HMS Group announces management statement and financial highlights for 6 months 2015

Moscow, Russia – October 6, 2015 – 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 6 months ended June 30, 2015.

6 months 2015 HIGHLIGHTS:

  • Backlog went down by 22% yoy to Rub 23.8 billion, while order intake declined by 20% yoy to Rub 14.9 billion
  • For standard equipment only, backlog grew by 1% yoy, and order intake increased by 14% yoy
  • Revenue of Rub 16.6 billion grew by 29% yoy
  • EBITDA1 totaled Rub 3.4 billion, up more than twofold, with EBITDA margin of 20.3%
  • Operating profit increased threefold to Rub 2.3 billion with margin at 14.1%
  • Profit for the period reached Rub 1.1 billion vs. negative Rub 0.2 billion for 6 months 2014
  • Total debt grew by 12% yoy to Rub 16.1 billion from Rub 14.5 billion
  • Net debt increased by 20% yoy to Rub 14.7 billion resulting in Net debt-to-EBITDA LTM ratio of 2.11x vs. 2.56x for 6 months 2014
  • Return on capital employed (ROCE)2 increased to 17.4% vs. 10.8% for the comparative period

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1 Management of the Group assesses the performance of operating segments based on a measure of adjusted EBITDA, which is derived from the management report.

For this purpose, adjusted 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 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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