REG - Etalon Group PLC - Etalon Group Reports 4Q 2017 Operating Results <Origin Href="QuoteRef">ETLNGq.L</Origin>

EtalonAnnouncement

17/01/2018 07:35

RNS Number : 0655C
Etalon Group PLC
17 January 2018
17 January 2018
Etalon Group Reports 4Q 2017 Operating Results
ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces its unaudited operating results for the three months and 12 months ended 31 December 2017, based on management accounts.
4Q 2017 operating highlights
 New contract sales in roubles rose by 22% year-on-year to RUB 16,676 million 
 New contract sales in sqm grew by 5% year-on-year to 162,109 sqm
 The number of new contracts increased by 6% year-on-year to 3,182
 Cash collections increased by 32% year-on-year to RUB 14,717 million
 Average price per sqm was RUB 102,869, up 15% year-on-year 
4Q 2017 operating results

4Q 2017
4Q 2016
Change, %
New sales, sqm
162,109
153,745
5%
New sales, mln RUB
16,676
13,725
22%
Number of contracts
3,182
3,001
6%
Average price, RUB/sqm
102,869
89,272
15%
Average price (apartments), RUB/sqm
115,806
105,928
9%
Cash collections, mln RUB
14,717
11,123
32%
Quarterly operating performance

4Q 2017
3Q 2017
2Q 2017
1Q 2017
4Q 2016
New sales, sqm
162,109
113,979
122,427
113,646
153,745
New sales, mln RUB
16,676
11,970
11,346
10,248
13,725
Number of contracts
3,182
2,331
2,321
2,082
3,001
Average price, RUB/sqm
102,869
105,015
92,676
90,178
89,272
Average price (apartments), RUB/sqm
115,806
114,582
109,390
111,382
105,928
Cash collections, mln RUB
14,717
12,433
9,283
9,714
11,123
Mortgage contract developments

4Q 2017
3Q 2017
2Q 2017
1Q 2017
4Q 2016
Share of mortgages
41%
35%
33%
22%
23%
FY 2017 operating highlights
 Deliveries were in line with the construction programme at 423 ths sqm of NSA
 Transfers to customers amounted to 454 ths sqm, an increase of 37% year-on-year
 The number of contracts in FY 2017 grew by 3% year-on-year and amounted to 9,916
 New contract sales increased by 3% and 6% year-on-year to 512,161 sqm and RUB 50,240 million, respectively
 FY 2017 cash collections increased by 16% year-on-year to RUB 46,147 million
 Average price per sqm rose by 3% year-on-year to RUB 98,094
FY 2017 operating results

2017
2016
Change, %
New sales, sqm
512,161
496,008
3%
New sales, mln RUB
50,240
47,443
6%
Number of contracts
9,916
9,590
3%
Average price, RUB/sqm
98,094
95,650
3%
Average price (apartments), RUB/sqm
113,160
107,959
5%
Cash collections, mln RUB
46,147
39,723
16%
Commenting on the 4Q 2017 operating results, Etalon Group President Viacheslav Zarenkov said:
"I am pleased to report that, as we had expected, Etalon Group delivered a solid performance in 4Q 2017, and again finished the full year with record-setting results. Our new contract sales in 2017 exceeded RUB 50 billion, while new contract sales in sqm increased to 512 thousand sqm. The fourth quarter results were exceptional and surpassed even 4Q 2015 in terms of new contract sales in roubles.
"Thanks to the drive of the new sales management team who joined the Company in 2017, we were able to achieve sales growth of 18% in rouble terms in the second half of the year. The launch of new projects suchasSilverFountaininMoscow also supported these strong results, leading toafasterpaceofbothnewsalesinroubletermsand cashcollections.
"Mortgage sales grew strongly and accounted for 41% of new sales in the fourth quarter, in line with declining interest rates on mortgage loans in Russia as a result of the Bank of Russia's monetary policy.
"The average down-payment in 4Q 2017 was 82%. This high level of down-payments supported a sharp rise in cash collections, which reached RUB 14.7 bln, exceeding the results for the same quarter of the previous year by an impressive 32%.
"I would also like to highlight a number of attractive projects that we acquired in 2017, including the business-class development planned for Letnikovskaya Street in Moscow and two in St Petersburg's prestigious Petrogradskiy district. At the same time we have kept our debt burden low and maintained our strong financial position, with net debt of RUB 9.7 bln. 
"Looking ahead, we anticipate further growth of operational indicators in 2018. We expect deliveries to reach 480 thousand sqm and new sales of around RUB 57 billion, both up 13% on 2017.
"I am confident that we will continue to benefit from our new business-class projects. During 2018, we will increase the share of centrally located, higher-end projects in Etalon Group's project mix, with the planned launch of sales at a number of attractive projects including on Letnikovskaya Street and those in the Petrogradskiy district of St Petersburg."
Conference call and webcast
Etalon Group will host a conference call for investors and analysts today at 14:00 London time (17:00 Moscow; 09:00 New York).
On the call, the Etalon Group management team will present the 4Q and FY 2017 operating results, followed by a question and answer session for participants.
Webcast
https://edge.media-server.com/m6/p/zr56j3ru
Dial-in numbers:
+44 (0)330 336 9105- London
+7 495 213 1767- Moscow 
+1646828 8143- New York
Conference ID Code: 7882707
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
E: 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 Etalon LenSpetsSMU subsidiaries. With a 30-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 5.8 million sqm.
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 2016 was RUB 7.8 billion.
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 thousand people, and its nationwide sales and marketing network covers 52 Russian cities.
As of 31 December 2016, Etalon Group's portfolio comprised 35 projects, with a total of 2.82 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 115,818 million.
For the year ended 31 December 2017, Etalon Group's new contract sales totalled 512 ths sqm, or RUB 50,240 million. Deliveries in 2017 amounted to 423 ths sqm.
Etalon Group'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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