating cash flow
- Steady rise in dividend payments, driven by higher net income and increasing dividend payout ratios
- Diversify the business into new regions and new segments of the real estate market
The Board currently expects the strategic review to be completed over the course of the next six months, after which the results, together with a new set of KPIs, will be presented to the market.
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.