HMS Group announces management statement and financial highlights for 3 months 2016

Moscow, Russia – June 10, 2016 – HMS Group plc (the “Group”) (LSE: HMSG), the leading pump and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces its financial results for 3 months ended March 31, 2016.

3 months 2016 HIGHLIGHTS:

  • Backlog increased by 2% yoy to Rub 27.5 billion, while order intake was up more than twofold yoy at Rub 12.0 billion
  • Revenue of Rub 9.1 billion grew by 19% yoy
  • EBITDA1 totalled Rub 1.2 billion, down 28% yoy, with EBITDA margin at 13.0%
  • Operating profit decreased substantially to Rub 0.5 billion with operating margin at 5.4%
  • Profit for the period totalled Rub 21 million
  • Total debt grew by 3% yoy to Rub 16.4 billion from Rub 15.8 billion
  • Net debt decreased by 11% yoy to Rub 13.0 billion resulting in Net debt-to-EBITDA ratio of 1.85x
  • Return on capital employed LTM (ROCE)2 increased to 16.3% vs. 13.8% for the comparative period

Kirill Molchanov, CFO and Co-founder of HMS Group, commented, that

“At a conference call in February we described that 2016 year is a difficult one for us. And the first quarter results are as low as budgeted for, though a little bit weaker than expected.

However, from a 2016 full year results standpoint, our guidance remains unchanged despite continuing uncertainty.”

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1 EBITDA is defined as operating profit/loss from continuing operations adjusted for other operating income/expenses, depreciation and amortisation, 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.

2 ROCE is calculated as EBIT LTM divided by (average total debt + average equity), where EBIT is derived as (Gross profit – SG&A expenses – Other operating expenses (net)).

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