MedservRegis plc - Interim Results

On 30 August 2024, MedservRegis plc published its interim financial statements covering the six-month period ended 30 June 2024. The company explained that the comparative results for the first half of 2023 were reclassified to exclude a €3.15 million one-time loss related to exchange differences on translating foreign operations. This was previously treated as a finance cost and it is now recognised in other comprehensive income.

Revenues remained virtually unchanged at €32.2 million as the higher level of income from the Oil Country Tubular Goods (OCTG) segment (+22% to €17.0 million) was offset by the lower turnover from the provision of Integrated Logistics Support Services (ILSS) segment (-16.0% to €15.0 million). Meanwhile, income from PV Farms amounted to €0.24 million.

On the expenditure side, total operating costs (net of other income) increased by 3.9% to €29.4 million. Consequently, the Group’s operating profit fell by 23.2% to €2.89 million compared to €3.75 million in the first half of 2023. MedservRegis reported an adjusted EBITDA of €8.07 million, which is 10% lower than the €9 million figure reported for the same period last year. This translates into an EBITDA margin of 25.0% (H1 2023: 28.1%).

After accounting for net finance costs of €2.53 million, tax charges of €0.29 million, and a profit attributable to minority interest of €0.23 million, the net loss for the period attributable to shareholders amounted to €0.17million (H1 2023: net profit of €1.04 million).

The Statement of Financial Position as at 30 June 2024, when compared to the corresponding figures as at the end of 2023, shows that total assets dropped by 0.4% (or €0.6 million) to €144.5 million. Meanwhile, total liabilities increased by 1.9% (or €1.7 million) to €88.8 million. Shareholders’ funds fell by 4.1% (or €2.3 million) to €54.6 million, which translates into a net asset value per share of €0.537 (31 December 2023: €0.559).

Outlook

In their commentary, the Directors explained that the global landscape of the international and offshore markets is witnessing a promising surge in upstream investment momentum brought by the resilient long-cycle offshore developments, production capacity expansions, revival of global exploration and appraisal, and the recognition of gas as a critical fuel source. This positive trajectory has established a substantial baseload of activity.

The Board of Directors expressed its optimistic views on achieving its 2024 forecasts. This is based on a robust pipeline of awarded contracts, timely arrival of critical materials, and positive feedback from clients. In this context, the Directors anticipate a significant increase in business volume during the second half of the year.