REG - Etalon Group Limited - Etalon Group Strengthens Management Team <Origin Href="QuoteRef">ETLNGq.L</Origin>

EtalonAnnouncement

21/07/2016 07:06

RNS Number : 8013E
Etalon Group Limited
21 July 2016
21 July 2016
Etalon Group Strengthens Management Team
Etalon Group Board of Directors reaffirms commitment to the Company's strategic priorities and presents changes to the leadership structure, which has been enhanced to deliver on ambitious targets
 Etalon Group founder Viacheslav Zarenkov resumes position as CEO and steps down as Chairman
 Board elects Dmitry Zarenkov as new Chairman
 Former CEO Anton Evdokimov to lead Etalon's new business development function in the position of Vice President
The Board of Directors of Etalon Group Limited ("Etalon Group" or the "Company") at its meeting on 20 July 2016 reviewed the Company's 1H 2016 operating results, received a report from the Strategy Committee, and approved a new leadership structure that has been enhanced to deliver on the ambitious targets that have been set before management.
The Directors expressed satisfaction with the Company's operating performance for the first half of 2016, noting that management exceeded performance targets for the period by a strong margin.
The Board also received the Strategy Committee's report and reaffirmed its commitment to the strategic priorities set at its previous meeting in April:
 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 Company currently expects the strategic review to be completed by the end of 2016, when its conclusions, along with a new set of management KPIs, will be presented to stakeholders.
With the aim of enhancing the Company's leadership team, which will be responsible for implementation of the updated strategy, the Board has asked Etalon Group founder and President Viacheslav Zarenkov to return to the role of CEO, while current CEO Anton Evdokimov will become a Vice President with a focus on the new business development function, including review of new regions and new segments of the real estate market.
In order to dedicate himself to the chief executive post, and in line with good corporate governance practices, Viacheslav Zarenkov has stepped down as Chairman and Dmitry Zarenkov has been elected by the Board of Directors as its new Chairman.
To strengthen further the Company's executive team, Victor Vasenev, who worked for the last four years as the Finance Director of Etalon Group's Russian Holding Company, has been appointed as Chief Financial Officer and Kirill Bagachenko has been promoted to Deputy CEO and Vice President, and will continue to focus on capital markets, M&A and investor relations. These changes take effect from 1 August 2016.
Etalon Group President Viacheslav Zarenkov said: "In 2014 we quickly adapted Etalon Group's business model to new economic realities, which enabled us to return to a growth trajectory already in the second half of 2015. In the first half of this year, we set new sales records for the Company's entire 29-year history. At the same time, the situation in the market remains complex. On the one hand, this requires caution, but on the other hand, new opportunities for growth are appearing for companies with good reputations and a stable balance sheet. I am pleased to put all of my energy and experience into making this happen as CEO, for the benefit of our clients, shareholders and employees. The Board of Directors and I personally would like to thank Anton Evdokimov for his contribution and ongoing commitment to the success of the Company. I am confident that with the highly professional team and management structure now in place, we are well positioned to achieve a new breakthrough in the Company's development, and deliver on the ambitious goals set by the Board."
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 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.

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