HMS Group Announces Interim Management Statement for 9M
OREANDA-NEWS. 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 interim management statement and financial highlights for the nine months ended September 30, 2013. The financial data is based on management accounts only and hasn't been reviewed by external auditors.
9M 2013 HIGHLIGHTS
Backlog decreased by 24% year-on-year to Rub 18,013 million and order intake was down 22% year-on-year to Rub 22,763 million for 9m 2013 due to lack of large-scale projects
Revenue increased by 2% year-on-year to Rub 24,066 million driven by revenue growth in industrial pumps and compressors business segments
EBITDA totaled Rub 3,658 million, down 9% year-on-year; EBITDA margin was 15.2% compared to 17.1% for 9m 2012
Operating profit reached Rub 1,993 million, down 28% year-on-year; operating margin stood at 8.3%
Operating profit adj decreased by 13% yoy to Rub 2,421 million
Profit for the period totaled Rub 427 million, 71% lower than for 9m 2012; earnings per share (EPS) were Rub 4.18
Profit for the period adj. was Rub 855 million, down 43% yoy
Net debt grew by 19% year-on-year to Rub 15,162 million, resulting in Net debt-to-EBITDA (LTM) ratio at 2.6x
Return on capital employed (ROCE) LTM was 14%
“Taking into account lack of large-scale projects that used to deliver a significant contribution to HMS Group's performance, we consider the financial results of the Company for nine months 2013 to be decent. We experienced a 2% growth in revenue to Rub 24 billion against last year, while EBITDA was 9% lower at Rub 3.7 billion.
All our business segments, excluding construction, developed in line with the business plan. Construction sub-segment continued to show disappointing EBITDA-dilutive results in the 3Q 2013. Due to deteriorating environment on the construction market, we made an impairment of our construction assets and posted ca. Rub 1 billion loss in the income statement. At the same time, our compressor business segment supported the Group's performance by delivering impressive results being one year within the Group.
Looking forward, we are confident in bright prospects for our core businesses for the rest of 2013 and beyond despite ongoing uncertainty with timing for a number of targeted projects. HMS strong fundamentals ensure that the long-term outlook for the Company remains positive backed by anticipated investment in oil and gas industry in Russia and promising outlook for our new compressor business”.