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06/09/2014 16:26

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RNS Number : 1683M
Etalon Group Limited
14 July 2014 
 
14 July 2014 
 
Etalon Group Board of Directors Meeting Results 
 
The Board of Directors of Etalon Group Limited ("Etalon Group" or the
"Company"), one of Russia's largest and longest established residential real
estate developers, held a meeting at The Old Government House Hotel in St
Ann's Place, St Peter Port, Guernsey, Channel Islands, on 11 July 2014. 
 
The Board of Directors approved the following key resolutions at the meeting: 
 
1.   To appoint Mr Robert Paul King as an Independent Non-Executive Director
with effect from 1 August 2014 
 
2.   To appoint Etalon Group CFO Boris Svetlichny as a member of the Audit
Committee with effect from 11 July 2014 
 
Mr King has 28 years of experience in the corporate governance and management
of investment companies and funds. He was a Director of Cannon Asset
Management Limited from October 2007 to February 2011.  Prior to that he was a
Director of Northern Trust International Fund Administration Services
(Guernsey) Limited, where he worked from 1990 to 2007. Mr King currently acts
as an Independent Non-Executive Director for a number of listed investment
funds and companies. He is a British citizen and a resident of Guernsey. 
 
Other recent announcements are available on the Etalon Group website:
http://www.etalongroup.com/investors/news/ 
 
Etalon Group IR Team 
 
T: +44 (0) 20 8123 1328 
 
E: info@etalongroup.com 
 
EM Advisers Ltd 
 
Sam VanDerlip 
 
T: +44 (0) 7554 993 032 
 
vanderlip@mcomgroup.com 
 
About Etalon Group 
 
History and Overview 
 
Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of
Russia's largest residential real estate developers. With a more than 25-year
history, the Company has one of the longest and most successful track records
in the Russian real estate industry. 
 
Today Etalon Group is a leading player in Russia's "Golden Triangle" - St
Petersburg, Moscow and the greater Moscow area, with a dominant position in
the "comfort class" segment.  The Company's strong foothold in these markets
is reinforced further by its unique nationwide sales network covering 9 of the
10 wealthiest regions of Russia, and spanning 30 cities in total.  The sales
network generates up to 30% of Etalon Group's revenue, and has been an
important source of stable demand even throughout the crisis. 
 
Etalon Group is one of the only truly vertically integrated businesses in the
Russian real estate sector.  The Company does everything from acquiring land
to sales and cash collections from its customers, which enables it to maximise
margins throughout the value chain, and reduces exposure to cost inflation
from external service providers.  Etalon Group is a company of scale, with a
total of 40 business units that employ over 4,000 people, two strong
construction management companies, five general contractors, 16
subcontractors, a crane company, a brick factory and a nationwide sales
network. 
 
Etalon Group's strong financial position is driven by its effective pre-sales
business model. The Company aims to pre-sell 70-90% of all residential space
before a building is delivered. It also targets an average down payment of
50%. This allows Etalon Group to finance the construction process using money
from customers, as opposed to using the loans or funding from shareholders. 
 
In addition to homebuilding, Etalon Group's long history and superior quality
offering has helped it to become a trusted industrial construction partner for
clients like General Motors, Toyota, Ford Motors, Bosch, Siemens, Nissan,
Suzuki and Gazprom in northwest Russia. 
 
Since 20 April 2011, Etalon Group Limited has had its GDRs traded on the Main
Market of the London Stock Exchange. 
 
Operational and Financial Highlights 
 
As of 31 December 2013, Etalon Group's portfolio comprised 28 projects, with a
total of 3.44 million sqm of unsold net sellable area ("NSA") in the St.
Petersburg and Moscow Metropolitan Areas. Jones Lang LaSalle valued this
portfolio at USD 2,727 million, a 15% increase in the market value from YE
2012. 
 
For the year ended 31 December 2013, Etalon Group's new contract sales
totalled 356,075 sqm, or RUB 30,227 million. Deliveries in 2013 totalled 468
thousand sqm. 
 
The Company recorded revenues of RUB 39.9 billion and EBITDA of RUB 9.4
billion, with an EBITDA margin of 24% for the year ended 31 December 2013,
making it one of the most profitable players in the sector. 
 
Etalon Group's net debt position at 31 December 2013 was RUB 182 million,
leaving it well positioned to fund continued dynamic growth. 
 
This information is provided by RNS
The company news service from the London Stock Exchange