Last close As at 05/08/2026
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Market capitalisation
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Research: Industrials
Medserv issued an interim report on 22 May that indicates a stabilisation of the outlook for the group. METS appears to be trading strongly and while the onshore base support activities are still depressed, these should progressively recover in the second half. The reaction to the challenged FY16 results and more tempered outlook, while unsurprising, leaves the shares looking increasingly attractive against our fair value estimate of €1.83. There is scope for this discount to reduce as trading improves in H217. A FY18 P/E of 13.0x does not appear overly demanding given the potential for continued recovery and growth thereafter.
Written by
Medserv |
Stabilising the platform |
Trading update |
Industrial Support Services |
25 May 2017 |
Share price performance
Business description
Analysts
Medserv is a research client of Edison Investment Research Limited |
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Medserv issued an interim report on 22 May that indicates a stabilisation of the outlook for the group. METS appears to be trading strongly and while the onshore base support activities are still depressed, these should progressively recover in the second half. The reaction to the challenged FY16 results and more tempered outlook, while unsurprising, leaves the shares looking increasingly attractive against our fair value estimate of €1.83. There is scope for this discount to reduce as trading improves in H217. A FY18 P/E of 13.0x does not appear overly demanding given the potential for continued recovery and growth thereafter.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/15 |
42.8 |
6.1 |
9.7 |
4.3 |
13.0 |
3.4 |
12/16 |
32.8 |
(1.3) |
(2.1) |
0.0 |
N/A |
0.0 |
12/17e |
35.2 |
0.5 |
0.6 |
0.0 |
N/A |
0.0 |
12/18e |
42.3 |
5.9 |
9.6 |
3.8 |
13.1 |
3.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and retention contracts, and exceptional items.
The integrated logistics support services (ILSS - onshore base support services) segment is expected to benefit from the improved profitability of the IOCs and more stable oil market conditions. Drilling activity has yet to improve but should accelerate in key territories through H217, providing a foundation for a stronger FY18. Malta is preparing for the resumption in drilling offshore Libya with equipment expected to arrive in the next few weeks. Cyprus is preparing its new Limassol base as well as the storage and service facility in Larnaca, with drilling expected to resume in Q4. Portugal is also expected to commence drilling late in the year and the customer’s licence was recently extended to early 2019. Business development is continuing in Trinidad and the newly registered Medserv Egypt has signed a MoU for a base to support both offshore and onshore activities.
All three of METS’s regions appear to be trading well, with a recovery apparent in Iraq, increased sales in Sharjah and a forecast-beating performance in Oman where a second base in Duqm is being opened to service the recently announced major contract with Sumitomo.
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Disclaimer
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Disclaimer
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Research: Industrials
Compared to most UK-quoted building materials plays, Tyman offers better exposure to growth in international markets especially North America. The acquisition of Giesse last year has coincided with a recovering European market also and, together with other acquisitions, is bringing increased commercial opportunities to the enlarged group. Success in converting them will surely attract a premium rating for the company.