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ETLN - Etalon News Story

$1.6 -0.0  -1.2%

Last Trade - 23/09/20

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £371.0m
Enterprise Value £609.9m
Revenue £861.0m
Position in Universe 593rd / 1807

Etalon Group Limited - Etalon Group Signs Agreement with Japanese Partner

Thu 31st July, 2014 7:00am
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RNS Number : 7868N
Etalon Group Limited
31 July 2014 
 
31 July 2014 
 
Etalon Group Signs Agreement with Japanese Partners 
 
Etalon Group Limited (the "Company"), one of Russia's largest and longest
established residential real estate developers, announces that its industrial
construction subsidiary EtalonPromstroy has signed a general contractor
agreement with Unipres Corporation for the design and construction of an
automobile components factory in St. Petersburg. 
 
The project will consist of a 12,313 sqm manufacturing facility and a 3,588
sqm administrative building on a 4 hectare plot of land at the Nissan
suppliers park in Kamenka.  This is a turnkey project involving the full
construction cycle, from engineering and geological surveying to design,
preparation of the territory, construction, utility connections, as well as
the installation and commissioning of manufacturing equipment.  The project is
due to be completed in 4Q 2015. 
 
EtalonPromstroy was selected by Unipres Corporation as a reliable general
contractor with a track record of successful industrial construction projects
that meet the high standards of international clients. 
 
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: +7 916 306 6112 
 
vanderlip@em-comms.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
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