HMS Group announces management statement and financial highlights for 9 months 2016

Moscow, Russia – December 14, 2016 – 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, 2016.

Financial highlights 9 months 2016:

  • Revenue of Rub 30.3 billion grew by 14 percent yoy
  • EBITDA stood at Rub 4.7 billion, down 20 percent yoy, with EBITDA margin at 15.5 percent
  • Operating profit decreased to Rub 3.0 billion, down 30 percent yoy; operating margin at 9.8 percent
  • Profit for the period totalled Rub 1.2 billion, down by 41 percent yoy

  • Total debt declined to Rub 16.3 billion
  • Net debt decreased by 13 percent yoy to Rub 13.4 billion
  • Net debt-to-EBITDA LTM ratio amounted to 2.14x
  • Return on capital employed LTM (ROCE) decreased to 12.1 percent

Operational highlights 9 months 2016:

  • Backlog increased by 2 percent yoy to Rub 26.5 billion
  • Order intake increased by 32 percent yoy and amounted to Rub 32.7 billion

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

“Regarding the guidance announced at a conference call in October, we want to update our guidance figures. Based on the third quarter results we confirm our guidance on EBITDA of Rub 5.7-6 billion and assume that revenue can be a bit lower than Rub 43-45 billion, previously announced.”

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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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