OREANDA-NEWS. December 12, 2012. Armada Group (MICEX-RTS: ARMD) releases preliminary financial results for the first nine months of　2012.

"With a　large number of　clients and products, substantial financial resources and a　portfolio of　potential M&A deals, Armada is　able to　continue confident development. We　expect to　reach double-digit revenue growth and a　traditionally high EBITDA margin in　2012 (EBITDA margin stood at　12.2% in　2011)", Chairman of　Armada’s Board of　Directors Alexey Kuzovkin said.

Armada’s revenue for the first nine months of　2012 and 2011:

Revenue, mln rubles 1

9М2012

9М2011

Growth

Software development and implementation

587

511

15%

IT　services

1,757

1,528

15%

TOTAL

2,344

2,039

15%

1　Based on　management report under IFRS for January 1　— September 30　of　each year.

Revenue

Armada’s consolidated revenue amounted to　RUB 2.34bn in　9M　2012 under IFRS, up　15% year-on-year. In　the first nine months of　2011, revenue advanced　13% year-on-year.

Financial resources

Armada has no　long-term debt and possesses substantial spare financial resources to　finance potential M&A transactions.

Staff
The company’s headcount totaled 932　as of　September　30, 2012, up　4% from December　31, 2011.

Customer base

Armada’s customer base remains highly diversified, with each of　over thousand customers accounting for no　more than　10% of　total full-year revenue.

For TNK-BP, PM　Expert and the customer’s specialists have successfully completed the first stage of　servicing and engineering works as　part of　the major Gas Project Program for TNK-BP’s subsidiary Rospan International. The duration of　the program is　eight years, from 2011 until 2019. The capex target is　about USD 6bn.

For the Chief Road Traffic Inspectorate, Armada is　developing special software which will offer a　variety of　services ranging from the registration of　drivers and licenses issued to　them, and the registration of　administrative offences, to　information about stolen vehicles and road accidents.

The MEDIALOG product has been selected as　the foundation for the deployment of　medical information systems in　a　number of　Russian regions.

Armada Soft supports the single data base of　Russia’s Blood Transfusion Service in　63　regions.

Helios IT’s projects in　Vnesheconombank and Priorbank (the Belarusian subsidiary of　Raiffeisen Group) were named the winners of　international competition "ITSM Project of　the Year" in　two out of　six categories.

Armada is　implementing a　large project aimed at　developing and deploying software for an　automated system to　accept and register requests from citizens and organizations for public services in　Moscow.

Guidance for Q4　and full-year

The company usually generates more than half of　full-year revenue in　the fourth quarter (56% in　2011). Contracts for the software development and implementation make a　substantial contribution to　revenue in　Q4, as　a　result of　which the Software/IT services ratio changed from 25:75　as of　the end of　9M　2011 to　45:55　as of　the full-year 2011.

Armada’s management expects to　achieve double-digit organic growth of　consolidated revenue in　2012 and EBITDA margin on　par with the year-earlier level, when it　stood at　12.2%.