June 19, 2018 / 10:21 AM / a month ago

UPDATE 1-French property group Nexity targets earnings growth, shares surge

* Shares rise sharply on Paris stock market

* Targets annual sales, earnings growth of 10 pct

* Controlled increase in debt

* Plans for minimum dividend of 2.50 euros (Adds share price reaction)

PARIS, June 19 (Reuters) - French property group Nexity set out plans to achieve annual earnings and sales growth of 10 percent over the next three years, causing its shares to surge higher as investors welcomed the plans.

Nexity’s shares were up 9.2 percent by mid-session trading, the best performers on Paris’ SBF-120 equity index.

The company said it was looking to increase its market share in the residential property market, as well as win more business with commercial and local authority clients.

Nexity targeted compound annual revenue growth and compound annual EBITDA (earnings before interest, depreciation and amortisation) growth of 10 percent over the 2017-2021 period.

It added it would spend more money on its digital businesses and have a controlled increase in its debt, which would help it fund possible acquisitions.

Nexity said its investments over the 2017-2021 period would total around 65 million euros a year, with 30 million euros focused on digital initiatives, while the company would also set a minimum dividend of 2.50 euros over the period. (Reporting by Sudip Kar-Gupta; Editing by Sunil Nair)

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