11 Mar 2010 07:53
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
11 March 2010 | PRESS-RELEASE | St. Petersburg |
LSR Group (LSE: LSRG; MICEX, RTS: LSRG) approved the program of the company's high-priority activities - "Lead the Growth", aimed at growth of LSR Group operations in the period of construction sector recovery.
Igor Levit, CEO, member of the Board of Directors of OJSC LSR Group, comments:"We believe that the lowest point of the economic recession is already in the past, and our main task now is to capitalize on opportunities from the real estate development and construction market recovery for further growth of our business. Even though there is still uncertainty about the recovery level and timing, we should be well-prepared, so that to fully use the opportunities of a new period in the economical cycle to develop our business and to further strengthen our market positions".
Lead the Growth main actions:
Real Estate Development and Construction
1. Launch construction and start pre-sales in a number of development projects in St Petersburg including: 34 Deputatskaya, 5 Kovensky, Smolny Kvartal, Avrora, Vostok.
2. Identify land plots in Moscow and Yekaterinburg for strategic land bank expansion; purchase selected land plots in St Petersburg subject to unique location and attractive prices
3. Complete feasibility study on launch of new development projects in the Moscow region
4. Increase sales and marketing activity
5. Work with partner banks on increase of mortgage offering at company's development projects
Building Materials
1. Identify attractively priced acquisition targets for building materials and aggregates production division
2. Revise capex plan for modernization projects which were suspended during downturn
3. Seek project financing for the brick plant project in St Petersburg and complete feasibility study on construction of a new brick plant in the Moscow region (site has been secured)
4. Prepare a process plan for the re-launch of mothballed capacity
At the same time the company will still have strict working capital policy and control debt level and debt maturity profile to ensure stability of the business.
Note to editors: OJSC LSR Group (the "Company") is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, real estate development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine. In 2008, the sales revenues of LSR Group were RUR 49,813m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.
For more details please contact: LSR Group Press Service Tel.: +7 812 314 10 44 Fax: +7 812 458 83 72 E-mail: press@lsrgroup.ruwww.lsrgroup.ru
Disclaimer:
Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company and LSR Group. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Company and other members of LSR Group operate in, as well as many other risks specifically related to the Company, LSR Group and their operations.
Neither these materials nor any copy of it may be taken or transmitted into the United States, Australia, Canada or Japan. These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
These materials are not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. The Company has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This communication is distributed in any member state of the European Economic Area which applies Directive 2000/71/EC (this Directive together with any implementing measures in any member state, the "Prospectus Directive") only to those persons who are investment professionals for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person may act or rely on this document or any of its contents.