MedservRegis plc - Updated Financial Analysis Summary

On 26 July 2022, MedservRegis plc published an updated Financial Analysis Summary. The main highlights of the projected financial performance and position of MedservRegis for the 2022 financial year are as follows:

• Revenues are expected to climb to €48.8 million compared to around €30 million in each of the prior two years, reflecting the improved operating environment across the energy sector around the world as well as the higher level of business especially in the Mediterranean region (namely Malta, Egypt, and Cyprus) and the Middle East (principally Oman). Meanwhile, revenues from the company’s operations in Sub-Sahara and East Africa are expected to amount to €7.5 million reflecting the activities in Mozambique and Angola whilst the Uganda business unit is projected to achieve substantial growth following the recent decision taken by International and National Energy Companies to start the construction of a 1,440km crude oil pipeline from Uganda’s Albertine region to Tanzania’s seaport of Tanga.
• EBITDA is projected at €10.3 million which, in turn, translates into an EBITDA margin of 21.2%. This level of forecasted EBITDA is nearly 19% lower than the record of €12.7 million (on revenues of €68.7 million) that Medserv plc recorded in 2019 prior to the reverse merger with Regis Holdings Ltd in 2021.
• After accounting for depreciation and amortisation charges of €8.41 million, net finance costs of €3.65 million, and a tax income of €1.03 million, MedservRegis plc is anticipating a marginal net loss of €0.69 million.

• In terms of financial position, total assets (-8.5%) and total liabilities (-13.8%) are expected to drop to €138 million and €75.9 million respectively. The company’s gearing ratio is projected to ease to 50.2% compared to 53.5% as at the end of 2021. Moreover, the interest cover is anticipated at 2.83 times whilst the net debt-to-EBITDA multiple is expected to strengthen to 5.18 times compared to 11.4 times in 2021.