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Medserv’s interim report shows improved profitability in 2018, on track for 2019 growth

Medserv’s Interim report issued to markets last week highlights that the group has had improved profitability and revenue growth in H1 2018 in line with forecasts. Medserv reported group revenues of €18.1 million up by 33.2 per cent mainly attributed to the stronger contribution from operations in Malta and Cyprus in its Integrated Logistics Support Services (ILSS) operations.

Further to the company announcement, Edison Investment Research also issued an update where they state that Medserv has demonstrated the success of its broadened geographic reach with strong H1 2018 revenue growth and improved profitability.

With the required investment in equipment and personnel complete, Edison envisages greater momentum and improved profitability in H2 2018 and they maintain their forecasts. The DCF-based fair value provided by Edison moved up to €1.56 per share, from €1.51. The full Edison report may be viewed on the company’s website.

Major onshore and offshore projects are commencing

As announced in January 2018, the group secured a three-year contract in Egypt, with the option of extending for further periods to provide the integrated logistics support services for the production phase of offshore operations being conducted by an International Oil Company (IOC). In addition, the group has also secured another contract with a multinational oil and gas corporation to provide shore base logistics services for exploration activities taking place offshore Cyprus. The costs incurred to set up the necessary facilities have all been incurred during the first half of 2018 with positive earnings expected to be generated over the coming months.

The group’s outlook is positive. Major onshore and offshore projects all with long term potential and already contracted to the group are commencing. This is further augmented by the overall industry pickup and the new opportunities the group is positioned to secure.

The full interim statement and the directors report as well as the Edison Investment Research Report are available for viewing from the company website.

www.medservenergy.com

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