MedservRegis plc - Updated Financial Analysis Summary
On 22 May 2019, Medserv plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2018 financial results, a comparison of the 2018 actual results with the forecasts as published in the previous FAS dated 11 May 2018, as well as the forecasts for the current financial year ending 31 December 2019.
The main highlights of the 2019 financial performance of the Group are:
- Revenues are expected to climb by 77.5% to €64.2 million, largely reflecting the commencement of the contract with Staatsolie Maatschappij Suriname N.V. in Suriname, South America in early April 2019, as well as increased business in other regions such as in Egypt, Cyprus, Malta and the Middle East.
- EBITDA is expected to almost double to a record high of €14.1 million from €7.32 million in 2018, reflecting the significant increase in business as well as improved profit margins.
- Operating profit is anticipated to improve to €3.58 million compared to an operating loss of €3.46 million recorded in the 2018 financial year.
- After taking into account net finance costs of €5.31 million and a tax charge of €0.22 million, the loss for the 2019 financial year is projected at €1.95 million compared to a loss of €9.53 million recorded in 2018.
Meanwhile, the forecasted Statement of Financial Position as at 31 December 2019 shows that Medserv is expecting to close the year with total borrowings of €56.2 million and a net debt position of €49.4 million. These are lower than the corresponding figures as at the end of 2018 which showed that Medserv had total borrowings of €59.3 million and net debt of €53.4 million. Furthermore, in view of the anticipated decrease in indebtedness, coupled with the anticipated surge in profitability, the projected net debt to EBITDA multiple is anticipated to improve to 3.5 times compared to 7.3 times in 2018.