HMS Group announces management statement and financial highlights for nine months 2017

Moscow, Russia – December 11, 2017 – HMS Group Plc (the “Group”) (LSE: HMSG), the leading pump, oil & gas equipment and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces its financial results for 9 months ended September 30, 2017.

Financial highlights 9m 2017:

  • Revenue: Rub 31.4 bn (+4% yoy)
  • EBITDA[1]: Rub 5.0 bn (+6% yoy), EBITDA margin of 15.9%
  • Operating profit: Rub 3.4 bn (+15% yoy), operating margin up to 10.9%
  • Profit for the period: Rub 1.7 bn (+33% yoy), net income margin of 5.3%

  • Total debt: Rub 16.5 bn (+1% yoy)
  • Net debt: Rub 12.7 bn (-5% yoy)
  • Net debt-to-EBITDA LTM ratio: 1.9x

Operational highlights 9m 2017:

  • Backlog: Rub 42.6 bn (+60% yoy)
  • Order intake: Rub 51.0 bn (+61% yoy)

Guidance 2017 update:

  • Revenue: slightly lower than previously announced Rub 48 billion
  • EBITDA: closer to the upper-end of Rub 6.2-6.8 billion

[1] EBITDA is defined as operating profit/loss from continuing operations adjusted for other operating income/expenses, depreciation and amortisation, amortisation of government grants, impairment of assets, excess of fair value of net assets acquired over the cost of the acquisition, defined benefits scheme expense and provisions (including provision for obsolete inventory, provision for impairment of accounts receivable, unused vacation allowance, warranty provision, provision for legal claims, tax provision and other provisions). This measurement basis, therefore, excludes the effects of a number of non-recurring income and expenses on the results of the operating segments.