REG - Etalon Group Limited - Etalon Group Board of Directors Meeting Results <Origin Href="QuoteRef">ETLNGq.L</Origin>

EtalonAnnouncement

10/11/2014 09:54

RNS Number : 5311W
Etalon Group Limited
10 November 2014
10 November 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 development and construction companies, held a meeting at The Old Government House Hotel in St Ann's Place, St. Peter Port, Guernsey, Channel Islands, on 7 November 2014. 
Dividends
The Board of Directors declared an interim dividend of USD 0.02 per share for 1H 2014, which represents 29% of the Company's consolidated net profit for the period (based on the official Central Bank of Russia exchange rate on 7 November 2014). 
The ex-dividend date for holders of the Company's Global Depositary Receipts ("GDRs") was set as 20 November 2014, and the record date is 21 November 2014. Dividends are to be paid on 15 December 2014.
Strategy
The Board of Directors approved scenarios for Etalon Group's development in the period 2018-2023 that were presented by the Strategy Committee. Three scenarios were defined based on different economic outlooks:
- base-case: modest economic growth
- optimistic: active economic development
- stress-scenario: low to negative economic growth
The Board asked Etalon Group's management to prepare detailed action plans for each of the scenarios. Upon completion, the results will be presented to the market.
Management policy
 
The Board approved a management policy at its 7 November 2014 meeting. The new management policy sets out a clear division of responsibilities between management and the Board of Directors.
Management incentive programme
The Board of Directors approved changes to the incentive programme for top management that were recommended by the Remuneration and Nomination Committee. According to the updated programme, bonuses for Etalon Group top management will depend on the Company's EBITDA and on the price dynamics of the Company's GDRs for a given period. Bonuses based on this approach will be paid out 50% in cash and 50% in the form of Etalon Group GDRs.
Etalon Group President Viacheslav Zarenkov said: "We are pleased to declare the next dividend distribution, for the 1H 2014 period. We intend to continue to adhere to the dividend policy adopted in November 2013, which aims to pay out between 15% and 30% of the Company's net profit to shareholders.
"We have passed another milestone towards completing Etalon Group's new long-term strategy, which we plan to present to the market in the first half of 2015. This strategy will take into account various global and domestic economic scenarios in determining the Company's own growth plans.
"We have also updated our management incentive programme in order to make bonuses for the Company's leadership dependent on EBITDA and Etalon Group's GDR price dynamics. Bonus payments will be paid out 50/50 in cash and GDRs."
This and other recent announcements are available on the Etalon Group website: http://www.etalongroup.com/investors/news/
Etalon Group IR Team
T: +44 20 8123 1328
E: info@etalongroup.com
EM
Sam VanDerlip 
T: +44 7554 993 032
T: +7 499 918 3134
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 realestate industry.
Since its inception, Etalon Group has commissioned 3.9 million sqm. The Company is currently implementing its post-IPO construction programme, which is on track to achieve fourfold growth in construction volumes between 2010 and 2016 (from 209 ths sqm to 800 ths sqm). Etalon Group's CAGR for deliveries in 2010-2013 was 31%.
Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for ongoing projects while maintaining a secure liquidity position: net cash as of 30 June 2014 was USD 10 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 4,500 people, and its nationwide sales and marketing network covers 36 Russian cities.
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. 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 ths sqm, or RUB 30,227 million. Deliveries in 2013 totalled 468 ths sqm. The Company recorded revenue 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.
Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

This information is provided by RNS
The company news service from the London Stock Exchange
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