MedservRegis plc - Full-Year Results

On 22 April 2025, MedservRegis plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Performance Overview

Revenue decreased by 5.3% to €70.0 million (2023: €73.9 million). The Integrated Logistics Support Services (ILSS) segment accounted for 53% of revenue while the Oil Country Tubular Goods (OCTG) segment represented 46% of income. The remaining 1% was generated from the photovoltaic farm. The company explained that despite the increases in revenue from operations in Oman, Malta, the UAE and Iraq, these were outweighed by a decrease in turnover from Cyprus as well as the non-recurrence of the €8.9 million in revenue generated in 2023 from a contract in Morocco.

On the expenditure side, net operating costs eased by 3.7% to €63.7 million compared to €66.1 million in the previous year.

MedservRegis reported an operating profit of €6.28 million which is 20% less than the €7.86 million figure in 2023. Excluding depreciation and amortisation charges as well as impairments, adjusted EBITDA decreased by 8.0% to €16.1 million from €17.5 million in 2023, which translates into an adjusted EBITDA margin of 23.0%, roughly in line with the previous year.

Net finance costs fell substantially to €2.41 million compared to €6.19 million in the previous year mostly driven by a €1.3 million gain on foreign exchange on non-operating activities compared to a €3.0 million loss in 2023.

After accounting for a tax expense of €1.77 million (2023: €0.38 million), and profits attributable to non-controlling interests of €0.23 million (2023: €0.21 million), the net profit attributable to shareholders amounted to €1.87 million (2023: €1.08 million).

The Statement of Financial Position as of 31 December 2024 shows that total assets remained relatively unchanged at €145.7 million, principally composed of right-of-use assets totalling €51.7 million, property, plant and equipment totalling €32.2 million as well as trade and other receivables of €21.4 million. Meanwhile, total liabilities rose by 1.2% to €88.1 million largely reflecting an increase in deferred tax liabilities. Shareholders’ funds dropped by 0.8% to €56.4 million which translates into a net asset value per share of €0.5549 (31 December 2024: €0.5549).

Dividend

The Directors of MedservRegis are recommending the payment of a final net dividend of €0.0142 per share to all shareholders as at the close of trading on 9 May 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 29 May 2025. The final net dividend is expected to be paid on 30 June 2025.

Outlook

The Chairman noted that he anticipated that the upcoming five to eight years will be positive for the Group on the back of increased demand for energy and a corresponding increase in investment in the sector. The Chairman elaborated that through its diversified presence in strategic locations, the Group is in the right geographical locations, with the right product at the right time. Mr Diacono added that the Mediterranean and the Middle East are expected to be the first beneficiaries of this resurgence, whilst other serviced regions are also anticipated to register a pick-up in activity on the back of the increased investment taking place.

Meanwhile, the CEO stated that Medserv aims to shift focus from reactive measures to long-term strategies as well as managing geopolitical risks and regulatory uncertainties. In this respect, the CEO highlighted the need for the Group to strengthen its presence in regions poised to benefit the most from higher operator spending and expand its capabilities to remain a key partner in meeting global energy demand. At the same, the Group needs to enhance its risk management frameworks and prioritise investments in regions with stable operating environments and strong growth potential.

Moreover, the CEO indicated that 2025 is expected to deliver improved results over those achieved in 2024 particularly in view of the strong business pipeline in North Africa and the Middle East. At the same time, the MedservRegis Group should retain a balanced approach of dividend payments, reducing debt and the continuation of investment in information systems and market growth.