Medserv plc - Updated Financial Analysis Summary

On 28 June 2021, Medserv plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2020 financial results, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 15 July 2020, as well as the forecasts for the current financial year ending 31 December 2021.

The main highlights of the 2021 financial performance of the Group are as follows:

  • Revenues are expected to increase by 37.6% to €44.6 million reflecting the resumption of business activity across the Group’s various geographic regions. Moreover, the projections include the six-month contribution of Regis Holdings Limited following the completion of the share for share exchange.
  • EBITDA is expected to almost double to €10.7 million whilst the EBITDA margin is forecasted to improve to 24% from 17.2% in 2020. Moreover, the interest cover is projected to climb to 2.6 times compared to 1.4 times in 2020.
  • Despite the improved performance, Medserv is still expecting to register a net loss of €4.17 million which, however, is much lower than the net loss of €8.8 million reported in 2020.
  • The expected financial position as at 31 December 2021 shows a marked increase in total assets (+€27.4 million to €149.1 million) and equity (+€63.3 million to €67.6 million) reflecting the transaction with Regis Holdings. On the other hand, total liabilities are projected to decrease to €81.6 million (31 December 2020: €117.5 million) due to the transfer of €31.4 million in ‘Deferred Income’ to equity.
  • Net debt is projected to decrease to €60 million compared to €70.8 million as at the end of 2020. As a result, and in view of the strong improvement in EBITDA, the net debt to EBITDA multiple is expected to drop to 5.62 times compared to 12.7 times in 2020. Similarly, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is forecasted to decrease to 51.4% from 94.8% as at the end of 2020.

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Medserv plc – Financial Analysis Summary dated 28 June 2021.

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