MedservRegis plc - Full-Year Results

On 26 April 2024, MedservRegis plc published its Annual Report and Financial Statements for the year ended 31 December 2023.

Performance Overview

Revenue surged by 10% to €73.9 million (2022: €66.9 million). The Integrated Logistics Support Services (ILSS) segment accounted for 62% of revenue while the Oil Country Tubular Goods (OCTG) segment represented 37% of income, while the remaining 1% was generated from the photovoltaic farm. The company explained that the increase was mainly due to a new contract in Morocco and an improved performance in the Middle East, which offset the lower revenue generated from Cyprus.

On the expenditure side, net operating costs eased by 2.7% to €66.1 million compared to €67.9 million in the previous year. As a result, MedservRegis reported an operating profit of €7.86 million in contrast to an operating loss of €0.94 million in 2022. Excluding depreciation and amortisation charges as well as impairments, adjusted EBITDA surged by 53% to €17.5 million from €11.4 million in 2022, which translates into an adjusted EBITDA margin of 24% (2022: 17%).

After accounting for net finance costs of €6.19 million, a tax expense of €0.38 million, and profits attributable to non-controlling interests of €0.21 million, the net profit attributable to shareholders amounted to €1.08 million (2022: €0.58 million).

The Statement of Financial Position as of 31 December 2023 shows that total assets dropped by 4.3% to €145.2 million, principally composed of right-of-use assets totalling €52.3 million, property, plant and equipment totalling €30.8 million and trade and other receivables of €22.1 million. Meanwhile, total liabilities dropped by 4.7% to €87.1 million as the reduction in borrowings to €51.3 million outweighed the increase in lease liabilities to €28.1 million. Shareholders’ funds dropped by 1.3% to €56.9 million which translates into a net asset value per share of €0.5594 (31 December 2022: €0.5670) largely reflecting adverse foreign currency exchange movements (directly accounted for in equity) which offset the profit registered during the year under review.


The Chairman noted that discussions are ongoing on how best to position the Group in the broadest manner possible, including restructuring of the Group, management evolution, cost optimisation, investment in technology, and even divestment of business units, with an aim to deliver value to stakeholders.

The Directors report explained that despite ongoing challenges, the world’s demand for oil has reached a record high of over 100 million barrels per day for the first time ever in 2023. Growth is expected to continue in 2024, albeit with less momentum. Furthermore, the Mediterranean is likely to witness increased exploration and development activity in the coming years. The success of this endeavour hinges on the ability to resolve geopolitical disputes, develop necessary infrastructure, and strike a delicate balance between energy security and climate change concerns.

Overall, the Group’s performance in year 2024 is expected to improve further. Margins should remain stable or improve further with new contractual rates being negotiated. The Directors noted that focus will be in the growth of margins as opposed to the growth in revenues.

The Group’s strategy remains to continue with its growth trajectory in geographic markets, client base, and product offering. Particular emphasis and investments will be made to increasing capacity in the United Arab Emirates by installing a third machine in Sharjah and expanding the new facility in Abu Dhabi to increase its service offering. The Group is participating in several tenders and evaluating projects in both existing and new markets, particularly in Africa, South America and the Middle East, most of which are being driven by the Group’s existing clients.