HMS Group announces management statement and financial highlights for 6 months 2016

Moscow, Russia – September 28, 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 6 months ended June 30, 2016.

Financial highlights 6 months 2016:

  • Revenue of Rub 20.4 billion grew by 23% yoy
  • EBITDA1 amounted to Rub 3.0 billion, down 12% yoy, with EBITDA margin at 14.5%
  • Operating profit decreased to Rub 1.8 billion with operating margin at 8.7%
  • Profit for the period totalled Rub 696 million, down by 37% yoy
  • Total debt stood at Rub 16.1 billion
  • Net debt decreased by 13% yoy to Rub 12.8 billion
  • Net debt-to-EBITDA LTM ratio amounted to 1.81x
  • Return on capital employed LTM (ROCE)2 decreased to 16.1%

Operational highlights 6 months 2016:

  • Backlog increased by 6% yoy to Rub 26.2 billion
  • Order intake increased by 68% yoy and amounted to Rub 22.4 billion

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

“At a conference call in February we presented 2016 year as a difficult one for us. The first quarter results were as low as budgeted for, though a little bit weaker than expected.  

Given the second quarter results alongside execution of current contracts and inflow of new orders, we upgrade our guidance on revenue to Rub 43-45 billion and EBITDA to Rub 5.7-6 billion.”

Download full version

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)).

Back to the list