Etalon Group Board of Directors Meeting ResultsSource: RNS
27 September 2021
Etalon Group Board of Directors Meeting Results
ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces the results of the latest meeting of the Board of Directors, held on 24 September 2021 in Limassol, Cyprus.
The Board of Directors recommended that the Company pay out final dividends for 2020 in the amount of RUB 3.6 billion, or RUB 9.39 per share/GDR, which corresponds to 61% of net profit before purchase price allocation (PPA). If approved by the Annual General Meeting of Shareholders, final dividends will be paid out in December 2021. The exact date of payment as well as the dividend record date will be determined in conjunction with the notice for the Annual General Meeting of Shareholders.
Following a recovery in profitability, the Board of Directors agreed to update the Company's dividend policy. The Company will now aim to pay out dividends in the range of 40%-70% of pre-PPA IFRS net profit. Payments will be made once a year after the publication of Etalon Group's IFRS annual financial statements. In order to increase transparency, the Board of Directors will provide its recommendation on dividends no later than 31 May following the reporting period and payments will be made no later than 31 December in the same year.
Changes to committees
The Board of Directors accepted the resignation of Nikolai Minashin, who is leaving the Investor Relations and Information Disclosure Committee due to his departure from PJSFC Sistema.
As a result, the Investor Relations and Information Disclosure Committee consists of the following members:
· Petr Kryuchkov, Committee Chairman, Director for Corporate Investments and Strategy;
· Dennis Vinokourov, non-executive director;
· Boris Svetlichny, independent non-executive director.
Expansion of ESG activities
The Board of Directors considered a proposal made by the Investor Relations and Information Disclosure Committee to systematise and strengthen work related to environmental, social and governance (ESG) issues and empowered the Committee to deal with ESG issues.
The expansion of the Committee's remit will contribute to the improvement of ESG practices within the Company, the promotion of a responsible approach to social environmental issues and the enhancement of corporate governance practices.
Sergey Egorov, Chairman of the Etalon Group Board of Directors, said:
"Taking into account our ambitious business growth plans, expansion into new regions and our aim to strengthen Etalon Group's positions in Moscow and St Petersburg, the Board of Directors decided to adjust the dividend policy to reflect Etalon Group's current stage of development. Even following the SPO this year, the Company will continue to pay dividends: starting from 2020 they will be distributed based on a range of 40%-70% of pre-PPA net profit. At the same time, the industry-leading profitability we have already achieved, our balanced strategy aimed at creating long-term competitive advantages, as well as sufficient free cash flows enable us to be confident that the Company's further growth will be sustainable and profitable. We have set the stage for long-term growth in dividend payouts and higher returns on invested capital for shareholders. In addition, as part of our efforts to improve the transparency of corporate governance and the predictability of future dividend payments, we have decided to fix the dates for dividend recommendations and payments starting from next year.
"Etalon Group also continues to prioritise further development of its sustainable development practices, with a focus on environmentally and socially responsible business practices. A serious milestone in this process will be the approval of an ESG policy, which is currently under development, and an expansion of the Investor Relations and Information Disclosure Committee's remit. This Committee will now be responsible for organising and monitoring business processes related to our ESG practices. These changes will help to further increase the transparency and completeness of non-financial information disclosed by Etalon Group, while also contributing to increasing the positive environmental and social impacts that we have, strengthening local communities and supporting the sustainability of cities."
This and other announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/.
T: +44 (0) 20 8123 1328
T.: +44 207 002 7859
About Etalon Group
Founded in 1987, Etalon Group is one of the largest development and construction companies in Russia. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. With a more than 30-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has delivered more than 7.5 million sqm of real estate.
Thanks to its integrated business model, Etalon Group is able to create added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.
Etalon Group's total assets comprise 20 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 2.8 million sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 204 billion as of 31 December 2020.
In 2020, Etalon Group's new contract sales totalled 538 ths sqm, or RUB 79.9 billion. Deliveries in 2020 amounted to 540 ths sqm.
The Company's revenue in 2020 amounted to RUB 78.7 billion, with EBITDA of RUB 12.6 billion.
Etalon Group's GDRs have traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.