Daily Market Highlights

November 10, 2022

MedservRegis publishes bond Prospectus

 

The MSE Equity Price Index eased by a further 0.36% to a two-month low of 3,581.156 points reflecting the declines in the share prices of RS2, HSBC, Malita, and Plaza. Meanwhile, four companies trended higher whilst another four equities closed unchanged. Overall trading activity amounted to €0.21 million. Download today’s Equity Market Summary.

Today, MedservRegis plc published a Prospectus in relation to the issue of €13 million 5% secured bonds maturing in 2029. The net proceeds will be used for the redemption of the 6% secured and guaranteed notes 2020/23. The Prospectus provides updated financial forecasts for the current financial year ending 31 December 2022 as well as financial projections for the 2023 financial year. Indeed, revenues are now expected to climb to €54.7 million in 2022 compared to the previous forecast of €48.8 million reflecting improved drilling activity in Cyprus and Egypt as well as the contribution from non-energy related business generated out of the Group’s base at the Malta Freeport Terminal. For 2023, MedservRegis is projecting its revenues to increase by 8.3% to €59.2 million reflecting the start of new operations offshore Libya as well as new activity in Uganda. The higher level of business is expected to result in an adjusted EBITDA of €11.6 million in 2022 followed by a further growth of 21.7% in 2023 to €14.2 million. In terms of financial position, it is expected that the Group will continue to reduce its net indebtedness. Coupled with the improvement in earnings, the interest cover is anticipated to reach almost 4 times in 2023 while the net debt-to-EBITDA multiple is projected to drop to 3.74 times in 2023. The equity remained inactive today.

The ordinary shares of RS2 Software plc plunged 7.4% to the €1.25 level on strong volumes totalling 84,500 having a market value of €0.11 million.

HSBC Bank Malta plc dropped by 3.9% to the €0.73 level across two deals totalling 12,234 shares.

In the property sector, both Plaza Centres plc (15,000 shares) and Malita Investments plc (4,200 shares) lost 3.9% to the €0.73 level.

International Hotel Investments plc traded flat at the €0.71 level on 72,943 shares.

A single trade of 4,597 shares left the share price of APS Bank plc at the €0.61 level.

Also in the retail banking sector, Bank of Valletta plc closed unchanged at the €0.90 level after opening at a low of €0.88 (-2.2%). A total of 6,300 shares changed hands.

Mapfre Middlesea plc held on to the €1.50 level across two deals totalling 5,668 shares.

Malta International Airport plc moved 0.9% higher to recapture the €5.85 level across 770 shares.

Grand Harbour Marina plc surged to the €1.17 level albeit on just 2,750 shares.

Low trading activity also took place in the equity of Simonds Farsons Cisk plc which added 2% to the €7.70 level.

BMIT Technologies plc moved 0.4% higher to the €0.47 level after opening at a low of €0.45 (-3.8%). A total of 4,000 shares traded.

The RF MGS Index extended yesterday’s gain as it advanced by a further 0.28% to 886.098 points. Sovereign bond yields in the euro area eased on signs that inflation levels may have now reached a peak. Indeed, consumer prices rose by less than expected in the US as the inflation rate moved lower for the fourth consecutive month.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data.  Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.