MedservRegis plc - Full-Year Results

On 16 June 2022, MedservRegis plc (“MedservRegis”) published its annual results for the 2021 financial year.

It is important to highlight that these financial results are not comparable with those reported by Medserv plc in 2020. On 25 June 2021, Medserv plc completed a share-for-share exchange with Regis Holdings Limited (“Regis”), resulting in Medserv plc owning 100% of the share capital and voting rights in Regis. Thereafter, Medserv plc changed its name to MedservRegis plc, reflecting the merger of the two companies into a single entity.

From a legal and taxation perspective, Medserv plc was considered as the acquiring entity. However, since the acquisition had the features of a ‘reverse acquisition’, the transaction had therefore to be accounted for as a ‘reverse acquisition’ from a consolidated perspective, where Regis was the accounting acquirer, and Medserv plc was the legal acquirer.

As a result of the above, the financial statements covering the twelve-month period ended 31 December 2021 represent a continuation of Regis’ financial statements except for the capital structure. While the Consolidated Statement of Financial Position as at 31 December 2021 represents the consolidation of both the formerly Medserv Group and the acquired Regis Group, on the other hand, the Consolidated Statements of Profit or Loss, Other Comprehensive Income, and Cash Flows only include a six-month contribution of the formerly Medserv Group – i.e. from 1 July 2021 to 31 December 2021 – given that the share-for-share exchange was concluded on 25 June 2021.

Performance Overview

During the period under review, revenues amounted to €29.9 million reflecting the income generated by Regis (€11.3 million) and the six-month contribution from Medserv (€18.6 million). The ‘Integrated Logistics Support Services’ (“ILSS”) segment represented the lion’s share of revenues (€20.2 million) whilst the remaining income was generated by the Oil Country Tubular Goods (“OCTG”) segment (€8.18 million), ‘Trading Activity’ (€1.29 million), and the Photovoltaic farm (€0.22 million).

On the expenditure side, net operating costs amounted to €37.4 million. As a result, MedservRegis reported an operating loss of €7.43 million. Excluding depreciation and amortisation charges (€5.47 million) as well as impairment losses related to property, plant, equipment, and intangible assets (€7.23 million), adjusted EBITDA amounted to €5.3 million which, in turn, translates into an adjusted EBITDA margin of 17.7%.

After accounting for net finance income of €0.04 million and a share of profit of equity-accounted investees of €0.03 million, MedservRegis reported a loss before tax of €7.36 million. Meanwhile, the net loss attributable to shareholders amounted to €7.51 million after taking into account tax income of €0.06 million, loss of €0.1 million from discontinued operations, as well as the share of profit of €0.31 million pertaining to non-controlling interests.

The Statement of Financial Position as at 31 December 2021 (reflecting the combined assets and liabilities of Medserv and Regis) shows that total assets amounted to €150.8 million mostly comprising of right-of-use assets (€50 million); property, plant and equipment (€36.1 million); trade and other receivables (€21.9 million); intangible assets and goodwill (€21.1 million); and cash balances (€12 million). On the other hand, total liabilities amounted to €88 million mostly comprising of bonds (€49.5 million); lease liabilities (€14.4 million); bank borrowings (€8.33 million); and trade and other payables (€8.7 million). Meanwhile, total equity amounted to €62.8 million. The gearing ratio (calculated as total debt divided by total debt plus total equity) stood at 53.5% whilst the net debt to equity multiple stood at 0.96 times.


In their commentary, the Directors explained that in line with the Group’s strategy for diversify its markets, client base and product services, MedservRegis is actively positioning itself for growth in various new significant developing energy markets, particularly in Africa and the Caribbean region. The Group is awaiting adjudication on tenders relating to ILLS in Trinidad & Tobago, Suriname, Mauritania and Uganda. Moreover, MedservRegis is experiencing an increasing number of opportunities within its core ILSS and OCTG competencies for organic growth as well as opportunities of a strategic nature allowing the Group to unlock value in the supply chain and be part of the industry transition.

Looking ahead, the energy sector in 2022 will be one of growth, as consumption looks set to exceed 2019 level. The oil price upward trend during the past six months as well as the recent tensions in the gas market is expected to foster additional investments by International Energy Companies (“IECs”) in countries the Group operates in. New projects have the potential to translate into significant commercial opportunities as MedservRegis is well placed to benefit from the rebound of the Exploration and Production activities in all markets where it operates.

With the increase in both demand for gas and energy prices, the Group is experiencing an upturn in invitations to tender and requests for proposals across the majority of its operating entities. As a result, MedservRegis continues to participate in international tenders to secure new work within its global reach. Indeed, the Group maintained a presence in the Guyana-Suriname and Trinidad basin and is negotiating strategic alliances with developers of port facilities to act as the operator of the logistics shore bases which will be required by the IECs and service contractors. Additionally, the Company is supporting non-oil & gas logistics work across its operating regions, including logistics for the graphite mining industry in Mozambique and other industries.

This current environment demands a new operating model of better collaboration across the people and material supply chains. Whilst focusing on the continued integration of operations, MedservRegis will continue to seek and work with other strategic players within its supply chain in order to provide fully integrated solutions to customers.

In conclusion, the Group noted that despite the political risks and at times unrest in the countries it operates in, MedservRegis is poised for growth. The drivers for this increase in demand for the Group’s services are the significant economic development of the countries in which it operates today, as well as the change in Europe’s energy policy and the current energy prices. The Group’s strategic targets for 2022 remain for MedservRegis to return to pre-pandemic trading levels and register profitability in the short to medium term.

Termination of Suspension of Trading

Following the publication of the 2021 Annual Report, the MFSA removed the suspension of trading of all MedservRegis securities listed on the Regulated Market of the Malta Stock Exchange.