20 Nov 2019 08:00
20 November 2019
Etalon Group PLC Notification of EGM
ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established residential real estate developers, announces that its extraordinary general meeting of shareholders ("EGM") will be held at 36 Agias Elenis str., Galaxias Building, Block B, 6th floor, office 602, 1061, Nicosia, Cyprus on Thursday, 19 December 2019, at 11 a.m. Cyprus time.
RECOMMENDATION OF THE BOARD OF DIRECTORS
The current auditors of the Company, KPMG, have been auditors of the Company since FY2009 and were re-appointed at the last AGM held on 2 August 2019 to hold office until the conclusion of the next AGM. FY2019 would be the tenth year that KPMG holds the office as auditors of the Company. As part of the ongoing efforts of the Company to enhance its corporate governance as well as to manage its overall business costs and expenses, the Board, based on an unanimous recommendation from the Audit Committee, has concluded that it would be appropriate and timely to effect a change of the auditors of the Company from KPMG to Deloitte. In addition, the Board believes that the proposed change of auditors will enable the Company to benefit from Deloitte's experience and strengths in both the Russian market and construction industry practices bringing fresh perspectives and views of another professional audit firm and thereby enhance the value of the audit.
The following resolutions will be proposed at the EGM:
SPECIAL RESOLUTIONS:
1. To dismiss KPMG LIMITED from the position of the auditor of the Company.
2. To appoint DELOITTE LIMITED as auditor of the Company to hold office from the conclusion of this meeting until the conclusion of the next annual general meeting at which accounts are laid before the Company.
3. To authorise the Directors to set the auditor's remuneration.
The Special Notice of EGM, the Form of Proxy, the Recommendation of the Board of Directors and the Letter of acceptance of the appointment from DELOITTE LIMITED were sent to shareholders on 20 November 2019, and copies of these documents have been submitted to the National Storage Mechanism and will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM. The Special Notice of Meeting is also available on the Etalon Group website at www.etalongroup.com.
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/
Etalon Group IR Team
T: +44 20 8123 1328
E: info@etalongroup.com
EM
Sam VanDerlip
T: +44 207 002 7859
E: vanderlip@em-comms.com
About Etalon Group
Founded in 1987, Etalon Group is one of Russia's largest development and construction companies. 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 commissioned 6.3 million sqm of real estate.
Etalon Group's traditionally conservative approach to managing its financial position, solid cash generation and strict working capital management support a secure liquidity position: net cash as of 31 December 2018 was RUB 2.2 billion.
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 58 Russian cities.
In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow's largest residential developers by size of land bank and number of projects currently available for sale.
Etalon Group's total assets, including the aforementioned consolidation and 100% ownership of ZIL-Yug project, comprise 53 projects under development, completed residential and commercial properties, as well as a construction and maintenance division, with total unsold NSA of 4.0 million sqm. Knight Frank valued the Company's total assets at RUB 206,071 million as of 31 December 2018.
For the year ended 31 December 2018, Etalon Group's new contract sales totalled 628 ths sqm, or RUB 68,731 million. Deliveries in 2018 amounted to 479 ths sqm.
The Company recorded revenue of RUB 72.3 billion and EBITDA of RUB 5.7 billion for the year ended 31 December 2018.
Etalon Group's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.