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Consolidated Statement of Financial Position
For the year ended 31 December 2023
MedservRegis p.l.c.Annual Report 2024
MedservRegis p.l.c.
Annual Report
1
Contents
Page
Directors’ and Other Statutory Reports i
Financial Statements 1
Independent Auditors’ Report
MedservRegis p.l.c.
Directors’ and
Other Statutory Reports
2024
MedservRegis p.l.c.
Directors’ and other Statutory Reports
Page
Chairman’s Statement
i
CEO’s Statement
ii
Statement on Corporate Social Responsibility
iv
Directors’ Report
v
Statement of the Directors pursuant to Capital Markets Rule 5.68
xvii
Statement by the Directors on non-financial information
xviii
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance
l
Remuneration Statement and Report
lxi
MedservRegis p.l.c.
Chairman’s Statement
For the Year Ended 31 December 2024
i
During 2024, the Group proudly celebrated 50 years of activity. As we told all stakeholders during our anniversary year, we anticipate that the next five to eight years should be good years. Demand for energy is increasing year on year and investment in our sector has once again picked up to match this upturn.
The energy sector is affected maybe more than other industries by the global political situation. This is one of the reasons our Group diversified our local presence in strategic locations as well as taken action to adapt our services to meet the ever-changing market demands. More importantly the careful long-term strategic management of the Group means we are in the right geographical locations, with the right product at the right time.
The payment of a dividend, the reduction of debt and the upturn in turnover in the second half of the year are the strongest statement we can present to justify our cautious optimism going forward. The stronger than forecasted results for the last quarter of the year under review reflects the beginning of this upturn. Strong performances are expected in two regions where we have a very strong presence, the Mediterranean and the Middle East. These regions are the first to feel the positive effect of the resurging market. We also expect other regions we service to pick up in activity on the back of the increased investment taking place.
None of this growth reported in our Annual Report would be possible without the professional performance put in by all members of staff around the world. It is indeed my pleasure to once again recognise this and thank all involved for their contribution.
I must also thank shareholders, bond holders and all stakeholders for the continued support. To my colleagues sitting on the Board of Directors I would like to extend my appreciation for your insight and guidance over the year.
Thank you.
Anthony S. Diacono
Chairman
22 April 2025
MedservRegis p.l.c.
CEO’s Statement
For the Year Ended 31 December 2024
ii
Balancing Risk & Opportunities
2024 was a pivotal year for our industry, marked by stability in oil prices not seen in 25 years. This environment created a unique opportunity for strategic planning and investment, enabling us to solidify our position in a highly competitive market. However, as we look ahead, it is clear that the energy sector stands on the cusp of transformation. The interplay of growing global energy demand, capital constraints, and evolving geopolitical and regulatory landscapes will define the next decade.
Our focus remains on balancing risks and opportunities while positioning ourselves for sustainable growth in a dynamic energy landscape.
Leveraging Industry Stability
The stability of oil prices throughout 2024 allowed operators to shift focus from reactive measures to long-term strategies. Oil demand remained at record highs, and while it is expected to moderate by the early 2030s, the demand for gas and LNG is set to grow significantly, with LNG projected to rise by 70% by 2040.1
This growth reinforces the need for our organization to:
•Strengthen our presence in regions poised for high operator spending, including the East Mediterranean Basin, Guyana, Suriname, and Africa.
•Expand our capabilities to support operators transitioning from exploration to development, ensuring we remain a key partner in meeting the global energy demand.
Managing Risks and Preparing for Growth
Geopolitical and regulatory uncertainties remain among the greatest risks to our industry. To mitigate these challenges, we are focusing on:
•Enhancing our risk management frameworks to address unpredictable regulatory changes.
•Prioritizing investments in regions with stable operating environments and strong growth potential.
At the same time, we anticipate accelerated spending by operators as the industry shifts from exploration to development. By aligning our strategies with these trends, we aim to capitalize on the opportunities created by this transition.
1 https://www.energyintel.com/00000194-6b8a-d57f-a1fe-6bbb4f490000
MedservRegis p.l.c.
CEO’s Statement (continued)
For the Year Ended 31 December 2024
iii
Financial Performance and Strategic Focus
In 2024, we delivered steady financial performance, reflecting disciplined execution and operational excellence. Key achievements include:
•Repurchasing of USD 1,000,000 of the 5.75% MedservRegis plc Unsecured USD Bonds 2026, bearing ISIN MT0000311242 at a price of USD 100 per bond (nominal value).
•The Group’s total revenues for the year 2024 amounted to €70 million compared with 2023 total revenues of €73.9 million.
•Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) amounted to €16.1 million (2023: €17.5 million).
Concluding Remarks
2024 demonstrated the resilience and adaptability of our organization in a stable yet evolving energy market. 2025 is expected to deliver improved results over that registered in 2024 mainly through the strong business pipeline in North Africa and the Middle East.
Looking ahead, our priorities are clear: deliver improved profitability with a balanced approach of dividend payments, reducing debt and the continuation of investment in information systems and market growth.
I would like to thank our employees, stakeholders, and partners for their unwavering support as we navigate this exciting and transformative era for our industry. Together, we are well-positioned to deliver long-term value and sustainable growth.
David S. O’Connor
CEO
22 April 2025
MedservRegis p.l.c.
Statement of Corporate Social Responsibility
For the Year Ended 31 December 2024
iv
As the Group grows, from the Mediterranean and the Middle East, to now spanning the African continent, MedservRegis p.l.c (MedservRegis) recognises the impact of its global reach and scale. As the Group broadens its geographic footprint, it does so with increased recognition of the responsibility to its network of stakeholders including partners, regulators, employees and the broader communities in which we all live and work.
Corporate governance
Maintaining integrity, ethical responsibility and reputation is a top priority at MedservRegis, one that is reliant on sound corporate governance. The Board of Directors sets high standards for the Group’s employees, officers and directors. In addition, it serves as the prudent fiduciary for the Company’s shareholders and is responsible for overseeing the management of the Group’s business. At MedservRegis, management ensures strict adherence to all applicable laws and practices fundamental to the business in every country it operates. As part of the Group’s risk framework, MedservRegis’ Financial Risk Committee reports quarterly to the Audit Committee and has oversight over risk management governance, risk management procedures and risk control infrastructure for the Group’s business and operations.
Environmental impact
Climate change is one of the defining issues of the time. MedservRegis strives for continual improvement of the environmental management system to conserve water and other natural resources, eliminate toxic and hazardous materials, prevent pollution, recover, reuse, and recycle materials. It addresses climate change by reducing the carbon footprint of its operations and services. The Group will continue to invest in conservation and work to reduce environmental footprint through renewable energy of photovoltaic panels, use water efficiently and responsible handling and disposal of hazardous waste.
Philanthropy
MedservRegis has engaged in a variety of philanthropic efforts to improve the local communities. The Group supports several global charitable organisations and has participated in volunteer opportunities related to environmental stewardship, reducing global hunger, promoting education and supporting equality.
For further information, please refer to the section “Social and Community Activities” within the “Statement by the Directors on non-financial information”.
Looking ahead
The Group’s approach to Corporate Social Responsibility is rooted in its core values and is applicable to the planet, people, and communities. MedservRegis considers each a key stakeholder to its business and remains focused on embedding sustainability throughout the organisation and beyond. Whether it’s reducing the carbon footprint of customers, supporting the development and inclusion of the global workforce, or giving back to the communities, the Group continues to believe that long-term sustainability is not simply being held responsible or benefiting the business, but is a requirement.
MedservRegis p.l.c.
Directors’ Report
v
The directors have prepared this directors’ report for MedservRegis p.l.c. (“the Company”) in accordance with Article 177 of the Companies Act, 1995 (Chapter 386, Laws of Malta) (“the Act”) including the further provisions as set out in the Sixth Schedule to the Act together with the financial statements of the Company for the year ended 31 December 2024.
Board of directors
Anthony S. Diacono
Carmelo (a.k.a. Karl) Bartolo
Laragh Cassar
David S. O’Connor
Olivier N. Bernard
Keith N. Grunow
Monica De Oliveira Vilabril
Jean Pierre Lhote
Principal activities
The Group’s principal activities, through its subsidiaries, consist of providing shore base logistics and engineering services to the offshore oil and gas industry and supply chain management for Oil Country Tubular Goods (OCTG) to support the onshore oil and gas industry. It also provides equipment, procurement, and specialised services to a wide range of customers, including national and international energy companies, drilling and mining companies, as well as product and equipment manufacturers and other heavy industry-related contractors across the globe, reaching the Mediterranean countries, Middle East, South America, sub-Saharan Africa including a number of emerging markets such as Mozambique, Uganda, and Angola.
The Group operates under three trading names, namely ‘Medserv’ in the Mediterranean basin and the Caribbean Community and Common Market (CARICOM) region, ‘METS’ being Middle East Tubular Services in the Middle East region and ‘Regis’ in sub-Saharan market.
Review of business development
The positive trajectory established in 2023 has continued in 2024, with substantial improvement taking place across the Middle East and the Mediterranean operating entities.
The Group’s performance has improved significantly in the second half of 2024. Turnover in the second half of 2024 increased from €32.2 million generated in the first half to €37.81 million (+17.4%) generated in the second half.
In 2023, the Group actively supported an offshore drilling campaign in Morocco, which was completed in December and contributed €8.9 million in revenue. That same year, there was also a higher level of drilling activity offshore Cyprus, generating an additional €2.4 million over the current year. Despite this decline, the Group achieved total revenue of €70 million in 2024, supported by improved revenues in Malta, the UAE, and Iraq. This performance underscores the resilience and geographic diversification of the Group’s operations.
The Group generated a profit after tax for the year amounting to €2.09 million (2023 profit: €1.29 million), resulting in an adjusted EBITDA of €16.1 million (2023: adjusted EBITDA €17.5 million) and operating cash inflows of €17.8 million (2023: €12.4 million). Adjusted EBITDA remained consistent, amounting to €8.1 million in the first half and €8 million in the second half of the year.
The Company, which primarily acts as a treasury vehicle and a corporate support hub for the Group, generated a profit for the year amounting to €4.78 million (2023 loss: €0.59 million).
MedservRegis p.l.c.
Directors’ Report (continued)
vi
The Integrated Logistics Support Services (ILSS) business segment of the Group in the Eastern Mediterranean region remains diversified, continuing to provide services to multiple international energy companies. This segment continues to secure the existing business pipeline through contract renewals and tendering. Business development is expected to continue to increase for the ILSS segment as the business pipeline remains strong.
The Group’s ILSS segments in Mozambique and the Caribbean region remained subdued during the reporting year. In Mozambique, activity continued to slow due to the force majeure imposed by TotalEnergies in the north. However, publicly available information indicates positive signs of movement, though the official lifting of the force majeure is still pending.
In contrast, offshore projects in Libya, supported by the shorebase in Malta, experienced a substantial ramp-up in activity during the last quarter of 2024, with client contracts now secured. New projects have already started in the first quarter of 2025. The Group anticipates a significant turnaround in the medium to long term in Mozambique as large projects are expected to restart. The Group is well positioned to secure business from this market.
In Guyana, the Group has established a start-up operation with equipment already in place to support the growing offshore oil and gas industry. With ExxonMobil leading major oil discoveries and Saipem actively involved in offshore development, Guyana has emerged as one of the world’s fastest-growing energy markets. The Group is strategically positioned to support offshore logistics and service requirements in this dynamic region.
Additionally, the Group has submitted various tenders in Suriname throughout the year, which are currently awaiting adjudication. With Suriname’s offshore oil sector gaining momentum following significant discoveries, the Group remains optimistic about securing new business opportunities in the market.
Business Model
The Company’s main objectives are focused on sustainable growth and registering profits. The strategy being adopted by the Company to achieve these objectives is a combination of securing growth opportunities in its core business, unlocking value with other key players in the supply chain as well as streamlining the business processes.
This operating culture is implemented through the Board of Directors’ oversight of management’s implementation of corporate strategy and financial objectives by reference to several criteria, including revenue, Adjusted EBITDA, projected earnings, country by country analysis and other anticipated criteria.
The Board of Directors sets the policy which then defines the requirement of the corporate management standards. Presently the Company’s corporate management system consists of fourteen key standards which are to be followed by its employees in their day-to-day operations.
The Board of Directors continues to instil a drive for growth within a business environment where our employees need to act in an exemplary manner in the following areas: health, safety, security, environment, social and governance in all their forms. It is through strict adherence to these values and to this course of action that the Company intends to build strong and sustainable growth for itself and for all its stakeholders.
Additionally, the Board sets non-financial smart objectives and targets on an annual basis to support continuous improvement of its Business Model. Progress and oversight of these non-financial smart objectives and targets is carried out through an internal audit programme and a reporting environment.
In order to evaluate the business management system, the Company is certified by international standards including ISO9001 Quality Management System, ISO14001 Environmental Management Systems, ISO28001 Security Management System, ISO45001 Health Safety Management System, and which are part of a surveillance audit plan by an external accredited body.
MedservRegis p.l.c.
Directors’ Report (continued)
vii
Principal risks and uncertainties
The Board considers the nature and the extent of the risk profile that is acceptable to the Board and the impact these risks pose to the Group. The most important strategic, corporate and operational risks, as well as uncertainties identified together with the actions taken by the Group to reduce these risks, are listed below:
Concentration risk: The Group’s business is heavily dependent on relatively few customers both in the shore base logistics and OCTG. The Group’s objective continues to be to increase client spread within the oil and gas industry. The strategic development team is continuously working to secure business with new International Energy Companies (IECs) and in new countries. The Company is also marketing its services to various energy industries and using its key assets to service non-oil and gas business in order to reduce its concentration on the oil and gas industry.
Political risk: The Group’s results may be significantly impacted positively or negatively as a result of political decisions. Regulatory and environmental decisions, as well as political instability can delay, disrupt or cancel projects. The fiscal and economic conditions in Libya remained fragile during the year, characterised by inflation and a persistent political strife. In Iraq, the political and security situation has been improving. Mozambique continues to remain a major security risk. The Group now operates in fourteen jurisdictions, mainly in Europe, Africa and the Middle East, with the intention of increasing its operational footprint in these regions and others to continue to minimise this risk. The war in Ukraine to date had no material impact on the Company’s operational capacity, financial performance and financial position, nor has it sustained any threats of any nature on the Company’s modus operandi. The directors do not foresee any direct or indirect impact on its business arising from the war in Ukraine. Furthermore, the Group's activities have remained mostly unaffected by the ongoing conflict in the Gaza Strip and the escalating tensions in the Middle East. Recent incidents involving attacks on vessels in the Gulf of Aden have led to some delays in our supply chain. However, this has also sparked a growing interest in our Group's OCTG repair and maintenance capabilities in the region, highlighting our resilience and adaptability in challenging circumstances.
Regulatory and environmental risk: The Group operates in fourteen jurisdictions which are highly regulated, and all have their own unique compliance frameworks. Environmental risks arise from exposures to activities that may cause or are affected by environmental degradation, such as pollution. An infringement in any of these laws and regulations may have significant liabilities and tarnish the Group’s brands, being Medserv, Regis and METS.
Oil price: Oil service companies tend to have greater volatility of earnings than oil majors, given their sensitivity to the capital spending plans of oil explorers, which wax and wane with oil prices. Similar to other players in the industry, an increase in oil prices would directly benefit the Group from increased services required by oil companies in preparation of the oil exploration, development and production. On the other hand, as oil prices decline, energy production companies focus their efforts on increasing operating efficiencies, these actions apply downward pressure on the rates charged by drillers, oilfield services companies, and other suppliers such as the Group entities. Accordingly, the Group’s profit margins may be tightened due to such weakened demand for the services offered and heightened industry competition to maintain market share. The Group is always striving to reduce this risk by investing in countries where cost of oil production is low, primarily in the Middle East. Also, the Group’s strategy is to increase the number of services offered.
MedservRegis p.l.c.
Directors’ Report (continued)
viii
Financial risk management: The Group has exposure to a variety of financial risks, namely credit risk, liquidity risk, market risk (including changes in foreign exchange rates, interest rates and market prices) and operational risk arising from the Group’s international operations. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. A detailed review of the risk management policies employed by the Group is included in Note 31 to the financial statements.
Financial performance
The Group’s turnover for the year amounted to €70,007,335. The Adjusted EBITDA of the Group amounted to €16,102,017. After recognising depreciation amounting to €8,335,315, amortisation of intangible assets of €1,238,413, an impairment loss on assets held for sale of €101,544 and net impairment loss on property, plant and equipment amounting to €146,449, the Group sustained an operating profit amounting to €6,280,296. After deducting the net finance costs amounting to €2,410,495, the Group registered a profit before tax of €3,869,801. Profit for the year after accounting for taxation amounted to €2,095,453.
Net cash generated from operations remained stable across the entire Group and during the year amounted to €17,395,973.
Adjusted EBITDA remained consistent, amounting to €8,073,744 in the first half and €8,028,273 in the second half of the year.
Revenue
The Group’s revenue was generated as follows:
Operating Segment
%
Integrated Logistics Support Services (ILSS)
52%
Oil Country Tubular Goods (OCTG)
47%
Photovoltaic income
1%
Cost of sales and administrative expenses
The cost of sales of the Group for the year amounted to €50,497,758. Cost of sales also include amortisation of intangible assets of €1,238,413, net impairment loss on assets held for sales of €101,544 and net impairment loss on property, plant and equipment amounting to €146,449.
Other income amounting to €227,233 is mainly made up of the foreign exchange differences during the year and an increase in the fair value of the financial assets at fair value through profit or loss. In addition, during the year, the Group continued its investment in its business development with the objective of participating in new tenders as opportunities presented themselves.
MedservRegis p.l.c.
Directors’ Report (continued)
ix
The Group - Financial key performance indicators from continuing operations
Year
2024
Year
2023
€ Million
€ Million
Total turnover
70.01
73.93
- Integrated Logistics Support Services (ILSS)
36.94
46.13
- Oil Country Tubular Goods (OCTG)
32.60
27.31
- Photovoltaic Farm
0.47
0.49
Adjusted EBITDA
16.10
17.50
Profit from continuing operations
2.10
1.29
Net cash generated from operating activities
17.40
12.40
Cash and cash equivalents
16.95
13.90
Total Equity
57.61
58.05
Balance sheet total
145.75
145.17
Capital expenditure
(4.88)
(2.68)
Adjusted EBITDA margin in %
23.00%
23.67%
Net debt to Adjusted EBITDA
3.26
3.11
Debt to total Equity ratio*
1.24
1.22
EPS in €
0.0184
0.0106
Average number of employees for the year
834
771
*Debt to total equity ratio is the proportion of the total of loans and borrowings, lease liabilities and bank overdraft to total equity
Financial position
The consolidated equity attributable to the owners of the Company as at 31 December 2024 amounted to €56.40 million. The equity attributable to the owners of the Company as at 31 December 2024 amounted to €24.49 million.
Dividends
A net and gross interim dividend of €1,000,003, representing €0.0098389 per share, was paid on 26 February 2024 out of tax-exempt profits.
The Board of Directors is recommending the payment of a final gross dividend for the year under review of €1.5 million, equivalent to €0.014758 per share, which dividend shall be paid by no later than 30 June 2025. Subject to the approval at the Annual General Meeting, the final gross dividends paid in respect of the financial year ended 31 December 2024 would amount to €2.5 million, equivalent to a gross dividend of €0.024597 per share (net €0.024060 per share for those shareholders subject the 15% withholding tax).
These financial statements do not reflect this proposed dividend which will be accounted for in shareholders’ equity as an appropriation of retained earnings in the year ending 31 December 2025.
Reserves
Retained earnings amounting to €25.6 million and €3.78 million for the Group and the Company, respectively, are being carried forward.
MedservRegis p.l.c.
Directors’ Report (continued)
x
Future developments
The Group’s strategy remains focused on continuing its growth trajectory across geographic markets, client base, and product offerings. Particular emphasis and investment will be placed on the shore base in Malta, which services both the offshore oil and gas industry in Libya and the non-oil and gas sector, supporting local contractors across various industries. Planned investments include facility upgrades, increased capacity through the acquisition of new heavy lifting equipment, and the expansion of storage facilities.
In addition, the Group will continue investing in METS operations by increasing machine shop capacity and developing its new facility in Abu Dhabi. This expansion aims to enhance its service offerings and support the Group’s entry into the Saudi Arabian market.
The Group is participating in several tenders and evaluating projects in both existing and new markets, particularly in Africa, South America and the Middle East, most of which are being driven by the Group’s existing clients.
Events occurring after the end of the accounting period
In February 2025, the Company repurchased a total of USD 99,900 of the 5.75% MedservRegis plc Unsecured USD Bonds 2026, bearing ISIN MT0000311242 at the price of USD 99.90 per bond. The repurchased bonds have been cancelled, reducing the outstanding nominal balance to USD 8,048,100 following the aforementioned cancellation.
Outlook
The oil and gas industry continues to be shaped by four fundamental forces: geopolitics, economic factors, evolving regulatory frameworks, and technological advancements. These dynamics influence global production levels, pricing structures, investment decisions, and energy transitions.
In 2024, global oil demand surpassed 100 million barrels per day (mbpd) for the first time, highlighting the continued relevance of hydrocarbons in the global energy mix. While growth is expected to persist into 2025, it will likely decelerate, with the International Energy Agency (IEA) forecasting an increase of 1.2 mbpd—down from 2.3 mbpd the previous year. Demand will remain concentrated in fast-growing economies such as China, India, and Brazil. At the same time, electric vehicle (EV) sales are accelerating, reflecting broader shifts in consumer behaviour and policy incentives. These seemingly contradictory trends underscore the regional complexity of the energy transition, where traditional and renewable energy sources continue to coexist and compete.
Market sentiment has also been buoyed by sustained oil prices and strong balance sheets across the industry. Investment levels in upstream oil and gas activities are holding firm, with capital expenditure in 2024 reaching approximately $580 billion, an 11% year-on-year increase. This capital momentum is expected to carry through into 2025, providing a stable platform for new project development across both mature and emerging basins.
Geopolitical developments—particularly the war in Ukraine and continued instability in parts of the Middle East—have re-emphasized the strategic importance of energy security. This has led to a short-term recalibration in energy strategies, with some countries increasing reliance on oil and gas while navigating the complexities of the energy transition. Notably, this has driven renewed investment interest in regions such as the Eastern Mediterranean, where large-scale discoveries and strategic proximity to European markets have strengthened its position as a key supplier.
However, unlocking the full potential of these resources remains contingent on addressing key geopolitical risks, resolving regional disputes, and building the infrastructure necessary to support long-term exports. Progress on these fronts will be instrumental in defining the pace and scale of exploration and development activity in the region over the coming years.
MedservRegis p.l.c.
Directors’ Report (continued)
xi
Against this global backdrop, the Group maintains a measured and opportunity-focused outlook for the year ahead. Industry fundamentals remain strong, providing a favourable environment for the Group to consolidate gains made over the past year. The strategic focus remains on margin growth, financial discipline, and operational efficiency. While the Group's financial exposure remains elevated, targeted risk mitigation efforts continue to be a key area of management attention.
Going concern
As required by Capital Markets Rule 5.62, upon due consideration of the Group’s and Company’s performance and statement of financial position, capital adequacy and solvency, the directors remain confident about the Group’s and Company’s ability to continue operating as a going concern for the foreseeable future.
Corporate Sustainability Reporting Directive (CSRD)
The CSRD entered into force in January 2023, strengthening the existing rules on non-financial or sustainability reporting introduced in the Accounting Directive by the Non-Financial Reporting Directive (NFRD)/CSRD. Under the CSRD, entities that satisfy the criteria for the first year of reporting, i.e. entities subject to NFRD/CSRD, such as the local group, were expected to report with effect from the 2024 financial year end. The CSRD has however not been transposed into local legislation to date.
During the first quarter of 2025, the market was presented with an Omnibus simplification proposal which seeks to streamline the compliance process. The proposal outlines several key threshold changes designed to refine and enhance reporting obligations. One of the notable adjustments includes raising the minimum criteria for entities required to report under the CSRD. This change aims to ensure that the most impactful organizations are held to higher standards of transparency and accountability, reflecting the significance of their influence on sustainability practices.
Management and the Board are closely monitoring the developments following the Omnibus proposal. This vigilance involves scrutinizing legislative updates, interpreting potential impacts on reporting obligations. By staying informed and agile in response to these regulatory shifts, management and the Board aim to ensure the group remains compliant and well-prepared for any changes.
The non-financial disclosures in terms of the requirements of the Sixth Schedule to the Maltese Companies Act (Cap. 386) are included in the Statement of the Directors on non-financial information on page xviii.
Auditors
PricewaterhouseCoopers Malta expressed their willingness to continue in office. A resolution proposing the reappointment of PricewaterhouseCoopers as auditors of the Company will be submitted at the forthcoming annual general meeting.
MedservRegis p.l.c.
Directors’ Report (continued)
xii
DISCLOSURE IN TERMS OF THE CAPITAL MARKETS RULES
The Company’s authorised share capital amounts to 120,000,000 shares of €0.10 each (2023: 120,000,000 ordinary shares of €0.10 each). The Company’s issued share capital amounts to 101,637,634 shares of €0.10 each (2023: 101,637,634 ordinary shares of €0.10 each), which have been subscribed for and fully paid up. All of the issued shares of the Company form part of one class of ordinary shares in the Company, which shares are listed on the Malta Stock Exchange. All shares in the Company have the same rights and entitlements and rank pari passu between themselves.
No modifications were made to the structure of the Company’s share capital during the year and no share issues were made. The Company did not acquire ownership of or any rights over any portion of its issued share capital.
The following are highlights of the rights attaching to the shares:
Dividends:
The shares carry the right to participate in any distribution of dividend declared by the Company.
Voting rights:
Each share shall be entitled to one vote at meetings of shareholders.
Pre-emption rights:
Subject to the limitations contained in the memorandum and articles of association, shareholders in the Company shall be entitled, in accordance with the provisions of the Company’s memorandum and articles of association, to be offered any new shares to be issued by the Company, a right to subscribe for such shares in proportion to their then current shareholding, before such shares are offered to the public or to any person not being a shareholder.
Capital distributions:
The shares carry the right for the holders thereof to participate in any distribution of capital made whether on a winding up or otherwise.
Transferability:
The shares are freely transferable in accordance with the rules and regulations of the Malta Stock Exchange, applicable from time to time.
Other:
The shares are not redeemable and not convertible into any other form of security.
Mandatory takeover bids:
Chapter 11 of the Capital Market Rules, implementing the relevant Squeeze-Out and Sell-Out Rules provisions of Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004, regulates the acquisition by a person or persons acting in concert of the control of a company and provides specific rules on takeover bids, squeeze-out rules and sell-out rules. The shareholders of the Company may be protected by the said Capital Market Rules in the event that the Company is subject to a Takeover Bid (as defined therein). The Capital Market Rules may be viewed on the official website of the Malta Financial Services Authority – www.mfsa.com.mt.
MedservRegis p.l.c.
Directors’ Report (continued)
xiii
Holdings in excess of 5% of the share capital:
On the basis of the information available to the Company as at the 31 December 2024, the following persons hold 5% or more of its issued share capital:
Shareholder
%
No of Ordinary Shares
DOCOB Limited
49.995%
50,813,817
Anthony J. Duncan
16.726%
17,000,000
Anthony S Diacono
13.227%
13,443,654
Rizzo Farrugia & Co (Stockbrokers) Limited obo clients
5.034%
5,116,714
As far as the Company is aware, no other person holds any direct or indirect shareholding in excess of 5% of its total issued share capital.
Appointment/Replacement of Directors:
In terms of the memorandum and articles of association of the Company, the directors of the Company shall be appointed by the shareholders in the annual general meeting as follows:
(a)Any shareholder/s who, in the aggregate, holds not less than 0.5% of the total shares having voting rights in the Company shall be entitled to nominate a fit and proper person for appointment as a director of the Company. The directors themselves or a committee thereof may make recommendations and nominations to the shareholders for the appointment of directors at the next following annual general meeting.
(b)Shareholders are granted a period of at least fourteen (14) days to nominate candidates for appointment as Directors. Such notice may be given by the publication of an advertisement in at least two (2) daily newspapers. All such nominations, including the candidate’s acceptance to be nominated as director, shall on pain of disqualification be made on the form to be prescribed by the Directors from time to time and shall reach the Office not later than fourteen (14) days after the publication of the said notice (the “Submission Date”); provided that the Submission Date shall not be less than fourteen (14) days prior to the date of the meeting appointed for such election. Nominations to be made by the Directors or any sub-committee of the Directors appointed for that purpose shall also be made by not later than the date established for the closure of nominations to shareholders.
(c)In the event that there are either less nominations than there are vacancies on the Board or if there are as many nominations made as there are vacancies on the Board, then each person so nominated shall be automatically appointed a director.
(d)In the event that there are more nominations made, then an election shall take place. After the date established as the closing date for nominations to be received by the Company for persons to be appointed directors, the directors shall draw the names of each candidate by lot and place each name in a list in the order in which they were drawn. The list shall be signed by the Chairman and the Company Secretary for verification purposes.
MedservRegis p.l.c.
Directors’ Report (continued)
xiv
(e)On the notice calling the annual general meeting at which an election of directors is to take place there shall be proposed one resolution for the appointment of each candidate in the order in which the names were drawn, so that there shall be as many resolutions as there are candidates. The Directors shall further ensure that any Member may vote for each candidate by proxy.
(f)At the general meeting at which the election of directors is to take place the Chairman shall propose the name of each candidate as a separate resolution and the shareholders shall take a separate vote for each candidate (either by a show of hands or through a poll). Each shareholder shall be entitled, in the event of a poll, to use all or part only of his votes on a particular candidate.
(g)Upon a resolution being carried, the candidate proposed by virtue of that resolution shall be considered elected and appointed a Director. No further voting shall take place once enough resolutions have been passed to ensure that all vacancies on the Board have been filled, even if there are still candidates with respect to whom a resolution has not yet been called.
(h)Shareholders may vote in favour or against the resolution for the appointment of a director in any election, and a resolution shall be considered carried if it receives the assent of more than 50% of the shareholders present and voting at the meeting.
(i)Unless a shareholder demands that a vote be taken in respect of all or any one or more of the nominees, in the event that there are as many nominations as there are vacancies or less, no voting will take place and the nominees will be deemed appointed directors.
(j)Subject to the above, any vacancy among the directors may be filled by the co-option of another person to fill such vacancy. Such co-option shall be made by the Board of Directors and shall be valid until the conclusion of the next annual general meeting.
(k)Any director may be removed, at any time, by the Member or Members by whom he was appointed. The removal may be made in the same manner as the appointment.
(l)Any director may be removed at any time by the Company in general meeting pursuant to the provisions of section 140 of the Act.
Amendment to the Memorandum and Articles of Association:
In terms of the Companies Act, Cap 386 of the laws of Malta, the Company may by extraordinary resolution at a general meeting alter or add to its memorandum or articles of association. An extraordinary resolution is one where:
(a)it has been taken at a general meeting of which notice specifying the intention to propose the text of the resolution as an extraordinary resolution and the principle purpose thereof has been duly given;
(b)it has been passed by a shareholder or shareholders having the right to attend and vote at the meeting holding in the aggregate not less than seventy-five per cent (75%) in nominal value of the shares issued
MedservRegis p.l.c.
Directors’ Report (continued)
xv
by the Company represented and entitled to vote at the meeting and at least fifty-one per cent (51%) in nominal value of all the shares issued by the Company and entitled to vote at the meeting.
If one of the aforesaid majorities is obtained but not both, another meeting shall be duly convened within 30 days to take a fresh vote on the proposed resolution. At the second meeting the resolution may be passed by a shareholder or shareholders having the right to attend and vote at the meeting holding in the aggregate not less than 75% in nominal value of the shares issued by the Company represented and entitled to vote at the meeting. However, if more than half in nominal value of all the shares issued by the Company having the right to vote at the meeting is represented at that meeting, a simple majority in nominal value of such shares so represented shall suffice.
Board Members’ Powers:
The Directors are vested with the management of the Company, and their powers of management and administration emanate directly from the memorandum and articles of association and the law. The Directors are empowered to act on behalf of the Company and in this respect have the authority to enter into contracts, sue and be sued in representation of the Company. In terms of the memorandum and articles of association they may do all such things that are not by the memorandum and articles of association reserved for the Company in general meeting. In particular, the Directors are authorised to issue shares in the Company with such preferred, deferred or other special rights or such restrictions, whether in regard to dividend, voting, return of capital or otherwise as the Directors may from time to time determine, as long as such issue of Equity Securities falls within the authorised share capital of the Company. Unless the shareholders otherwise approve in a general meeting, the Company shall not in issuing and allotting new shares:
(a)allot any of them on any terms to any person unless an offer has first been made to each existing shareholder to allot to him at least on the same terms, a proportion of the new shares which is as nearly as practicable equal to the proportion in nominal value held by him of the aggregate shares in issue in the Company immediately prior to the new issue of shares; and
(b)allot any of them to any person upon the expiration of any offer made to existing shareholders in terms of a) above. Any such shares not subscribed for by the existing shareholders may be offered for subscription to the general public under the same or other conditions which however cannot be more favourable to the public than offer made under (a).
Furthermore, the Company may, subject to such restrictions, limitations and conditions contained in the Companies Act, acquire its own shares.
Pursuant to Capital Markets Rules 5.64.2, 5.64.4, 5.64.5, 5.64.7, 5.64.10 and 5.64.11 it is hereby declared that, as at 31 December 2024, none of the requirements apply to the Company.
Pursuant to Capital Market Rule 5.64.6
The MedservRegis Group is required to obtain the consent of its bankers prior to any declaration of dividends.
MedservRegis p.l.c.
Directors’ Report (continued)
xvi
Pursuant to Capital Market Rule 5.70.1
There were no material contracts to which the Company, or any of its subsidiaries was a party, and in which anyone of the Company’s Directors was directly or indirectly interested.
Pursuant to Capital Market Rule 5.70.2
Company Secretary:
Dr Laragh Cassar LL.D.
Registered Office of Company:
Port of Marsaxlokk
Birzebbugia
BBG 3011
Malta
Company Registration Number:
C28847
Telephone:
(+356) 2220 2000
Approved by the Board of Directors on 22 April 2025.
MedservRegis p.l.c.
Statement of the Directors pursuant to Capital Markets Rule 5.68
xvii
To the best of the knowledge of the directors:
(i)the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
(ii)the Directors’ report includes a fair review of the performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Signed on behalf of the Board of Directors on 22 April 2025 by Anthony S. Diacono (Chairman) and David S. O’Connor (Director and CEO) as per Directors’ Declaration on ESEF Annual Report submitted in conjunction with the Annual Report 2024.
MedservRegis p.l.c.
Statement by the Directors on non-financial information
xviii
Non-financial disclosures in terms of the requirements of the Sixth Schedule to the Maltese Companies Act (Cap. 386)
Introduction
This report details the various actions taken by MedservRegis p.l.c. (the ‘Company’) as the parent company, and its subsidiaries (the ‘Group’) to enhance sustainability in terms of its operations and its activities related to corporate responsibility.
As described in more detail in the annual report, the Group provides onshore logistics services and engineering for Oil and Gas under ILSS and supply chain management for Oil Country Tubular Goods (OCTG).
The Group strives to integrate all aspects of sustainability into its operations, considering:
1.Environmental impacts, and the actions that can be taken to reduce them.
2.Social responsibility; and
3.Governance to oversee the implementation of practices in relation to the above.
The Group aims and strives to achieve the highest sustainability standards in the best way possible. It ensures that the resulting benefits are shared by its shareholders, clients and the community at large.
This report will delve into the ways the Group implements policies related to environmental protection, social responsibility, treatment of employees, respect for human rights, anti-corruption and bribery.
Sustainability
The Group considers value creation beyond its shareholders, capturing also its customers and the community at large, with the intention of delivering the highest standards to all stakeholders.
The Group is working to progressively enhance both its sustainability practices, and its continued awareness about the importance of such matters throughout its operations worldwide.
The concept of sustainability is firmly becoming a key part of the business, fully understood by its employees.
Governance
To successfully implement the designed sustainability practices across the Group and achieve the desired goals, the Group believes that strong governance processes are necessary. Appropriate governance oversight ensures that sustainability topics are fully integrated into the way the Group conducts its business as opposed to being seen as a separate matter.
The Board is responsible for determining the strategic priorities of the Group and considers sustainability issues as an integral part of the business review.
The Audit Committee assists the Board in providing focused oversight for the Group’s policies and related risks.
The Audit Committee met 4 times during 2024 with detailed minutes being kept of all proceedings and decisions taken.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xix
Risk Management
The Group is committed to conducting business in a safe and responsible manner, whilst also achieving customer, stakeholder and interested party feedback and satisfaction.
To ensure this, the Group implemented its Corporate Health, Safety, Security, Environment and Quality (‘HSSEQ’) Management System which outlines the required performance standards for the systems, processes, and procedures to effectively manage and implement HSSEQ within the Group. These HSSEQ standards also establish the required performance objectives which enable the Group to achieve this commitment and to ensure that all activities are conducted consistently. The HSSEQ standards also define our risk management processes and responsible officials.
Business risk mitigation
The Group’s business model is based on the International Oil and Gas Producers Operating Management System Standards (‘IOGP’). This operating system is an industry specific Global Oil and Gas Operating System that is adopted by many industry majors and other suppliers and contractors that are part of the supply chain. Due to the nature of our services and risks associated with our operating activities, the focus is on health, safety, environmental, security and quality standards.
Throughout the various continents in which the Group operates, it provides hazardous and high-risk services such as lifting operations and movement and handling of dangerous substances. The business risk focus area is on our high-risk areas of operations and is what drives our management system standards.
The current management system is considered an integrated operating management system. This means it has many management systems within an integrated framework. These include occupational health system, environmental system, security system, quality system, competency system and all feed our ESG reporting requirements.
The management system is also implemented at each of the Group’s operating entities. This provides standardization across the entire portfolio of operations which also brings efficiencies across the whole Group. It also supports collaborative planning and the sharing of positive and negative business failures and supports continual improvement by providing results of performance across the whole Group. This allows for review of the decisions to be taken in respect of improvements and SMART objectives.
The below list provides the corporate management standards for HSSEQ within the Group.
STANDARD 1 – LEADERSHIP & COMMITMENT
STANDARD 2 – POLICY & STRATEGIC OBJECTIVES
STANDARD 3 – ORGANISATION & COMMUNICATION
STANDARD 4 – HAZARDS & EFFECTS MANAGEMENT
STANDARD 5 – PURCHASING & CONTRACTOR MANAGEMENT
STANDARD 6 – DESIGN, OPERATIONS & MAINTENANCE
STANDARD 7 – INCIDENT INVESTIGATION & REPORTING
STANDARD 8 – EMERGENCY MANAGEMENT
STANDARD 9 – OCCUPATIONAL HEALTH & SAFETY
STANDARD 10 – ENVIRONMENTAL MANAGEMENT
STANDARD 11 – SECURITY MANAGEMENT
STANDARD 12 – DOCUMENT CONTROL & LEGAL REQUIREMENTS
STANDARD 13 – CHANGE MANAGEMENT
STANDARD 14 – PERFORMANCE MONITORING ASSESSMENT & REVIEW
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xx
The purpose of these standards is to:
-Implement the HSSEQ Policy,
-Formalise the expectations for the development and implementation of a specific and detailed HSSEQ management system,
-Provide a risk based HSSEQ framework consistent with ISO 9001, ISO 14001, ISO 45001 and IOGP HSE System Guidelines,
-Provide auditable criteria against which the HSSEQ Management System across MedservRegis can be measured,
-Drive continual improvement of the HSSEQ Management System.
Risk Management responsibilities are as follows:
Executive Officers:
-Ensure MedservRegis HSSEQ Policy is followed.
-Provide the required infrastructure and commitment for resourcing to effectively manage HSSEQ throughout the MedservRegis Group.
MedservRegis HSSEQ Executive Committee, Group HSSEQ Manager:
-Approve MedservRegis Group HSSEQ organization chart and Group level HSSEQ resourcing strategies.
-Develop and organize the MedservRegis HSSEQ Group HSSEQ Roles and Responsibilities.
-Develop and approve the RACI Chart.
-Overview of the MedservRegis HSSEQ Group Roles and Responsibilities.
MedservRegis Managers:
-Identify resource staffing strategies and requirements.
-Approve personal HSSEQ requirements.
-Approve staffing plans, organisational charts and position profiles.
-Ensure organisational charts are developed and maintained current.
-Monitor and ensure customer and interested party satisfaction.
HSSEQ Managers/Coordinators, Leaders and Specialists:
-Review and audit position profiles and changes of HSSEQ requirements.
Human Resources Department:
-Ensure that position profiles are prepared and maintained.
-Provide recruitment and qualified candidates.
-Communicating the position profiles to employees.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xxi
Ethical Conduct
Whistleblower policy
The Group’s set of values underpins its high standards of ethical conduct. It respects human rights, embraces diversity and stands firm against corruption. The Group’s Whistleblower Policy was prepared during 2022 and has been in force and in effect since Q2 2023, across all jurisdictions in which the Group operates. The Whistleblower Policy defines what is considered improper practice, procedures for employees to submit a disclosure, and other considerations including anonymity, confidentiality, protection provided by the policy and under the law. The Whistleblower Policy outlines a Whistleblowing Reporting Officer and their specific responsibilities under the Whistleblower Policy.
The primary objective of the policy is to establish procedures and protection which allows employees of the Group and members of the public to act on suspected fraud or corruption, which is also considered to comprise any instances of bribery, with potentially adverse ramifications and to achieve the legitimate business objectives of the Group for the benefit of its shareholders.
The Policy also outlines the systems that facilitate reporting of misconduct and the procedures to investigate and resolve malpractices. As a Group which values good governance, we remain committed to ensuring that staff act with utmost integrity through training and well-defined guidelines and procedures.
GDPR Policy
The Group’s GDPR policy extends the scope of EU data protection law to all foreign companies processing data of EU residents. It provides for a harmonization of the data protection regulations throughout the EU, thereby making it easier for non-European companies to comply with these regulations.
The Group considers personal data as any information relating to an individual, whether it relates to the individual’s private, professional or public life. It can be anything from a name, a home address, a photo, an email address, bank details, posts on social networking websites, medical information, or a computer’s IP address.
The Group’s GDPR policy outlines key responsibilities for individuals throughout the Group, principally lying with the data protection officer but also extending to all employees across various teams. The GDPR policy is based on key data protection principles which govern the collection, use, retention, transfer, disclosure, and destruction of personal data. The policy further comprises a GDPR compliance framework with procedures for notifying data subjects with information on the processing of their personal data, the processing of special categories of data, data retention, and data subject requests transfers between Group entities, amongst others.
The governance around data privacy is expected to be strengthened with Board reporting on data protection responsibilities, risks and issues, and the consolidation of control structures established to ensure that the Group, its employees and third parties are aware of their respective obligations under the GDPR and other data protection legislation.
The conditions for consent have been expanded in terms of GDPR. In particular, the Group needs to be able to demonstrate clearly how the individual provided consent to data processing. Mechanisms for obtaining and documenting consent are thoroughly reviewed and amended as appropriate to reflect the additional requirements of GDPR.
The information disclosure requirements have expanded considerably, and in particular, individuals need to be informed of the legal basis for processing their data, their rights as data subjects, data
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xxii
retention periods and that they have a right to complain to The Office of the Information and Data Protection Commissioner if they believe there is a problem with the way their data is being handled. Privacy notices are reviewed and amended to reflect the additional requirements of the GDPR.
Social and Employee matters:
Employees
As at 31 December 2024, the Group employed 866 individuals (2023: 798), comprising both full-time employees ('FTE') and temporary employees ('PTE'), excluding the Board of Directors. Of these, FTEs totalled 860 (2023: 789), while PTEs amounted to 6 (2023: 9) individuals. Male staff members in 2024 numbered 802 (2023: 739) individuals, accounting for 93% (2023: 94%) of the FTE workforce for the year.
In terms of gender representation across all roles:
•Management positions were held by 8.75% female employees in 2024 (compared to 12% in 2023).
•Administrative and clerical roles had 33.6% female representation (down from 38% in 2023).
•Operational roles (yard, drivers, security, and cleaning workers) included 2% female representation, a slight increase from 1% in 2023. Overall, the female workforce represented 7.4% of employees, consistent with 2023.
The historically male-dominated nature of the oil and gas services industry, coupled with fewer women pursuing relevant programs or qualifications, continues to result in a smaller female candidate pool. Challenges such as remote work locations, physically demanding environments, and long hours away from home – which may conflict with traditional caregiving responsibilities – further deter female applicants.
Among Maltese nationals employed in 2024 (both FTE and PTE roles and across various jurisdictions), 70 individuals were employed (an increase from 68 in 2023), with males accounting for 80% of this workforce (77% in 2023). Foreign national employees during the year numbered 764 (703 in 2023), with males comprising 93% of this demographic (94% in 2023). Notably, 69% of employees in the Group’s operational countries were local hires.
Employees – Training and competency
The Group values all its employees’ contribution and fully embraces the growth of skills, knowledge, and experience through training and development initiatives. By prioritizing employee competency, the Group ensures operational excellence, safety, and long-term sustainability.
The Group’s Competency Management System consists of the following pillars:
•Recruitment Process: Attracting and engaging the best candidates for each role.
•Detailed Job Descriptions: Clearly outlining the essential competencies required for every position.
•Site-Specific Training Matrices: Identifying competency requirements tailored to individual locations.
•Onboarding and Induction Programs: Familiarizing new employees with the Group’s culture, values, and operations.
•Personal Development Plans (Annual Appraisal): Supporting each employee’s career growth through structured evaluations and goal setting.
•Competency Standards: Ensuring safety and operational proficiency through rigorous on-the-job training and skill assessments.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xxiii
By investing in its workforce and promoting internal development, the Group fosters job satisfaction, enhances employee retention, and builds a motivated, highly skilled team. Mentorship programs, clear career progression opportunities, competitive compensation packages, and challenging roles further reinforce the Group’s commitment to employee development.
Employee retention in the oil and gas industry faces future challenges, with younger generations increasingly shifting toward renewable energy sectors. The Group is actively addressing this trend by ensuring its work environment remains appealing and aligned with employee expectations. The Group strives to be an exemplary employer by offering employees opportunities to develop and grow within the organization.
Operating across 11 countries, the Group provides employees with cross-cultural exposure and opportunities for job rotations within various aspects of its business. Training programs in multiple departments further enhance employees’ skills and expertise.
Equal opportunities are extended to all employees through continuous training and benchmarking for operational staff, department heads, managers, and senior personnel.
2024
2023
Average hours of training that the organisation’s employees have undertaken during the reporting period
Total no. of hours of training
8,476
6,904
Total no. of labour hours
1,807,722
1,561,530
Total no. of hours of training vs. total number of hours
0.47%
0.44%
Percentage of employees receiving regular performance and career development reviews (based on eligibility)
Number of employees receiving regular performance and career development reviews (based on eligibility)
699
433
% employees receiving regular performance and career development reviews (based on eligibility)
87%
65%*
* 8 % of the employees were ineligible for performance and career development reviews since they were either engaged on a definite contract for a short-term drilling campaign or recently recruited as part of the Group’s ongoing expansion plan.
These results reflect the Group’s unwavering commitment to enhancing employee capabilities and ensuring consistent performance evaluations. The increase in training hours and the higher percentage of employees receiving regular reviews demonstrate the Group’s focus on continuous improvement and employee engagement.
Diversity
The Group is committed to creating an inclusive and harmonious workplace, free from discrimination based on gender, age, nationality, religion, sexual orientation, disability, or other aspects of diversity. Employing individuals from 26 nationalities, the Group supports diversity through unbiased recruitment, continuous training, and a culture of respect and collaboration.
Family-friendly measures, including parental leave for both male and female employees, underscore the Group’s commitment to supporting parents.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xxiv
Health and Safety
The Group continues to improve its health and safety performance year-on-year which is measured through the Group HSSEQ reporting system. The reporting system measures data, including leading and lagging indicators, which provide analysis of trends and improvements and allow for programs to be developed for required focus areas.
Lagging indicators (reactive) include areas such as incidents and their types and risk severity such as vehicle incidents, quality incidents, security incidents, environmental incidents, asset damage incidents, medical treatment cases, first aid cases, lost time incidents, and fatalities.
Leading indicators (proactive) provide important information on how the Group is improving on areas of HSSEQ by reviewing performance against previous years. Leading indicators include corrective actions raised versus closed, safety observations raised, audits undertaken, leadership tours completed, near misses recorded, and HSSEQ meetings completed.
2024 HSSEQ Objectives & Targets (KPIs) were set by the Executive Management Team at the start of the year, and these are shown below.
1.1 Quality & Continuous Improvement
1.1.1: Country to achieve Closure of all open due SAI360 Actions by year end.
1.1.2: Country to issue an average of 2 QUALITY SHOC within ROAM Application or Via SAI Desktop per month per person
1.1.3.1: Part 1, Ensuring Implementation of Local Procedures: All local HSSEQ Procedures to be identified by Country Document Owners for all processes inclusive of Department Specific Processes (OPS, HR, BD, FIN etc.) and Listed on a Local Document Register (listed).
1.1.3.2: Part 2: Ensuring Implementation of Local Procedures: All local procedures to be approved by the document owners and uploaded and controlled upon the Intranet Local Document Register.
1.1.3.3: Part 3, Ensuring Implementation of Local Procedures: Process training provided to all applicable users for each of the procedures by each Country and evidence of training achieved readily available.
1.1.4: Leadership commitment. Country manager to make monthly leadership tours at each site.
1.2: Corporate Sustainability Reporting Directive
1.2.1: ESG Data to be uploaded monthly into EHS System with evidence attached for each submission of data and to be auditable by an external party
1.3: Risk Management & Incident Investigations
1.3.1: Investigations to be effectively closed within Group Procedure Timeframe of 10 working days
1.3.2: Post Incident preventative actions closed ahead of timeframe
1.3.3:Zero Incidents or injuries
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xxv
MedservRegis Data Bank HSSEQ for previous 5 years
Leading Indicators
2020
2021
2022
2023
2024
Total
HSE Action Items Opened
504
872
441
2,375
3,863
8,055
HSE Action Items Closed
423
1,028
366
2,094
3,682
7,593
HSE Meetings/TBTs
1,341
233
188
238
3,827
5,827
Leadership Tours
65
233
251
251
376
1,176
HSE Audit per Schedule
5
13
9
14
7
48
Safety Observations
1,119
5,676
5,200
3,295
4,151
19,441
Near Miss Incidents
3
4
4
12
4
27
Lagging Indicators
2020
2021
2022
2023
2024
Total
Fatalities
0
0
0
0
0
0
Lost Time Injury (LTI)
3
0
0
1
0
4
Medical Treatment Case
1
2
4
2
0
9
First Aid Cases
4
6
1
8
9
28
Security Incidents
1
5
4
3
6
19
Environmental Accidents
2
3
3
3
3
14
Assets Damage
5
15
9
21
21
71
Vehicle Incidents
4
15
13
5
15
52
Non-Tab
0
3
2
2
11
18
Quality
1
0
3
3
41
48
Man-Hours Worked
2020
2021
2022
2023
2024
Total
MedservRegis man hours worked
752,571
1,235,506
1,529,363
1,610,446
1,807,722
6,935,608
MedservRegis Contractors manhours worked
194,715
158,758
221,364
412,814
359,660
1,347,311
Total manhours worked
947,286
1,394,264
1,750,727
2,023,260
2,167,382
8,282,919
Frequency & Rates
2020
2021
2022
2023
2024
Total
Quantity Frequency Rate
3
0
0
1
0
4
LTIF Rate
3.17
0.00
0.00
0.49
0.00
0.48
Quantity of total recordable incident (TRI)
4
0
0
1
0
5
TRI Rate
4.22
0.00
0.00
0.49
0.00
0.60
Environment
When it comes to environmental issues and practices, the oil and gas service industry is continuously looking at ways to improve its environmental impacts and aspects. Within MedservRegis this is managed within the Group’s Environmental Management System.
This consists of procedures that are in place within each operating site to ensure at a local level environmental programs are in place to support consumption and waste reduction and good sustainability practices.
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The Group also provides environmental awareness to all employees and contractors to ensure all are aware of the environmental responsibilities required to support consumption reduction strategies as well as waste reduction strategies.
MedservRegis Environmental Management Procedures are as follows:
-Environmental Management Planning.
-Pollution Waste Management.
-Environmental Implementation and Operational Requirements.
-Environmental Monitoring Requirements.
The following are the Group environmental programs implemented for 2024 and designed to contribute to lowering MedservRegis Carbon Footprint. These programs include reducing consumption associated with fuel and energy use, waste diversion through recycling and circular economy initiatives and installation of green energy solutions.
Cyprus
Pollution reduction- local awareness campaign
Consumption reduction- LED lighting throughout
Consumption reduction- progress assessment for biofuels
Malta
Circular Economy- wood chip initiative
Renewables- 2MW solar farm installation
Plastic reduction- Reverse Osmosis System
Consumption reduction- client electrical vehicles
Consumption reduction- phasing in of Electric Forklifts
Consumption reduction- onsite EV Charger station
Consumption reduction- LED Yard lighting
Uganda
Circular Economy- Shredded paper donated for local bead making business
Consumption reduction- LED lighting throughout
Plastic reduction- recycling of plastics
Consumption reduction- motion detection for camp security lights
Consumption reduction- solar heaters for camp accommodation blocks
Consumption reduction- camp water harvesting and storage tank
Methane reduction- camp bio digesting system
Oman
Consumption reduction- Paper reduction via digitalization
Circular Economy- wood recycling project
Renewables- progressing PV Panel assessment
UAE
Consumption reduction- Paper reduction
Consumption reduction- Connection to SEWA Line
Consumption reduction- waterless Urinal installation
Iraq
Renewables- progressing PV panel assessment
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Statement by the Directors on non-financial information (continued)
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The following are the environmental statistics currently being measured and monitored by the Group:
Year
Water Usage
(m3)
Spills
Ltrs
Kg
2023
17,435
245
60
2024
23,416
25
15
Water Usage relates to metered water used by all MedservRegis operational sites across the whole group.
Spills relate to the estimated loss of fluids or materials that have happened during operational activities. Each spill has an investigation completed to identify the root cause and put in place corrective actions. The number of spills that have occurred across the group can be viewed in the Lagging Indicator Data Table.
Water consumption has gone up across the group by 19%. Water consumption increase is due to growth in the operations at UAE and small increases in water use at other operational sites. The total water footprint is 0.28% of the group carbon footprint in CO2-eq.
Spills recorded during 2024 amount to 3 spills with containment in place for these spills and avoiding any environmental damage. There are an estimated 25 litres in total volume involved and none identified as released to the environment or hazardous. The clean-up of these spills resulted in 15kg of hazardous waste being produced across the group which is assessed as insignificant due to containment achievement, volume spilled, and spills not meeting reporting requirements to the local authorities.
Year
Waste Data (Tons*)
Landfill
Hazardous
Recycled
2023
1,027
18
55
2024
434
20.5
84
Recycling has increased from last year due to improvements in waste management process across the group. This is especially applicable to operations in Oman who have managed to improve significantly by diverting waste to landfill and introducing circular economy practices for part of the year.
Year
Electricity
(kWh)
Fuel
(litres)
2023
591,196
727,290
2024
679,011
860,373
Electricity and Diesel use has also increased during 2024 when compared to 2023 by 15% and 18% respectively. This consumption rise is due to an increase in activities and man hours across the group during 2024. This is relevant to Cyprus operations with the starting of drilling activities offshore, additional assets and operations in UAE.
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Statement by the Directors on non-financial information (continued)
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Environmental focus areas for 2025 are as follows:
-Increase recycling across the group by implementing local strategies and environmental programmes at a site-specific level to reduce landfill waste.
-Reduce water consumption across the group by implementing local strategies and environmental programmes at a site-specific level.
-Reduce electricity consumption via energy saving initiatives across the group by implementing local strategies and environmental programmes at a site-specific level inclusive of PV systems.
-UAE reduction in use of diesel, convert to grid electricity to reduce CO2-eq kg outputs
-Continual assessment to ensure if assets are coming to the end of life, they are replaced with a greener asset such as electric or hybrid vehicles to reduce diesel consumption.
-Review and progress a possible business flying hours KPI with an objective to lessen impact on carbon footprint.
Quality
MedservRegis places a lot of focus on the quality aspects of our business. To ensure the quality of our processes and services there are several areas within the Group that are considered the main factors for ensuring the Plan, Do, Check, Act cycle of continual improvement is a constant part of our business practices. Quality aspects are managed and implemented upon the business management system or referred to as the MedservRegis Intranet. The following are areas where quality process is managed within the Group.
The following are the 2024 results of actions raised on the system that also show the sources of actions, indicating full use of the management system.
Actions By Site
Egypt
Morocco
Malta
Cyprus
Oman
Uganda
Mozambique
UAE
Other
Total
Total 2023
1,653
351
142
108
99
67
61
17
5
2,503
Total 2024
2,776
0
266
121
169
142
115
77
12
3,678
Document Management
Control of records and documents - MedservRegis has two document registers that host all controlled documents. The two registers are the corporate document register and the local document register. The corporate document register is where all corporate procedures and associated documents are available to view, download and use if required. This ensures employees are using or referring to approved documents, which is vital for ensuring process safety is adhered to. The local document register is where all country specific procedures and documents are hosted.
This also allows other business units to access similar procedures that may be required and aids efficiency as it prevents document owners creating procedures from scratch.
Internal Audit Program
Annual corporate full system HSSEQ audits are carried out in each operation and results reported to the executive team during annual review meetings. The audit ensures compliance with the Group standards and creates scorecards and action plans agreed with Country Managers. These are then measured against previous year’s results to check for continual improvement and ensure corrective action is taken where there are shortfalls.
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Statement by the Directors on non-financial information (continued)
xxix
Action Management
MedservRegis Corrective and Preventive Action Management System (CAPA) is implemented in each operating site and is the local tool used for managing continual improvement. This system is where all actions resulting from areas such as audits, investigations, observation cards, meetings, leadership tours and customer feedback are captured. The system is designed to manage the action process by ensuring custodians close out actions in specified timelines and check that they have been effective, and the issue should not happen again (close the loop). This is a valuable tool to the Group as it shows commitment to ensuring quality is maintained and improved and is how the Group demonstrates continual improvement across all operating entities.
Quality Certification
MedservRegis places importance on international certification of the management system. MedservRegis achieved Multi-site ISO Certification during 2023 across all operating sites for ISO 9001 Quality, 14001 Environmental and 45001 Occupational Health & Safety. Surveillance audits were conducted by our certification provider with zero non-conformances being observed.
Safety awards
MedservRegis were nominated by the British Safety Council as a finalist for the 2024 Health and Safety Transformation Award. The award nomination category was for how information and technology has supported HSE improvement across our company with the introduction of our EHS & Sustainability System. It was a great achievement to have been nominated for this award for our recognition of using technology to improve our occupational health and safety. This is especially rewarding when we were in the company of other nominees such as Petronas, GKN Aerospace, and Vodafone.
Customer Feedback
The management system customer feedback system allows for clients receiving services from MedservRegis to provide feedback on our performance. Feedback areas include emails received, phone calls taken, and feedback forms completed. Each local operation continually reviews the feedback to check for areas of corrective action. The feedback progress is provided to the client to ensure they are happy with our outcome and feel their contribution added value to our business. Overall customer satisfaction is reviewed by the executive team during the annual review to analyse if there are any areas of improvement required and recognize positive feedback.
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Statement by the Directors on non-financial information (continued)
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Consolidated disclosures pursuant to Article 8 of the Taxonomy Regulation
Introduction
In order to achieve the targets established by the European Union of reaching net zero greenhouse gas (‘GHG’) emissions by 2050, with an interim target of reducing GHG emissions by 55%, compared to 1990 levels, by 2030, the European Commission (‘EC’) has developed a taxonomy classification system, by virtue of EU Regulation 2020/852, (‘the Taxonomy Regulation’ or ‘the EU Taxonomy’), which establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable.
The EU Taxonomy establishes criteria in terms of six environmental objectives, against which entities will be able to assess whether economic activities qualify as environmentally sustainable. To qualify as such, an economic activity must be assessed to substantially contribute to at least one of these environmental objectives, whilst doing no significant harm (‘DNSH’) to the remaining objectives.
This is achieved by reference to technical screening criteria established in delegated acts to the EU Taxonomy. The economic activity is also required to meet minimum safeguards established in the EU Taxonomy.
The six environmental objectives considered by the EU Taxonomy are the following where climate-related environmental objectives (i-ii below) are established in the Climate Delegated Act (‘CDA’), whilst non-climate environmental objectives (iii-vi below) are established in the Environmental Delegated Act (‘EDA’).
i.Climate change mitigation;
ii.Climate change adaptation;
iii.Sustainable use and protection of water and marine resources;
iv.Transition to a circular economy;
v.Pollution prevention and control; and
vi.Protection and restoration of biodiversity and ecosystems.
The EC adopted a Delegated Act supplementing Article 8 of the Taxonomy Regulation (‘the Disclosures Delegated Act’) in 2021, which establishes the disclosure requirements of entities within the scope of the Taxonomy Regulation. At this stage, this solely comprises entities subject to an obligation to publish non-financial information pursuant to Article 19a or Article 29a of Directive 2013/34/EU (being those entities subject to the Non-Financial Reporting Directive, ‘NFRD’). However, the NFRD will be replaced by the Corporate Sustainability Reporting Directive (CSRD), once the latter is transposed into local legislation in 2025.
In the following section, the Group, as a non-financial parent undertaking, presents the share of its turnover, capital expenditure (CapEx) and operating expenditure (OpEx) for the reporting period ended 31 December 2024, which are associated with taxonomy-eligible and taxonomy-aligned economic activities for all six environmental objectives. The Group was exempt from reporting on alignment for these four environmental objectives in the first year. Reporting taxonomy alignment for objectives 3 to 6 became mandatory for non-financial undertakings from the financial year ending 31 December 2024. Accordingly, the Group is required to disclose both eligibility and alignment for all six environmental objectives.
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Statement by the Directors on non-financial information (continued)
xxxi
Our Activities
Overview
Proportion of taxonomy-eligible and taxonomy-aligned economic activities in total turnover, CapEx and OpEx in FY 2024
FY 2024
Total
€000
Proportion of taxonomy-eligible (non-aligned) economic activities
Proportion of taxonomy-aligned economic activities
Proportion of taxonomy non-eligible economic activities
Turnover
70,007
5.1%
0%
94.9%
CapEx
8,136
14.5%
0%
85.5%
OpEx
2,236
61.2%
0%
38.8%
The comparative period is as follows:
Proportion of taxonomy-eligible and taxonomy-aligned economic activities in total turnover, CapEx and OpEx in FY 2023
FY 2023
Total
€000
Proportion of taxonomy-eligible (non-aligned) economic activities
Proportion of taxonomy-aligned economic activities
Proportion of taxonomy non-eligible economic activities
Turnover
73,926
2.1%
0%
97.9%
CapEx
10,895
8.0%
0%
92.0%
OpEx
2,017
60.2%
0%
39.8%
Definitions
‘Taxonomy-eligible economic activity’ means an economic activity that is described in the delegated acts supplementing the Taxonomy Regulation (that is, the Climate Delegated Act and Environmental Delegated Act as of now), irrespective of whether that economic activity meets any or all the technical screening criteria laid down in those delegated acts.
The Climate Delegated Act is structured such that Annex I contains a list of activities and the respective technical screening criteria in relation to the Climate Change Mitigation objective, whereas Annex II relates to the Climate Change Adaptation objective, with potentially different activities being considered in both annexes.
The Environmental Delegated Act is structured such that Annexes I, II, III, and IV contain lists of activities and the respective technical screening criteria related to Water, Circular Economy, Pollution Prevention, and Biodiversity, respectively.
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Statement by the Directors on non-financial information (continued)
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A ‘taxonomy-aligned economic activity’ refers to a taxonomy-eligible activity which:
i.complies with the technical screening criteria as defined in the Climate Delegated Act, where such criteria comprise:
a)substantial contribution to one or more environmental objectives; and also
b)‘do no significant harm’ to any of the remaining environmental objectives;
ii.is conducted in compliance with minimum safeguards regarding human and consumer rights, anti-corruption and bribery, taxation, and fair competition.
A ‘Taxonomy-non-eligible economic activity’ means any economic activity that is not described in the delegated acts supplementing the Taxonomy Regulation.
A ‘Taxonomy-eligible but not aligned economic activity’ means an economic activity that is described in the delegated acts supplementing the Taxonomy Regulation but does not comply with any or all the technical screening criteria laid down in those delegated acts, and/or is not carried out in compliance with minimum safeguards.
Taxonomy-eligible and Taxonomy-aligned economic activities
The Group has examined all economic activities to determine both taxonomy eligibility and alignment in accordance with Annexes I and II of the Climate Delegated Act and Annexes I, II, III, and IV of the Environmental Delegated Act. The table below indicates the activities performed by the Group which have been identified as taxonomy-eligible and the environmental objective to which the activity may be associated with. Information on the extent to which the economic activities are also taxonomy-aligned is provided in the KPI templates further below.
Taxonomy-eligible activities were identified by extracting the total turnover, CapEx and OpEx required to be captured in the denominators of the respective KPIs and assessing the NACE code of the activities to which the amounts relate. The Group then assessed which of the identified NACE codes relate to activities included within the annexes to the Climate and Environmental Delegated Act. In the case of the identified eligible activities, the Group then began the process of assessing them against the technical screening criteria. However, this process is still currently ongoing (no activities presently being classified as taxonomy-aligned).
Through the activities highlighted in the table below, the Group generates turnover and may incur both CapEx and OpEx for these activities.
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Statement by the Directors on non-financial information (continued)
xxxiii
Taxonomy-eligible economic activities
Economic activity as per Climate Delegated Act
Description
Turnover (%) *
CapEx (%) *
OpEx (%) *
Climate change mitigation
Climate change adaptation
Water
Circular Economy
Pollution prevention
Biodiversity
Activity Codes
Electricity generation using solar photovoltaic technology
The generation and sale of electricity through PV panels installed by the Group
0.7
-
-


CCM 4.1, CCA 4.1
Transport by motorbikes, passenger cars and light commercial vehicles
The transportation services provided by the Group through electric vehicles leased and designated as category M1.
0.1
-
-


CCM 6.5, CCA 6.5
Sea and Coastal freight water transport, vessels for port operations and auxiliary activities
Freight forwarding services performed by the Group
4.2
-
-


CCM 6.10, CCA 6.10
Acquisition and ownership of buildings
Rental income generated from office premises owned by the Group
0.2
-
0.1


CCM 7.7, CCA 7.7
*% of the total turnover, CapEx and OpEx included in the denominator of the respective KPI
Taxonomy eligibility
Economic activities classified under activity 4.1 ‘Electricity generation using solar photovoltaic technology’ relates to the generation of electricity through solar photovoltaic (‘PV’) panels which is fed into the public electrical grid. Amounts in this respect have been allocated to activity 4.1 due to the electricity generated from the panels being fed into the public electrical grid, as opposed to being used exclusively for internal consumption within the Group’s premises. Had the latter been the case, the Group would have classified such activities under 7.6 ‘Installation, maintenance and repair of renewable energy technologies’.
Economic activities classified under activity 6.10 ‘Sea and Coastal freight water transport, vessels for port operations and auxiliary activities’ relates to turnover generated from freight forwarding services that the Group performs on behalf of its customers. Despite the Group not performing the freight activity itself, revenues from such an activity have been considered as taxonomy-eligible in accordance with the Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (second Commission Notice)’, particularly FAQ 20 ‘When should an undertaking be required to report under
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Statement by the Directors on non-financial information (continued)
xxxiv
the Disclosures Delegated Act an economic activity that has not been performed by the reporting entity itself but by a subcontractor’.
The Commission Notice states that “Reporting entities must report turnover from the activities performed by a subcontractor in accordance with the accounting treatment referred to in Section 1.1.1. of Annex I of the Disclosures Delegated Act. Therefore, the reporting entity should determine whether it recognises revenue arising from that activity as its own revenue under the principles set out in the applicable IFRS 15. Where revenue generated by a subcontractor is recognised as the revenue of the reporting entity, it must be included in the calculation of the turnover KPI”. Accordingly, the Group has included such revenue in the calculation of the turnover KPI.
Economic activities classified under activity 7.7 ‘Acquisition and ownership of buildings’ relates to turnover generated from office space that is owned by the Group and is rented out to third parties.
The Group leased 3 electric vehicles to provide transportation services to third parties and for in-house use, related to economic activities classified under activity 6.5 'Transport by motorbikes, passenger cars, and light commercial vehicles'.
Furthermore, in the case of repairs and maintenance costs incurred in relation to the Group’s buildings, given the lack of granularity in the data available, the Group has allocated the full amount to investment activities not directly related to turnover-generating activities (presented further below) given that the Group is not able to identify the costs which relate to the part of a building which is being rented out to third parties.
Other turnover-generating activities performed by the Group classified as taxonomy non-eligible
The Group’s taxonomy non-eligible economic activities largely relate to:
-The provision of warehousing and handling services for client’s equipment,
-Waste treatment and disposal,
-Facility management services, and
-The provision of cargo handling operation.
The Group’s cargo handling services relate to the loading and offloading of cargo from vessels through the operation of mobile cranes. Whilst the Climate Delegated Act does not establish technical screening criteria in relation to such an activity, and therefore the revenue generated would not be considered as taxonomy-eligible, the technical screening criteria established under activity 6.6 ‘Freight transport services by road’ may be viewed to assess the sustainability of the Group’s cargo handling services.
This view is predicated on the fact that the technical screening criteria established for the activity pertain to specifications of the vehicle utilised to perform the operation, and not the transportation of goods themselves. Therefore, whilst the Company’s vehicles are not utilised for the purposes of ‘freight transport services by road’, the technical screening criteria (as well as the ‘do no significant harm’ criteria) may be used to assess the sustainability of the vehicles operated by the Group in performing cargo handling operations.
Due to the lack of clear guidance on how such a situation should be treated, the Group has opted to classify the revenue generated from the provision of such services as taxonomy non-eligible. However, going forward, as further clarity may be provided on such circumstances by the EC, the view adopted by the Group may change, resulting in such activities being considered as taxonomy-eligible. The view adopted by the Group also applies to any CapEx and OpEx associated with the activity.
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Statement by the Directors on non-financial information (continued)
xxxv
Other taxonomy non-eligible activities also include:
-Identification of suppliers that may provide clients with services/goods they require, and
-Repairs and maintenance of machinery (the machinery of which does not relate to taxonomy-eligible activities).
Taxonomy eligibility of investment activities not directly related to turnover-generating activities
Further to the activities from which the Group generates turnover, and generally incurs both CapEx and OpEx, the Group also engages in investment activities not directly related to its turnover-generating activities as highlighted below.
Individually taxonomy-eligible CapEx/OpEx and the corresponding economic activities
Economic Activity
Description of the taxonomy-eligible purchased output or individual measure
CapEx
OpEx
Climate change mitigation
Climate change adaptation
Water
Circular Economy
Pollution prevention
Biodiversity
Activity Codes
(%)*
(%)*
Transport by motorbikes, passenger cars and light commercial vehicles
The acquisition of motor vehicles designated as category M1
1.9
8.8


CCM 6.5, CCA 6.5
Freight transport services by road
The acquisition of vehicles designated as category N1, N2 and N3
12.6
38.8


CCM 6.6, CCA 6.6
Acquisition and ownership of buildings
General repairs and maintenance of buildings utilised by the Group for its own activities
-
13.6


CCM 7.7, CCA 7.7
*% of the total CapEx and OpEx included in the denominator of the respective KPI
Included in the above are amounts that relate to the acquisition of vehicles utilised by the Group to perform its cargo handling operations, classified under activity 6.6 ‘Freight transport services by road’. Such CapEx is classified under investment activities not directly related to its turnover-generating activities given that the Group is currently considering the cargo-handling operation as taxonomy non-eligible.
However, as previously stated, should such activities be considered as taxonomy-eligible in the future, then the CapEx in this respect will be associated with turnover-generating activities of the Group.
CapEx relating to activities 6.5 ‘Transport by motorbikes, passenger cars and light commercial vehicles’ pertains to the acquisition of motor vehicles utilised in the ordinary course of business by Group employees.
Furthermore, the Group leased electric vehicles to provide transportation services to third parties, as well as for internal usage within the Group.
CapEx relating to activities 7.1 ‘Construction of new buildings’ relates to the development of new office premises.
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Statement by the Directors on non-financial information (continued)
xxxvi
Taxonomy alignment
Determining whether an activity meets the requirements to be classified as taxonomy-aligned requires considerable detailed information about the activity to properly assess it against the established technical screening criteria and minimum social safeguards.
The Group is currently in the process of gathering the necessary information to conclude that activities may be considered as taxonomy-aligned and verifying its accuracy. As a result of the ongoing process, the Group has not been able to substantiate the alignment of any of its activities in the current year.
Despite not being able to fully substantiate the alignment of any of its activities, the Group has identified an instance of partial alignment in the current year.
Economic activities classified as 4.1 ‘Electricity generation using solar photovoltaic technology’ have been assessed to meet the substantial contribution criteria under the climate change mitigation objective, being that the activity generates electricity using solar PV technology. However, the Group is still in the process of assessing certain elements of the DNSH criteria. In relation to climate change adaptation, the Group is yet to undertake a physical climate risk assessment on the location in which the PV panels are installed and is still to assess the durability and recyclability of the components utilised in the manufacture of the PV panels to ensure no significant harm towards the transition to a circular economy. With respect to the protection and restoration of biodiversity and ecosystems, the Group is confident that the DNSH criteria have been met, given the approvals obtained surrounding the project location.
As further progress is made in the Group’s internal assessment process, certain activities may be identified as taxonomy-aligned without the need for further capital investments.
However, as a result of no activities being considered as taxonomy-aligned in the current year, disclosure requirements surrounding the assessment of taxonomy-alignment in accordance with section 1.2.2.1 of the Disclosures Delegated Act are not deemed to be applicable to the Group.
Our KPIs and accounting policies
The key performance indicators (‘KPIs’) comprise the turnover KPI, the CapEx KPI and the OpEx KPI. In presenting the Taxonomy KPIs, the Group uses the templates provided in Annex II to the Disclosures Delegated Act. Since the KPIs need to include an assessment of taxonomy-alignment of Annex I, II, III and IV for the first time for the reporting period 2024, the Group does present comparative figures on taxonomy alignment for Annex I, II, III and IV of environmental objective. Moreover, since the Group itself is not performing any of the activities related to natural gas and nuclear energy (activities 4.26-4.31), the Group is only disclosing the dedicated template I and such requirement emanating from Annex XII of the Disclosures Delegated Act.
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Statement by the Directors on non-financial information (continued)
xxxvii
Turnover KPI template for financial year 2024
Proportion of turnover / Total turnover
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0%
0.7%
CCA
0%
4.3%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0%
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Statement by the Directors on non-financial information (continued)
xxxviii
CapEx KPI template for financial year 2024
v
Proportion of CapEx / Total CapEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0%
14.5%
CCA
0%
0%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0%
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Statement by the Directors on non-financial information (continued)
xxxix
OpEx KPI template for financial year 2024
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
0%
47.6%
CCA
0%
13.6%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0%
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Statement by the Directors on non-financial information (continued)
xl
EU Taxonomy templates - Annex XII
The following is the template to be disclosed by the Group, such requirement emanating from Annex XII of the Disclosures Delegated Act.
Template 1: Nuclear and fossil gas related activities
Template 1 indicates whether, or not the Group has exposures to nuclear energy and fossil gas related activities. In the current financial year, the Group does not have any exposures which carry out nuclear energy and fossil gas related activities and that are also required to disclose templates relating to the Complementary Climate Delegated Act. The Group consequently does not disclose the remainder of the nuclear and fossil gas related templates found in Annex XII of the Disclosures Delegated Act (Templates 2 - 5).
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
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Statement by the Directors on non-financial information (continued)
xli
The specification of the KPIs is determined in accordance with Annex I to the Disclosures Delegated Act. The Group adopts the methodology to determine taxonomy-alignment in accordance with the legal requirements and describes its policies in this regard as follows:
Turnover KPI
Definition
The proportion of taxonomy-aligned economic activities out of the total turnover has been calculated as the part of net turnover derived from products and services associated with taxonomy-aligned economic activities (numerator) divided by the net turnover (denominator), in each case for the financial year from 1 January 2024 to 31 December 2024. Given that the Group has not identified any taxonomy-aligned economic activities, the current proportion of alignment is 0%.
The denominator of the turnover KPI is based on the consolidated net turnover in accordance with paragraph 82(a) of IAS 1. For further details on our accounting policies regarding the Group’s consolidated net turnover, refer to disclosure note 4.12 ‘Revenue’ in the Group’s consolidated financial statements included in this Annual Report.
Reconciliation
The Group’s consolidated net turnover captured in the denominator of the KPI of €70,007,335 (2023: €73,926,336) reconciles with the amount disclosed in the ‘Revenue’ financial statement line item included in the statement of profit or loss and other comprehensive income in the consolidated financial statements included in this annual report. Additionally, the amount also reconciles to the revenue disclosure note 8.
2024
Revenue reconciliation
Amount (€000)
Amount (€000)
Turnover as per KPI denominator
70,007
Turnover as per the consolidated financial statements relating to:
Integrated logistics support services
36,939
Oil country tubular goods
32,599
Photovoltaic farm
469
70,007
Disclosure note 8
Difference
-
2023
Revenue reconciliation
Amount (€000)
Amount (€000)
Turnover as per KPI denominator
73,926
Turnover as per the consolidated financial statements relating to:
Integrated logistics support services
46,128
Oil country tubular goods
27,306
Photovoltaic farm
492
73,926
Disclosure note 8
Difference
-
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xlii
The following is a detailed breakdown of the turnover generated by the Group in accordance with the 3 categories of revenue disclosed in the consolidated financial statements in Note 8, amongst the different activities disclosed in the Turnover KPI.
2024
Detailed breakdown of ‘Integrated logistics support services’
Amount (€000)
Amount (€000)
Integrated logistics support services turnover as per the consolidated financial statements
36,939
Allocation of services in the turnover KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
44
6.10 Sea and coastal freight water transport, vessels for port operations and auxiliary
Activities
2,906
7.7 Acquisition and ownership of buildings
117
Taxonomy non-eligible
33,872
36,939
Difference
-
2023
Detailed breakdown of ‘Integrated logistics support services’
Amount (€000)
Amount (€000)
Integrated logistics support services turnover as per the consolidated financial statements
46,128
Allocation of services in the turnover KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
16
6.10 Sea and coastal freight water transport, vessels for port operations and auxiliary
Activities
907
7.7 Acquisition and ownership of buildings
117
Taxonomy non-eligible
45,088
46,128
Difference
-
2024
Detailed breakdown of ‘Oil country tubular goods’
Amount (€000)
Amount (€000)
Oil country tubular goods turnover as per the consolidated financial statements
32,599
Allocation of services in the turnover KPI
Taxonomy non-eligible
32,599
32,599
Difference
2023
Detailed breakdown of ‘Oil country tubular goods’
Amount (€000)
Amount (€000)
Oil country tubular goods turnover as per the consolidated financial statements
27,306
Allocation of services in the turnover KPI
Taxonomy non-eligible
27,306
27,306
Difference
2024
Detailed breakdown of ‘Photovoltaic farm’
Amount (€000)
Amount (€000)
Photovoltaic farm turnover as per the consolidated financial statements
469
Allocation of services in the turnover KPI
4.1 Electricity generation using solar photovoltaic technology
469
Taxonomy non-eligible
-
469
Difference
-
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xliii
2023
Detailed breakdown of ‘Photovoltaic farm’
Amount (€000)
Amount (€000)
Photovoltaic farm turnover as per the consolidated financial statements
492
Allocation of services in the turnover KPI
4.1 Electricity generation using solar photovoltaic technology
492
Taxonomy non-eligible
-
492
Difference
-
CapEx KPI
Definition
The CapEx KPI is defined as taxonomy-aligned CapEx (numerator) divided by the Group’s total CapEx (denominator). Given that the Group has not identified any taxonomy-aligned economic activities, the current proportion of alignment is 0%.
Total CapEx consists of additions to tangible and intangible fixed assets during the financial year, before depreciation, amortisation, and any remeasurements, including those resulting from revaluations and impairments, as well as excluding changes in fair value. It includes acquisitions of tangible fixed assets (IAS 16), intangible fixed assets (IAS 38) and right-of-use assets (IFRS 16). Acquisitions of investment properties (IAS 40) and additions because of business combinations would also be captured, however, the Group had no such CapEx in the current year. For further details on our accounting policies regarding the Group’s CapEx, refer to disclosure notes 4.5 ‘Property plant and equipment’, 4.6 ‘Intangible assets and goodwill’ and 4.7 ‘Leases’, in the Group’s consolidated financial statements included within this annual report.
The Disclosures Delegated Act established three categories under which to classify CapEx:
a.CapEx related to assets or processes that are associated with Taxonomy-aligned economic activities (“category a”). In this case, the Group considers that assets and processes are associated with Taxonomy-aligned economic activities where they are essential components necessary to execute an economic activity.
The Group follows the generation of external revenues as a guiding principle to identify economic activities that are associated with CapEx under this category (a).
No eligible CapEx has been identified by the Group under this category in the current year.
b.CapEx that is part of a plan to upgrade a Taxonomy-eligible economic activity to become Taxonomy-aligned or to expand a Taxonomy-aligned economic activity (“category b”).
The Group has currently not developed such a plan, and therefore, no CapEx is considered to be eligible under this category.
c.CapEx related to the purchase of output from Taxonomy-aligned economic activities and individual measures enabling certain target activities to become low-carbon or to lead to GHG reductions (“category c”).
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xliv
The Group distinguishes between the purchase of output and individual measures as follows:
•‘Purchase of output’ relates to when the Group just acquires the product or service that is mentioned in the activity description
•‘Individual measure’ refers to when the Group acquires a product through an activity that is regularly performed by the supplier, but where the Group controls the content and design of the product in detail.
Eligible CapEx under this category has been disclosed in the table named ‘Individually taxonomy-eligible CapEx/OpEx and the corresponding economic activities’ in the ‘Taxonomy eligibility of investment activities not directly related to runover generating activities’ section above. The full amount of CapEx considered under this category relates purely to ‘purchase of output’.
Purchases of output qualify as taxonomy-aligned CapEx in cases where it can be verified that the respective supplier performed a taxonomy-aligned activity to produce the output that the Group acquired. Since taxonomy-alignment also includes DNSH criteria and minimum safeguards, the Group is not able to assess the Taxonomy-alignment on its own. For the purchased output in 2024, the Group was not able to obtain any conclusive confirmation of taxonomy-alignment.
Given that no CapEx was incurred by the Group in the current year in relation to “category a”, which relates to turnover-generating activities, the Group considers there to be no risk of double counting in the CapEx KPI between categories “a” and “c” with the amount being allocated in full to “category c”.
Reconciliation
The Group’s total CapEx captured in the denominator of the KPI can be reconciled to the consolidated financial statements of the Group included in this annual report, by reference to the respective disclosures capturing the additions for intangible assets, right-of-use assets and property, plant and equipment.
2024
CapEx Reconciliation
Amount (€000)
Amount (€000)
CapEx as per KPI denominator
8,136
Additions as per the consolidated financial statements relating to:
Property, plant and equipment
4,880
Disclosure note 14
Intangible assets
-
Disclosure note 15
Right-of-use assets
3,256
8,136
Disclosure note 32
Difference
-
2023
CapEx Reconciliation
Amount (€000)
Amount (€000)
CapEx as per KPI denominator
10,895
Additions as per the consolidated financial statements relating to:
Property, plant and equipment
2,680
Disclosure note 14
Intangible assets
-
Disclosure note 15
Right-of-use assets
8,215
10,895
Disclosure note 32
Difference
-
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xlv
The following is a detailed breakdown of the property, plant and equipment, intangible assets and right of use assets amongst the different activities disclosed in the CapEx KPI.
2024
Detailed breakdown of property, plant and equipment additions
Amount
(€000)
Amount
(€000)
PPE additions as per the consolidated financial statements
4,880
Allocation of PPE in the CapEx KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
154
6.6 Freight transport services by road
1,024
Taxonomy non-eligible
3,702
4,880
Difference
-
2023
Detailed breakdown of property, plant and equipment additions
Amount
(€000)
Amount
(€000)
PPE additions as per the consolidated financial statements
2,680
Allocation of PPE in the CapEx KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
110
6.6 Freight transport services by road
584
7.1 Construction of new buildings
7
7.4 Installation, maintenance, and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
50
Taxonomy non-eligible
1,929
2,680
Difference
-
2024
Detailed breakdown of right of use asset additions
Amount (€000)
Amount (€000)
Right of use asset additions as per the consolidated financial statements
3,256
Allocation of ROU in the CapEx KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
-
Taxonomy non-eligible
3,256
3,256
Difference
-
2023
Detailed breakdown of right of use asset additions
Amount (€000)
Amount (€000)
Right of use asset additions as per the consolidated financial statements
8,215
Allocation of ROU in the CapEx KPI
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
117
Taxonomy non-eligible
8,098
8,215
Difference
-
No detailed breakdown in relation to intangible assets is deemed necessary given that no additions occurred during the year.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xlvi
OpEx KPI
Definition
The OpEx KPI is defined as taxonomy-aligned OpEx (numerator) divided by the Group’s total OpEx (denominator).
Total OpEx consists of direct non-capitalised costs that relate to building renovation measures, short-term leases as well as all forms of maintenance and repair. In general, this includes staff costs, costs for services and material costs for daily servicing and well as for regular and unplanned maintenance and repair measures.
The OpEx considered by the Group does not include expenses relating to the day-to-day operation of PPE, such as raw materials, cost of employees operating any equipment and electricity or fluids that are necessary to operate the PPE. Amortisation and depreciation are also not included in the OpEx KPI.
The Group also excludes direct costs for training and other human resources adaptation needs from the denominator and the numerator. This is because Annex I to the Disclosures Delegated Act lists these costs only for the numerator, which does not allow a mathematically meaningful calculation of the OpEx KPI.
The OpEx of the Group recognised during the financial year ended December 2024 is disclosed further in the Group’s consolidated financial statements included within this annual report in disclosure note 10 ‘Expenses by nature’.
Given that the Group has not identified any CapEx as being taxonomy-aligned, naturally, no OpEx is able to be considered as taxonomy-aligned.
Social and Community Activities (CSR)
The Group is dedicated to fostering meaningful engagement with the communities in which we operate. Through donations, volunteering, and sustainable practices, we aim to create a positive social and environmental impact while supporting the well-being of our employees and communities.
MedservRegis’ employees actively engage with local communities where we operate and contribute positively to societal well-being. Such examples taken place this year:
Malta
•Sustainability Initiatives: MedservRegis Malta continued its commitment to sustainability by supporting eco-friendly practices through its in-house wood-chipping operations in partnership with Project Green, ensuring environmentally responsible waste management.
•STEM Support: Sponsored the IEEE R8 Robot Championship held in Malta, which promotes science, technology, engineering, and mathematics (STEM) education, teamwork, and innovation.
•Charity Contributions: Organized a toy collection initiative for the Rainbow Ward, bringing joy to children undergoing cancer treatment. Employees from all departments donated new toys to brighten the lives of young patients.
•Cultural Heritage: Celebrated Maltese traditions, such as sharing the almond-based pastry "L-Għadam tal-Mejtin" to connect employees with the island’s rich cultural heritage.
•Employee Support: Sponsored an employee representing Malta at the European Championship in the Netherlands, reflecting our commitment to supporting personal and professional achievements.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xlvii
Cyprus
•Support for Children: Donated to Limassol’s "House of Child" orphanage and the Elpida Foundation for Children with Cancer, providing financial support and essential items to enhance the lives of vulnerable children.
•Breast Cancer Awareness: Partnered with Europa Donna Cyprus to promote breast cancer awareness among employees, including educational sessions and the provision of gifts that directly supported the organization’s initiatives.
•November Campaign: Raised awareness about men’s health issues, including prostate cancer and mental health, through educational sessions and free Prostate-Specific Antigen (PSA) tests for male employees.
•Seasonal Giving: Organized Christmas donations for children at "House of Child," spreading joy through the festive season by delivering personalized gifts.
Mauritius
•Educational Support: Supported the I61 Foundation’s Sunkids Educational, Care, and Development Program, which offers academic assistance and meals to underprivileged children aged 5 to 12. The Group contributed to renovating a kitchen, now serving:
o 45 children in the After-School Project (Monday–Wednesday).
o 32 children at Paille en Queue Pre-Primary School (daily).
o 20 youth in the Youth Empowerment Project (two days per week).
This initiative directly improves the lives of vulnerable children by ensuring they receive both education and nutrition.
•Health Awareness: Participated in breast cancer awareness initiatives, including charity events such as Zumba sessions and a trail run, emphasizing the importance of early detection and support.
Uganda
•Community Outreach: Regis Uganda Limited visited Missionaries of the Poor, a charitable organization supporting children and adults with disabilities as well as street children. This organization houses 69 children in its male section alone and provides them with care, education, and skill development opportunities.
Employees donated essential items, including food, bedding, detergents, and diapers, during the festive season, bringing warmth and joy to those in need. As the Group’s first CSR activity in Uganda, this initiative set a strong foundation for ongoing community engagement.
UAE, Oman, and Iraq
•Health and Wellness: Launched the "30x30 Fitness Challenge," encouraging employees to dedicate 30 minutes daily to physical activity for 30 days. Over 70% of employees participated, reporting improved physical and mental well-being.
•Health Campaigns: Participated in the Mega Medical Campaign organized by Thumbay Hospital, offering employees essential health check-ups and fostering awareness of preventive care.
Group-Level CSR Impact
Across all locations, the Group actively promotes diversity, inclusion, and employee well-being through initiatives such as:
•Supporting women’s empowerment on International Women’s Day with donations to relevant organizations.
•Providing employees with opportunities to engage in cross-cultural programs, fostering collaboration and respect among diverse teams.
•Encouraging sustainability and environmental responsibility in all operational practices.
MedservRegis p.l.c.
Statement by the Directors on non-financial information (continued)
xlviii
OVERALL
The year 2024 was a true reflection of a strong mutual support amongst our employees. This positive spirit has strongly emerged together and is now reflected in the whole MedservRegis Group.
Approved by the Board of Directors on 22 April 2025
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance
xlix
Introduction
Pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority, MedservRegis p.l.c. (the “Company”) as a company whose equity securities are listed on a regulated market, should endeavour to adopt the Code of Principles of Good Corporate Governance contained in Appendix 5.1 of the Capital Markets Rules (the “Code”). In terms of Capital Market Rule 5.94, the Company is obliged to prepare a report explaining how it has complied with the Code. For the purposes of the Capital Markets Rules, the Company is hereby reporting on the extent of its adoption of the recommended Code.
The directors all share the conviction that the practices recommended by the Code are in the best interests of the MedservRegis plc group of companies (the “Group”) and its shareholders generally and that compliance therewith is not only expected by investors but also evidences the directors’ and the Company’s commitment to a high standard of governance.
Good corporate governance is the collective responsibility of the Board of Directors of the Company (the “Board”). As demonstrated by the information set out in this statement, the Company believes that it has, save as indicated in the section entitled “Non-Compliance with the Code”, throughout the accounting period under review, applied the principles and complied with the provisions of the Code. In the Non-Compliance section, the Board indicates and explains the instances where it has departed from or where it has not applied the Code, as allowed by the Code.
Part 1: Compliance with the Code
Principle 1: The Board
The Board’s principal purpose is to provide the required leadership of the Company, to set the present and future strategy of the Company and to ensure proper oversight and accountability.
During 2024, the Board was composed of the following directors:
Name
Position
Anthony S. Diacono (Chairman)
Non-Executive Director
David S. O’Connor
Executive Director
Olivier N. Bernard
Executive Director
Carmelo (a.k.a Karl) Bartolo
Executive Director
Laragh Cassar
Non-Executive Director
Keith N. Grunow
Non-Executive Independent Director
Monica Vilabril
Non-Executive Independent Director
Jean Pierre Lhote
Non-Executive Independent Director
All the directors were nominated by the shareholders and appointed automatically with effect from the annual general meeting held on the 29 th May 2024.
The Board is composed of persons who have the necessary characteristics and experience to render them fit and proper to direct the business of the Company.
The Board is of the view that the directors have the requisite elements of honesty, competence and integrity to qualify as fit and proper persons. The presence of the executive directors on the Board is designed to ensure that the Board has direct access to the individuals having the prime responsibility for the executive management of the Company and the implementation of approved policies. Each director is provided with the information and explanations as may be required by any particular agenda item.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
l
The Board delegates specific responsibilities to an Audit Committee, to a Remuneration Committee and to a Financial Risk Committee. Further details in relation to the said committees and the responsibilities of the Board are found in Principles 4 and 5 of this Statement.
The directors and Restricted Persons (as defined in the Capital Markets Rules) are informed and are aware of their obligations on dealings in securities of the Company within the established parameters of the law and the Capital Markets Rules. Each such director and senior officer has been provided with the Market Abuse Procedure policy required in terms of Capital Markets Rule 5.106.
Principle 2: Chairman and Chief Executive
The Chairman of the Company (which position is occupied by Anthony S. Diacono) leads the Board and sets its agenda. In addition, the Chairman ensures that the directors receive precise, timely and objective information so that they can take sound decisions and effectively monitor the performance of the Company and that effective communication with shareholders is maintained. The Chairman also encourages active engagement by all directors for discussion of complex or contentious issues. Working hand in hand with the Chairman is the Chief Executive Officer (CEO) (which position is occupied by David S. O’Connor), who leads the executive management of the Group. The CEO is assisted by two Deputy CEOs – Deputy CEO for Business and Operations occupied by Carmelo (a.k.a Karl) Bartolo and Deputy CEO for Finance, Administration, Investment and Trade, occupied by Olivier Bernard.
The CEO has the primary task of leading the development and execution of the Company’s long-term strategy as well as providing direction and leadership towards the achievement of the Company’s philosophy, mission, strategy and its annual goals and objectives.
As set out in Part 2: Non-Compliance with the Code, Principle 2 - Code Provision 2.3, whilst considering Anthony S. Diacono as duly fulfilling the role required of Chairman in terms of the Capital Markets Rules, Anthony S. Diacono is not considered to meet the independence criteria set out in the Capital Markets Rules.
Principle 3: Composition of the Board
The Board considers that the size of the Board, whilst not being large as to be unwieldy, is appropriate, taking into account the size of the Company and its operations. The combined and varied knowledge, experience and skills of the Board members provides the balance of competences that are required, adds value to the functioning of the Board and gives direction to the Company. The competencies of the directors ranges from industry, financial and legal expertise. Each of the directors has applied the necessary time and attention for the performance of his/her duties to the Company.
As set out above, the board is composed of a mix of executive and non-executive directors. The presence of Non-Executive Directors on the Board serves to, inter alia, constructively challenge the Executive Directors and management of the Company, and particular focus is made on strategy and the integrity of financial performance and management.
Keith N. Grunow (Non-Executive Director), Monica Vilabril (Non-Executive Director) and Jean Pierre Lhote (Non-Executive Director) are considered to be independent within the meaning provided by the Code. Laragh Cassar acts as the Company Secretary and legal counsel of the Company and is therefore not considered as independent.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
li
Each presently appointed non-executive director has declared to the Board as stipulated under the Code Provision 3.4 undertaking:
a)to maintain in all circumstances his/her independence of analysis, decision and action;
b)not to seek or accept any unreasonable advantages that could be considered as compromising his/her independence; and
c)to clearly express his/her opposition in the event that he/she finds that a decision of the board may harm the Company.
Principle 4: The Responsibilities of the Board
The Board has the first level responsibility for executing the four basic roles of Corporate Governance, namely accountability, monitoring, strategy formulation and policy development. The four basic corporate governance principles, regulatory obligations and general ethical market practices are implemented and exercised through the internal Company policies such as its Company Code of Conduct policy, Anti-Bribery policy and Anti-Money laundering Policy. Moreover, in order to avoid implications of regulatory arbitrage when dealing with third party market participants, the Company requires reciprocity in terms of level of standards. The Board has established a clear internal and external reporting system so that it has access to accurate, relevant and timely information and ensures that management constantly monitor performance and report to its satisfaction. The Board, at least on a quarterly basis, evaluates management’s implementation of corporate strategy and financial objectives by reference to a number of criteria, including adjusted EBITDA, revenue, projected earnings, country by country analysis and other anticipated criteria.
The Board has an active succession plan in place in respect of the responsibilities assumed by the Executive Directors for which the Chairman holds key responsibility. The Company has implemented a number of measures aimed at strengthening the Company’s management structure. In addition, the Board organises information sessions including statutory and fiduciary duties, the Company’s operations and prospects, the skills and competence of senior management, the general business environment and the board’s expectations for Directors from time to time. The Company ensures that all incoming Directors of the Company are provided with the necessary information and explanations on the corporate and regulatory aspect of their roles, individually as part of their induction (upon the on-boarding and appointment process) and collectively during Board and Audit Committee meetings wherein the legal advisor of the Company provided explanations and updates on legal and regulatory matters.
Principle 5: Board Meetings
As a matter of practice, each board meeting to be held throughout the year is scheduled well in advance of their due date and each director is provided with detailed Board papers relating to each agenda item in good time prior to the actual meetings. Board meetings concentrate mainly on strategy, operational performance and financial performance of the Company. After each Board meeting and before the next, Board minutes that faithfully record attendance, key issues and decisions are sent to the directors.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lii
During 2024, the Board of Directors met nine (9) times*.
Name
Attendance during 2024
Anthony S. Diacono (Chairman)
9
Laragh Cassar
9
Carmelo (a.k.a Karl) Bartolo
9
David S. O’Connor
9
Olivier Bernard
9
Keith N. Grunow
9
Monica Vilabril
9
Jean Pierre Lhote
9
* five of which were in the form of written resolutions
The Board also delegates specific responsibilities to the management team of the Company, the Audit Committee, the Remuneration Committee and the Financial Risk Committee, which Committees operate under their formal terms of reference.
Audit Committee
The Board delegates certain responsibilities to the Audit Committee, the terms of reference of which, reflect the requirements stipulated in the Capital Markets Rules and under applicable law, including the roles set out in Capital Markets Rules 5.127 to 5.130. In addition, unless otherwise dealt with in any other manner prescribed by the Capital Markets Rules, the Audit Committee has the responsibility to, inter alia, monitor and scrutinise, and, if required, approve Related Party Transactions, if any, falling within the ambits of the Capital Markets Rules and to make its recommendations to the Board of any such proposed Related Party Transactions. The Audit Committee establishes internal procedures and monitors these on a regular basis. The terms of reference for the Audit Committee are designed both to strengthen this function within the Company and to widen the scope of the duties and responsibilities of this Committee. The Committee also has the authority to summon any person to assist it in the performance of its duties, including the Company’s external auditors. PWC, as external auditors of the Company, were invited to attend each of the Company’s audit committee meetings. During 2021, the internal audit function within the Company was made redundant. The Company continues to keep the matter under observance with a view to resuming internal audit functions within the Group at the earliest opportunity.
The Chairman of the Audit Committee was appointed by the Board of Directors.
During 2024, the Audit Committee met four (4) times.
Name
Attendance during 2024
Keith N. Grunow (Chairman)
4
Monica Vilabril
4
Laragh Cassar
4
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
liii
The board considers Mr Keith N. Grunow to be independent of the Company, its management and controlling shareholder and competent in accounting and/or auditing. Such determination was based on his substantial experience in various audit, accounting and risk management roles throughout his career.
When examining the independence criteria of an Audit Committee member, the Board assesses whether an individual has any business, family or other relationships, including with any of the controlling shareholder or management of the Company which may give rise to a conflict of interest. Moreover, and in line with the Capital Markets Rules, the Board also determines whether an Audit Committee member has been an executive officer or employee of the Company, has had a significant business relationship with the Company, received any additional remuneration from the Company apart from the engaged director’s fees and whether the individual has been within the last three years an engagement partner or a member of the external audit team of the Company.
The Board is confident that the Audit Committee Members, as a whole, have competence relevant to the sector in which the Issuer is operating, which competence was garnered over the years as a result of their involvement with the MedservRegis Group.
Financial Risk Committee
The Board has set up a Financial Risk Committee with a view to manage the Group’s currency, interest rates, liquidity and foreign exchange risks and to manage the Group’s own financial investments. The Committee operates under specific terms of reference approved by the Board. The financial controllers within the MedservRegis Group are invited to attend each meeting of the Financial Risk Committee.
During 2024, the Financial Risk Committee met twice (2):
Name
Attendance during 2024
Olivier Bernard (Chairman)
2
Carmelo (a.k.a Karl) Bartolo
2
Silvio Camilleri
2
Salman Manjoo
2
Alessandro Roca
2
Remuneration Committee
This is considered under Principle 8.
Principle 6: Information and Professional Development
The Board appoints the Chief Executive Officer. Appointments and changes to senior management are the responsibility of the CEO and Executive Directors and are approved by the Board. The Board actively considers the professional and technical development of the Board itself, all senior management and staff members. The CEO also has systems in place to monitor management and staff morale. Management prepares detailed reviews for each Board meeting covering all aspects of the Company’s business.
On joining the Board, a new director is provided with the opportunity to consult with the executive directors and senior management of the Company in respect of the operations of the Group. Each director is made aware of the Company’s on-going obligations in terms of the Companies Act, the Capital Markets Rules and other relevant legislation.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
liv
Directors have access to the advice and services of the Company Secretary and to the legal counsel of the Company. The Company is also prepared to bear the expense incurred by the directors requiring independent professional advice should they judge it necessary to discharge their responsibilities as directors.
Principle 7: Evaluation of the Board’s Performance
With respect to the year under review, the Board undertook an evaluation of its own performance, the Chairman’s performance and that of its committees. The Board did not per se appoint a committee to carry out this performance evaluation but the evaluation exercise was conducted through a questionnaire, copies of which were sent to the Chairman of the Audit Committee and the results were reported to the Chairman of the Board. No material changes were made to the Company’s structures as a result of the Board evaluation however improvements were made to the oversight functions of the Board.
Principle 8: Remuneration Committee
The Board has set up a Remuneration Committee commissioned with overseeing the development and implementation of the remuneration and related policies of the MedservRegis Group.
During the year under review, the Committee was composed of Keith N. Grunow (Chairman), Laragh Cassar and Monica Vilabril. All of the said members (other than Laragh Cassar) are considered to be independent directors. The Remuneration Committee met once (1) during 2024.
Principle 9: Relations with Shareholders and with the Market & Principle 10: Institutional Investors
The Board is of the view that, over the period under review, the Company has communicated effectively with the market through a number of company announcements that it published informing the market of significant events happening within the Company.
The Company also communicates with its shareholders through its Annual General Meeting (further detail is provided under the section entitled General Meetings). The Chairman arranges for all directors to attend the annual general meeting and for the Chairman of the Audit Committee and Remuneration Committee to be available to answer questions, if necessary.
Apart from the annual general meeting, the Company intends to continue with its active communication strategy in the market and shall accordingly continue to communicate with its shareholders and the market by way of the Annual Report and Financial Statements, by publishing its results on a six-monthly basis during the year and through the directors’ statements published on a six-monthly basis, and by company announcements to the market in general. During 2024, the Company also communicated to the market through brokers on one occasion. The Company recognises the importance of maintaining a dialogue with the market to ensure that its strategies and performance are well understood and disclosed to the market in a timely manner.
The Company’s website (https://medservregis.com/) also contains information about the Company and its
business which is a source of further information to the market.
In terms of the Companies Act, Cap 386 of the laws of Malta, any shareholder/s having 10% or more of the issued share capital of the Company can call a general meeting. This is also reflected in Article 34 of the Company’s Articles of Association.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lv
Principle 11: Conflicts of Interest
The directors are aware that their primary responsibility is always to act in the interest of the Company and its shareholders as a whole irrespective of who appointed them to the Board. Acting in the interest of the Company includes an obligation to avoid conflicts of interest. In such instances, the Company has strict policies in place which allow it to manage such conflicts, actual or potential, in the best interest of the Company. Each director’s service contract contains provisions which require the director to:
a)ensure that his/her personal interests do not conflict with the interests of the Company;
b)not carry on, directly or indirectly, business in competition with the Company;
c)not make personal gains or profits from his/her post without the consent of the Company, or from confidential information;
d)not use any property, information or opportunity of the Company for his/her own benefit or for the benefit of any third party,
e)not obtain any benefit in connection with the exercise of his/her powers, except with the consent of the Company in general meetings.
Furthermore, any director that has a conflict (actual or potential) is required to disclose and record the conflict in full and in time to the Board and is also precluded from participating in a discussion concerning matters in such conflicted matters (unless the Board finds no objection to the presence of such director). Moreover, each director must disclose his or her beneficial or non-beneficial interest in the share capital of the Company and is only permitted to deal in such shares as allowed by law. Under no circumstance is the conflicted director, permitted to vote on the matter. This requirement is reflected in Article 68.2 of the Company’s Articles of Association.
Principle 12: Corporate Social Responsibility
The Company places substantial importance on its corporate social responsibility to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.
The Company is fully aware of its obligation to preserving the environment and continues to implement policies aimed at respecting the natural environment and to avoiding/minimising pollution. During the year, the Company’s Solar Farm generated 2,822,735 kwh and avoided 1,864,953 kg of CO2 emissions over the year.
The Company promotes open communication, responsibility and personal development with its workforce.
The Company maintains a staff development programme aimed at providing training to staff to assist their development with an aim to improve the Company’s competitiveness.
The Company’s Health, Safety, Security, Environment & Quality (HSSEQ) team as well as our HR and management teams were essential in supporting the staff and ensuring operations were carried out in strict adherence to the HSSEQ processes in place.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lvi
Part 2: Non-Compliance with the Code
Principle 2 - Code Provision 2.3
Whilst steps have been taken by the Company to segregate the office of Chairman and Chief Executive Officer through the appointment of a Chief Executive Officer of the Group, the Chairman of the Company is not considered to meet the independence criteria set out in the Capital Markets Rules largely due to his significant shareholding in the Company. During the previous year, Mr Diacono’s contract as executive director expired and he now occupies the position of Chairman and non-executive director. The Board considers that Anthony S. Diacono duly fulfils the role required of a Chairman in terms of the Capital Markets Rules, notwithstanding his lack of formal independence.
Principle 6: Information and Professional Development
Code Provision 6.4.4 recommends that the CEO establishes a succession plan for senior management. The Company identified its successors for existing senior management within the existing staff however a formal succession plan was not finalised. Plans however are in place to formalise the said succession plan.
Principle 7 – Code Provision 7.1 Evaluation Committee
The Board has not appointed an ad hoc committee to evaluate its own performance. As set out above, the evaluation was conducted through a questionnaire and considers this to be a process sufficient to evaluate the performance of the Board.
Principle 8B – Nomination Committee
Pursuant to the Company’s Articles of Association, the appointment of directors to the Board is reserved exclusively to the Company’s shareholders (in line also with general and commonly accepted practice in Malta). Any shareholder/s who in the aggregate hold not less than 0.5% of the total number of issued shares having voting rights in the Company is entitled to nominate a fit and proper person for appointment as a director of the Company. Furthermore, in terms of the memorandum and articles of association of the Company, the directors themselves are entitled to make recommendations and nominations to the shareholders for the appointment of directors at the following annual general meeting.
Within this context, the Board believes that the setting up of a Nomination Committee is not required since the Board itself has the authority to recommend and nominate directors. Notwithstanding this, the Board will retain the matter under review.
Code Provision 9.3
The Company does not have a formal mechanism in place as required by Code provision 9.3 to resolve conflicts between minority shareholders and controlling shareholders. No such conflicts have arisen to date and in view of the relatively small shareholder base of the Company, the Board does not consider it necessary to establish a formal mechanism for this process.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lvii
Internal Control
The Board is ultimately responsible for the Company’s system of internal controls and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate risk to achieve business objectives, and can provide only reasonable, and not absolute, assurance against normal business risks or loss. Included with the Company’s internal control system are procedures to identify, control and report major risks within a relevant timeframe. Financial reporting is prepared monthly and consolidated quarterly performance is analysed against budgets and shared with senior management and directors. The Board reviews the effectiveness of the Company’s system of internal controls. The Company strengthens this function through the Audit Committee that has initiated the process of a business risk plan, the implementation of which will be regularly monitored.
The key features of the Company’s system of internal control are as follows:
Organisation
The Company operates through the Chief Executive Officer with clear reporting lines and delegation of powers. Whilst members of the senior management of the Group are in constant contact, formal management meetings are scheduled on a monthly basis. They are attended by the Chief Executive Officer, their deputies and senior executive management and other members of staff, upon invitation.
Control environment
The Company is committed to the highest standards of business conduct and seeks to maintain these standards across all of its operations. Company policies and employee procedures are in place for the reporting and resolution of improper activities.
The Company has an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve Company objectives.
Company executives participate in periodic strategic reviews, which include consideration of long-term projections and the evaluation of business alternatives. Annual budgets and strategic plans are prepared. Performance against these plans is actively monitored and reported to the Board, at minimum on a quarterly basis.
Risk identification
Company management is responsible for the identification and evaluation of key risks applicable to their respective areas of business. The mandate of the Audit Committee and the Financial Risk Committee also includes the continuous assessment and oversight of such key risks.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lviii
General Meetings and Shareholders’ Rights
Conduct of general meetings
It is only shareholders whose details are entered into the register of members on the record date that are entitled to participate in the general meeting and to exercise their voting rights. In terms of the Capital Markets Rules, the record date falls 30 days immediately preceding the date set for the general meeting to which it relates. The establishment of a record date and the entitlement to attend and vote at general meeting does not, however, prevent trading in the shares after the said date.
In order for business to be transacted at a general meeting, a quorum must be present. In terms of the Articles of Association, 51% of the nominal value of the issued equity securities entitled to attend and vote at the meeting constitutes a quorum. If within half an hour, a quorum is not present, the meeting shall stand adjourned to the same day the next week, at the same time and place or to such other day and at such other time and place as the directors may determine. In any event, the adjourned meeting must be held at least ten days after the final convocation is issued and no new item must be put on the agenda of such adjourned meeting. If at the adjourned meeting a quorum is not yet present within half an hour from the time appointed for the meeting, the member or members present shall constitute a quorum. Generally, the Chairman of the Board presides as Chairman at every general meeting of the Company. At the commencement of any general meeting, the Chairman may, subject to applicable law, set the procedure which shall be adopted for the proceedings of that meeting. Such procedure is binding on the members.
If the meeting consents or requires, the Chairman shall adjourn a quorate meeting to discuss the business left unattended or unfinished. If a meeting is adjourned for 30 days or more, notice of the quorate meeting must be given as in the case of an original meeting. Otherwise, it is not necessary to give any notice of an adjourned meeting or of the business to be transacted at such quorate meeting.
At any general meeting, a resolution put to a vote shall be determined and decided by a show of hands, unless a poll is demanded before or on the declaration of the result of a show of hands by:
(i)the Chairman of the meeting; or
(ii)by at least three (3) members present in person or by proxy; or
(iii)any member or members present in person or by proxy and representing not less than one tenth of the total voting power of all members having the right to vote at that meeting; or
(iv)a member or members present in person or by proxy holding equity securities conferring a right to vote at the meeting, being equity securities on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all the equity securities conferring that right.
Unless a poll is so demanded, a declaration by the Chairman that a resolution has, on a show of hands, been carried or carried unanimously, or by a particular majority, or lost together with an entry to that effect in the minute book, shall constitute conclusive evidence of the fact without need for further proof. If a resolution requires a particular majority in value, in order for the resolution to pass by a show of hands, there must be present at that meeting a member or members holding in the aggregate at least the required majority. A poll demanded on the election of the Chairman or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at the discretion of the Chairman. In the case of equality of votes, whether on a show of hands or on a poll, the chairman has a second or casting vote. On a show of hands every member present in person or by proxy shall have one vote for each equity security carrying voting rights of which he is the holder, provided that all calls or other sums presently payable by him in respect of equity securities have been paid.
MedservRegis p.l.c.
Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance (continued)
lix
Proxy
Every member is entitled to appoint one person to act as proxy holder to attend and vote at a general meeting instead of him. The proxy holder shall enjoy the same rights to participate in the general meeting as those to which the member thus represented would be entitled. If a member is holding shares for and on behalf of third parties, such member shall be entitled to grant a proxy to each of his clients or to any third party designated by a client and the said member is entitled to cast votes attaching to some of the shares differently from the others. In the case of voting by a show of hands, a proxy who has been mandated by several members and instructed to vote by some shareholders in favour of a resolution and by others against the same resolution shall have one vote for and one vote against the resolution.
The instrument appointing a proxy must be deposited at the office or by electronic mail at the address specified in the notice convening the meeting not less than forty-eight (48) hours before the time for holding the meeting or, in the case of a poll, not less than forty-eight (48) hours before the time appointed for the taking of the poll. The same applies to the revocation of the appointment of a proxy.
A form of instrument of proxy shall be in such form as may be determined by the directors and which would allow a member appointing a proxy to indicate how he would like his proxy to vote in relation to each resolution.
Including items on the agenda
A shareholder or shareholders holding not less than 5% of the issued share capital may include items on the agenda of the general meeting and table draft resolutions for items included on the agenda of a general meeting. Such right must be exercised by the shareholder at least 46 days before the date set for the general meeting to which it relates.
Questions
Shareholders have the right to ask questions which are pertinent and related to the items on the agenda.
Electronic voting
In terms of the Articles of Association of the Company, the directors may establish systems to:
a)allow persons entitled to attend and vote at general meetings of the Company to do so by electronic means in accordance with the relevant provisions of the Capital Markets Rules; and
b)allow for votes on a resolution on a poll to be cast in advance.
Where a shareholder requests the Company to publish a full account of a poll, the Company is required to publish the information on its website not later than 15 days after the general meeting at which the result was obtained.
Further details on the conduct of a general meeting and shareholders’ rights are contained in the Memorandum and Articles of Association of the Company and in line with chapter 12 of the Capital Markets Rules.
Approved by the Board of Directors on 22 April 2025.
MedservRegis p.l.c.
Remuneration Statement and Report
For the Year Ended 31 December 2024
lx
THIS STATEMENT AND REPORT ON THE REMUNERATION OF MEDSERVREGIS PLC’S (THE “COMPANY”) BOARD OF DIRECTORS (THE “BOARD”), INCLUDING THE EXECUTIVE DIRECTORS, HAS BEEN DRAWN UP IN COMPLIANCE WITH THE REQUIREMENTS OF CHAPTER 5 AND 12 OF THE CAPITAL MARKETS RULES (THE “RULES”) AND CONTAINS INFORMATION REQUIRED BY THE PROVISIONS OF APPENDIX 12.1 OF THE CAPITAL MARKETS RULES.
1.The Remuneration Committee
The Remuneration Committee (RemCom) is required to devise the appropriate packages needed to attract, retain and motivate directors, whether executive or not, as well as senior executives with the right qualities and skills for the proper management of the Company. The RemCom issues recommendations to the Board for its consideration.
The Committee’s terms of reference establish the composition, role and function of the Committee, the parameters of its remit as well as the basis for the processes that it is required to comply with. The Committee is a sub-committee of the Board and directly responsible and accountable to the Board. The Board reserves the right to change these terms of reference from time to time subject to the requirements of the Maltese law.
2.RemCom Membership & Meetings
The members of the Committee are appointed by the Board and comprise of the three non-executive directors with no personal financial interest (other than as shareholders in the Company, where applicable). One of these members shall be an independent director who chairs the Committee. The Committee may co-opt additional members as they think fit to provide specialist advice, provided that any member so co-opted must also be fully independent of management. The Committee may ask the members of senior management to attend meetings either regularly or by invitation, but the invitees have no right of attendance and no vote. The Company Secretary or their nominee acts as the Secretary of the Committee.
As at 31 December 2024, the Committee was composed of Keith N. Grunow (Chairman), Laragh Cassar, and Monica Vilabril. The RemCom met once (1) during 2024.
3.Remuneration Policy
The following is the remuneration policy adopted by the Remuneration Committee and the Board of Directors, and which will be tabled for approval at the 2025 annual general meeting.
3.1 Introduction
In accordance with the Rules established by the Malta Financial Services Authority, the Company is setting out its Remuneration Policy below, in the form stipulated by the said Rules.
The Remuneration Policy seeks to deliver and retain a fair and transparent remuneration for the Board and the incumbent Chief Executive Officer and the Deputy Chief Executive Officers of the Company (the ‘Executives’) with a view towards aligning the best interests of all stakeholders whilst safeguarding the interests and sustainability of the Company.
In order to achieve these strategic objectives, this Remuneration Policy provides a remuneration framework that defines the principles and guidelines to be applied in determining the remuneration to be paid to the Board and the Executives.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxi
3.2 Remuneration
In its function as remuneration committee, the RemCom is responsible for the oversight of the Policy implementation by the Company in accordance with Chapter 12 of the Rules. The RemCom is responsible to draw up and maintain a remuneration policy that attracts, retains, and motivates directors as well as executives who have the right qualities and skills to benefit the Company. The policy shall determine the principles and the manner in which emoluments are distributed to Directors and the establishment of remuneration packages of Executives. The RemCom is also guided by the “Terms of Reference of the Remuneration Committee” of the Company, which inter alia governs the composition, role and function of the Committee, the parameters of its remit as well as the basis for the processes that it is required to comply with.
The Committee is a sub-committee of the Board, derives its authority from the Board and is directly responsible and accountable to the Board.
3.2.1 Remuneration Framework
In general, to establish remuneration appropriately the RemCom shall be guided by the extent of responsibilities and experience of the individual concerned. When establishing an appropriate remuneration to the individual Directors and Executives the following factors shall be considered:
a)The expectation that Directors and Executives are to be appropriately dedicated to their role;
b)The time, commitment and dedication required by Directors and Executives in accordance with their duties and the affairs of the Company; and
c)The provision of a fair, attractive, and competitive remuneration, benefits, and conditions, that are commensurate to the level of experience, expertise, qualifications, professional status and responsibilities of the appointed Directors and Executives.
3.2.2 Directors’ Remuneration
a) Emoluments
The aggregate Emoluments payable to the Board refer to the total fixed remuneration of the Directors. The maximum aggregate Emoluments shall be such an amount as may from time to time be determined by the Company, subject to any notice of approval conveyed during the general meeting referring to any proposal for increasing the maximum Emoluments.
Approval from Shareholders shall not be sought where the Board proposes an increase which does not exceed the latest established maximum yearly Emoluments approved by the Shareholders.
b) Establishment of the Emoluments
The Emoluments payable to Directors shall be determined by the Committee, always subject to the overall remuneration amount set by the shareholders in general meeting.
The remuneration of the Board of Directors takes into consideration required competencies, skills, effort and scope of the Board’s work, including the number of Board and committee meetings as well as the overall responsibilities of the non-executive Directors. Due consideration is also given to market realities, practices and demands for similar positions within regulated entities, the size of the Company and its importance to the local economy. The total package payable to non-executive Directors consists of a fixed fee. Each of the non-executive Directors receive the same amount in terms of fixed fees for their respective duties as non-executive Directors.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxii
The Board of Directors is of the opinion that any risk of a conflict of interest arising as a result of the RemCom drawing up this Policy is significantly mitigated by the fact that the Policy will be submitted to the AGM for members’ consideration and approval. This risk is further mitigated by the fact that, at the AGM, members will also be asked to approve the maximum annual aggregate emoluments of the Directors, as well as any increase of such emoluments.
Moreover, in order to avoid any conflict of interest, the Company’s remuneration is managed by ensuring that no individual is involved in the decision-making process related to their own remuneration. In line with best practice, non-executive Directors’ remuneration is reviewed on an annual basis by the Nominations and Remuneration Committee, which in turn makes any recommendations for consideration by the Board.
3.2.3 Executive Remuneration
The RemCom is also responsible to establish the remuneration of the Executives. In establishing the remuneration package for Executives the following factors shall be considered:
a)The assigned duties and responsibilities of the individual concerned, including the extent of involvement in the Company business;
b)The expected working pattern and consideration for duties falling in extraordinary hours;
c)The level of competencies, knowledge, skills, abilities, experience and expertise required as well as the demand and supply of such skills in the market;
d)The legal responsibilities pertinent to the post being considered;
e)The length of service of the individual with the Company, as well as his/her contribution to the Company’s repute, financial performance, position, growth, and success.
f)Any restrictions on secondary employment and involvements in business activity imposed on the individual concerned for such appointment; and
g)The general remuneration practices, company employment conditions and remuneration rates adopted by companies operating in the same industry sectors, and of like standing, repute, size and complexity.
In addition to the fixed remuneration, the Executives may be entitled to receive a discretionary variable remuneration based on company performance as well as the individual’s performance. Where applicable, any obligatory bonus payable at law shall be paid to the Executives, namely the bonus due to Executives employed under the laws of Mauritius which requires employees to receive an annual bonus equivalent to one month’s salary.
The payment of a discretionary variable remuneration to an Executive, is to be proposed by the CEO and approved by the RemCom. It is to be paid based on pre-set objectives and behaviours set by the RemCom, including business growth in line with the Company’s strategic plan, and individual performance which shall form the basis of the RemCom’s assessment of the Executive’s entitlement to an annual performance bonus. Any discretionary bonus to be paid to the CEO shall be proposed by the RemCom and approved by the Board of Directors.
The remuneration paid to Executives shall not fall under Article 2.2 (Directors’ Remuneration).
3.3 Duration
The duration of service of Directors is regulated by the Articles of Association of the Company. Directors are appointed to the Board of Directors by the shareholders at a general meeting and shall hold office until the next general meeting. The appointment of Executives is subject to employment laws and regulations. The engagement of both Directors and Executives are governed by a written engagement contract clearly setting out the duties, roles, responsibilities and remuneration.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxiii
3.4 Disclosure of aggregate emoluments
The RemCom Committee shall present a remuneration report for the most recent financial year as prescribed under Appendix 12.1 of the Rules. The remuneration report shall be put forward to an advisory vote of the shareholders at the Annual General Meetings.
The Company’s remuneration of its Board and executive management is based on the above Remuneration Policy that will be subject to the approval of the shareholders at the Company’s next Annual General Meeting. The Company has complied with the procedure for the implementation of the Remuneration Policy as set out in Chapter 12 of the Capital Markets Rules issued by the Malta Financial Services Authority. This policy may also be viewed on the Company’s website at https://medservregis.com/remuneration-policy.
Non-Executive Directors’ Remuneration
The Board believes that, in line with local practice, the fixed honorarium for non-executive directors is the principal component that compensates directors for their contribution as members of the Board. None of the non-executive directors have employment contracts with the Company and each non-executive director serves from one annual general meeting to the next, when the appointment of directors is conducted at the annual general meeting.
Accordingly, none of the non-executive directors are entitled to any compensation if they are removed from office. Such removal would require an ordinary resolution of the shareholders at a general meeting. The directors are entitled to be paid travelling and other reasonable expenses incurred by them in the performance of their duties as directors. Other than the payment for legal and company secretarial services rendered by Dr. Laragh Cassar, and consultancy fees paid to Monica Vilabril in relation to project management on internal related projects, the Company does not remunerate the non-executive directors in any other manner, nor does it provide any loans or other guarantees to them. In this regard, the non-executive directors’ remuneration are all fixed in nature and the ratio of the fixed and variable remuneration was 100%-0% in 2024 (2023: 100%-0%).
The actual directors’ fees paid to the non-executive directors during the financial year ended 31 December 2024 was €155,000 (2023: €125,968).
The table below shows the total annual remuneration applicable to the non-executive directors during the financial year ended 31 December 2024.
Non-Executive Directors
Fixed Remuneration
Remuneration
For Committee/
Group Directorships
Total Remuneration 2024
Total Remuneration 2023
YoY Percentage Difference*
€
€
€
€
%
Anthony S. Diacono 1
50,000
n/a
50,000
20,968
0.0%
Laragh Cassar
25,000
n/a
25,000
25,000
0.0%
Keith N. Grunow
35,000
n/a
35,000
35,000
0.0%
Monica Vilabril
25,000
n/a
25,000
25,000
0.0%
Jean Pierre Lhote
20,000
n/a
20,000
20,000
0.0%
Total
155,000
n/a
155,000
125,968
* For calculating the annual change of remuneration for a director (“YoY Percentage Difference”) whose mandate began or ended during the reported financial year, the respective remuneration has been annualised to allow a meaningful comparison.
1 Expiry of his contract as executive director on 30 July 2023, becoming non-executive as from 31 July 2023
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxiv
4 Senior Management
The Company has three senior executives (as per the definition in the Code of Principles of Good Corporate Governance) at year end, all of which are also appointed members of the Board.
The executive directors are:
a.David S. O’Connor (CEO),
b.Carmelo (a.k.a Karl) Bartolo (Deputy CEO for Business and Operations) and
c.Olivier Bernard (Deputy CEO for Finance, Administration, Investment and Trading),
each of whom have service contracts with the Group entitling them to a fixed salary. The CEO and the Deputy CEOs are employed on an indefinite basis. Up until 30 July 2023, Anthony S. Diacono (Chairman) was employed on a definite contract as an executive director. Thereafter, Anthony S. Diacono occupied the role of a non-executive Chairman of the Company. None of the said service contracts include provisions for termination payments and other payments linked to early termination or supplementary pensions/retirement schemes.
Fixed Remuneration – Salary
The executive directors of the Company are entitled to receive directors’ fees for the remuneration as directors and a salary for their executive role within the Group. The total directors’ fees paid to the executive directors during the year was €60,000 (2023: €71,669).
The following table shows the overall annual remuneration of executive directors of the Company and its subsidiary companies for the financial year ended 31 December 2024 (and includes comparative information for 2023, where relevant):
Executive Director
Directors’ Fee
Gross Salary
Fringe Benefits
Total Fixed
Remuneration
YoY Percentage Difference*
2024
2023
2024
2023
2024
2023
2024
2023
€
€
€
€
€
€
€
€
%
Anthony S. Diacono**
n/a
11,669
n/a
135,908
n/a
n/a
n/a
147,577
n/a
David S. O’Connor
20,000
20,000
295,874
249,016
28,819
37,612
344,693
306,628
12.4%
Olivier Bernard
20,000
20,000
299,572
250,822
22,750
36,997
342,322
307,819
11.2%
Carmelo (a.k.a Karl) Bartolo
20,000
20,000
304,885
300,000
21,754
5,250
346,639
325,250
6.6%
Total
60,000
71,669
900,331
935,746
73,323
79,859
1,033,654
1,087,274
* For calculating the annual change of remuneration for a director (“YoY Percentage Difference”) whose mandate began or ended during the reported financial year, the respective remuneration has been annualised to allow a meaningful comparison.
** Determined up to the 30 July 2023, being the expiry of his contract as executive director.
The CEO and the Deputy CEO for Finance, Administration, Investment and Trade are entitled to a car cash allowance. They are also entitled to health insurance for themselves and their spouses and children and life insurance equivalent to four years’ basic salary.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxv
Variable remuneration
The Deputy CEO for Business and Operations and the Deputy CEO for Finance, Administration, Investment and Trading were paid a discretionary bonus of €75,000 and the CEO was paid a discretionary bonus of €90,000, in each case, based on a number of factors, including the performance of the Group. The CEO and the Deputy CEO for Finance, Administration, Investment and Trading were also entitled to a bonus equivalent to one months’ salary (mandatory in terms of the laws of Mauritius, which is the law regulating their employment).
The present variable remuneration payable by the Company does not contemplate the possibility of it being reclaimed. Moreover, share options are currently not part of the Company’s remuneration policy.
During the 2024 financial year, the following bonuses were paid to the members of the executive management:
Executive Director
Variable Remuneration
Variable Remuneration
Total Remuneration
Total Remuneration
YoY Percentage
Difference
Proportion of fixed to variable remuneration 2024
Proportion of fixed to variable remuneration 2023
2024
2023
2024
2023
€
€
€
€
%
%
%
Anthony S Diacono
NIL
NIL
NIL
147,577
n/a
n/a
100 / 0
David O’Connor
97,262
6,807
441,955
313,435
36.2%
78 / 22
98 / 2
Olivier Bernard
81,819
6,807
424,141
314,626
34.8%
81 / 19
98 / 2
Carmelo (a.k.a Karl) Bartolo
75,000
37,500
421,639
362,750
16.2%
82 / 18
90 / 10
Total
254,081
51,114
1,287,735
1,138,388
The total remuneration package complies with the adopted remuneration policy, which has been designed to ensure that the Company can attract, motivate and retain the right individuals to contribute to the long-term performance of the Company by implementing the Company’s strategy. The performance criteria applied includes the use of the Company’s financial metrics such as revenue, operational profit, net profit and Adjusted EBITDA as well as the individual’s performance against set targets.
During the year, there were no deviations from the procedure for the implementation of the remuneration policy.
The total actual directors’ fees paid to the executive and non-executive directors during the financial year ended 31 December 2024 was €215,000 (2023: €197,637), falling within the amount approved by the shareholders in general meeting in 2014, that is €450,000.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxvi
5 Group’s Performance
Performance Indicators:
2024
€
2023
€
2022
€
2021
€
2020
€
Adjusted EBITDA
16,102,017
17,504,355
11,404,765
5,359,013
5,565,272
Turnover
70,007,335
73,926,336
66,939,160
29,924,554
32,411,788
Results from operating activities
6,280,296
7,862,161
(940,768)
(7,426,064)
(9,121,827)
Profit/(loss) for the year
2,095,453
1,294,394
544,876
(7,202,667)
(12,676,396)
No of Operating Countries
11
11
10
10
7
Performance Indicators change %:
2024 vs 2023
Change
%
2023 vs 2022
Change
%
2022 vs 2021
Change
%
2021 vs 2020
Change
%
Adjusted EBITDA
(8.0%)
53.5%
112.8%
(3.7%)
Turnover
(5.3%)
10.4%
123.7%
(7.7%)
Results from operating activities
(20.12%)
(935.70%)
(87.30%)
(18.60%)
Profit/(loss) for the year
61.89%
137.60%
(107.60%)
(43.20%)
No of Operating Countries
0%
10%
0%
42.9%
Average remuneration on full-time equivalent basis of employee:
2024
2023*
2022
2021
2020
Employees of the Group
18,058
14,559
17,949
18,343
23,065
Average remuneration on full-time equivalent basis of employee change %:
2024 vs 2023
Change
%
2023 vs 2022
Change
%
2022 vs 2021
Change
%
2021 vs 2020
Change
%
Employees of the Group
24.0%
(18.9%)
(2.2%)
(20.5%)
* The decrease in the average remuneration on full-time equivalent basis of employee over the previous year is mainly resulting due to the retirement of a senior key management personnel in 2023 as well as the devaluation of the Egyptian pound during the year which resulted in the average remuneration to reduce when converted to the reporting currency.
The year-on-year percentage difference of the directors’ remuneration is disclosed in the tables under sections 4 and 5 of this report which can allow a meaningful comparison against the Company’s performance as disclosed in the table above.
MedservRegis p.l.c.
Remuneration Statement and Report (continued)
lxvii
The Company does not have any employees. All employees are employed and remunerated by the main operating subsidiaries, including the executive and non-executive directors of the Company.
The foregoing Remuneration Report is being put forward to an advisory vote of the 2025 AGM in accordance with the requirements of the MFSA Capital Markets Rule 12.26L.
This remuneration report has been prepared by the directors and is signed by the Chairman of the RemCom, as authorised by the board.
The contents of the remuneration report have been reviewed by the external auditors to ensure that it conforms with the requirements of Appendix 12.1 to Chapter 12 of the Capital Market Rules.
Approved by the Board of Directors on 22 April 2025.
MedservRegis p.l.c.
Financial Statements
2024
MedservRegis p.l.c.
Annual Financial Report
31 December 2024
Page
Financial Statements:
Statements of Financial Position 1
Statements of Profit or Loss and Other Comprehensive Income 3
Statements of Changes in Equity 4
Statements of Cash Flows 6
Notes to the Financial Statements 8
Independent Auditors’ Report
MedservRegis p.l.c.
Statements of Financial Position
As at 31 December
1 1

|  | The Group | The Company
|  | 2024 | 2023 | 2024 | 2023
| Notes | € | € | € | €
ASSETS |  |  |  |  |
Property, plant and equipment | 14 | 32,188,061 | 30,754,668 | - | -
Right-of-use assets | 32.1.1 | 51,697,401 | 52,349,165 | - | -
Intangible assets and goodwill | 15 | 14,309,071 | 15,547,484 | - | -
Investment in subsidiaries | 20 | - | - | 75,616,036 | 47,622,803
Investment in associate | 21 | 2,255 | - | - | -
Loans receivable from subsidiaries | 19 | - | - | - | 14,217,067
Financial assets | 33 | 899,761 | - | - | -
Financial assets at fair value through profit or loss | 22 | 3,386,203 | 3,608,948 | - | -
Total non-current assets |  | 102,482,752 | 102,260,265 | 75,616,036 | 61,839,870
Inventories | 17 | 731,378 | 533,910 | - | -
Contract assets | 8.2 | 730,874 | 3,381,677 | 1,442,500 | 1,600,000
Loans receivable from subsidiaries | 19 | - | - | - | 9,593,098
Current tax assets |  | 953,240 | 430,936 | 322 | 175
Trade and other receivables | 18 | 21,443,246 | 20,718,137 | 2,703,044 | 1,961,424
Financial assets | 33 | 150,000 | 1,555,644 | - | -
Assets held for sale | 14.5 | 304,631 | - | - | -
Cash at bank and in hand | 23 | 18,952,370 | 16,293,444 | 146,043 | 79,696
Total current assets |  | 43,265,739 | 42,913,748 | 4,291,909 | 13,234,393
Total assets |  | 145,748,491 | 145,174,013 | 79,907,945 | 75,074,263

MedservRegis p.l.c.
Statements of Financial Position
As at 31 December
2

|  | The Group | The Company
|  | 2024 | 2023 | 2024 | 2023
| Notes | € | € | € | €
EQUITY |  |  |  |  |
Share capital | 24.1 | 10,163,764 | 10,163,764 | 10,163,764 | 10,163,764
Share premium | 24.2 | 27,778,073 | 27,778,073 | 9,016,275 | 9,016,275
Reverse acquisition reserve | 24.4 | (1,394,906) | (1,394,906) | - | -
Translation reserve | 24.3 | (5,790,901) | (4,756,708) | - | -
Loss offset reserve | 24.2 | - | - | 1,536,596 | 1,536,596
Retained earnings |  | 25,640,263 | 25,068,136 | 3,776,664 | -
Equity attributable to owners of the Company |  | 56,396,293 | 56,858,359 | 24,493,299 | 20,716,635
Non-controlling interest | 26 | 1,212,618 | 1,192,382 | - | -
Total equity |  | 57,608,911 | 58,050,741 | 24,493,299 | 20,716,635
LIABILITIES |  |  |  |  |
Loans and borrowings | 27 | 46,176,953 | 47,632,994 | 45,694,881 | 46,260,210
Lease liabilities | 32.1.2 | 16,707,715 | 16,442,067 | - | -
Deferred tax liabilities | 16 | 4,990,201 | 3,828,282 | - | -
Employee benefits obligations | 28 | 1,445,466 | 1,368,909 | - | -
Total non-current liabilities |  | 69,320,335 | 69,272,252 | 45,694,881 | 46,260,210
Bank overdraft | 23, 27 | 2,002,344 | 2,396,811 | - | -
Trade and other payables | 29 | 9,346,472 | 10,867,022 | 8,729,142 | 7,703,668
Contract liabilities | 8.2 | 218,459 | 113,196 | - | -
Current tax liabilities |  | 472,237 | 105,145 | - | -
Loans and borrowings | 27 | 3,240,359 | 1,319,053 | 990,623 | 393,750
Lease liabilities | 32.1.2 | 3,364,425 | 3,000,597 | - | -
Provisions | 34 | 115,582 | - | - | -
Employee benefits obligations | 28 | 59,367 | 49,196 | - | -
Total current liabilities |  | 18,819,245 | 17,851,020 | 9,719,765 | 8,097,418
Total liabilities |  | 88,139,580 | 87,123,272 | 55,414,646 | 54,357,628
Total equity and liabilities |  | 145,748,491 | 145,174,013 | 79,907,945 | 75,074,263

The notes on pages 8 to 127 are an integral part of these financial statements.
These financial statements on pages 1 to 127 were approved by the Board of Directors and authorised for issue on 22 April 2025 and signed on its behalf by Anthony S. Diacono (Chairman) and David S. O’Connor (Chief Executive Officer) as per Directors’ declaration on ESEF Annual Report submitted in conjunction with Annual Report 2024.
MedservRegis p.l.c.
Statements of Profit or Loss and Other Comprehensive Income
For the year ended 31 December
3

|  | The Group The Company
|  | 2024 | 2023 | 2024 | 2023
| Notes | € | € | € | €
Revenue | 8 | 70,007,335 | 73,926,336 | 18,865,170 | 2,000,000
Cost of sales | 10 | (50,497,758) | (54,606,343) | - | -
Gross profit |  | 19,509,577 | 19,319,993 | 18,865,170 | 2,000,000
Other income | 9 | 227,233 | 987,871 | - | -
Administrative expenses | 10 | (13,873,560) | (13,208,197) | (4,424,466) | (1,635,516)
Net reversal of/(impairment) losses on financial and contract assets | 31.4.1 | 417,046 | 762,494 | (6,988,389) | -
Results from operating activities |  | 6,280,296 | 7,862,161 | 7,452,315 | 364,484
Finance income | 12 | 1,778,971 | 1,010,728 | 115,753 | 1,525,610
Finance costs | 12 | (4,189,466) | (7,201,057) | (2,791,401) | (2,484,563)
Net finance costs |  | (2,410,495) | (6,190,329) | (2,675,648) | (958,953)
Profit/(loss) before income tax |  | 3,869,801 | 1,671,832 | 4,776,667 | (594,469)
Tax expense | 13 | (1,774,348) | (377,438) | - | (50)
Profit/(loss) for the year |  | 2,095,453 | 1,294,394 | 4,776,667 | (594,519)
Other comprehensive income |  |  |  |  |
Items that will not be reclassified to profit or loss: |  |  |  |  |
Re-measurement of post-employment benefit obligations | 28 | 77,499 | 82,932 | - | -
Items that may be reclassified subsequently to profit or loss: |  |  |  |  |
Reclassification of foreign currency differences on liquidation of subsidiary | 9 | 32,366 | (396,502) | - | -
Net (loss)/gain on net investment hedge | 31.6.2 | (523,343) | 305,269 | - | -
Exchange differences on translating foreign operations |  | (525,156) | (1,813,907) | - | -
Other comprehensive income for the year, net of tax |  | (938,634) | (1,822,208) | - | -
Total comprehensive income for the year | 1,156,819 | (527,814) | 4,776,667 | (594,519)
Profit/(loss) attributable to: |  |  |  |  |
Owners of the Company |  | 1,866,233 | 1,081,046 | 4,776,667 | (594,519)
Non-controlling interests | 26 | 229,220 | 213,348 | - | -
Profit/(loss) for the year |  | 2,095,453 | 1,294,394 | 4,776,667 | (594,519)
Other comprehensive income attributable to: |  |  |  |  |
Owners of the Company |  | (743,904) | (1,851,938) | - | -
Non-controlling interests 26 | (194,730) | 29,730 | - | -
Other comprehensive income | (938,634) | (1,822,208) | - | -
Total comprehensive income attributable to: |  |  |  |
Owners of the Company | 1,122,329 | (770,892) | 4,776,667 | (594,519)
Non-controlling interests | 26 | 34,490 | 243,078 | - | -
|  | 1,156,819 | (527,814) | 4,776,667 | (594,519)
Earnings per share |  |  |  |  |
Basic earnings per share | 25 | 0.0184 | 0.0106 |  |
Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) | 6 | 16,102,017 | 17,504,355 |  |

The notes on pages 8 to 127 are an integral part of these financial statements.
MedservRegis p.l.c.
Statement of Changes in Equity – The Group
For the year ended 31 December
4

| Notes | Share capital | Share premium | Translation reserve | Reverse acquisition reserve | Retained earnings | Total attributable to owners of the Company | Non-controlling interest | Total
|  | € | € | € | € | € | € | € | €
Balance at 1 January 2023 |  | 10,163,764 | 27,778,073 | (2,821,838) | (1,394,906) | 23,904,158 | 57,629,251 | 2,727,252 | 60,356,503
Total comprehensive income |  |  |  |  |  |  |  |  |
Profit for the year |  | - | - | - | - | 1,081,046 | 1,081,046 | 213,348 | 1,294,394
Other comprehensive income |  | - | - | (1,934,870) | - | 82,932 | (1,851,938) | 29,730 | (1,822,208)
Total comprehensive income |  | - | - | (1,934,870) | - | 1,163,978 | (770,892) | 243,078 | (527,814)
Transactions with owners of the Company |  |  |  |  |  |  |  |  |
Transactions with non-controlling interests |  | - | - | - | - | - | - | (1,777,948) | (1,777,948)
Total transactions with owners of the Company |  | - | - | - | - | - | - | (1,777,948) | (1,777,948)
Balance at 31 December 2023 |  | 10,163,764 | 27,778,073 | (4,756,708) | (1,394,906) | 25,068,136 | 56,858,359 | 1,192,382 | 58,050,741

Balance at 1 January 2024
10,163,764
27,778,073
(4,756,708)
(1,394,906)
25,068,136
56,858,359
1,192,382
58,050,741
Total comprehensive income
Profit for the year
-
-
-
-
1,866,233
1,866,233
229,220
2,095,453
Other comprehensive income
-
-
(821,403)
-
77,499
(743,904)
(194,730)
(938,634)
Total comprehensive income
-
-
(821,403)
-
1,943,732
1,122,329
34,490
1,156,819
Transactions with owners of the Company
Acquisition of non-controlling interest without a change in control
20.4
-
-
(212,790)
-
(371,602)
(584,392)
(14,254)
(598,646)
Dividends
24.5
-
-
-
-
(1,000,003)
(1,000,003)
-
(1,000,003)
Total transactions with owners of the Company
-
-
(212,790)
-
(1,371,605)
(1,584,395)
(14,254)
(1,598,649)
Balance at 31 December 2024
10,163,764
27,778,073
(5,790,901)
(1,394,906)
25,640,263
56,396,293
1,212,618
57,608,911
MedservRegis p.l.c.
Statements of Changes in Equity – The Company
For the year ended 31 December
5
Notes
Share
capital
Share
premium
Retained
earnings / (accumulated losses)
Loss offset reserve
Total
equity
€
€
€
€
€
Balance at 1 January 2023
10,163,764
39,781,902
(28,634,512)
-
21,311,154
Total comprehensive income
Loss for the year
-
-
(594,519)
-
(594,519)
Total comprehensive income for the year
-
-
(594,519)
-
(594,519)
Share premium reduction
24.2
-
(30,765,627)
28,634,512
2,131,115
-
Transfers
24.2
-
-
594,519
(594,519)
-
Balance at 31 December 2023
10,163,764
9,016,275
-
1,536,596
20,716,635
Balance at 1 January 2024
10,163,764
9,016,275
-
1,536,596
20,716,635
Total comprehensive income
Profit for the year
-
-
4,776,667
-
4,776,667
Total comprehensive income for the year
-
-
4,776,667
-
4,776,667
Dividends
24.5
-
-
(1,000,003)
-
(1,000,003)
Balance at 31 December 2024
10,163,764
9,016,275
3,776,664
1,536,596
24,493,299
The notes on pages 8 to 127 are an integral part of these financial statements.
MedservRegis p.l.c.
Statements of Cash Flows
For the year ended 31 December
6
The Group
The Company
2024
2023
2024
2023
Notes
€
€
€
€
Cash flows from operating activities
Profit/(loss) for the year
2,095,453
1,294,394
4,776,667
(594,519)
Adjustments for:
Depreciation and amortisation
14, 32, 15
9,573,728
9,563,342
-
-
Net impairment and other write off of property,
plant and equipment
14
146,449
78,852
-
-
Net impairment loss on assets held for sale
10
101,544
-
-
-
Bad debts
10
101,029
-
-
-
Net impairment on investment in subsidiaries, joint
venture and associates
20
-
-
8,995,156
44,763
Net movements in expected credit losses
31
(417,046)
(762,494)
-
-
(Profit)/Loss on disposal of property, plant and
equipment
9
(138,268)
29,635
-
-
Increase in fair value of financial assets at FVTPL
22
(195,051)
(441,326)
-
-
Interest income
12
(450,561)
(1,010,728)
(115,753)
(1,390,633)
Interest expense
12
4,189,466
4,192,410
2,479,149
2,484,563
Dividend income
8
-
-
(17,040,170)
(400,000)
Provision for employees' end of service benefits
208,075
-
-
-
Exchange differences and release of translation
differences to profit and loss
9,12
(969,389)
2,755,733
312,252
(134,976)
Tax expense
13
1,774,348
377,438
-
50
16,019,777
16,077,256
(592,699)
9,248
Changes in:
Inventory levels
(152,484)
163,087
-
-
Trade and other receivables and contract assets
3,783,456
126,974
100,710
(1,636,266)
Trade and other payables and contract liabilities
(1,881,607)
(3,841,749)
472,458
145,630
Related party balances
35
-
-
3,757,331
2,978,440
Cash generated from operating activities
17,769,142
12,525,568
3,737,800
1,497,052
Bank interest received
12
349,599
488,730
-
-
Interest on bank overdraft
12
(123,794)
(115,410)
-
-
Taxation paid
(435,705)
(494,522)
(147)
(147)
End of service benefits paid
(163,269)
-
-
-
Net cash generated from operating activities
17,395,973
12,404,366
3,737,653
1,496,905
MedservRegis p.l.c.
Statements of Cash Flows (continued)
For the year ended 31 December
7
The Group
The Company
2024
2023
2024
2023
Notes
€
€
€
€

Cash flows from investing activities |  |  |  |  |
Payments for FVTPL financial assets | 22 | (157,095) | (1,673,901) | - | -
Payments for property, plant and equipment | 14 | (4,880,250) | (2,680,468) | - | -
Net proceeds from disposal of FVTPL financial assets | 22 | 651,017 | 1,126,682 | - | -
Capitalisation of loans to subsidiaries | 19,20 | - | - | (7,487) | (44,763)
Net proceeds from disposal of property, plant and equipment | 14 | 457,260 | 313,280 | - | -
Acquisition of investment in associate | 21 | (2,255) | - | - | -
Loan repayments by subsidiaries |  | - | - | - | 1,295,750
Interest received |  | - | - | 115,753 | 31,070
Net cash (used in)/generated from investing activities |  | (3,931,323) | (2,914,407) | 108,266 | 1,282,057
Cash flows from financing activities |  |  |  |  |
Proceeds from loans and borrowings | 27 | 1,755,456 | 7,488,178 | 1,100,000 | 7,488,178
Repayment of bonds | 27 | (987,477) | (7,772,019) | (987,477) | (7,772,019)
Repayment of bank loans | 27 | (1,350,930) | (1,179,150) | - | -
Cash pledged as guarantee | 33 | 505,883 | (150,000) | - | -
Loan payments to subsidiary | 27 | - | - | (773,090) | (236,250)
Dividend paid | 24.5 | (999,165) | - | (999,165) | -
Acquisition of non-controlling interest | 20 | (598,646) | - | - | -
Repayment of capital portion of lease liabilities | 32 | (4,382,821) | (3,772,421) | - | -
Transactions with non-controlling interest | 29.3 | (233,686) | (1,295,040) | - | -
Interest paid | 27,32 | (3,611,670) | (3,665,100) | (2,119,840) | (2,352,193)
Net cash used in financing activities |  | (9,903,056) | (10,345,552) | (3,779,572) | (2,872,284)
Net increase/(decrease) in cash and cash equivalents |  | 3,561,594 | (855,593) | 66,347 | (93,322)
Cash and cash equivalents at beginning of year |  | 13,896,633 | 18,662,149 | 79,696 | 170,729
Effect of exchange rate fluctuations on cash held |  | (508,201) | (3,909,923) | - | 2,289
Cash and cash equivalents at end of year* | 23 | 16,950,026 | 13,896,633 | 146,043 | 79,696
Cash at bank and in hand | 23 | 18,952,370 | 16,293,444 | 146,043 | 79,696
Bank overdraft | 23, 27 | (2,002,344) | (2,396,811) | - | -
Cash and cash equivalents at end of year | 23 | 16,950,026 | 13,896,633 | 146,043 | 79,696

* Cash and cash equivalents include bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management.
The notes on pages 8 to 127 are an integral part of these financial statements.
MedservRegis p.l.c.
Notes to the Financial Statements
For the year ended 31 December 2024
8
1 Reporting company
MedservRegis p.l.c. (the “Company”) is a public liability company domiciled and incorporated in Malta. The principal activity of the Company is that of a holding company (see note 20).
The consolidated financial statements of the Company as at and for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as ‘the Group’ and individually ‘Group entities’). The Group is primarily involved in providing shore base logistics and engineering services to the offshore oil and gas industry and supply chain management for Oil Country Tubular Goods (OCTG) to support the onshore oil and gas industry. It also provides equipment, procurement, and specialised services to a wide range of customers, including national and international energy companies, drilling and mining companies, as well as product and equipment manufacturers and other heavy industry-related contractors across the globe, reaching the Mediterranean countries, Middle East, South America, sub-Saharan Africa including a number of emerging markets such as Mozambique, Uganda, and Angola.
2 Basis of preparation
2.1 Statement of compliance
These consolidated and separate financial statements as at and for the year ended 31 December 2024 have been prepared in accordance with International Reporting Standards (IFRS) as adopted by the EU. All references in these financial statements to IAS, IFRS or SIC / IFRIC interpretations refer to those adopted by the EU. These financial statements have also been drawn up in accordance with the provisions of the Companies Act, 1995 (Chapter 386, Laws of Malta) (the “Act”).
Article 4 of Regulation 1606/2002/EC requires that, for each financial year starting on or after 1 January 2005, companies governed by the law of an EU Member State shall prepare their consolidated financial statements in conformity with IFRS as adopted by the EU if, at their reporting date, their securities are admitted to trading on a regulated market of any EU Member State.
Details of the Group’s material accounting policy information is included in Note 4.
2.2 Going concern
The Group generated a profit after tax for the year amounting to €2.1 million (2023 profit: €1.3 million), it reported an adjusted EBITDA (note 6) of €16.1 million (2023: adjusted EBITDA €17.5million) and generated operating cash inflows of €17.4 million (2023: €12.4 million). The Group’s net asset value amounted to €56.4 million (2023: €56.9 million) and positive working capital amounted to €24.4 million (2023: €25.1 million).
The Company, which primarily acts as a treasury vehicle for the Group, generated a profit for the year amounting to €4.8 million (2023 loss: €0.6 million) and had a net asset value of €24.5 million (2023: €20.7 million). As at year end, the Company reported negative working capital of €5.4 million (2023: positive €5.1 million). However, this position arises primarily due to an amount of €7.8 million (2023: €7.2 million) payable to its subsidiaries. Excluding this intra-group balance, the Company’s adjusted working capital is positive. Given the nature of these balances and the Company's role within the Group, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, and has enough liquidity to honour its liabilities as and when they fall due.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
9
2 Basis of preparation (continued)
2.2 Going concern (continued)
The Group has €21.3 million of resources comprising cash and cash equivalents, unused credit lines and investments at FVTPL as at reporting date. The Group’s cash and cash equivalents include an amount of €4.9 million held by a subsidiary and which are subject to exchange controls on remittance outside of the jurisdiction in which it operates (note 23).
The recovery in oil and gas pricing is encouraging the major international energy companies to start revisiting their drilling programmes and future investment projects. As global oil markets progressively recover from the effects of the pandemic and the related unprecedented declines in demand, the Group and the Company are well positioned to pursue growth opportunities in both existing and new markets and participate in many of the largest energy projects scheduled over the next five years.
Considering the factors and circumstances as described above, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
2.3 Basis of measurement
The financial statements have been prepared on the historical cost basis, except for investments at FVTPL.
2.4 Functional and presentation currency
These financial statements are presented in euro (€), which is the Company’s functional currency and the Group’s presentation currency.
3 Use of judgements and estimates
In preparing these financial statements, management has made judgements and estimates that affect the application of Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis and the Group based its assumptions and estimates on parameters available at the reporting date. Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the control of the Group. Revisions to accounting estimates are recognised prospectively.
Information about areas involving a higher degree of judgements or complexity in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements and information about assumptions and estimation uncertainties at 31 December 2024 and 2023 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:
-Note 14 and 32 – impairment test of property, plant and equipment and right-of-use assets of the Group: key assumptions underlying recoverable amounts;
-Note 19 and Note 20 – impairment test of loans receivable from, and investments in, subsidiaries: key assumptions underlying recoverable amounts;
-Note 15 – impairment test of goodwill and intangible assets: key assumptions underlying recoverable amount;
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
10
3 Use of judgements and estimates (continued)
-Note 16 – recognition of deferred tax assets: availability of future taxable profit against which investment tax credits can be utilised;
-Note 31.4 – measurement of expected credit loss (ECL) allowance for trade receivables: key assumptions in determining the loss given default and macro-economic adjustments; and
-Note 32 – determining the lease term and the discount rate: Key assumptions in determining extension option and estimating the incremental borrowing rate.
4 Material accounting policy information
4.1 Basis of consolidation
4.1.1 Business combinations
The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see note 4.1.2). The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see note 4.3.3). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss.
4.1.2 Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
Investments in subsidiaries are shown in the statement of financial position of the Company at cost less any accumulated impairment losses. Cost includes directly attributable costs of the investment. Provisions are recorded when, in the opinion of the directors, there is an impairment in value. Where there has been an impairment in the value of an investment, it is recognised as an expense in the period in which the diminution is identified. The results of subsidiaries are reflected in the Company’s separate financial statements only to the extent of dividends receivable. On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to profit or loss.
4.1.3 Non-controlling interests (NCI)
NCI are measured initially at their proportionate share of the acquiree's identifiable net assets at the date of acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
11
4 Material accounting policy information (continued)
4.1 Basis of consolidation (continued)
4.1.4 Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
4.1.5 Interests in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in associates and a joint venture. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income (OCI) of equity-accounted investees, until the date on which significant influence or joint control ceases. Where the Group’s share of loss in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
4.1.6 Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
4.2 Foreign currency
4.2.1 Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.
The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Foreign currency differences are generally recognised in profit or loss. However, foreign currency differences arising from the translation of financial liabilities denominated in a foreign currency and designated as a hedge of the net investment in a foreign operation are recognised in other comprehensive income to the extent that the hedge is effective and is accumulated in the translation reserve (see note 4.4).
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
12
4 Material accounting policy information (continued)
4.2 Foreign currency (continued)
4.2.2 Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the Group’s presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the Group’s presentation currency at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the translations).
Foreign currency differences are recognised in OCI and presented within equity in the translation reserve, except to the extent that the translation difference is allocated to NCI. However, if the operation is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is allocated to non-controlling interests. When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal.
4.2.3 Foreign currency gains and losses
Foreign currency gains and losses relating to operating activities are recognised in profit or loss and reported on a net basis within “Other income/(expenses)”. Foreign currency gains and losses relating to investing activities and financing activities are recognised in profit or loss and are reported on a net basis within “finance income” or “finance costs” respectively. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges (see note 4.2.1) or are attributable to part of the net investment in a foreign operation.
4.3 Financial instruments
4.3.1 Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable with an insignificant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs are directly attributable to its acquisition or issue. A trade receivable with an insignificant financing component is initially measured at the transaction price. Transaction costs of financial assets carried at FVTPL are expensed in profit and loss.
4.3.2 Classification and subsequent measurement
4.3.2.1 Financial assets
On initial recognition, the Group’s financial assets are classified as measured at: amortised cost; or at Fair Value Through Profit or Loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
13
4 Material accounting policy information (continued)
4.3 Financial instruments (continued)
4.3.2 Classification and subsequent measurement (continued)
4.3.2.1 Financial assets (continued)
Debt instruments
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
•it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin that is consistent with a basic lending arrangement.
Equity instruments
The Group subsequently measures all equity investments at fair value. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised in other gains/(losses) in the statement of profit or loss as applicable.
4.3.2.2 Financial assets – Subsequent measurement and gains and losses
The Company’s financial assets comprise loans to subsidiaries, cash and cash equivalents and trade and other receivables. The Group’s financial assets comprise cash and cash equivalents, trade and other receivables and investments in equity and debt instruments.
For financial assets at amortised cost, these assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by expected credit losses. Interest income, foreign exchange gains and losses and expected credit losses are recognised in profit or loss.
For financial assets at FVTPL, these are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
14
4 Material accounting policy information (continued)
4.3 Financial instruments (continued)
4.3.2 Classification and subsequent measurement (continued)
4.3.2.3 Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. The Group’s financial liabilities which include loans, borrowings and trade and other payables, are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Where the Group designates a financial liability such as a loan in a hedging relationship for a net investment in a foreign operation, the effective portion of the exchange gains or losses are recognised in other comprehensive income (see note 4.2.2).
4.3.3 Impairment
4.3.3.1 Financial instruments and contract assets
The Group recognises loss allowances for Expected Credit Losses (ECLs) on financial assets at amortised cost.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following which are measured at 12-month ECLs:
•bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.
The Group measures loss allowances for trade receivables and contract assets at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment and including forward-looking information.
The Group assesses whether the credit risk on a financial asset has increased significantly based on the number of days past due, with thresholds adjusted to reflect regional characteristics and operating conditions:
•In Mediterranean and Middle Eastern countries, a financial asset is considered to have experienced a significant increase in credit risk when it is 90 to 120 days past due, based on local market practices and payment behavior.
•In Sub-Saharan African and North African countries, the Group applies a longer threshold of up to 365 days past due, in recognition of administrative delays, longer invoicing processes, and settlement timelines in these regions.
The Group considers a financial asset to be in default when:
•the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as the realization of security (if any is held); or
•the financial asset is past due beyond the applicable threshold, as outlined above.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
15
4 Material accounting policy information (continued)
4.3 Financial instruments (continued)
4.3.3 Impairment (continued)
4.3.3.2 Measurement of ECLs
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.
ECLs are a probability-weighted estimate of credit losses. Credit losses were measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expected to receive).
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period ranging from 36 to 60 months before 1 January 2024 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
4.3.3.3 Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
•significant financial difficulty of the borrower or issuer;
•a breach of contract such as a default or being beyond the applicable threshold, as outlined above;
•the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise; or
•it is probable that the borrower will enter bankruptcy or other financial reorganisation.
4.3.3.4 Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the Statement of Profit or loss and OCI.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
16
4 Material accounting policy information (continued)
4.3 Financial instruments (continued)
4.3.3 Impairment (continued)
4.3.3.5 Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off on its financial assets based on whether there is a reasonable expectation of recovery and with reference to its historical experience of recoveries. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.
4.3.4 Derecognition
4.3.4.1 Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
4.3.4.2 Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
4.3.5 Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a current legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
4.4 Hedge accounting – Net investment hedge
The Group’s hedging activities consist of hedges of a net investment in a foreign operation. At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedge item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
17
4 Material accounting policy information (continued)
4.4 Hedge accounting – Net investment hedge (continued)
The Group uses a loan as a hedge of its exposure to foreign exchange risk on its investments in foreign subsidiaries, including a hedge of a monetary item that is accounted for as part of the net investment. Any gain or loss on the hedging instrument relating to the effective portion is recognised in other comprehensive income and accumulated in the translation reserves in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within finance cost.
On disposal of the foreign operation, the cumulative value of any such gains or losses recorded in equity is transferred to the statement of profit or loss.
4.5 Property, plant and equipment
4.5.1 Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use.
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (significant components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net within “other income/(expenses)” in profit or loss.
4.5.2 Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item, if it is probable that the future economic benefits embodied within the component will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
4.5.3 Depreciation
Deprecation is based on the cost of an asset less its residual value. Significant components of individual assets having a useful life that is different from the remainder of that asset, are depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Property developed and related improvements made on leased land are depreciated over the shorter of the land’s lease term and the useful lives of the building and improvements unless it is reasonably certain that the Group will obtain ownership of the land by the end of the lease term. Depreciation commences when the item is available for use.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
18
4 Material accounting policy information (continued)
4.5 Property, plant and equipment (continued)
4.5.3 Depreciation (continued)
The estimated useful lives for the current and comparative periods are as follows:

| 2024 Years | 2023 Years
•Buildings and base improvements* | 20 – 50 | 20 – 50
•Furniture and fittings | 10 | 10
•Office equipment | 4-5 | 4-5
•Computer equipment | 5 | 5
•Plant and equipment | 10-15 | 10-15
•Motor vehicles | 4-10 | 4-10
•Cargo carrying units | 10 | 10
•Photovoltaic farm | 20 | 20

*The useful life of buildings and base improvements on leased property is based on the lower of the useful life of the asset and lease term.
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
4.6 Intangible assets and goodwill
4.6.1 Recognition and measurement
Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. Goodwill that arises upon the acquisition of subsidiaries represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. When the excess is negative, it is recognised immediately in profit or loss. Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses.
Intangible assets include the trade names, trademarks and related assets, customer contracts and non-contractual customer relationships. Intangible assets acquired as part of a business combination are measured at fair value at the date of acquisition less accumulated amortisation and any accumulated impairment losses. Subsequent to initial recognition, these intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The tradenames, trademarks and related assets comprise the “Medserv” and the “METS” brands. These are regarded as having an indefinite life, since based on all relevant factors, there is no foreseeable limit to the period over which the assets are expected to generate cash inflows. The “Medserv” and “METS” brands have existed for over 40 and 15 years respectively which is comparable to other brands in the oil and gas industry.
The customer contracts acquired by the Group have finite useful lives.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
19
4 Material accounting policy information (continued)
4.6 Intangible assets and goodwill (continued)
4.6.2 Subsequent costs
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
4.6.3 Amortisation
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Goodwill and the brands and trademarks having indefinite life are not amortised and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired.
The estimated useful lives for the current period are as follows:
•customer contracts 2-9 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
4.7 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
4.7.1 As a lessee
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable by the group under residual value guarantees
• the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
20
4 Material accounting policy information (continued)
4.7 Leases (continued)
4.7.1 As a lessee (continued)
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Entity-specific details about the group’s leasing policy are provided in note 32.
4.8 Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale.
4.9 Impairment of non-financial assets
Goodwill and intangible assets having an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. The carrying amounts of the Group’s other non-financial assets, with exception to deferred tax assets, inventories and contract assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.
The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets in which case the assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or a cash-generating unit (CGU) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. The Group bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to projected future cash flows after the fifth year.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by fair value indicators such as replacement cost.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
21
4 Material accounting policy information (continued)
4.9 Impairment of non-financial assets (continued)
The Group’s corporate assets such as office building and computer equipment do not generate separate cash inflows. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or its related CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment loss recognised on a CGU or group of CGUs is first allocated to reduce the carrying amount of any goodwill allocated to the CGU or group of CGUs and then to the other assets of the CGU or group of CGUs pro rata on the basis of the carrying amount of each asset in the CGU or group of CGUs.
Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. An impairment loss in respect of goodwill is not reversed.
4.10 Employee benefits
4.10.1 Defined contribution plans
The Group contributes towards the State defined contribution plan in accordance with local legislation and to which it has no commitment beyond the payment of fixed contributions. Obligations for contributions to the defined contribution plan are recognised in profit or loss as incurred.
4.10.2 Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefits that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on German Government Bonds that have maturity dates approximating the terms of the Group’s obligations.
4.10.3 Severance payments
Pursuant to United Arab Emirates (U.A.E.) and Sultanate of Oman labour regulations, severance payments have to be paid on termination of employment by the employer. The Group’s net obligation in respect of this defined benefit obligation is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods and discounting that amount. The calculation of the liability is performed annually at each reporting date using the projected unit credit method. Re-measurement of the liability, which comprise actuarial gains and losses, are recognised immediately in OCI. The Group determines the interest expense on the liability for the period by applying the discount rate used to measure the obligation at the beginning of the annual period to the then-net liability, taking into account any changes in the liability during the period as a result of payments. Interest expense is recognised in profit or loss. The Group recognises gains and losses on the settlement of a liability when the settlement occurs.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
22
4 Material accounting policy information (continued)
4.11 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of discount is recognised as finance cost.
4.12 Revenue
Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over a product or service to a customer.
4.12.1 Performance obligations and revenue recognition policies
The following is a description of the principal activities – separated by reportable segments – from which the Group generates its revenue. For more detailed information about reportable segments, see note 7. The Group is engaged in providing integrated logistics support services (ILSS) to the offshore oil and gas industry and OCTG services to the onshore oil and gas market and as such is involved in providing support services that span over a term. Services and support provided to the offshore oil and gas industry consists of integrated offshore logistics, engineering and technical services, supply of goods and management services. OCTG services to the onshore oil and gas market consist of handling and storage, and machine shop services for premium threading, inspection and repair services for OCTG and other ancillary services. The Group also produces and supplies electricity through its photovoltaic plant.
The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2024
23
4 Material accounting policy information (continued)
4.12 Revenue (continued)
4.12.1 Performance obligations and revenue recognition policies (continued)
4.12.1.1 Integrated Logistics Support Services (ILSS)

Type of product/service | Nature and timing of satisfaction of performance obligations, including significant payment terms | Revenue recognition policies
Logistics support services | The Group performs and provides logistics services to international oil companies carrying out offshore drilling campaigns. The Group delivers fully integrated supply base services which connect all the elements of the clients’ logistics and materials management activities. Logistics support services include provision of equipment, personnel, warehousing, quays and land in a certified facility aimed at supporting offshore oil and gas drilling activities. Invoices are issued on a monthly basis and are usually payable within 30 to 90 days. Uninvoiced amounts are presented as contract assets. | Logistics support services provided are routine or recurring in nature and span over a period of time. These services have been identified as a series of distinct services transferred to the customer in the same pattern. The customer simultaneously receives the benefits provided as the services are being rendered. Revenue is recognised over time as the services are provided.
Engineering and technical services | The Group through its engineering division carries out a full range of essential, non-critical engineering and technical services for the offshore platforms and drilling rigs. Services range from fabric maintenance, corrosion protection, riser inspection services, rig repair, technical services and general fabrication and maintenance. Invoices are issued according to contractual terms and are usually payable within 30 to 60 days. Uninvoiced amounts are presented as contract assets. | Engineering services have been identified as a bundle of distinct goods or services that form one single obligation.This creates or enhances an asset controlled by the customer in terms of repairs and maintenance. Revenue is recognised over time as the services are provided. The stage of completion for determining the amount of revenue is assessed based on surveys of work performed.If the services are rendered in different reporting periods, then the consideration is allocated based on their relative stand-alone selling prices. The stand-alone selling price is determined based on customer-specific contract or based on the list prices at which the Group sells the services in separate transactions.

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
24
4 Material accounting policy information (continued)
4.12 Revenue (continued)
4.12.1 Performance obligations and revenue recognition policies (continued)
4.12.1.1 Integrated Logistics Support Services (ILSS) (continued)

Type of product/service | Nature and timing of satisfaction of performance obligations, including significant payment terms | Revenue recognition policies
Supply of goods | The Group is involved in procuring various goods and supplies to its customers for use on the offshore rigs and their supply vessels. Clients obtain control of goods when the goods are delivered to and have been accepted at their specified location. Invoices are generated at that point in time. Invoices are usually payable within 30 - 90 days. | Revenue from supply of goods is recognised when the goods are delivered as this is the point in time that the consideration is unconditional since only the passage of time is required before payment is due.Delivery occurs when the goods have been shipped to the specific location or loaded onto the client’s vessel, the risks and rewards have been transferred to the customer, and either the customer has accepted the goods in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied. Generally, for such goods, the customer has no right of return.

4.12.1.2 Photovoltaic income

Type of product/service | Nature and timing of satisfaction of performance obligations, including significant payment terms | Revenue recognition policies
Supply of electricity | Revenue from the supply of electricity is generated from the Group’s investment in the Photovoltaic farm. Invoices are issued on a monthly basis. Prices are based on the published Feed-in-Tariffs.Invoices are issued on receipt of the monthly statement issued by the counterparty and are payable within 15 days. | Revenue is recognised over time based on the monthly readings of kWh of energy supplied as per monthly statements issued by the counterparty.

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
25
4 Material accounting policy information (continued)
4.12 Revenue (continued)
4.12.1 Performance obligations and revenue recognition policies (continued)
4.12.1.3 Oil Country Tubular Goods (OCTG)

Type of product/service | Nature and timing of satisfaction of performance obligations, including significant payment terms | Revenue recognition policies
Storage and handling | This includes the provision of yard storage and handling of OCTG.Invoices for storage and handling are issued on a monthly basis and are usually payable within 30 days. . | Revenue is recognised over time as the services are provided. If the services are rendered in different reporting periods, then the consideration is allocated based on their relative standalone selling prices. The standalone selling prices are determined based on the agreed selling prices as per customer-specific contract or based on the list prices at which the Group sells the services in separate transactions.
Inspection | This includes the provision of inspection services of OCTG.Invoices for inspection are issued on a monthly basis and are usually payable within 30 days. | Revenue is recognised over time as the services are provided. If the services under a single arrangement which include both inspection and handling charges for inspection are rendered in different reporting periods, then the consideration is allocated based on their relative standalone selling prices. The standalone selling prices are determined based on the agreed selling prices as per customer-specific contract or based on the list prices at which the Group sells the services in separate transactions.
Repairs of pipes | This involves the provision of repairs of pipes using the Group’s machine shops in UAE and Iraq.Invoices for repair of pipes are issued on a monthly basis and are usually payable within 30 days. | Revenue is recognised over time as the services are provided. If the services under a single arrangement are rendered in different reporting periods, then the consideration is allocated based on their relative standalone selling prices. The standalone selling prices are determined based on the agreed selling prices as per customer-specific contract or based on the list prices at which the group sells the services in separate transactions.

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
26
4 Material accounting policy information (continued)
4.12 Revenue (continued)
4.12.2 Determining transaction price and allocation to performance obligations
The Group’s amount of consideration which it expects to be entitled to in exchange for transferring of services to a customer is determined on a per-service usage basis and is payable in accordance with customary payment terms. Accordingly, a transaction price is determined separately for each performance obligation.
4.12.3 Dividend income
Dividend income and management fees are recognised in profit or loss on the date on which the Company’s right to receive payment is established.
4.12.4 Management fees
The Company entered into transactions with related parties for the provision of management services to group companies. Management fees are established through a contract with the respective group company and considered fixed in nature. It is not expected that future reversals to management fee income will occur and its inclusion as the transaction price is earned as the services are being performed. The performance obligation is identified for the services provided to the customer and is satisfied upon rendering and completion of the service. The price is agreed with the customer in a written agreement and is allocated to the performance obligation accordingly. Prices are based on established prices for management services being provided.
4.13 Finance income and finance costs
The Group’s finance income and finance costs include:
-interest income recognised on financial assets;
-interest expense on borrowings; and
-exchange gains or losses arising from the Group’s investing and financing activities.
Interest income or expense is recognised as it accrues in profit or loss, using the effective interest method.
The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
-The gross carrying amount of the financial asset; or
-The amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis.
Borrowing costs that are not attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
27
4 Material accounting policy information (continued)
4.14 Government grants
The Group recognises government grants that are related to assets as deferred income at fair value if there is reasonable assurance that they will be received, and the Group will comply with the conditions associated with the grant; they are then recognised in profit or loss as other income on a systematic basis over the useful life of the asset.
Grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on a systematic basis in the periods in which the expenses are recognised, unless the conditions for receiving the grant are met after the related expenses have been recognised. In that case, the grant is recognised when it becomes receivable.
Government assistance in the form of a guarantee from the government for loans from financial institutions is considered part of the unit of account in determining the fair value of the loan. The loan is recognised and measured in accordance with IFRS 9 Financial Instruments (see note 4.3). The benefit of the below-market rate of interest as a result of the guarantee from the government is measured as the difference between the initial carrying value of the loan determined in accordance with IFRS 9 and the proceeds received. The Group considers the conditions and obligations that have been, or must be, met when identifying the costs for which the benefit of the loan is intended to compensate.
4.15 Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends. Current tax assets and liabilities are offset only if certain criteria are met.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Group.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
28
4 Material accounting policy information (continued)
4.15 Income tax (continued)
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if certain criteria are met.
4.16 Earnings per share
The Group presents basic earnings per share (EPS) data for its ordinary shares. This EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. If the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalisation, bonus issue or share split, the calculation of EPS for all periods presented shall be adjusted retrospectively.
4.17 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the Board of Directors, the chief operating decision maker, to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Board of Directors include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly the Company’s assets and liabilities.
Segment capital expenditure is the total cost incurred during the year to acquire non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising under insurance contracts.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
29
5 New standards, amended standards and interpretations
5.1 New and amended standards and interpretations adopted by the Group
The Group has applied the following amendments for the first time for their annual reporting period commencing 1 January 2024:
Amendments to IAS 1 Presentation of Financial Statements:
-Classification of Liabilities as Current or Noncurrent
-Classification of Liabilities as Current or Noncurrent - Deferral of Effective Date; and
-Non-current Liabilities with Covenants
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements
The adoption of these revisions to the requirements of IFRSs as adopted by the EU did not result in changes to the Group’s accounting policies impacting the financial performance and position.
5.2 Standards issued but not yet effective
A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2024 and earlier application is permitted. However, the Group has not early adopted any of the forthcoming new or amended standards in preparing these financial statements. The following sets out the effective date and impact of forthcoming amendments to standards and new standards on the Group’s financial statements:

| EU effective date(financial period on or after) | Impact assessment
Standards available for early adoption |  |
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability | 1 January 2025 | No significant impact
Standards not / not yet endorsed by the EU |
IFRS 18 Presentation and Disclosure in Financial Statements | Not yet endorsed | No significant impact
Annual Improvements Volume 11 | Not yet endorsed | No significant impact
Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) | Not yet endorsed | No significant impact

The Group is of the opinion that there are no requirements that will have a possible significant impact on the Group’s financial statements in the period of initial application.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
30
6 Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA)
The Directors have presented the performance measure adjusted EBITDA because they monitor this performance measure at a consolidated level and they believe this measure is relevant to an understanding of the Group’s financial performance. Adjusted EBITDA is calculated by adjusting profit from continuing operations to exclude the impact of taxation, net finance income/(costs), depreciation, amortisation and impairment losses related to goodwill, intangible assets, and property, plant and equipment.
Adjusted EBITDA is not a defined performance measure in IFRS standards and as a result, the Group’s definition of adjusted EBITDA may not be comparable with similarly titled performance measures and disclosures by other entities.
Reconciliation of adjusted EBITDA to profit from continuing operations.

|  | The Group
|  | 2024 | 2023
| Notes | € | €
Profit for the year from continuing operations |  | 2,095,453 | 1,294,394
Tax expense | 13 | 1,774,348 | 377,438
Profit before tax |  | 3,869,801 | 1,671,832
Adjustments for: |  |  |
- Net finance costs | 12 | 2,410,495 | 6,190,329
- Depreciation | 14, 32 | 8,335,315 | 8,205,843
- Amortisation of intangible assets | 15 | 1,238,413 | 1,357,499
- Impairment loss on remeasurement of assets held for sale | 14.5 | 101,544 | -
- Net impairment loss on property, plant and equipment | 14.6 | 146,449 | 78,852
Adjusted EBITDA |  | 16,102,017 | 17,504,355

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
31
7 Operating segments
7.1 The Group has three (2023: three) reportable operating segments, as described below, which represent the Group’s strategic divisions. These divisions offer different products and services and are managed separately because they require different resources and marketing strategies. For each of the strategic divisions, the Board of Directors, which is the chief operating decision maker, reviews internal management reports on a monthly basis.
The following summary describes the operations in each of the Group’s reportable segments:
Integrated logistics support services Includes the provision of comprehensive logistical support services to the offshore oil and gas industry from the Group’s bases in Malta, Cyprus, Egypt, South America and Africa.
Oil country tubular goods Includes the provision of an integrated approach to OCTG handling, inspection, repairs and other ancillary services based in three Middle East locations, namely U.A.E., Southern Iraq and Sultanate of Oman.
Photovoltaic farm Involves the generation of electricity which is sold into the national grid for a twenty-year period at a price secured under the tariff scheme regulated by subsidiary legislation S.L. 423.46 in Malta.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment adjusted EBITDA as included in the internal management reports that are reviewed by the Board of Directors. Segment adjusted EBITDA is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
32
7 Operating segments (continued)
7.2 Information about reportable segments

2024 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total
| € | € | € | €
External revenue | 36,939,584 | 32,599,241 | 468,510 | 70,007,335
Segment revenue | 36,939,584 | 32,599,241 | 468,510 | 70,007,335
Reportable segment (loss)/profit before tax | (2,085,247) | 5,846,724 | 108,324 | 3,869,801
Net finance costs | 1,177,144 | 1,070,871 | 162,480 | 2,410,495
Depreciation on property, plant and equipment | 1,881,009 | 1,836,047 | 197,706 | 3,914,762
Depreciation on right-of-use assets | 3,081,043 | 1,339,510 | - | 4,420,553
Other material non-cash items: |  |  |  |
Amortisation of intangible assets | 42,582 | 1,195,831 | - | 1,238,413
Net impairment on property, plant and equipment | 146,449 | - | - | 146,449
Impairment loss on remeasurement of Assets held for Sale | 101,544 | - | - | 101,544
Adjusted EBITDA | 4,344,524 | 11,288,983 | 468,510 | 16,102,017
Reportable segment assets | 114,190,453 | 29,677,587 | 1,880,451 | 145,748,491
Capital expenditure during 2024 | 2,674,335 | 2,205,915 | - | 4,880,250
Reportable segment liabilities | 76,251,937 | 8,917,643 | 2,970,000 | 88,139,580

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
33
7 Operating segments (continued)
7.2 Information about reportable segments (continued)

2023 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total
| € | € | € | €
External revenue | 46,128,080 | 27,306,637 | 491,619 | 73,926,336
Segment revenue | 46,128,080 | 27,306,637 | 491,619 | 73,926,336
Reportable segment (loss)/profit before tax | (3,755,165) | 5,360,816 | 66,181 | 1,671,832
Net finance costs | 4,826,152 | 1,136,445 | 227,732 | 6,190,329
Depreciation on property, plant and equipment | 2,433,245 | 1,590,138 | 197,706 | 4,221,089
Depreciation on right-of-use assets | 2,812,208 | 1,172,546 | - | 3,984,754
Other material non-cash items: |  |  |  |
Amortisation of intangible assets | 42,582 | 1,314,917 | - | 1,357,499
Net impairment on property, plant and equipment | 78,852 | - | - | 78,852
Adjusted EBITDA | 6,437,874 | 10,574,862 | 491,619 | 17,504,355
Reportable segment assets | 107,095,896 | 35,975,322 | 2,102,795 | 145,174,013
Capital expenditure during 2023 | 1,532,491 | 1,147,977 | - | 2,680,468
Reportable segment liabilities | 74,330,863 | 9,507,409 | 3,285,000 | 87,123,272

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
34
7 Operating segments (continued)
7.3 Reconciliation of information on reportable segments to the amounts reported in the financial statements

| 2024 | 2023
| € | €
Revenues |  |
Total revenues for reportable segments | 70,007,335 | 73,926,336
Consolidated revenues | 70,007,335 | 73,926,336
Profit or loss |  |
Profit before income tax for reportable segments | 3,869,801 | 1,671,832
Consolidated profit before income tax | 3,869,801 | 1,671,832
Assets |  |
Total assets for reportable segments | 145,748,491 | 145,174,013
Consolidated total assets | 145,748,491 | 145,174,013
Liabilities |  |
Total liabilities for reportable segments | 88,139,580 | 87,123,272
Consolidated total liabilities | 88,139,580 | 87,123,272
Adjusted EBITDA |  |
Total adjusted EBITDA for reportable segments | 16,102,017 | 17,504,355
Consolidated adjusted EBITDA | 16,102,017 | 17,504,355

7.4 Geographical information
7.4.1 The ILSS segment is managed from Malta with a satellite office in Mauritius and operates base facilities and/or offices in Malta, Cyprus, Egypt, Morocco, Suriname, Libya, Mozambique and Uganda. The OCTG segment is managed from U.A.E. and operates base facilities in U.A.E., Southern Iraq and Sultanate of Oman. The photovoltaic farm is managed and operated in Malta.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the assets.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
35
7 Operating segments (continued)
7.4.1 Geographical information (continued)

| Revenues | Non-current assets
| € | €
2024 |  |
Cyprus | 6,572,967 | 6,269,731
Malta | 13,226,253 | 57,635,854
Egypt | 6,548,019 | 3,710,644
Middle East | 35,190,013 | 23,071,218
South America | 332,893 | 1,920,096
Sub-Saharan Africa | 8,137,190 | 9,875,209
| 70,007,335 | 102,482,752
2023 |  |
Cyprus | 8,840,784 | 8,491,322
Malta | 8,402,101 | 61,084,398
Egypt | 7,318,332 | 3,924,037
Middle East | 29,816,637 | 18,399,188
South America | 22,798 | -
Morocco | 8,973,609 | -
Sub-Saharan Africa | 10,552,075 | 10,361,320
| 73,926,336 | 102,260,265

7.4.2 Major customers
Revenues from two (2023: two) major external customers during the year amounted to approximately €24.7 million (2023: €33.2 million) of the Group’s total revenues.
7.4.3 Situation in Mozambique and Libya
The Group has experienced a slowdown in its business activities in Mozambique due to the force majeure imposed by TotalEnergies in northern Mozambique. This has led to significant delays in the development of a major liquefied natural gas (LNG) project.
The political instability in Libya has caused delays in announcing the upcoming mega offshore energy projects. The Group services this market through its shore base in Malta, while the clients’ operations are mainly offshore Libya, located 120 kilometres north of the Libyan coast.
The projects in Mozambique are expected to resume in the short to medium term, while the projects in Libya have resumed subsequent to year end.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
36
8 Revenue
8.1 Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical market, major service lines and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s reportable segments (see note 7).
The Group

2024 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total
| € | € | € | €
Malta | 12,757,743 | - | 468,510 | 13,226,253
Middle East | 2,590,772 | 32,599,241 | - | 35,190,013
Cyprus | 6,572,967 | - | - | 6,572,967
Egypt | 6,548,019 | - | - | 6,548,019
South America | 332,893 | - | - | 332,893
Sub-Saharan Africa | 8,137,190 | - | - | 8,137,190
| 36,939,584 | 32,599,241 | 468,510 | 70,007,335

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
37
8 Revenue (continued)
8.1 Disaggregation of revenue from contracts with customers (continued)

| The Group | The Company
2024 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total | Total
| € | € | € | € | €
Major service lines |  |  |  |  |
Logistic support services | 28,866,222 | - | - | 28,866,222 | -
Supply of goods | 1,307,326 | - | - | 1,307,326 | -
Storage and handling | 6,766,036 | 19,668,727 | - | 26,434,763 | -
Inspection | - | 2,879,179 | - | 2,879,179 | -
Repairs of pipes | - | 10,051,335 | - | 10,051,335 | -
Supply of electricity | - | - | 468,510 | 468,510 | -
Management fees | - | - | - | - | 1,825,000
Dividends | - | - | - | - | 17,040,170
| 36,939,584 | 32,599,241 | 468,510 | 70,007,335 | 18,865,170
Timing of revenue recognition |  |  |  |  |
Transferred over time | 35,632,258 | 32,599,241 | 468,510 | 68,700,009 | 1,825,000
Point in time | 1,307,326 | - | - | 1,307,326 | 17,040,170
| 36,939,584 | 32,599,241 | 468,510 | 70,007,335 | 18,865,170

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
38
8 Revenue (continued)
8.1 Disaggregation of revenue from contracts with customers (continued)
The Group

2023 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total
| € | € | € | €
Malta | 7,910,482 | - | 491,619 | 8,402,101
Middle East | 2,510,000 | 27,306,637 | - | 29,816,637
Cyprus | 8,840,784 | - | - | 8,840,784
Egypt | 7,318,332 | - | - | 7,318,332
Sub-Saharan Africa | 10,552,075 | - | - | 10,552,075
South America | 22,798 | - | - | 22,798
Morocco | 8,973,609 | - | - | 8,973,609
| 46,128,080 | 27,306,637 | 491,619 | 73,926,336

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
39
8 Revenue (continued)
8.1 Disaggregation of revenue from contracts with customers (continued)

| The Group | The Company
2023 | Integrated logistics support services | Oil country tubular goods | Photovoltaic farm | Total | Total
| € | € | € | € | €
Major service lines |  |  |  |  |
Logistic support services | 30,433,096 | - | - | 30,433,096 | -
Supply of goods | 9,779,701 | - | - | 9,779,701 | -
Engineering and technical services | 495,002 | - | - | 495,002 | -
Storage and handling | 5,420,281 | 18,108,819 | - | 23,529,100 | -
Inspection | - | 2,412,528 | - | 2,412,528 | -
Repairs of pipes | - | 6,785,290 | - | 6,785,290 | -
Supply of electricity | - | - | 491,619 | 491,619 | -
Management fees | - | - | - | - | 1,600,000
Dividends | - | - | - | - | 400,000
| 46,128,080 | 27,306,637 | 491,619 | 73,926,336 | 2,000,000
Timing of revenue recognition |  |  |  |  |
Transferred over time | 36,348,379 | 27,306,637 | 491,619 | 64,146,635 | 1,600,000
Point in time | 9,779,701 | - | - | 9,779,701 | 400,000
| 46,128,080 | 27,306,637 | 491,619 | 73,926,336 | 2,000,000

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
40
8 Revenue (continued)
8.2 Contract balances
The following table provides information about assets and liabilities from contracts with customers.

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Current contract assets relating to unbilled revenue, net of loss allowances | 730,874 | 3,381,677 | 1,442,500 | 1,600,000
Current contract liabilities relating to payment made in advance by customers | 218,459 | 113,196 | - | -

The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional.
8.3 Revenue recognized in relation to contract liabilities
The table below shows how much revenue recognized in the reporting period relates to carried-forward contract liabilities.

| 2024 | 2023
| € | €
Revenue recognized that was included in the contract liability balance at the beginning of the period | 113,196 | 90,267

8.4 Revenue recognised in the Company comprises of dividend income amounting to €17,040,170 (2023: €400,000) and management fees charged to subsidiaries of €1,825,000 (2023: €1,600,000).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
41
9 Other income and other expenses

|  | The Group
|  | 2024 | 2023
| Note | € | €
Release of translation reserve to profit and loss |  | (32,366) | 396,502
Exchange differences arising from operating activities |  | (326,655) | (143,588)
Net change in fair value of financial assets at fair value through profit or loss | 22 | 195,051 | 441,326
Profit/(Loss) on disposal of property, plant and equipment |  | 138,268 | (29,635)
Cashback on credit card |  | 119,463 | 147,267
Income from investments at FVTPL |  | 66,872 | 77,349
Other income |  | 66,600 | 98,650
|  | 227,233 | 987,871

*
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
42
10 Expenses by nature
10.1

|  | The Group | The Company
| Notes | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Direct cost of services |  | 24,360,778 | 35,142,696 | - | -
Consumables |  | 2,068,792 | 28,299 | - | -
Employee benefits | 11 | 16,358,953 | 12,372,672 | 1,360,864 | 1,082,416
Depreciation | 14, 32 | 8,335,315 | 8,205,843 | - | -
Amortisation of intangible assets | 15 | 1,238,413 | 1,357,499 | - | -
Administration fees |  | 774,403 | 499,868 | 101,466 | 48,387
Professional fees |  | 2,658,491 | 2,386,775 | 787,459 | 329,749
Listing expenses |  | 57,223 | 39,319 | 56,442 | 39,319
Rental expense | 32.1.2 | 280,459 | 1,298,485 | - | 14,955
Travelling and telecommunications |  | 999,341 | 1,068,795 | 79,030 | 30,761
Impairment losses on investments in subsidiaries | 20 | - | - | 5,025,946 | 44,763
Reversal of impairment losses on amounts due by subsidiaries | 20 | - | - | (3,019,179) | -
Net impairment loss on PPE | 14 | 146,449 | 78,852 | - | -
Net impairment loss on assets held for sale | 14.5 | 101,544 | - | - | -
Bad debts |  | 101,029 | - | - | -
Repairs and maintenance |  | 2,788,902 | 1,847,456 | 760 | -
Insurance |  | 1,272,915 | 897,333 | 26,717 | 28,148
Security services |  | 383,279 | 367,835 | - | -
Staff welfare |  | 1,200,532 | 1,117,578 | - | -
Other |  | 1,244,500 | 1,105,235 | 4,961 | 17,018
Total cost of sales and administrative expenses |  | 64,371,318 | 67,814,540 | 4,424,466 | 1,635,516
Categorised as follows: |  |  |  |  |
Cost of sales |  | 50,497,758 | 54,606,343 | - | -
Administrative expenses |  | 13,873,560 | 13,208,197 | 4,424,466 | 1,635,516
Total cost of sales and administrative expenses |  | 64,371,318 | 67,814,540 | 4,424,466 | 1,635,516

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
43
10 Expenses by nature (continued)
10.2 The total fees charged to the Group and the Company by the independent auditors during 2024 and connected network firms can be analysed as follows:

2024 | The Group | The Company
| € | €
Auditors’ remuneration | 560,599 | 154,500
| 560,599 | 154,500

2023 | The Group | The Company
| € | €
Auditors’ remuneration | 490,250 | 134,550
Tax compliance and advisory services | 10,528 | -
Other non-audit services | 4,213 | -
| 504,991 | 134,550

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
44
11 Employee benefit expense
Employee benefit expense incurred by the Group during the year are analysed as follows:

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Wages and salaries | 14,318,798 | 10,553,509 | 905,864 | 748,871
Social security contributions | 527,921 | 475,297 | - | -
Maternity fund | 6,694 | 5,370 | - | -
Other statutory contributions | 62,805 | 74,140 | - | -
| 14,916,218 | 11,108,316 | 905,864 | 748,871
Directors’ emoluments: |  |  |  |
Salaries | 1,227,735 | 1,066,719 | 240,000 | 135,908
Fees | 215,000 | 197,637 | 215,000 | 197,637
| 1,442,735 | 1,264,356 | 455,000 | 333,545
| 16,358,953 | 12,372,672 | 1,360,864 | 1,082,416

The monthly average number of persons employed by the Group during the year was as follows:

| 2024 | 2023
| No. | No.
Operating | 774 | 712
Management and administration | 60 | 59
| 834 | 771

The Company had no employees during the current and comparative year. Employee benefits represent salaries recharged to the Company by one of its subsidiaries.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
45
12 Finance income and finance costs

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Interest receivable from banks | 450,561 | 1,010,728 | - | -
Interest receivable from subsidiaries | - | - | 115,753 | 1,390,633
Foreign exchange gain on non-operating activities | 1,328,410 | - | - | 134,977
Finance income | 1,778,971 | 1,010,728 | 115,753 | 1,525,610
Interest payable on bank loans | (301,472) | (424,538) | - | -
Other bank interest payable | (123,794) | (115,410) | - | -
Interest payable to note holders | (2,546,781) | (2,554,313) | (2,249,013) | (2,256,831)
Interest payable to subsidiaries | - | - | (230,136) | (227,732)
Interest on leases | (1,217,419) | (1,098,149) | - | -
Foreign exchange loss on non-operating activities | - | (3,008,647) | (312,252) | -
Finance costs | (4,189,466) | (7,201,057) | (2,791,401) | (2,484,563)
Net finance costs | (2,410,495) | (6,190,329) | (2,675,648) | (958,953)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
46
13 Tax expense
13.1 Recognised in the statement of profit or loss

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Current tax expense | (668,812) | (1,177,036) | - | (50)
Deferred tax (charge)/credit | (1,105,536) | 799,598 | - | -
Tax expense | (1,774,348) | (377,438) | - | (50)

13.2 The tax expense for the year and the result of the accounting loss multiplied by the tax rate applicable in Malta, the Company’s country of incorporation, are reconciled as follows:

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Profit/(loss) before tax | 3,869,801 | 1,671,832 | 4,776,667 | (594,469)
Tax using the domestic tax rate | (1,354,430) | (585,141) | (1,671,833) | 208,064
Tax effect of: |  |  |  |
Non-deductible expenses | (2,947,361) | (3,981,373) | (4,190,338) | (355,089)
Difference in overseas tax rates | 3,427,650 | 1,807,881 | - | (50)
Tax-exempt income | 934,978 | 1,585,708 | 6,070,242 | 140,000
Utilised tax losses | (390,502) | - | - | 7,025
Unrecognised deferred tax asset | (1,444,683) | 795,487 | (208,071) | -
Tax expense | (1,774,348) | (377,438) | - | (50)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
47
13 Tax expense (continued)
13.3 Recognised in the income statement
The applicable tax rate during the current year is the statutory local income tax rate of 35% for income generated in Malta.
The results from operations in Cyprus and Egypt are subject to the statutory local income tax of 12.5% and 22.5% respectively. The results from operations in Guyana are subject to the statutory local income tax of 25%.
The Company’s subsidiary in the Sohar Free Zone in the Sultanate of Oman is exempt from income tax for a period of 5 years starting from 15 January 2022 and it is permissible to extend the exemption for consecutive periods of five years up to a maximum of twenty-five years until 2037 according to the procedures set in the concession agreement and subject to achieving the required Omanisation levels. Management is confident that it will be able to obtain and claim tax exemption for the aforementioned and following tax periods. Hence, no provision for income tax has been made in these financial statements.
The Company’s subsidiary in the Special Economic Zone in Duqm in the Sultanate of Oman is exempt from income tax for a period of 30 years starting from 1 November 2017. The Company’s subsidiaries in the U.A.E. and Southern Iraq are exempt from income tax.
The Company’s subsidiary, Medserv Operations Limited is eligible to the incentives provided by regulations 5, 31 and 32 of the Business Promotion Regulations, 2001 (“BPRs”) and regulation 4 of the Investment Aid Regulations (“IARs”) in Malta (see note 16.4).
The results from operations in Mauritius, Mozambique, Uganda, Angola and South Africa are subject to income tax at the rates of 15%, 32%, 30% 25% and 27% respectively.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
48
14 Property, plant and equipment
14.1 Reconciliation of carrying amount

| Total | Buildings and base improvements | Plant and equipment | Photovoltaic farm | Cargo carrying units | Furniture and fittings | Office and computer equipment | Motor vehicles | Equipment for installation
| € | € | € | € | € | € | € | € | €
Cost |  |  |  |  |  |  |  |  |
Balance at 1 January 2023 | 50,218,034 | 16,950,067 | 27,402,742 | 2,525,884 | 683,349 | 376,397 | 205,463 | 1,335,423 | 738,709
Additions | 2,680,468 | 771,458 | 1,456,058 | - | - | 49,882 | 48,409 | 109,613 | 245,048
Transfers | - | 33,437 | 246,089 | - | - | - | - | - | (279,526)
Write-off | (238,768) | - | (205,051) | - | - | (13,965) | (19,752) | - | -
Disposals | (619,048) | - | (598,661) | - | - | - | (13,336) | (7,051) | -
Exchange differences | (1,146,893) | (211,479) | (836,780) | - | - | (6,054) | (8,282) | (50,141) | (34,157)
Balance at 31 December 2023 | 50,893,793 | 17,543,483 | 27,464,397 | 2,525,884 | 683,349 | 406,260 | 212,502 | 1,387,844 | 670,074
Balance at 1 January 2024 | 50,893,793 | 17,543,483 | 27,464,397 | 2,525,884 | 683,349 | 406,260 | 212,502 | 1,387,844 | 670,074
Additions | 4,880,250 | 795,406 | 3,472,807 | - | - | 62,504 | 54,893 | 153,648 | 340,992
Transfers | - | 79,103 | 648,506 | - | - | - | (1,329) | - | (726,280)
Disposals | (1,551,756) | - | (892,043) | - | - | - | (17,038) | (642,675) | -
Exchange differences | 1,940,684 | 390,933 | 1,403,446 | - | - | 10,192 | 10,180 | 71,164 | 54,769
Balance at 31 December 2024 | 56,162,971 | 18,808,925 | 32,097,113 | 2,525,884 | 683,349 | 478,956 | 259,208 | 969,981 | 339,555

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
49
14 Property, plant and equipment (continued)
14.1 Reconciliation of carrying amount (continued)

| Total | Building and base improvements | Plant and equipment | Photovoltaic farm | Cargo carrying units | Furniture and fittings | Office and computer equipment | Motor vehicles
| € | € | € | € | € | € | € | €
Depreciation and impairment losses |  |  |  |  |  |  |  |
Balance at 1 January 2023 | 16,883,325 | 4,051,475 | 10,835,938 | 250,022 | 301,665 | 109,833 | 117,372 | 1,217,020
Charge for the year | 4,221,089 | 1,149,317 | 2,542,703 | 197,706 | 198,630 | 49,926 | 36,018 | 46,789
Impairment loss | 78,852 | 13,486 | 62,397 | - | - | - | 2,969 | -
Disposal | (276,133) | - | (255,745) | - | - | - | (13,336) | (7,052)
Write-off | (246,863) | - | (212,529) | - | - | (14,254) | (20,080) | -
Exchange differences | (521,145) | (95,517) | (374,097) | - | - | (2,374) | (5,249) | (43,908)
Balance at 31 December 2023 | 20,139,125 | 5,118,761 | 12,598,667 | 447,728 | 500,295 | 143,131 | 117,694 | 1,212,849
Balance at 1 January 2024 | 20,139,125 | 5,118,761 | 12,598,667 | 447,728 | 500,295 | 143,131 | 117,694 | 1,212,849
Charge for the year | 3,914,762 | 160,021 | 3,214,789 | 197,706 | 165,771 | 66,409 | 47,434 | 62,632
Impairment loss | 146,449 | 67,816 | 65,374 | - | - | 10,698 | 2,561 | -
Disposals | (1,232,764) | - | (608,179) | - | - | - | (17,231) | (607,354)
Exchange differences | 1,007,338 | 184,585 | 753,549 | - | - | 5,213 | 7,769 | 56,222
Balance at 31 December 2024 | 23,974,910 | 5,531,183 | 16,024,200 | 645,434 | 666,066 | 225,451 | 158,227 | 724,349

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
50
14 Property, plant and equipment (continued)
14.1 Reconciliation of carrying amount (continued)

| Total | Buildings and base improvements | Plant and equipment | Photovoltaic farm | Cargo carrying units | Furniture and fittings | Office and computer equipment | Motor vehicles | Equipment for installation
| € | € | € | € | € | € | € | € | €
Carrying amounts |  |  |  |  |  |  |  |  |
At 1 January 2023 | 33,334,709 | 12,898,592 | 16,566,804 | 2,275,862 | 381,684 | 266,564 | 88,091 | 118,403 | 738,709
At 31 December 2023 | 30,754,668 | 12,424,722 | 14,865,730 | 2,078,156 | 183,054 | 263,129 | 94,808 | 174,995 | 670,074
At 31 December 2024 | 32,188,061 | 13,277,742 | 16,072,913 | 1,880,450 | 17,283 | 253,505 | 100,981 | 245,632 | 339,555

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
51
14 Property, plant and equipment (continued)
14.2 Certain Group’s buildings and base improvements having a carrying amount of €8,498,406 (2023: €8,018,208) are situated on land held under title of temporary emphyteusis (see note 32.1.1).
14.3 Commitments
As at the reporting date, the Group had outstanding contractual commitments of €832,689 comprising of €332,025 for the acquisition of plant and equipment, €495,772 for property improvements and €4,892 for computer equipment for its operating subsidiary in Malta.
14.4 Security
The Group’s emphyteutical rights on the Medserv site at the Malta Freeport at the Port of Marsaxlokk (refer to note 32) are subject to general and special hypothecs in relation to the bank borrowings by the Group (refer to note 27.3) and the Company’s secured notes (see note 27.4).
14.5 Assets held for sale
As of 31 December 2024, the Group has classified certain plant and equipment located in Egypt as held for sale. These assets were previously used in operations under a contract that has been scaled down, resulting in them becoming idle. Management has committed to a plan to dispose of these assets, and the sale is expected to be completed within the next twelve months.
The carrying amount of the assets classified as held for sale of €304,631 is stated at fair value less costs to sell and is presented separately in the statement of financial position under ‘Assets Held for Sale’. An impairment loss of € 101,544 for the write-down to the lower of its carrying amount and its fair value less costs to sell has been included in ‘cost of sales’ under ‘net impairment loss on assets held for sale’ (see note 10.1).
Management continues to assess market conditions to facilitate the sale of these assets in a timely manner.
14.6 Impairment test
At reporting date, indicators of impairment were identified on the property, plant and equipment pertaining to the operations of Medserv Operations Limited (“Medserv Operations”). These indicators include losses sustained in the current and/or comparative years as well as other risk factors, such as the global and regional political and economic uncertainties, particularly the increasing inflationary environment and the concentration risk due to the dependency on a few customers.
In 2024, indicators of impairment were identified on the property, plant and equipment pertaining to the operations of the following subsidiaries:
(i)Medserv Operations Limited (“Medserv Operations”)
(ii)Regis Mozambique Limitada (“Regis Mozambique”)
(iii)Regis Uganda Limited (“Regis Uganda”)
(iv)Medserv Egypt Oil and Gas Services J.S.C. (“Medserv Egypt”)
The recoverable amounts of individual assets tested for impairment are determined using fair value less costs of disposal (FVLCD) or value in use (depending on which assessment resulted in a higher recoverable amount) and are allocated to the Cash Generating Units (CGU) or groups of CGUs to which they form part.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
52
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)
The table below provides information about the CGUs and the subsidiaries to which the individual assets are allocated in determining the recoverable amounts.

Subsidiaries | CGU | Descriptions
Regis Mozambique | Mozambique Logistics | Buildings, property improvements, plant and equipment comprising heavy lifting equipment and transport vehicles for ILSS in Mozambique
Regis Uganda | Uganda Logistics | Plant and equipment comprising heavy lifting equipment and transport vehicles for ILSS in Uganda
Medserv Operations | Logistics Hub | Buildings, property improvements, plant and equipment comprising heavy lifting equipment and transport vehicles for ILSS in Malta
Photovoltaic Farm | Over 8,000 roof mounted solar panels installed over an area of 22,000 sqm with a capacity of 2.01 MWp in Malta
Gases Filling Plant | Building, property improvements and furniture and fittings in Malta
Medserv Egypt | Egypt logistics | Plant and equipment comprising heavy lifting equipment and transport vehicles in Egypt
| Egypt Materials management | Plant and equipment comprising heavy lifting equipment in Egypt

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
53
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)
As a result of the impairment assessments carried out by management on the respective CGU at a subsidiary level, the following impairment losses were recognised during 2024. The table below provides information on CGUs where the recoverable amount approximates the carrying amount of the CGU at the reporting date.

2024 Base | Assets class impaired | Operating segment | CGU | Carrying amount (gross of impairment) | Impairment | Carrying amount(net of impairment) | Recoverable amount | Methodology
|  |  |  | € | € | € | € |
Medserv Operations | Buildings and property improvements and plant and equipment | ILSS | Logistics hub | 12,087,052 | 87,375 | 11,999,677 | 11,999,677 | FVLCD
Regis Mozambique | Buildings and property improvements and plant and equipment | ILSS | Mozambique Logistics | 3,986,909 | - | 3,986,909 | 6,021,601 | FVLCD
Regis Uganda | Plant and equipment | ILSS | Uganda Logistics | 1,251,727 | 59,074 | 1,192,653 | 1,430,456 | FVLCD
Medserv Egypt | Buildings, base improvements, plant and equipment, motor vehicles | ILSS | Egypt logistics | 2,980,401 | - | 2,980,401 | 3,533,385 | FVLCD
ILSS | Egypt materials management | 694,046 | - | 694,046 | 945,619 | FVLCD
Total |  |  |  | 21,000,135 | 146,449 | 20,853,686 | 23,930,738 |

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
54
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)
Consequently, these assets were tested for impairment. The following impairment losses were recognised in 2023:

2023 Base | Assets class impaired | Operating segment | CGU | Carrying amount (gross of impairment) | Impairment | Carrying amount(net of impairment) | Recoverable Amount | Methodology
|  |  |  | € | € | € | € |
Medserv Operations | Buildings and property improvements and plant and equipment | ILSS | Logistics hub | 11,861,989 | 78,852 | 11,783,137 | 11,783,137 | FVLCD
| Photovoltaic farm | PV | Photovoltaic Farm | 2,078,156 | - | 2,078,156 | 2,078,156 | VIU
| Buildings and property improvements, furniture and fittings | ILSS | Gases Filling Plant | 456,386 | - | 456,386 | 1,581,029 | VIU
Regis Mozambique | Buildings and property improvements and plant and equipment | ILSS | Mozambique Logistics | 4,305,324 | - | 4,305,324 | 4,725,117 | FVLCD
Regis Uganda | Plant and equipment | ILSS | Uganda Logistics | 2,184,377 | - | 2,184,377 | 2,636,156 | FVLCD
Medserv Egypt | Buildings, base improvements, plant and equipment, motor vehicles | ILSS | Egypt logistics | 3,203,980 | - | 3,203,980 | 3,804,905 | FVLCD
|  | ILSS | Egypt materials management | 728,145 | - | 728,145 | 919,084 | FVLCD
Medserv Cyprus | Base improvements | ILSS | Cyprus Logistics Contract 2 | 5,099 | - | 5,099 | 294,478 | VIU
METS Iraq | Buildings, base improvements, plant and equipment, motor vehicles | OCTG | Iraq Yard Hub | 318,892 | - | 318,892 | 742,198 | VIU
METS UAE | Buildings, base improvements, plant and equipment, motor vehicles | OCTG | UAE machine shop | 1,600,660 | - | 1,600,660 | 2,525,850 | VIU
|  | OCTG | UAE materials management | 522,265 | - | 522,265 | 1,784,761 | VIU
Total |  |  |  | 27,265,273 | 78,852 | 27,186,421 | 32,874,871 |

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
55
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)
A total impairment loss of €146,449 (2023: €78,852) was recognised as per above table and recorded in ‘cost of sales’.
Fair value less cost of disposal (FVLCD)
In determining the FVLCD, the fair value of the individual assets was categorised as Level 2 for plant and equipment and Level 3 for buildings in the fair value hierarchy. For plant, equipment and buildings, management has estimated the recoverable amount of these assets by using the Depreciated Replacement Cost (DRC) valuation model. In addition, management has estimated the fair value for material plant and equipment with reference to market prices for comparable assets. The valuation model considers market prices for similar items when they are available, and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence.
The key inputs used by management in determining the recoverable amounts using FVLCD were:
-the economic useful life of the non-current assets;
-the inflation rate; and
-market prices for comparable assets.
The table below sets out the key assumptions used by management in determining the recoverable amount of the CGUs to which the assets were allocated where significant impairment was recognised or indicators of impairment were identified during 2024.

CGU | Recoverable amount€ | Key Inputs
Economic Useful life on acquisition | Average Inflation rate
Logistics hub | 11,999,677 | 6-50 years | 2.56%
Mozambique Logistics | 6,021,601 | 5 years | N/A
Uganda Logistics | 1,430,456 | 10 years | N/A
Egypt Logistics | 3,533,385 | 15 years | N/A
Egypt materials management | 945,619 | 15 years | N/A

The table below provides information about the key inputs and assumptions used by management in determining the recoverable amount of the CGUs or group of CGUs to which the assets were allocated during 2023.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
56
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)

CGU | Recoverable amount€ | Key Inputs
Economic Useful life | Average Inflation rate
Logistics hub | 11,783,137 | 6-50 years | 2.16%
Mozambique Logistics | 4,725,117 | 5 years | N/A
Uganda Logistics | 2,636,156 | 10 years | N/A
Egypt Logistics | 3,804,905 | 15 years | N/A
Egypt materials management | 919,084 | 15 years | N/A

The tables below provide a sensitivity of the recoverable amount of the CGUs using the FVLCD to possible shifts in key assumptions as at 31 December 2024 and 31 December 2023 for those CGUs where an impairment was recognised or indicators of impairment were identified. In the prior year, the analysis was limited to changes in depreciation and inflation rates.

CGU | Key Inputs
| Less cost of disposal(+/- 5 %) | Depreciation rate(+/- 10 %) | Inflation rate(+/- 0.5%)
| € | € | €
31 December 2024 |  |  |
Logistics hub | - / + 0.71 mil | - / + 1.2 mil | - 4.5 / + 4.1 mil
Mozambique Logistics | - / + 0.35 mil | - / + 0.60 mil | N/A
Uganda Logistics | - / + 0.08 mil | - / + 0.14 mil | N/A

CGU | Key Inputs
| Less cost of disposal(+/- 4 %) | Depreciation rate(+/- 10 %) | Inflation rate(+/- 0.5%)
| € | € | €
31 December 2024 |  |  |
Egypt Logistics | - / + 0.15 mil | - / + 0.35 mil | N/A
Egypt materials management | - / + 0.04 mil | - / + 0.09 mil | N/A

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
57
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)

CGU | Key Inputs
Depreciation rate(+/- 10%) | Inflation rate(+/- 0.5%)
| € | €
31 December 2023 |  |
Logistics hub | - / + 1.18 mil | + 4.4 / + 3.7 mil
Mozambique Logistics | - / + 4.30 mil | N/A
Uganda Logistics | - / + 2.18 mil | N/A
Egypt Logistics | - / + 0.38 mil | N/A
Egypt materials management | - / + 0.09 mil | N/A

Value in use (VIU)
The key inputs under the VIU assessment comprise future cash flows, growth rates and discount rates. The client has developed models which estimate the recoverable amount for each asset factoring these inputs. The resulting fair values are also challenged and approved by the Board before being reflected in the Group consolidated financial statements. The valuation models and related inputs are complex, unobservable and subject to inherent estimation uncertainty and therefore, require significant judgement.
The projected free cash flows are based on budgets approved by the directors and are based on a period which is determined with reference to the term of the underlying direct contracts with specific customers. The free cash flows have been projected for a period ranging between 2 to 5 years based on contracts’ terms. Management have determined that the inclusion of the terminal value is not relevant as the free cash flows are determined based on the contract term with the customers.
The following table sets out the key assumptions used in determining the recoverable amount of the CGUs which were subject to an impairment assessment during the prior year.

CGU 31 December 2023 | Recoverable amounts | Key Assumptions
EBITDA Margin | Discount rate
| € | % | %
Cyprus Logistics Contract 2 | 5,099 | 68% | 7%
Photovoltaic farm | 2,078,156 | 60% | 5%
Gases Filling Plant | 1,581,029 | 66% | 22%
Iraq Yard Hub | 822,080 | 56% | 22%
UAE Machine Shop | 2,869,812 | 19% | 12%
UAE Materials Management | 1,935,813 | 23% | 12%

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
58
14 Property, plant and equipment (continued)
14.6 Impairment test (continued)
Management has determined the values assigned to each of the above key assumptions as follows:
EBITDA Margins – Based on past performance and management’s expectations for the future;
Discount rates – Reflect specific risks relating to the relevant CGUs, the industry and the countries in which they operate;
The table below provides a sensitivity on the recoverable amounts of the CGUs using the VIU to possible shifts in key assumptions as at 31 December 2023 for those CGUs where an impairment was recognised or indicators of impairment were identified.

CGU | Key Inputs
EBITDA Margin +/- 3 % | Discount rate+/- 1 %
| € | €
31 December 2023 |  |
Cyprus Logistics Contract no 2 | -/+3k | -2k/+2k
Photovoltaic farm | -/+6k | -126k/ +52k
Gases Filling Plant | -/+72k | -36k/+38k
Iraq Yard Hub | - / + 44k | -21k / +22k
UAE Machine shop | - / + 342k | -104k / +109k
UAE Materials management | - / + 253k | -22k / +23k

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
59
15 Intangible assets and goodwill
15.1 Reconciliation of carrying amount

|  | Total | Goodwill | Trademarks, Tradenames and related assets | Customer contracts
| Note | € | € | € | €
Cost |  |  |  |  |
Balance at 1 January 2023 |  | 24,194,809 | 10,240,341 | 1,138,936 | 12,815,532
Balance at 31 December 2023 |  | 24,194,809 | 10,240,341 | 1,138,936 | 12,815,532
Balance at 1 January 2024 |  | 24,194,809 | 10,240,341 | 1,138,936 | 12,815,532
Balance at 31 December 2024 |  | 24,194,809 | 10,240,341 | 1,138,936 | 12,815,532
Amortisation and impairment losses |  |  |  |  |
Balance at 1 January 2023 |  | 7,289,826 | 1,403,575 | 201,934 | 5,684,317
Amortisation | 10 | 1,357,499 | - | - | 1,357,499
Balance at 31 December 2023 |  | 8,647,325 | 1,403,575 | 201,934 | 7,041,816
Balance at 1 January 2024 |  | 8,647,325 | 1,403,575 | 201,934 | 7,041,816
Amortisation | 10 | 1,238,413 | - | - | 1,238,413
Balance at 31 December 2024 |  | 9,885,738 | 1,403,575 | 201,934 | 8,280,229

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
60
15 Intangible assets and goodwill (continued)
15.1 Reconciliation of carrying amount (continued)

| Total | Goodwill | Trademarks, Tradenames and related assets | Customer contracts
| € | € | € | €
Carrying amounts |  |  |  |
Balance at 1 January 2023 | 16,904,983 | 8,836,766 | 937,002 | 7,131,215
Balance at 31 December 2023 | 15,547,484 | 8,836,766 | 937,002 | 5,773,716
Balance at 31 December 2024 | 14,309,071 | 8,836,766 | 937,002 | 4,535,303

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
61
15 Intangible assets and goodwill (continued)
15.2 Amortisation
The amortisation charge and impairment of intangible assets are included in ‘cost of sales’ in the statement of profit or loss and other comprehensive income.
15.3 Impairment test
15.3.1 Impairment test for goodwill and intangible assets arising from business combination
Goodwill and intangible assets allocated to CGUs within the Group’s operating segments
Goodwill arising from the reverse acquisition of the Medserv group of companies (‘the Medserv subgroup’) is mainly attributable to future customer contracts, the synergies expected to be achieved from combining the operations of the Medserv subgroup with the Regis group and the skills and technical talent of the Medserv subgroup’s work force. Identifiable intangible assets also arising from the reverse acquisition comprise the Medserv and METS trademarks, tradenames and related assets with an indefinite useful life initially measured at a fair value of €1,138,936 and customer contracts initially measured at a fair value of €12,815,532 relating to the OCTG and ILSS segments of the Medserv subgroup. Management has determined trademarks, tradenames and related assets to have an indefinite useful life since based on all relevant factors, there is no foreseeable limit to the period over which the assets are expected to generate cash flows. The customer contracts have finite useful lives and are amortised on a straight-line based on the timing of projected cash flows of the contracts over their estimated useful lives.
On the date of the reverse acquisition, the gross carrying amount of goodwill of €10,240,341 was allocated to the group of CGUs making up the OCTG and ILSS segments based on the fair value of the identified assets and liabilities on business combination since goodwill is monitored by management at the level of the operating segments. For the purposes of testing the impairment of goodwill and intangible assets, CGUs are grouped based on geographic area. Malta, Cyprus, Egypt and Suriname are grouped under the ‘ILSS segment’. Oman, Iraq and UAE are grouped under the ‘OCTG segment’.
Goodwill has been capitalised as an intangible asset, and an impairment assessment is carried out at least annually for the core goodwill and the trademarks, tradenames and related assets with an indefinite useful life, and whenever there is an indicator of impairment on all intangibles including the customer contracts. For the purposes of impairment testing, a segment-level summary of the goodwill and the intangible assets allocation before any impairment during the year is presented as follows.
The core goodwill subject to the impairment assessment includes goodwill amounting to €5,446,525 (2023: €5,446,525) resulting from the recognition of the deferred tax liabilities arising on the reverse acquisition relating to the ILSS segment. In prior year, this deferred-tax related goodwill was not considered as part of the core goodwill.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
62
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
15.3.1 Impairment test for goodwill and intangible assets arising from business combination (continued)
Goodwill and intangible assets allocated to CGUs within the Group’s operating segments (continued)
Goodwill and intangible assets subject to impairment testing in 2024:

| ILSS segment | OCTG segment | Total
| € | € | €
Goodwill | 6,954,317 | 1,882,449 | 8,836,766
Trademarks, tradenames and related assets | 589,634 | 347,368 | 937,002
Customer contracts | 248,786 | 4,286,517 | 4,535,303
| 7,792,737 | 6,516,334 | 14,309,071

Goodwill and intangible assets subject to impairment testing in 2023:

| ILSS segment | OCTG segment | Total
| € | € | €
Goodwill (core) | 1,507,792 | 1,882,449 | 3,390,241
Trademarks, tradenames and related assets | 589,634 | 347,368 | 937,002
Customer contracts | 291,368 | 5,482,348 | 5,773,716
| 2,388,794 | 7,712,165 | 10,100,959

15.3.2 Valuation approaches
Value in use (‘VIU’)
The Group tests whether goodwill has suffered any impairment on an annual basis. For both the current and comparative reporting periods, the recoverable amount of the ILSS and OCTG segments was determined based on value in use calculations which require the use of assumptions. The calculations use cash flow projections that are based on financial budgets and business plans prepared by management and approved by the Board of Directors. The budgets and business plans are updated to reflect the most recent developments as at the reporting date. Management’s expectations reflect performance to date and are based on its experience and consistent with the assumptions that a market participant would make.
The VIU is determined by discounting the expected future cash flows to be generated from the continuing use of the individual CGUs within the ILSS and OCTG segments.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
63
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
15.3.2 Valuation approaches (continued)
Value in use (‘VIU’) (continued)
Key assumptions and inputs
The businesses of the CGUs underlying the ILSS and OCTG segments are subject to the following risks:
▪global and regional political and economic uncertainties, the current geopolitical situation, inflationary pressure, currency and interest rate volatility;
▪the concentration risk due to dependency on a few customers; and
▪the volatility in oil and gas prices and related demand for oil and gas and their impact on the customers’ business activity.
Due to the increase in the level of uncertainty, the VIU was estimated using a discounted cash flow (DCF) analysis applying the expected cash flow approach. This approach uses multiple cash flow projections taking into consideration assumed probabilities of future events and/or scenarios instead of a single cash flow scenario.
While many scenarios and probabilities may exist, management believes that three scenarios (base case, upside and downside) generally reflect a representative sample of possible outcomes under the VIU approach.
For each scenario, management has assigned probability weights. The recoverable amount was estimated by calculating the present value of the probability-weighted expected cash flows.
For the base case, the cash flow projections for projects-related CGUs considered specific estimates for the expected duration of the projects. The other CGUs’ cash flow projections included specific estimates up to 2061.
-Scenarios and probability weights: Management has subjectively assigned probability weights to each scenario based on its experience and its expectations for the economy. Management believes that the probability weight assignment presents a reasonable assessment of the likelihood of the scenarios, taking into account the potential of improved market conditions on the upside and an extended inflationary pressure, currency and interest rate volatility and reduced level of business activity assuming volatility in oil and gas prices and related demand for oil and gas, on the downside.
-Discount rates: The discount rates used are the weighted-average cost of capital (WACC). The discount rate does not reflect risks for which the estimated cashflow have been adjusted. The discount rate under the VIU is a pre-tax measure based on the CGU-specific, adjusted for currency and country risk relevant to the individual CGU. The discount rate under the FVLCD was a post-tax measure estimate based on the weighted-average cost of capital.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
64
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
15.3.2 Valuation approaches (continued)
Value in use (‘VIU’) (continued)
-Revenue growth rate: This was projected taking into account estimates of sales volumes and price growth for the duration of the projections including probability-weighted expectations for large accounts and uncontracted business.
-EBITDA margin: EBITDA margin was based on management’s expectations of market developments and future outcomes, taking into account past performance. It was assumed that sales prices would increase in line with forecasted inflation over the projected period.
15.3.3 Goodwill
The key assumptions used in the estimation of VIU are as follows.

| 2024
Goodwill | ILSS segment VIU | OCTG segment VIU
Discount rates, range | 16.5% - 37% | 10.7% - 22.0%
Weighted average discount rates | 27.1% | 14.3%
Weighted average EBITDA margin | 30.1% | 37.0%
Extrapolation growth rate | 2.0% | 2.0%
Weighted average annual revenue growth rate | 7.96% | 1.6%

The probability weights for the applied scenarios are as follows:

| 2024
Goodwill | ILSS segment VIU | OCTG segment VIU
Base case scenarios range | 60%-80% | 60%
Base case scenarios average | 60.8% | 60.0%
Upside scenarios range | 10% - 20% | 20%-30%
Upside scenarios average | 19.6% | 24.1%
Downside scenarios range | 10% - 20% | 10%-20%
Downside scenarios average | 19.6% | 15.9%

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
65
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
15.3.3 Goodwill (continued)
Impairment losses
The estimated recoverable amount of the group of CGUs under the ILSS segment exceeded their carrying amount by approximately €1.3 million (2023: €1.9 million) and thus no impairment loss was recognised.
The estimated recoverable amount of the group of CGUs under the OCTG segment exceeded their carrying amount by approximately €29.6 million (2023: €14.4 million) and thus no impairment loss was recognised.
Sensitivity analysis
The following table shows the amount by which these assumptions would need to change individually across the CGUs within the ILSS and OCTG segments for the estimated recoverable amount of those CGUs to be equal to the carrying amount.

31 December 2024 | Change required
| CGUs under ILSS segment | CGUs under OCTG segment
Goodwill |  |
Discount rate | +1.26% | +23.38%
EBITDA margin | -0.69% | -10.07%
Pessimistic scenario increase/ base scenario decrease | +15.73%/-15.73% | N/A

Therefore, any further adverse movement in the above key assumptions would lead to impairment on the goodwill allocated to the CGUs under the ILSS and OCTG segments.
15.3.4 Trademarks, tradenames and other related assets
The key assumptions used in the estimation of VIU are as follows.

| 2024
Trademark and Tradenames and other related assets | ILSS segment VIU | OCTG segment VIU
Discount rates, range | 12.0% - 27.4% | 10.7% - 22.0%
Weighted average discount rates | 15.8% | 14.3%
Extrapolation growth rate | 2.0% | 2.0%

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
66
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
The probability weights for the applied scenarios are as follows:

| 2024
Trademark and Tradenames and other related assets | ILSS segment VIU | OCTG segment VIU
Base case scenarios range | 60%-80% | 60%
Base case scenarios average | 60.8% | 60.0%
Upside scenarios range | 10% - 20% | 20%-30%
Upside scenarios average | 19.6% | 24.1%
Downside scenarios range | 10% - 20% | 10%-20%
Downside scenarios average | 19.6% | 15.9%

Impairment losses
The estimated recoverable amount of the group of CGUs under the ILSS and OCTG segments with respect to the trademark and tradenames and other related assets was higher than its carrying amount in 2024 and prior year and thus no impairment loss was recognised.
15.3.5 Customer contracts
The estimated recoverable amount of the customer contracts allocated to the group of CGUs under the ILSS and OCTG segments was not assessed for impairment, as no indicators of impairment were identified in 2024 or in the prior year.
15.3.6 Comparative disclosures
In the prior year, the recoverable amount of the goodwill, trademark and tradenames and other related assets and customer contracts were assessed for impairment using VIU as follows.
Key assumptions and inputs

| 2023
Goodwill | ILSS segment VIU | OCTG segment VIU
Discount rates, range | 16.0% - 36.4% | 12.0% - 22.0%
Weighted average discount rates | 28.5% | 15.2%
Weighted average EBITDA margin | 33.4% | 39.7%
Extrapolation growth rate | 2.0% | 2.0%
Weighted average annual revenue growth rate | 12.4% | 1.6%

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
67
15 Intangible assets and goodwill (continued)
15.3 Impairment test (continued)
15.3.6 Comparative disclosures (continued)

| 2023
Trademark and Tradenames and other related assets | ILSS segment VIU | OCTG segment VIU
Discount rates, range | 12.0% - 27.4% | 12.0% - 22.0%
Weighted average discount rates | 16.9% | 14.9%
Extrapolation growth rate | 2.0% | 2.0%

The probability weights for the applied scenarios were as follows:

| 2023
Goodwill and Trademark and Tradenames and other related assets | ILSS segment VIU | OCTG segment VIU
Base case scenarios range | 50%-80% | 60%
Base case scenarios average | 60.8% | 60.0%
Upside scenarios range | 10% - 25% | 20%-30%
Upside scenarios average | 19.6% | 21.4%
Downside scenarios range | 10% - 25% | 10%-20%
Downside scenarios average | 19.6% | 18.6%

Sensitivity analysis
The following table shows the amount by which these assumptions would need to change individually across the CGUs within the ILSS and OCTG segments for the estimated recoverable amount of those CGUs to be equal to the carrying amount.

31 December 2023 | Change required
| CGUs under ILSS segment | CGUs under OCTG segment
Goodwill |  |
Discount rate | +1.95% | +11.66%
EBITDA margin | -1.20% | -7.70%
Pessimistic scenario increase/ base scenario decrease | +18.63%/-18.63% | N/A

Therefore, any further adverse movement in the above key assumptions would lead to impairment on the goodwill allocated to the CGUs under the ILSS and OCTG segments.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
68
16 Deferred tax assets and liabilities
16.1 Deferred tax assets and liabilities are attributable to the following:

The Group | Assets | Liabilities | Net
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023
| € | € | € | € | € | €
Property, plant and equipment | - | - | (2,654,938) | (1,967,538) | (2,654,938) | (1,967,538)
Employee benefits | 107,003 | 109,681 | - | - | 107,003 | 109,681
Provision for exchange fluctuations | - | - | (486,299) | (450,054) | (486,299) | (450,054)
Impairment loss on receivables | 290,831 | 333,229 | - | - | 290,831 | 333,229
Investment tax credits | 8,548,770 | 9,066,217 | - | - | 8,548,770 | 9,066,217
Unabsorbed capital allowances and unutilised tax losses | 743,427 | 1,044,455 | - | - | 743,427 | 1,044,455
Right-of-use assets |  |  | (15,135,066) | (15,108,881) | (15,135,066) | (15,108,881)
Lease liabilities | 3,889,519 | 3,441,952 | - | - | 3,889,519 | 3,441,952
Intangible assets | - | - | (293,448) | (308,351) | (293,448) | (308,351)
Others | - | 11,008 | - | - | - | 11,008
Tax assets/(liabilities) | 13,579,550 | 14,006,542 | (18,569,751) | (17,834,824) | (4,990,201) | (3,828,282)
Set-off of tax | (13,579,550)(14,006,542) | 13,579,550 | 14,006,542 | - | -
Net tax liabilities | - | - | (4,990,201) | (3,828,282) | (4,990,201) | (3,828,282)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
69
16 Deferred tax assets and liabilities (continued)
16.2 Movement in temporary differences during the year - The Group

| Balance 01.01.24 | Recognised in profit and loss | Balance 31.12.24
| € | € | €
Property, plant and equipment | (1,967,538) | (687,400) | (2,654,938)
Employee benefits | 109,681 | (2,678) | 107,003
Provision for exchange fluctuations | (450,054) | (36,245) | (486,299)
Impairment loss on receivables | 333,229 | (42,398) | 290,831
Investment tax credits | 9,066,217 | (517,447) | 8,548,770
Unabsorbed capital allowances and unutilised tax losses | 1,044,455 | (301,028) | 743,427
Right-of-use assets | (15,108,881) | (26,185) | (15,135,066)
Lease liabilities | 3,441,952 | 447,567 | 3,889,519
Intangible assets | (308,351) | 14,904 | (293,447)
Other | 11,008 | (11,008) | -
| (3,828,282) | (1,161,918) | (4,990,200)

| Balance 01.01.23 | Recognised in profit and loss | Balance 31.12.23
| € | € | €
Property, plant and equipment | (2,220,955) | 253,417 | (1,967,538)
Employee benefits | 101,082 | 8,599 | 109,681
Provision for exchange fluctuations | (850,424) | 400,370 | (450,054)
Impairment loss on receivables | 313,156 | 20,073 | 333,229
Investment tax credits | 9,066,217 | - | 9,066,217
Unabsorbed capital allowances and unutilised tax losses | 1,350,575 | (306,120) | 1,044,455
Right-of-use assets | (14,779,530) | (329,351) | (15,108,881)
Lease liabilities | 2,704,246 | 737,706 | 3,441,952
Intangible assets | (323,255) | 14,904 | (308,351)
Other | 11,008 | - | 11,008
| (4,627,880) | 799,598 | (3,828,282)

16.3 Set-off
In accordance with accounting policy 4.15, deferred tax assets and liabilities are offset only if certain criteria are met. The Group offsets deferred tax assets and deferred tax liabilities if, and only if, it has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
As a result, the tax effect of taxable temporary differences in the current year are being offset against deferred tax assets in the statement of financial position.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
70
16 Deferred tax assets and liabilities (continued)
16.4 Recognition of deferred tax asset on investment tax credits
As at 31 December 2024, the Company’s subsidiary, Medserv Operations Limited recognised a deferred tax asset of €8,548,770 (2023: €9,006,217) relating to investment tax credits. During the year, the subsidiary derecognized €517,447 of this deferred tax asset following a reassessment of the recoverability of the underlying tax credits within the projection period.
The recognition of the deferred tax asset is based on detailed profit forecasts for the projection period. These forecasts reflect reasonable and supportable assumptions regarding expected business growth, including projected revenues from maintenance projects and the provision of logistics support services to the offshore oil and gas industry. The recoverability of the deferred tax asset depends on the availability of future taxable profits against which the investment tax credits can be utilised. Historical values and profitability, recent trading levels, and secured or anticipated project pipelines have been considered in determining the probability of utilisation of these investment tax credits within the projection period.
The extent of utilization of the investment tax credits assumed that the profit forecasts will be subject to the tax rate of 35%, being the enacted corporate tax rate in Malta. The investment tax credits were granted under regulation 5 of the BPRs and regulation 4 of the IARs in Malta. These tax credits do not have an expiry date.
16.5 Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of:
-Unutilised tax losses and investment tax credits carried forward amounting to €8,515,222 (2023: €8,515,222) generated during prior years available to the Group subsidiaries. Certain countries allow tax losses to be carried forward for a maximum period of five years. The tax losses carried forward are available for offset against future tax profits as follows:

Financial year ending | Tax year ending | 2024€ | 2023€
31 December 2025 | 2025/2026 | 569,233 | 617,404
31 December 2026 | 2026/2027 | - | 54,283
31 December 2027 | 2027/2028 | - | 32,559
31 December 2028 | 2028/2029 | 461,656 | 3,892
31 December 2029 | 2029/2030 | 345,271 | -
No expiry |  | 7,138,526 | 7,622,134
|  | 8,514,686 | 8,330,272

No deferred tax asset has been recognized with respect to these tax losses since management are of the opinion that these subsidiaries will not be able to generate sufficient taxable profit against which these losses can be utilized.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
71
17 Inventories

| 2024 | 2023
| € | €
Spares and accessories | 644,078 | 289,974
Work in progress | 87,300 | 111,529
Raw materials | - | 132,407
Inventories | 731,378 | 533,910

In 2024, inventories amounting to €2,693,109 (2023: €4,711,860) relating mainly to goods for resale and raw materials were recognised as an expense and included in ‘cost of sales’.
18 Trade and other receivables
18.1

|  | The Group | The Company
| Notes | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Current assets |  |  |  |  |
Trade receivables |  | 17,060,254 | 17,537,988 | - | -
Amounts due by subsidiaries | 18.2 | - | - | 647,125 | 1,894,632
Amounts due by associate | 18.2 | 234,387 | - | - | -
Other receivables | 18.3 | 846,591 | 1,487,115 | 1,938,764 | 820
Prepayments |  | 2,417,835 | 1,227,544 | 74,927 | 64,232
VAT and other tax assets |  | 884,179 | 465,490 | 42,228 | 1,740
Total trade and other receivables |  | 21,443,246 | 20,718,137 | 2,703,044 | 1,961,424

18.2 The amounts due by subsidiaries and associate at reporting date are unsecured, interest-free and repayable on demand. Transactions with related parties are set out in note 35 to these financial statements.
18.3 The Group’s and the Company’s exposure to credit and currency risks and impairment losses relating to trade and other receivables are disclosed in note 31.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
72
19 Loans receivable from subsidiaries
19.1 The Company
Loans receivables from subsidiaries have the following terms and conditions:
Currency
Nominal interest rate
Year of maturity
2024
€
2023
€
Unsecured loan
EUR
4.50%
2026
-
20,207,761
Unsecured loan
USD
5.75%
2026
-
8,230,594
Unsecured loan
EUR
6.00%
2024
-
9,593,098
Unsecured loan
EUR
6.00%
2025
-
1,222,197
-
39,253,650
Recognition of expected credit losses under IFRS 9 (see note 31.4)
-
(15,443,485)
-
23,810,165
Non-current
-
14,217,067
Current
-
9,593,098
19.2 The Company’s exposure to credit and currency risks are disclosed in note 31.
19.3 In January 2024, the Company entered into an agreement with its subsidiary Medserv M.E. Limited to transfer its investment in Middle East Tubular Services Holdings Limited to the Company payable by way of set-off against the loan agreements (see note 20.3). Following the transfer, the remaining loan balance was written off (see note 31.4).
The two loans with a gross carrying value of €Nil (2023: €28,438,355) and maturing in 2026 were considered to be credit impaired and classified as stage 3. The expected credit losses on these loans amounted to €Nil (2023: €15,443,485) and the net carrying value amounted to €Nil (2023: €12,994,870).
During the year, intercompany balances between the subsidiaries amounting to €118,520 (2023: €38,608) were assigned to the Company by way of assignment agreements entered into between the Company and its subsidiaries. A total of €7,487 (2023: €44,763) were capitalized during the year (see note 20).
Loans receivable which are in default, are considered to be credit impaired and are classified as Stage 3 for impairment assessment purposes in accordance with IFRS 9. Any credit losses are measured at the present value of all cash shortfalls. In estimating any shortfalls (and therefore any expected credit loss) on these loans receivable, the Company applied the same projections used in value-in-use analysis prepared in estimating the recoverable amount of the related Company’s investments in subsidiaries as the recoverability of these loans receivable is supported by the same projections and subject to the same risk factors and key assumptions as those underlying the calculation of the recoverable amount of the related investments in subsidiaries. The key assumptions used in assessing the recoverability of these loans receivable and the expected credit losses at the reporting date are disclosed in note 20.5.
Movements in the Company’s credit loss allowances with respect to loans receivables from subsidiaries are provided in note 31.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
73
20 Investment in subsidiaries
20.1
Capital subscribed
Capital Contributions
Total
€
€
€
At 1 January 2023
31,394,478
16,228,325
47,622,803
Capitalisation of loans to subsidiaries
-
44,763
44,763
Impairment losses
-
(44,763)
(44,763)
At 31 December 2023
31,394,478
16,228,325
47,622,803
At 1 January 2024
31,394,478
16,228,325
47,622,803
Acquisition
30,000,000
-
30,000,000
Capitalisation of loans to subsidiaries
-
7,487
7,487
Impairment losses
(5,025,946)
(7,487)
(5,033,433)
Reversal of impairment losses
-
3,019,179
3,019,179
At 31 December 2024
56,368,532
19,247,504
75,616,036
20.2 Capital contributions to subsidiaries relate to loans which were subsequently treated as part of the subsidiaries’ equity by way of support to the subsidiaries. These amounts are unsecured, interest free, with no fixed date of repayment and are repayable at the option of the counterparty. The loans represent the net investments made by the Company in the subsidiaries and are considered equity investments.
20.3 List of subsidiaries and sub-subsidiaries
The subsidiaries and sub-subsidiaries consist of the following:

| Registered office | Ownership interest 31.12.24 31.12.23 | Nature of business | Paid up
|  | % | % |  | %
Subsidiaries |  |  |  |  |
Medserv International Limited | Port of Marsaxlokk Birzebbugia Malta | 100.00 | 100.00 | Logistical support and other services | 25
Medserv Eastern Mediterranean Limited | Port of Marsaxlokk Birzebbugia Malta | 100.00 | 100.00 | Holding company and rental of cargo carrying units | 20
Medserv Libya Limited | Port of Marsaxlokk Birzebbugia Malta | 100.00 | 100.00 | Logistical support and other services | 20
Medserv M.E. Limited | Port of Marsaxlokk Birzebbugia Malta | 100.00 | 100.00 | Holding company | 100
Medserv Operations Limited | Port of Marsaxlokk Birzebbugia Malta | 100.00 | 100.00 | Logistical support and other services | 100

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
74
20 Investment in subsidiaries (continued)
20.3 List of subsidiaries and sub-subsidiaries (continued)

| Registered office | Ownership interest 31.12.24 31.12.23 | Nature of business | Paid up
|  | % | % |  | %
Subsidiaries (continued) |  |  |  |  |
Regis Holdings Limited | C/o ICECAP (Mauritius) Limited, Block 1C Uniciti Business Park, Cascavelle, Mauritius. | 100.00 | 100.00 | Holding company | 100
Middle East Tubular Services Holdings Limited | Belmont Chambers Road Town Tortola, British Virgin Islands | 100.00 | - | Holding company | 100
Sub-subsidiaries |  |  |  |  |
Medserv (Cyprus) Limited | Karaiskakis Street Limassol, Cyprus | 80.00 | 80.00 | Logistical support and other services | 100
Medserv Energy TT Limited | 18, Scott Bushe Street Port of Spain Trinidad & Tobago, W.I. | 100.00 | 100.00 | Logistical support and other services | 100
Medserv Egypt Oil & Gas Services J.S.C | 51, Tanta Street Cairo, Egypt | 80.00 | 60.00 | Logistical support and other services | 100
Middle East Tubular Services Holdings Limited | Belmont Chambers Road Town Tortola, British Virgin Islands | - | 100.00 | Holding company | 100
Middle East Tubular Services Limited | Belmont Chambers Road Town Tortola, British Virgin Islands | 100.00 | 100.00 | OCTG services in U.A.E. | 100
Middle East Tubular Services LLC (FZC) | PO Box 561 PC322 Al Falaj-Al Qabail Sohar Sultanate of Oman | 100.00 | 100.00 | OCTG services in Sultanate of Oman | 100
Middle East Tubular Services (Iraq) Limited | Belmont Chambers Road Town Tortola, British Virgin Islands | 100.00 | 100.00 | OCTG services in Southern Iraq | 100
Middle East Tubular Services (Gulf) Limited | Belmont Chambers Road Town Tortola, British Virgin Islands | 100.00 | 100.00 | Holding company | 100

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
75
20 Investment in subsidiaries (continued)
20.3 List of subsidiaries and sub-subsidiaries (continued)

| Registered office | Ownership interest 31.12.24 31.12.23 | Nature of business | Paid up
|  | % | % |  | %
Sub-subsidiaries (continued) |  |  |  |
Middle East Comprehensive Tubular Services (Duqm) L.L.C. | PO Box 45 PC102 The Special Economic Zone of Duqm Al Duqm, Al Wusta Sultanate of Oman | 100.00 | 100.00 | OCTG services in Sultanate of Oman | 100
Middle East Tubular Services Uganda SMC Limited | BMK House 4th Floor RM 402 Plot 4-5 Nyabong Road, Kololo Kampala P.O. Box 27689, Kampala | 100.00 | 100.00 | OCTG services in Uganda | 100
Medserv Mozambique Limitada | Mozambique, Cidade de Maputo Distrito Kampfumo Bairro da Sommesrchield, Rua Frente de libertacao de Mozambique, n. 224 | 100.00 | 100.00 | Logistical support and other services | 100
Regis Shipping Lda | Estrada Nacional EN106, Muxara Pemba, Cabo Delgado Mozambique | 65.00 | 65.00 | Logistical support and other services | 100
Regis Management Services Limited | C/o ICECAP (Mauritius) Limited, Block 1C Uniciti Business Park, Cascavelle, Mauritius | 100.00 | 100.00 | Logistical support and other services | 100
Regis Export Trading International Proprietary Limited | 343 Kent Avenue, Randburg, Garden Mall, Ferndale, Randburg, Gauteng 2194 | 100.00 | 100.00 | Trading and Exportation activities | 100
Thomson & Van Eck Limited | C/o ICECAP (Mauritius) Limited, Block 1C Uniciti Business Park, Cascavelle, Mauritius | - | 100.00 | Holding company | 100
Thomson & Van Eck Proprietary Limited | 343 Kent Avenue, Randburg, Garden Mall, Ferndale, Randburg, Gauteng 2194 | - | 100.00 | Engineering services | 100

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
76
20 Investment in subsidiaries (continued)
20.3 List of subsidiaries and sub-subsidiaries (continued)

| Registered office | Ownership interest 31.12.24 31.12.23 | Nature of business | Paid up
|  | % | % |  | %
Sub-subsidiaries (continued) |  |  |  |
MedservRegis Logistics and Trading Namibia (Proprietary) Limited | Unit 7, Trift Place, 19 Schinz Street, Ausspannplatz, Windhoek, Namibia | 100.00 | - | Logistical support and other services | 100
Verger Investimentos, Lda | Rua Joaquim Kapango, Edifício Kimpa Vita Atrium, 1º andar, escritório 103, Distrito Urbano de Ingombota, Município de Luanda, Angola | 100.00 | 100.00 | Logistical support and other services | 100
Regis Mozambique Limitada | Rua da Porto Nr. 94/4,Pemba, Cabo Delagado,Mozambique | 100.00 | 100.00 | Logistical support and other services | 100
MedservRegis SWT Oil and Gas Services (PROPRIETARY) Limited | Unit 7, Trift Place, 19 Schinz Street, Ausspannplatz, Windhoek, Namibia | 100.00 | - | Logistical support and other services | 100
Regis Uganda Limited | Plot 38,Elizabeth Avenue, Kololo,Kampala Uganda | 100.00 | 100.00 | Logistical support and other services | 100
MedservRegis (Guyana) Inc. | Lot 78 Hadfield Street,Werk-en-Rust Georgetown Guyana | 100.00 | - | Logistical support and other services | 100
MedservRegis ME Heavy & Light Machinery & Equipment Rental LLC | 296, Dubai Financial Support, Bur Dubai, Dubai, United Arab Emirates | 100.00 | - | Holding Company | 100
MedservRegis ME LLC | 6841, Aamir Ibn Saad Ibn Al Hariath Street,Ash Shati Ash Sharqi Dist, PC - 32413 Dammam, Kingdom of Saudi Arabia | 100.00 | - | OCTG services in Kingdom of Saudi Arabia | 100
METS Tubular Services LLC | East 9, Safia Hamel Khadem Building, Shk. Zayed Bin Sultan Street, Al Danah, Abu Dhabi | 100.00 | - | OCTG services in U.A.E. | 100

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
77
20 Investment in subsidiaries (continued)
20.4 Acquisition of NCI
In 2024, the Group acquired an additional 20% interest in Medserv Egypt Oil & Gas Services J.S.C, increasing its ownership from 60% to 80%. The carrying amount of the net assets of Medserv Egypt Oil & Gas Services J.S.C in the Group’s consolidated financial statements on the date of acquisition was equivalent to €0.6 million.

| €
Carrying amount of NCI acquired | 14,254
Consideration paid to NCI | 598,646
A decrease in equity attributable to owners of the Company | (584,392)

The decrease in equity attributable to owners of the Company comprised of a decrease in retained earnings of €371,602 and an increase in the translation reserve of €212,790.
20.5 Impairment test
In the current and comparative year, the Company tested for impairment its investment in Regis Holdings Limited. Following a dividend amounting to €6.8 million in 2022 paid by Regis Holdings Limited to the Company, the carrying amount of the investment in Regis Holdings Limited in the separate financial statements of the Company exceeded the net asset value of the sub-group which gave rise to an indication of impairment.
In determining the recoverable amount of the investment in the subsidiary, management has adjusted the net asset value of the sub-group by projecting future cash flows expected to arise from the sub-group’s main operating activities in Mozambique, Angola (operated from Mauritius), Guyana and other regions in Sub-Saharan Africa.
These cash flow projections are based on financial budgets and business plans prepared by management and approved by the Board of Directors and are updated to reflect the most recent developments as at the reporting date.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
78
20 Investment in subsidiaries (continued)
20.5 Impairment test (continued)
As part of adjusting the net asset value, management has applied the following key assumptions:
2024
2023
Discount rates, range
15% to 28.19%
15% to 28.19%
Inflationary increase rate, range
from 2% to 5.50% on projected costs
from 3% to 5.50% on projected costs
Period, range
5 to 10 years
5 to 10 years
Projects start date, range
6 months to 2 years
6 months to 1 year
Management has adopted a baseline, upside and downside case scenarios in arriving at the adjusted net asset value. Management believes that the probability weight assignment presents a reasonable assessment of the likelihood of the scenarios, taking into account the potential of improved market conditions on the upside and reduced level of business activity assuming volatility in the oil and gas industry on the downside. The probability weightings for the applied scenarios are as follows:
2024
2023
Baseline
60%
60%
Upside
22% to 25%
22% to 25%
Downside
15% to 18%
15% to 18%
As a result of the project delays, an impairment loss amounting to €5,025,946 was recognised during 2024 in ‘administrative expenses’. In 2023, no impairment loss was recognised.
Management has assessed the sensitivity of the recoverable amount of the investment in the subsidiary by assigning a 100% weighting to the downside case scenario. This scenario assumes a twelve-month delay to the projects’ start-up date.
Increase in impairment loss
Calculation based solely on:
2024
€
2023
€
Downside scenario
(761,179)
(2,021,254)
The estimated recoverable amount of the investment in Medserv Eastern Mediterranean Limited at reporting date was determined based on the value-in-use of its subsidiaries, Medserv Egypt Oil & Gas Services J.S.C and Medserv (Cyprus) Limited. This was calculated by discounting future cash flows using a value-in-use analysis. Due to the improvement in the subsidiaries’ performance and projections, prior years’ impairment losses of €3,019,179 were reversed during the year (2023: €nil).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
79
20 Investment in subsidiaries (continued)
20.5 Impairment test (continued)
As of the years ended 31 December 2024 and 2023, the investments in Medserv ME Limited and Medserv Libya Limited remained fully impaired. Meanwhile, the investments in Medserv Eastern Mediterranean Limited and Regis Holdings Limited stood at €6,174,294 (2023: €3,155,355) and €26,024,199 (2023: €31,394,718), respectively, following an impairment loss and a reversal.
21 Equity-accounted investees
21.1 Associates
21.1.1 The Company
Investment in FES Libya Limited (hereafter “FES”)
The Company has a 25% interest in FES, a Maltese incorporated company which was registered on 28 August 2019 to act as a distributor of downhole tools and services in Libya. FES is still in the process of securing a long-term contract in Libya.
Summary of financial information for the associated entity is as follows:

| 2024 | 2023
| € | €
Non-current assets | 405,905 | 382,244
Current assets | 252,778 | 312,715
Current liabilities | (1,155,124) | (1,072,069)
Net liabilities | (496,441) | (377,110)
Company’s share of net liabilities (25%) | (124,110) | (94,278)
Revenue | 35,604 | 250,990
Loss for the period (100%) | (71,049) | (101,810)
Company’s share of loss (25%) | - | -

The Company’s share of losses of the associate exceeds its interest in the associate and as a result, the Company has discontinued recognizing its share of further losses. As a result, the carrying amount of the associate amounting to €300 has been written down to €Nil in prior years.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
80
21 Equity-accounted investees (continued)
21.1 Associates (continued)
21.1.2 The Group
As at 31 December 2024, the Group has interests in the following associates:
i.49% in Avhold Limited (hereafter “Avhold”), and
ii.49% in NRG MedservRegis Inc (hereafter “NRGMR”).
Avhold, a company incorporated in Mauritius, holds investment in a licensed domestic flight operator in Mozambique which started operating in 2022. Summary of financial information for the associated entity as at 31 December 2024 and 31 December 2023 is as follows:

| 2024 | 2023
| € | €
Non-current assets | 206,614 | 194,552
Current assets | 643,313 | 719,456
Current liabilities | (329,157) | (315,652)
Non current liabilities | (1,044,633) | (1,060,642)
Net liabilities (100%) | (523,863) | (462,286)
Company’s share of net asset (49%) | (256,693) | (226,520)
Loss from continuing operations (100%) | (35,311) | (33,675)
Total comprehensive income (100%) | (35,311) | (33,675)
Company’s share of loss (49%) | - | -

NRGMR, a private company incorporated in Guyana, started its operations in July 2024. It provides logistics support services in Guyana. Summary of financial information for the associated entity as at 31 December 2024 and 31 December 2023 is as follows:

| 2024 | 2023
| € | €
Current assets | 233,812 | -
Current liabilities | (245,615) | -
Net assets (100%) | (11,803) | -
Company’s share of net asset (49%) | (5,783) | -
Revenue | 339,687 | -
Loss from continuing operations (100%) | (15,772) | -
Total comprehensive income (100%) | (15,772) | -
Company’s share of loss (49%) | (7,728) | -

The carrying amount of the investment in this associate amounts to €2,255 (2023: €nil).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
81
22 Financial assets at fair value through profit or loss
Financial assets mandatorily measured at FVTPL include the following:

The Group | 2024 | 2023
| € | €
Investment in: |  |
Listed bonds | 1,352,742 | 1,504,302
Listed equity securities | 1,591,405 | 1,579,861
Alternative products | 442,056 | 524,785
Balance at 31 December | 3,386,203 | 3,608,948

Income from investments at FVTPL and fair value gain and losses recognised during the year are disclosed in note 9.
Information about the Group’s exposure to price risk and the methods and assumptions used in determining fair value are disclosed in note 31.

The Group | Note | 2024 | 2023
|  | € | €
Balance at 1 January |  | 3,608,948 | 2,759,727
Additions |  | 157,095 | 1,673,901
Disposals |  | (651,017) | (1,126,682)
Fair value gains | 9 | 195,051 | 441,326
Effect of movements in exchange rates |  | 76,126 | (139,324)
Balance at 31 December |  | 3,386,203 | 3,608,948

The Group holds a portfolio of equity shares, bonds and other securities classified as financial assets at fair value through profit and loss as these are held for trading purposes. These investments represent marketable and listed instruments which are highly liquid, and the Group uses the market closing rates for the fair valuation of these instruments at each reporting date. The investments are classified under Level 1 as per the classification of IFRS 13 Fair Value Measurements (see note 31.2).
The financial assets at FVTPL are classified as non-current since the Group intends to hold these investments beyond 12 months from the end of the reporting period to be used as collateral against future borrowings by the Group (see note 27.2).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
82
23 Cash and cash equivalents

|  | The Group | The Company
| Note | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Cash in hand |  | 239,633 | 261,600 | - | -
Bank balances |  | 18,712,737 | 16,031,844 | 146,043 | 79,696
|  | 18,952,370 | 16,293,444 | 146,043 | 79,696
Bank overdraft used for cash management purposes | 27 | (2,002,344) | (2,396,811) | - | -
Cash and cash equivalents as presented in cashflow statement |  | 16,950,026 | 13,896,633 | 146,043 | 79,696

As of 31 December 2024, the Group’s subsidiary, Verger Investimentos Lda, holds cash at bank amounting to €4,889,489 (2023: €4,693,738) that are subject to exchange controls on remittance outside of the jurisdiction in which it operates, and thus may limit the Group’s ability to access the cash for operations, investments or distributions. The Group performed an ECL test for the cash at bank balances which resulted in no movement during the year (2023: reversal in provision of €0.68 million) (see note 31).
24 Capital and reserves
24.1 Share capital

| Ordinary shares
| No.
In issue at 1 January 2023 with a nominal value of €0.10 each | 101,637,634
In issue at 31 December 2023 – fully paid with a nominal value of €0.10 each | 101,637,634
In issue at 1 January 2024 with a nominal value of €0.10 each | 101,637,634
In issue at 31 December 2024 – fully paid with a nominal value of €0.10 each | 101,637,634

The Company’s authorised share capital amounts to 120,000,000 ordinary shares of €0.10 each (2023: 120,000,000 ordinary shares of €0.10 each). The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
24.2 Share premium and loss offset reserve
The Company’s share premium as at 31 December 2024 and 2023 amounting to €9,016,275 represents:
•premium on issue of 8,744,399 ordinary shares of a nominal value of €0.10 each at a share price of €1.50, net of transaction costs of €238,330 directly attributable to the issue of ordinary shares;
•premium on issue of 47,893,229 ordinary shares of a nominal value of €0.10 each at a share price of €0.68 each relating to the share for share exchange with Regis in 2021;
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
83
24 Capital and reserves (continued)
24.2 Share premium and loss offset reserve (continued)
•reduction by €28,634,512 on 16 November 2023 for the purpose of offsetting prior years’ losses of the Company; and
•a second reduction of €2,131,115 creating a new reserve called “Loss Offset Reserve” for the purpose of offsetting any eventual losses that may be incurred by the Company from time to time.
On 31 December 2023, the directors of the Company unanimously resolved to utilize such amount of the Loss Offset Reserve as is equivalent to the Company’s losses as at 31 December 2023, for the purposes of offsetting the said losses within the Company’s statement of changes in equity. As a result, the amount of €594,519 was transferred from the Loss Offset Reserve to Retained earnings. The remaining balance of €1,536,596 as at 31 December 2024 and 2023 is being retained under the Loss Offset Reserve for the offsetting of any eventual losses that the Company may incur in the future.
The Group
As a result of the reverse acquisition by Regis during 2021, the directors have determined that the Company’s legal capital constitutes of its share capital only and does not include the share premium. As a result, the existing share premium on the 8,744,399 shares were eliminated on business combination with Regis and the share premium in the consolidated financial statements amounting to €27,778,073 as at 31 December 2024 and 2023 relates only to the share premium for the share-for-share exchange with Regis as a result of the reverse acquisition. This represents the premium on issue of 47,893,229 ordinary shares of a nominal value of €0.10 each at a share price of €0.68 each.
24.3 Translation reserve
Translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation.
24.4 Reverse acquisition reserve
The reverse acquisition reserve was created in accordance with IFRS 3 Business Combinations. Since the shareholders of Regis became the majority shareholders of the enlarged group, the acquisition is accounted for as though there is a continuation of the Regis financial statements in these consolidated financial statements.
24.5 Dividends paid
A net interim dividend of €1,000,003, representing €0.0098389 per share, was paid on 26 February 2024 out of tax-exempt profits. At the forthcoming annual general meeting, a final net dividend of €1,500,000, representing €0.0147583 per share, in respect of the financial year ended 31 December 2024 is to be proposed. These financial statements do not reflect this proposed dividend which will be accounted for in shareholders’ equity as an appropriation of retained earnings in the year ending 31 December 2025.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
84
25 Earnings per share
25.1 Basic earnings per share
The calculation of basic EPS of the Group has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.
There were no dilutive potential ordinary shares during the current and comparative year.
Profit attributable to ordinary shareholders (basic)

| The Group
| 2024 | 2023
| € | €
Profit for the year attributable to ordinary shareholders | 1,866,233 | 1,081,046

Weighted-average no of ordinary shares (basic)

|  | The Group
| Note | 2024 | 2023
| No. | No.
Issued ordinary shares at 1 January | 24.1 | 101,637,634 | 101,637,634
Weighted-average number of ordinary shares at 31 December | 101,637,634 | 101,637,634

Earnings per share of the Group for the year ended 31 December 2024 amounted to €0.0184 (2023: €0.0106).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
85
26 Non-controlling interest
The following table summarises the information relating to each of the Group’s subsidiaries that has material NCI. The net assets attributable to NCI for Medserv Egypt Oil & Gas Services JSC as at year-end are based on a 20% shareholding, following the acquisition of an additional 20% equity interest in December 2024. However, the total comprehensive income and cash flows attributable to NCI for the year are based on a 40% shareholding, as the Group held a 60% ownership interest for the majority of the reporting period.

| Medserv (Cyprus)Limited | Medserv Egypt Oil &Gas Services JSC
Country of registration | Cyprus | Egypt
Principal activity | ILSS* | ILSS*
| 2024 | 2023 | 2024 | 2023
NCI Percentage | 20% | 20% | 20% | 40%
| € | € | € | €
Non-current assets | 6,479,192 | 8,268,183 | 3,710,644 | 1,891,625
Current assets | 2,530,937 | 3,773,817 | 3,824,139 | 3,812,529
Non-current liabilities | (4,157,882) | (5,881,312) | (902,210) | (1,186,637)
Current liabilities | (2,326,808) | (3,919,604) | (3,094,924) | (2,657,107)
Net assets | 2,525,439 | 2,241,084 | 3,537,649 | 1,860,410
Net assets attributable to NCI | 505,088 | 448,217 | 707,530 | 744,165

*Integrated Logistics Support Services
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
86
26 Non-controlling interest (continued)

| Medserv (Cyprus) Limited | Medserv Egypt Oil & Gas Services JSC
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Revenue | 6,572,967 | 8,840,784 | 6,548,019 | 7,318,332
Profit | 182,023 | 616,602 | 482,038 | 225,068
OCI | - | - | (486,825) | 74,325
Total comprehensive income | 182,023 | 616,602 | (4,787) | 299,393
Profit allocated to NCI | 36,405 | 123,320 | 192,815 | 90,028
OCI allocated to NCI | - | - | (194,730) | 29,730
Total comprehensive income allocated to NCI | 36,405 | 123,320 | (1,915) | 119,758
Cash flows attributable to NCI |  |  |  |
Cash flows from operating activities | 487,135 | 564,417 | 229,091 | (869,397)
Cash flows used in investing activities | (53,603) | (35,387) | 191,809 | 31,906
Cash flows used in financing activities | (395,866) | (526,341) | - | -
Net movement in cash and cash equivalents | 37,666 | 2,689 | 420,900 | (837,491)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
87
27 Loans and borrowings
27.1 This note provides information about the contractual terms of the Group’s and Company’s interest-bearing loans and borrowings. For more information about the Group’s exposure to interest rate, foreign currency and liquidity risk, see note 31.

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Non-current liabilities |  |  |  |
Secured bank loans | 3,509,038 | 4,927,887 | - | -
Loan from subsidiary | - | - | 2,655,000 | 2,891,250
Secured notes | 12,713,000 | 12,663,017 | 12,713,000 | 12,663,017
Unsecured notes | 29,954,915 | 30,042,090 | 30,326,881 | 30,705,943
| 46,176,953 | 47,632,994 | 45,694,881 | 46,260,210
Current liabilities |  |  |  |
Secured bank loans | 3,240,359 | 1,319,053 | - | -
Loan from subsidiaries | - | - | 990,623 | 393,750
Bank overdrafts | 2,002,344 | 2,396,811 | - | -
| 5,242,703 | 3,715,864 | 990,623 | 393,750

27.2 Terms and debt repayment schedule
The terms and conditions of outstanding loans are as follows:

|  | The Group |  |  |
|  | Carrying amount |  |
| Original currency | 2024€ | 2023€ | Nominal interest rate | Year of maturity
Bank loan | EUR | 2,970,000 | 3,285,000 | 6% | 2034
Bank loan | EUR | 1,942,029 | 2,961,940 | Bank’s base rate + 3% | 2026
Bank loan | USD | 1,837,368 | - | 5.52% | 2025
Unsecured notes | EUR | 22,060,946 | 21,781,618 | 4.50% | 2026
Unsecured notes | USD | 7,893,969 | 8,260,472 | 5.75% | 2026
Secured notes | EUR | 12,713,000 | 12,663,017 | 5.00% | 2029

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
88
27 Loans and borrowings (continued)
27.2 Terms and debt repayment schedule (continued)
The Company
Carrying amount
Original currency
2024
2023
Nominal interest rate
Year of
maturity
€
€
Loan from subsidiary
EUR
2,970,000
3,285,000
6.00%
2034
Loan from subsidiary
EUR
466,162
-
5.50%
2025
Loan from subsidiary
EUR
209,461
-
5.15%
2025
Unsecured notes
EUR
22,336,241
22,281,731
4.50%
2026
Unsecured notes
USD
7,990,639
8,424,212
5.75%
2026
Secured notes
EUR
12,713,000
12,663,017
5.00%
2029
The USD denominated debt is designated as a hedging instrument in a net investment hedge information on the Group’s hedging activities are provided in Note 31.6.
27.3 Security on bank loans and overdraft facilities
The Group’s secured bank loan with the carrying amount of €1,942,029 as at 31 December 2024 and with maturity 2026 contains a covenant that states that the group entity’s Debt Service Coverage Ratio (DSCR) should not fall below 1.4x. If the capped ratio is not respected, the group entity must demonstrate through adequate evidence, namely based on cash balances as per audited accounts at the beginning and / or the end of the fiscal year that it holds sufficient cash to cover its debt service after dividend for the concerned period. The group entity is expected to remain compliant with this covenant within the next twelve months after the reporting date and a part of the loan has been classified as non-current as at 31 December 2024.
The bank loans and overdraft facilities are secured by:
a.first general hypothec for €7,500,000 on overdraft basis over all present and future assets of Medserv Operations Limited;
b.first special hypothec for €7,500,000 on overdraft basis over temporary utile dominium of Medserv site and property of Malta Freeport;
c.third general hypothec on bank loan for €3,600,000 by Medserv Operations Ltd over all present and future assets;
d.third special hypothec on bank loan for €3,600,000 over temporary utile dominium of Medserv site and property of Malta Freeport;
e.Company guarantees for €10,573,074 and €5,996,606 given to Medserv Operations Ltd and Middle East Comprehensive Tubular Services L.L.C respectively in favour to the bankers;
f.first pledge, second and third pledge over a combined business policy for €8,568,381 and pledge of insurance cover over purchased equipment €1,334,000.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
89
27 Loans and borrowings (continued)
27.3 Security on bank loans and overdraft facilities (continued)
g. a letter of undertaking by the Company whereby it undertakes not to declare dividends or pay shareholders’ loans in Medserv Operations Limited without the bank’s written consent and to maintain the present level control and interest in Medserv Operations Limited;
h.First and third general hypothec for MDB loan of €1,942,027 over all present and future assets of Medserv Operations Limited;
i.A pledge of receivables and bank account agreement in relation to all and any rights pertaining to Medserv Operations Limited under the agreement with Enemalta p.l.c. and Automated Revenue Management Services Limited (ARMS) in relation to the payment for units of electricity generated by the photovoltaic farm situated at the Malta Freeport;
j.A letter of undertaking by Medserv Operations Limited to ensure and procure that all and any payments received from Enemalta and/or ARMS in relation to the generation of electricity units by the photovoltaic farm are at all times paid into and/or directly credited in the pledged bank account.
k.Marginal fixed term deposit of €899,761 for a period of 24 months;
l.Letter of undertaking to route 100% of receivables of a significant customer through a particular bank of a group entity; and
m.Commercial mortgage of €2,999,203 in favour of a particular bank of a group entity.
27.4 Reconciliation of movements of loans and borrowings to cash flows arising from financing activities

| The Group |  | The Company
| Bank overdrafts used for cash management purposes | Secured and unsecured notes | Bank loans | Loan from subsidiaries | Secured and unsecured notes
31 December 2024 | € | € | € | € | €
Balance at 1 January | 2,396,811 | 42,705,107 | 6,246,940 | 3,285,000 | 43,368,960
Changes from financing cash flows |  |  |  |  |
Proceeds from loans and borrowings | - | - | 1,755,456 | 1,100,000 | -
Repayment of borrowings | - | (987,477) | (1,350,930) | (773,012) | (987,477)
Total changes from financing cash flows | - | (987,477) | 404,526 | 326,988 | (987,477)
Effect of changes in foreign exchange rates | - | 523,434 | 70,874 | - | 529,225
Total non-cash items | - | 523,434 | 70,874 | - | 529,225
Liability-related changes |  |  |  |  |
Change in bank overdrafts | (270,673) | - | - | - | -
Interest expense (note 12) | - | 2,546,687 | 301,472 | 230,136 | 2,249,013
Interest paid | (123,794) | (2,119,836) | (274,415) | (196,501) | (2,119,840)
Total liability–related changes | (394,467) | 426,851 | 27,057 | 33,635 | 129,173
Balance at 31 December | 2,002,344 | 42,667,915 | 6,749,397 | 3,645,623 | 43,039,881

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
90
27 Loans and borrowings (continued)
27.4 Reconciliation of movements of loans and borrowings to cash flows arising from financing activities (continued)

|  | The Group |  | The Company
| Bank overdrafts used for cash management purposes | Secured and unsecured notes | Bank loans | Loan from subsidiary | Secured and unsecured notes
31 December 2023 | € | € | € | € | €
Balance at 1 January | 792,534 | 50,352,543 | 7,444,043 | 3,521,250 | 51,318,849
Changes from financing cash flows |  |  |  |  |
Repayment of borrowings | - | (7,772,019) | (1,179,150) | (236,250) | (7,772,019)
Total changes from financing cash flows | - | (7,772,019) | (1,179,150) | (236,250) | (7,772,019)
Effect of changes in foreign exchange rates | - | (305,269) | - | - | (310,240)
Total non-cash items | - | (305,269) | - | - | (310,240)
Liability-related changes |  |  |  |  |
Change in bank overdrafts | 1,719,687 | - | - | - | -
Interest expense (note 12) | - | 2,554,313 | 424,538 | 227,732 | 2,256,831
Interest paid | (115,410) | (2,124,461) | (442,491) | (227,732) | (2,124,461)
Total liability–related changes | 1,604,277 | 429,852 | (17,953) | - | 132,370
Balance at 31 December | 2,396,811 | 42,705,107 | 6,246,940 | 3,285,000 | 43,368,960

The New Notes were admitted to listing on the Official List of the Malta Stock Exchange on 22 December 2023 with the interest starting to accrue as from this date.
The notes issued in 2016 with a carrying amount as at 31 December 2024 of €30,326,881 (2023: €30,705,943) are unsecured. The notes issued during 2023 are secured by the Company’s subsidiary, Medserv Operations Limited, through a general hypothec and a special hypothec over its emphyteutical rights on the Medserv site at the Malta Freeport at the Port of Marsaxlokk (refer to note 14.4).
Furthermore, as at 31 December 2024 and 2023, the Group enjoyed general overdraft facilities of €3,000,000 at the following terms and conditions:

Bank overdraft | Nominal Interest rate
€2,500,000 | 5.15% (bank base rate + 3%)
€500,000 | 5.15% (bank base rate + 3%)

At 31 December 2024, the Group had unutilised bank overdraft facilities of €997,656 (2023: €744,196) and unutilised foreign exchange facility of €300,000 (2023: €300,000) out of the overdraft facilities listed above.
At 31 December 2024, the Group availed of credit card facilities amounting to approximately €Nil (2023: €1,882,381) for OCTG customs clearance purposes.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
91
28 Employee benefits obligation – The Group
28.1

|  | 2024 | 2023
| Notes | € | €
Liability for severance payments | 28.2.1 | 1,458,731 | 1,381,400
Liability for retirement gratuities | 28.2.1 | 46,102 | 36,705
|  | 1,504,833 | 1,418,105
Non-current |  | 1,445,466 | 1,368,909
Current |  | 59,367 | 49,196
|  | 1,504,833 | 1,418,105

28.2 Severance payments and retirement gratuities
The Group operates defined benefit pension plans through its subsidiaries in Egypt, Sultanate of Oman, Mauritius and UAE. In most cases, the benefits value is set out in the labour regulations in the jurisdictions in which the subsidiary operates. In each case, a lump sum benefit for eligible employees based on specific requirements in the country in which the subsidiary operates is payable to the employee on termination or retirement. The subsidiaries recognise a liability for any projected shortfalls of benefits based on actuarial assumptions.
Benefit payments are generally from trustee-administrated funds and for unfunded plans the subsidiary meets the benefit payment obligation as it falls due.
28.2.1 The following table shows a reconciliation for the liability for severance payments.

| 2024 | 2023
| € | €
Balance at 1 January | 1,418,105 | 1,442,490
Included in profit or loss: |  |
Current service cost | 334,372 | 311,267
Benefits paid | (167,158) | (218,014)
Interest cost | 103,408 | 92,127
Included in OCI: |  |
Actuarial (gains)/losses on economic assumptions | (46,193) | 21,672
Actuarial gains on experience | (35,460) | (104,845)
Translation reserve | (102,241) | (126,592)
Balance at 31 December | 1,504,833 | 1,418,105

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
92
28 Employee benefits obligation – The Group (continued)
28.2 Severance payments and retirement gratuities (continued)
28.2.1(continued)
The components of the movement in employee benefits recognised in profit or loss is as follows:

| 2024 | 2023
| € | €
Current service cost | 334,372 | 311,267
Interest cost | 103,408 | 92,127
| 437,780 | 403,394

The components of the movement in employee benefits recognised in other comprehensive income is as
follows:

| 2024 | 2023
| € | €
Actuarial (gains)/losses on economic assumptions | (46,193) | 21,672
Actuarial (gains) on experience | (35,460) | (104,845)
Translation difference | 4,154 | 241
| (77,499) | (82,932)

28.2.2 Actuarial assumptions
The main actuarial assumptions used for accounting purposes are as follows:

| 2024 | 2023
Discount rate | 9.05% | 9.81%
Inflation rate | 2.34% | 2.10%
Future salary growth rate | 8.98% | 10.15%
Net pre-retirement rate | 1.65% | 1.74%

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
93
28 Employee benefits obligations – The Group (continued)
28.2 Severance payments and retirement gratuities (continued)
28.2.3 Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

|  | 2024 | 2023 |
| Movement | Revised | Impact | Movement | Revised | Impact
| € | € | € | € | € | €
Discount rate: +1% | 63,163 | 1,441,670 | 4.20% | 71,105 | 1,347,000 | 5.01%
Discount rate: -1% | (59,735) | 1,564,569 | (3.97%) | (76,683) | 1,494,788 | (5.41%)
Salary increase: +1% | (203,539) | 1,708,372 | (13.53%) | (211,801) | 1,629,906 | (14.94%)
Salary decrease: -1% | 200,985 | 1,303,849 | 13.36% | 207,548 | 1,210,557 | 14.64%

29 Trade and other payables
29.1

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Trade payables | 4,072,480 | 6,474,678 | 227,181 | 15,082
Amounts due to shareholders | 61,852 | 61,014 | 61,852 | 61,014
Amounts due to note holders | 64,820 | 71,932 | 64,820 | 71,932
Amounts due to subsidiaries | - | - | 7,779,736 | 7,227,557
Amounts due to non-controlling interest | 214,837 | 448,523 | - | -
Indirect taxes payable | 641,436 | 970,103 | - | -
Accrued expenses | 4,027,890 | 2,552,641 | 595,553 | 328,083
Other payables | 263,157 | 288,131 | - | -
| 9,346,472 | 10,867,022 | 8,729,142 | 7,703,668

29.2 Amounts due to subsidiaries and shareholders are unsecured, interest free and repayable on demand. Transactions with related parties are set out in note 35 to these financial statements.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
94
29 Trade and other payables (continued)
29.3 During 2023, one of the group entities paid €1.3 million against shareholders’ loans due to the non-controlling interest. These shareholders’ loans were previously considered as “non-controlling interest” within equity acquired as part of the reverse acquisition. The remaining balance of these shareholders’ loans were transferred from the “non-controlling interest” within equity to “amounts due to non-controlling interest” within trade and other payables since these were expected to be repaid within 12 months. During the year, this group entity paid the amount of €233,686 to the non-controlling interest.
29.4 The Group’s and Company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in note 31.
30 Contingencies and commitments
30.1 At reporting date, the Group had the following contingent liabilities:
•Letter of guarantees issued by Group’s bankers in favour of third parties amounting to €4,190,640 (2023: €2,745,582);
The Company acts as a guarantor to certain banks in respect of credit facilities granted to two of its subsidiaries (see note 27.3).
30.2 The Company has uncalled share capital on its investments in subsidiaries, namely Medserv International Limited, Medserv Libya Limited and Medserv Eastern Mediterranean Limited amounting to €36,861 (2023: €36,861) (see note 20).
31 Financial instruments – Fair values and risk management
31.1 Accounting classifications
The Group classifies non-derivative financial assets into the categories of ‘amortised cost or ‘fair value through profit or loss (FVTPL)’. The Group classifies non-derivative financial liabilities into the category of ‘other financial liabilities’. At reporting date, the Group’s financial assets at amortised cost comprised cash and cash equivalents and trade and other receivables, and the Group’s financial assets at FVTPL comprised equity and debt investments. The Company’s financial assets at amortised cost comprised loans receivable from subsidiaries, cash and cash equivalents and trade and other receivables. At reporting date, the Group’s non-derivative financial liabilities comprised secured and unsecured notes, loans and borrowings, bank overdrafts and trade and other payables whereas the Company’s non-derivative financial liabilities comprised secured and unsecured notes and trade and other payables.
31.2 Measurement of fair values
The Group is required to provide information about the fair value of its financial instruments at the report date. The fair values of financial assets, that are traded in active markets and financial liabilities are based on quoted market price or dealer price quotations. For all other financial instruments, the Group determines fair value using other valuation techniques.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
95
31 Financial instruments – Fair values and risk management (continued)
31.2.1 Valuation techniques and significant unobservable inputs
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuations techniques as follows:
•Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2: inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Management is of the opinion that the fair value of the Group’s cash and cash equivalents and trade and other receivables and secured bank loans are not significantly different from their carrying amounts in view of the relatively short periods of maturity from the end of the reporting periods. The key financial instruments measured at fair value in the statement of financial position are grouped into the fair value hierarchy as follows:
The Group

| 31 December 2024 | 31 December 2023
| Carrying amount | Fair Value | Level | Carrying amount | Fair Value | Level
| € | € |  | € | € |
Assets |  |  |  |  |  |
Financial assets measured at FVTPL |  |  |  |  |  |
Investments in listed bonds | 1,352,742 | 1,352,742 | 1 | 1,504,302 | 1,504,302 | 1
Investments in listed equity securities | 1,591,405 | 1,591,405 | 1 | 1,579,861 | 1,579,861 | 1
Investments in alternative products | 442,056 | 442,056 | 1 | 524,785 | 524,785 | 1
Financial assets measured at amortised cost |  |  |  |  |  |
Fixed term deposits | 1,049,761 | 1,049,761 | 1 | 1,555,644 | 1,555,644 | 1

The table below provides information about fair values of the Group’s financial instruments which are not measured at fair value and for which the fair values are significantly different from their carrying values.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
96
31 Financial instruments – Fair values and risk management (continued)
31.2 Measurement of fair values (continued)
31.2.1 Valuation techniques and significant unobservable inputs (continued)

| 31 December 2024 | 31 December 2023
| Carrying amount | Fair Value | Level | Carrying amount | Fair Value | Level
| € | € |  | € | € |
Liabilities |  |  |  |  |  |
Financial liabilities measured at amortised cost |  |  |  |  |  |
Secured notes | (12,713,000) | (13,518,088) | 2 | (12,663,017) | (13,453,505) | 2
Unsecured notes | (29,954,915) | (29,665,688) | 2 | (30,042,090) | (28,746,460) | 2

The Company
As at the reporting date, the Company has no financial instruments which are carried at fair value in the statement of financial position.
The table below provides information on the fair value of the Company’s financial assets and liabilities which are significantly different from their carrying values at the reporting date. Management is of the opinion that the fair values of the Company’s current portion of loan receivables from subsidiaries, trade and other receivables, cash and cash equivalents, trade and other payables and secured bank loans are not significantly different from their carrying values in view of the relatively short periods of maturity from the end of the reporting periods.
31 December 2024
31 December 2023
Carrying amount
Fair Value
Level
Carrying amount
Fair Value
Level
€
€
€
€
Assets
Financial assets measured at amortised cost
Non-current loans receivable from subsidiaries
-
-
-
14,217,067
14,394,327
3
Liabilities
Financial instruments measured at amortised cost
Secured notes
(12,713,000)
(13,518,088)
2
(12,663,017)
(13,453,505)
2
Unsecured notes
(30,326,881)
(29,665,688)
2
(30,705,943)
(28,746,460)
2
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
97
31 Financial instruments – Fair values and risk management (continued)
31.2 Measurement of fair values (continued)
31.2.1 Valuation techniques and significant unobservable inputs (continued)
The fair value of financial instruments not measured at fair value was determined as follows:
Secured and unsecured notes issued
This category of liabilities is carried at amortised cost. Its fair value has been determined by reference to the market price as at 31 December 2024 and classified as Level 2 in view of the infrequent activity in the market.
Non-current loans receivables from subsidiaries
The fair value of the non-current loans receivables from subsidiaries classified as level 3 hierarchy during 2023 were calculated based on a cash flow discounted using the current lending rate for similar instruments at the reporting date. They are classified as level 3 hierarchy due to the use of unrecoverable inputs including counterparty risk. Management considers the carrying amounts of those instruments for the comparable period presented to be a reasonable estimate of their fair value due to insignificant changes in the interest rates and counterparty risks.
31.2.2 Transfers between Level 2 and 3
There were no transfers from Level 2 to Level 3 and vice-versa in 2024 and 2023.
31.3 Financial risk management
31.3.1 The Group has exposure to the following risks arising from financial instruments:
•credit risk
•liquidity risk
•market risk
•operational risk.
This note presents information about the Group’s and Company’s exposure to each of the above risks, the Group’s and Company’s objectives, policies and processes for measuring and managing risk, and the Group’s and Company’s capital management. The information presented in this note should be read in conjunction with the commentary in the Directors’ Report under “Principal risks and uncertainties”.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
98
31 Financial instruments – Fair values and risk management (continued)
31.3 Financial risk management (continued)
31.3.2 Risk management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board of Directors has established the Financial Risk Committee, which is responsible for developing and monitoring the Group’s risk management policies. The Committee reports regularly to the Board of Directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Group’s Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.
31.4 Credit risk
31.4.1 Credit risk is the risk of financial loss to the Group and Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s and Company’s bank balances, trade and other receivables and contract assets. Credit risk for the Company also include loans receivable from subsidiaries.
The carrying amounts of financial assets represent the maximum credit exposure as follows:

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Financial assets at fair value through profit and loss |  |  |  |
Investments in debt instruments | 1,352,742 | 1,504,302 | - | -
Financial assets at amortised cost |  |  |  |
Trade receivables and contract assets | 19,808,073 | 23,170,895 | 1,442,500 | 1,600,000
Amounts due by subsidiaries | - | - | 647,125 | 1,894,632
Loans receivable from subsidiaries | - | - | - | 39,253,650
Other receivables | 846,591 | 1,487,115 | 1,933,514 | 820
Cash at bank | 19,518,758 | 16,837,865 | 146,043 | 79,696
Other financial assets | 1,049,761 | 1,555,644 | - | -
Gross exposure | 42,575,925 | 44,555,821 | 4,169,182 | 42,828,798
Credit loss allowances | (2,822,966) | (3,057,251) | - | (15,443,485)
Net exposure | 39,752,959 | 41,498,570 | 4,169,182 | 27,385,313

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
99
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.1(continued)
Credit loss allowances on financial assets were as follows:

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Impairment loss on: |  |  |  |
- Trade receivables and contract assets | (2,016,945) | (2,251,230) | - | -
- Loan receivables from subsidiaries | - | - | - | (15,443,485)
- Cash at bank | (806,021) | (806,021) | - | -
| (2,822,966) | (3,057,251) | - | (15,443,485)

Impairment losses on financial assets recognised in the profit and loss were as follows:

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Net remeasurement of loss allowance | 417,046 | (422,722) | 15,443,485 | -
Reversal of loss on cash at bank | - | 681,162 | - | -
Amounts written off | - | 504,054 | (22,431,874) | -
| 417,046 | 762,494 | (6,988,389) | -

31.4.2 Trade receivables and contract assets
The Group offers logistical and OCTG services to National and International Energy Companies (IECs), their subcontractors and other companies operating in the oil and gas industry. These customers operate huge budgets and historically have sufficient funds to meet their obligations towards the Group. The Group also services mining companies as well as product and equipment manufacturers and other heavy industry-related contractors. The Group’s services include the provision of heavy machinery and lifting equipment, management services as well as contracting staff to clients and provide Technical Services Agreement (TSA) facilities.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group’s customer base, including the default risk of the industry and country in which customers operate, as these factors may have an influence on credit risk. Details of concentration of revenue are included in note 8.1.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
100
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.2 Trade receivables and contract assets (continued)
Through the Financial Risk Committee, the Group has an internal control system which identifies at an early stage any events of default. The Group’s review includes external ratings, if they are available, financial statements, credit agency information and industry information. Most of the Group’s customers have been transacting with the Group for a number of years, and losses rarely occur. In monitoring customer credit risk, customers are grouped according to their credit characteristics, including geographic location, aging profile, maturity, trade history with the Group and existence of previous financial difficulties.
The Group does not require collateral in respect of trade and other receivables. The Group does not have trade receivables and contract assets for which no loss allowance is recognised because of collateral.
As at 31 December 2024, the Group’s two (2023: one) most significant customers accounted for €5.7 million (2023: €8.4 million) of the trade receivables net of Expected Credit Loss.
Movements in the allowance for impairment in respect of trade receivables and contract assets
The movement in the allowance for impairment in respect of trade receivables and contract assets during the year was as follows:

| The Group
| 2024 | 2023
| € | €
Balance at 1 January | 2,251,230 | 2,501,712
Net remeasurement of loss allowance | (417,047) | 422,722
Amounts written off | - | (504,054)
Effect of movement in foreign exchange rate | 182,762 | (169,150)
Balance at 31 December | 2,016,945 | 2,251,230

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
101
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.2 Trade receivables and contract assets (continued)
The exposure to credit risk for trade receivables and contract assets by geographic region was as follows:

| The Group
| 2024 | 2023
| € | €
Gross carrying amount |  |
Domestic | 431,529 | 681,247
Eurozone countries | 4,178,167 | 3,892,704
Libya | 4,004,967 | 2,892,835
Middle East | 7,274,200 | 10,532,490
Angola | 1,549,341 | 2,243,543
Mozambique | 852,704 | 89,098
Uganda | 1,257,384 | 1,165,745
Morocco | - | 1,504,842
Other regions | 259,781 | 168,391
| 19,808,073 | 23,170,895

The summary quantitative data about the Group’s exposure to credit risk for trade receivables and contract assets is as follows.

| The Group
| 2024 | 2023
| € | €
Not-credit impaired |  |
External credit ratings at least Baa3 from Moody’s or BBB- from Standard & Poor’s | 6,553,231 | 6,132,680
Other customers: |  |
- Four or more years’ trading history with the Group | 8,047,380 | 6,876,694
- Less than four years’ trading history with the Group | 2,360,623 | 7,413,260
- Higher risk | 288,302 | 275,085
Credit impaired |  |
- Past due > 90 days | 2,081,329 | 1,997,982
- Fully impaired | 477,208 | 475,194
Total gross carrying amount | 19,808,073 | 23,170,895
Credit loss allowances | (2,016,945) | (2,251,230)
Carrying amount | 17,791,128 | 20,919,665

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
102
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.2 Trade receivables and contract assets (continued)
Other customers comprise reputable international energy companies and their subcontractors who have trading history with the Group.
Expected credit loss assessment for corporate customers
The Group loss allowance as at 31 December 2024 was determined as follows for both trade receivables and contract assets:

The Group |  |  |  |  |
31 December 2024 | Current | More than 30 days past due | More than 60 days past due | More than 120 days past due | Total
Expected loss rate | 1.80% | 15.33% | 14.16% | 71.99% |
| € | € | € | € | €
Gross carrying amount – trade receivables | 15,475,187 | 1,004,449 | 516,233 | 2,081,330 | 19,077,199
Gross carrying amount – contract assets | 730,874 | - | - | - | 730,874
Loss allowance | 291,450 | 153,945 | 73,102 | 1,498,448 | 2,016,945

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
103
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.2 Trade receivables and contract assets (continued)
Expected credit loss assessment for corporate customers (continued)
The following table provides information about the exposure to credit risk and ECLs for trade receivables and contract assets for corporate customers as at 31 December 2023, calculated on the basis of the Group’s new accounting policy as of 1 January 2023.

The Group |  |  |  |  |
31 December 2023 | Current | More than 30 days past due | More than 60 days past due | More than 120 days past due | Total
Expected loss rate | 2.75% | 7.76% | 20.31% | 58.22% |
| € | € | € | € | €
Gross carrying amount – trade receivables | 10,088,339 | 6,747,865 | 955,032 | 1,997,982 | 19,789,218
Gross carrying amount – contract assets | 3,381,677 | - | - | - | 3,381,677
Loss allowance | 370,425 | 523,634 | 193,967 | 1,163,204 | 2,251,230

31.4.3 Cash at bank
As at 31 December 2024, the Group held cash at bank gross of ECL of €19,518,758 (2023: €16,837,865) while the Company had a bank balance of €146,043 (2023: €79,696). The Group’s cash deposits are held with banks and financial institutions which are rated A+ to CCC/C, based on Standards & Poor’s ratings.
Impairment on cash at bank has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash at bank has low credit risk based on the external credit ratings of the counterparties.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
104
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.3 Cash at bank (continued)

| The Group
| Gross carrying amount | Loss allowance | Gross carrying amount | Loss allowance
| 2024 | 2024 | 2023 | 2023
Rating | € | € | € | €
Externally rated |  |  |  |
A+ | 1,731,742 | - | 6,119,823 | -
A | 512,056 | - | 29,242 | -
A- | 1,105,049 | - | 965,758 | -
AA | 1,197 | - | 16,175 | -
BBB- | 2,783,711 | - | 2,934,222 | (79,802)
BB+ | 6,443,021 | - | 135,288 | -
BB | 1,898 | - | 1,787 | -
BB- | 708,876 | - | 1,660,810 | -
B+ | 203,816 | - | 86,551 | -
B- | 1,095,170 | - | 194,471 | -
CCC/C | 4,932,222 | (806,021) | 4,693,738 | (726,219)
Total | 19,518,758 | (806,021) | 16,837,865 | (806,021)

The Company
Gross carrying amount
Loss
allowance
Gross carrying amount
Loss allowance
2024
2024
2023
2023
€
€
€
€
At amortised cost
A
146,043
-
79,696
-
Total
146,043
-
79,696
-
31.4.4 Investment in debt instruments
The Group’s investments in debt instruments are not subject to IFRS 9 expected credit loss allowances since these are held for trading and are measured at fair values.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
105
31 Financial instruments – Fair values and risk management (continued)
31.4 Credit risk (continued)
31.4.5 Other financial assets
Other financial assets of €1 million (2023: €1.6 million) comprise of cash collaterals held with a reputable bank (see note 33). Management concludes internally that the expected credit loss on the amount is insignificant at the reporting date.
31.4.6 Amounts due by subsidiaries
Detailed impairment methodology on the loan receivable from subsidiaries is provided in note 20.5.
The Company
2024
2023
€
€
Balance at 1 January
15,443,485
15,443,485
Reversal of impairment
(15,443,485)
-
Balance at 31 December
-
15,443,485
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
106
31 Financial instruments – Fair values and risk management (continued)
31.5 Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group regularly reviews the expected cashflow through cash flow forecasts in its effort to monitor its cash flow requirements. The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows to meet expected operational expenses over the next 60 days, including the servicing of financing and borrowing obligations. The Group also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted.
At 31 December 2024, the expected cash inflows from trade and other receivables and contract assets maturing within three months were €22.2 million. The expected cash outflows due within three months were €12.4 million comprising trade and other payables of €9.3 million, payment of the interest on the unsecured notes of €0.7 million and loan and interest repayments of €2.2 million.
The Group’s liquidity risk is accordingly actively managed taking cognisance of the matching of operational cash inflows and outflows arising from expected maturities of financial instruments, attributable to the Group’s different operations, together with the Group’s committed bank borrowing facilities and other financing that it can access to meet liquidity needs.
In addition, the Group maintains the following other lines of credit, which remain undrawn at 31 December 2024:
-€997,655 bank overdraft facilities which bears interest at the Bank’s Base Rate plus 3 per cent;
-Unutilised foreign exchange facility of €300,000;
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
107
31 Financial instruments – Fair values and risk management (continued)
31.5 Liquidity risk (continued)
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and include contractual interest payments and exclude the impact of netting agreements. Trade and other payables and bank overdrafts which are due within 12 months equal their carrying balances as the impact of discounting is not significant.

The Group | Carrying amount | Contractual cash flows | Less than 1 year | 1 – 2 years | 2 – 5 years | 5 – 10 years | More than 10 years
| € | € | € | € | € | € | €
31 December 2024 |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |
Secured notes | 12,713,000 | (16,247,675) | (650,000) | (650,000) | (14,947,675) | - | -
Unsecured notes | 29,954,915 | (31,956,889) | (1,426,127) | (30,530,762) | - | - | -
Secured bank loans | 6,749,397 | (7,793,432) | (3,486,711) | (1,400,781) | (1,240,788) | (1,665,152) | -
Bank overdraft | 2,002,344 | (2,002,344) | (2,002,344) | - | - | - | -
Lease liabilities | 20,072,140 | (38,920,447) | (4,410,819) | (3,997,173) | (6,770,939) | (3,971,301) | (19,770,215)
Trade and other payables | 9,346,472 | (9,346,472) | (9,346,472) | - | - | - | -
| 80,838,268 | (106,267,259) | (21,322,473) | (36,578,716) | (22,959,402) | (5,636,453) | (19,770,215)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
108
31 Financial instruments – Fair values and risk management (continued)
31.5 Liquidity risk (continued)

The Group | Carrying amount | Contractual cash flows | Less than 1 year | 1 – 2 years | 2 – 5 years | 5 – 10 years | More than 10 years
| € | € | € | € | € | € | €
31 December 2023 |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |
Secured notes | 12,663,017 | (16,900,000) | (650,000) | (650,000) | (1,950,000) | (13,650,000) | -
Unsecured notes | 30,042,090 | (33,920,990) | (1,458,791) | (1,463,573) | (30,998,626) | - | -
Secured bank loans | 6,246,940 | (7,223,930) | (1,690,899) | (1,529,201) | (2,048,112) | (1,955,718) | -
Bank overdraft | 2,396,811 | (2,396,811) | (2,396,811) | - | - | - | -
Lease liabilities | 19,442,664 | (36,387,906) | (3,877,684) | (3,781,053) | (7,948,863) | (2,986,080) | (17,794,226)
Trade and other payables | 10,867,022 | (10,867,022) | (10,867,022) | - | - | - | -
| 81,658,544 | (107,696,659) | (20,941,207) | (7,423,827) | (42,945,601) | (18,591,798) | (17,794,226)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
109
31 Financial instruments – Fair values and risk management (continued)
31.5 Liquidity risk (continued)
The Company
Carrying amount
Contractual cash flows
Less than 1 year
1 – 2 years
2 – 5 years
5 – 10 years
More than 10 years
€
€
€
€
€
€
€
31 December 2024
Financial liabilities
Secured notes
12,713,000
(16,247,675)
(650,000)
(650,000)
(14,947,675)
-
-
Unsecured notes
30,326,881
(31,985,272)
(1,493,050)
(30,492,222)
-
-
-
Trade and other payables
8,729,142
(8,729,142)
(8,729,142)
-
-
-
-
51,769,023
(56,962,089)
(10,872,192)
(31,142,222)
(14,947,675)
-
-
31 December 2023
Financial liabilities
Secured notes
12,663,017
(16,900,000)
(650,000)
(650,000)
(1,950,000)
(13,650,000)
-
Unsecured notes
30,705,943
(33,920,990)
(1,458,791)
(1,463,573)
(30,998,626)
-
-
Trade and other payables
7,703,668
(7,703,668)
(7,703,668)
-
-
-
-
51,072,628
(58,524,658)
(9,812,459)
(2,113,573)
(32,948,626)
(13,650,000)
-
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
110
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
31.6.1 Currency risk
The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of the Group companies. The functional currencies of Group companies are primarily the Euro (EUR) and US Dollar (USD). The currencies in which these transactions are primarily denominated are Euro (EUR), US Dollar (USD), Omani Rial (OMR), Egyptian Pounds (EGP), United Arab Emirates Dirham (AED), Mozambique New Metical (MZN), Mauritian Rupee (MUR), and Ugandan Shilling (UGX). Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities which are denominated in a currency that is not the respective entity’s functional currency which would be considered a foreign currency from the entity’s perspective.
Exposure to currency risk
The Group’s main currency note exposure reflecting the carrying amount of assets and liabilities denominated in foreign currencies at the end of the reporting period, analysed by the functional currency of the respective entity or entities, was as follows:
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
111
31 Financial instruments – Fair values and risk management (continued)
31 Market risk (continued)
31.6.1 Currency risk (continued)

Functional Currency | EUR | AED | OMR | USD | UGX
31 December 2024 | USD | USD | USD | EGP | EUR | USD
| € | € | € | € | € | €
Trade receivables | 28,301 | 2,177,476 | 3,751,606 | 423,739 | 1,090,917 | 1,237,077
Trade payables | (4,791) | (69,604) | - | (560,320) | (14,131) | -
Unsecured notes | (7,995,614) | - | - | - | - | -
Available funds in foreign currency | 159,120 | 723,097 | 5,361,934 | 1,204,526 | 492,385 | 154,505
Net statement of financial position exposure - Assets/(Liabilities) | (7,812,984) | 2,830,969 | 9,113,540 | 1,067,945 | 1,569,171 | 1,391,582

Functional Currency | EUR | AED | OMR | USD | UGX | MZN
31 December 2023 | USD | USD | USD | EGP | EUR | USD | USD
| € | € | € | € | € | € | €
Trade receivables | 1,681,597 | 1,986,018 | 4,575,795 | 1,905,251 | 1,971,710 | 1,308,358 | -
Trade payables | (345,973) | - | - | - | (3,445) | (44,599) | (242,954)
Unsecured notes | (8,427,945) | - | - | - | - | - | -
Available funds in foreign currency | 613,392 | 5,525,931 | 469,678 | 217,172 | 1,699,294 | 33,228 | -
Net statement of financial position exposure - Assets/(Liabilities) | (6,478,929) | 7,511,949 | 5,045,473 | 2,122,423 | 3,667,559 | 1,296,987 | (242,954)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
112
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.1 Currency risk (continued)
The Company’s exposure to foreign currency risk was as follows based on notional amounts in foreign currency:
31 December
2024
31 December
2023
Denominated in USD
€
€
Assets
Loan receivable from a subsidiary
-
8,230,594
Available funds in foreign currency
99,817
12,442
Liabilities
Unsecured notes
(7,990,640)
(8,424,212)
Net statement of financial position exposure -(liabilities)/assets
(7,890,823)
(181,176)
The following significant exchange rates applied during the year:

| Average rate | Reporting date spot rate
| 2024 | 2023 | 2024 | 2023
USD | 1.0823 | 1.0816 | 1.0406 | 1.1051
GBP | 0.8468 | 0.8699 | 0.8269 | 0.8668
OMR | 0.4162 | 0.4160 | 0.4001 | 0.4249
AED | 3.9749 | 3.9722 | 3.8216 | 4.0585
EGP | 49.0711 | 33.736 | 52.6192 | 34.1016
MZN | 69.0615 | 69.2292 | 66.4993 | 70.4470
ZAR | 19.8306 | 19.9567 | 19.5529 | 20.2209
MUR | 49.9742 | 48.8124 | 48.8849 | 48.6466
UGX | 4065.9812 | 4032.6135 | 3818.4254 | 4179.6809
AOK | 948.3725 | 668.458 | 959.68356 | 915.894

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
113
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.1 Currency risk (continued)
The table below provides a sensitivity analysis of a 10% strengthening or weakening in the currency rate on the Group’s results and equity of the respective group entities’ functional currency against the currencies in which their financial assets and/or financial liabilities are denominated at the reporting date. The analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the end of the reporting period. This analysis assumes that all variables remain constant. Currencies AED and OMR are pegged against USD therefore, not exposed to foreign currency risk arising from financial assets and liabilities denominated in USD.

| Results and Equity
| The Group
| Strengthening | Weakening
31 December 2024 | € | €
EUR against USD | 710,271 | (710,271)
USD against EGP | (97,086) | 97,086
USD against EUR | (142,652) | 142,652
UGX against USD | (126,507) | 126,507
31 December 2023 |  |
EUR against USD | 588,994 | (588,994)
USD against EGP | (192,948) | 192,948
USD against EUR | (333,414) | 333,414
UGX against USD | (117,908) | 117,908
MZN against USD | 22,087 | (22,087)

A sensitivity analysis of the impact on the Company’s profit and total equity has not been provided since the Company was not significantly exposed to foreign currency risk at the reporting date as a result of the natural hedge of its financial assets and financial liabilities denominated in USD.
In addition, the Group also has significant amount of intra-group balances denominated in currencies other than the group entities functional currencies. Although these balances are eliminated on consolidation, the effect of movements in exchange rates are still recognised in the individual Company’s and in the consolidated income statement. When the balances are considered to be part of the Group’s net investment in the foreign operation, the foreign exchange differences arising on these balances are reclassified to other comprehensive income on consolidation as part of exchange differences on translating foreign operations. During the year an amount of €447,886 (2023: €2,131,300) relating to exchange differences on intra-group balances was recognised in the Group’s finance income and finance cost and an amount of €517,031(2023: €2,297,414) was reclassified to other comprehensive income.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
114
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.2 Hedge of net investment in foreign entity
A foreign currency exposure arises from the Group’s net investment in METS that has a USD functional currency. The risk arises from the fluctuation in spot exchange rates between the USD and the Euro, which causes the amount of the net investment to vary.
The hedged risk in the net investment hedge is the risk of a weakening USD against the Euro that will result in a reduction in the carrying amount of the Group’s net investment in METS.
Part of the Group’s net investment in METS is hedged by a USD denominated bond of €7,893,969 (2023: €8,260,472) which mitigates the foreign currency risk arising from the sub-Group’s net assets. The bond is designated as hedging instrument for the changes in the value of the net investment that is attributable to changes in the EUR/USD spot rate.
To assess hedge effectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing changes in the carrying amount of the debts that is attributable to a change in the spot rate with changes in the investment in the foreign operation due to movements in the spot rate (the offset method). The Group’s policy is to hedge the net investment only to the extent of the debt principal, denominated in USD and designated as hedging instrument.
There was no ineffectiveness to be recorded from net investment in foreign entity hedges.
The amounts related to items designated as hedging instruments were as follows:

| The Group
Net investment in foreign operation | 2024 | 2023
Carrying amount (non-current borrowings) | €7,893,969 | €8,260,472
USD carrying amount | $8,214,374 | $9,128,671
Hedge ratio | 1:1 | 1:1
Change in carrying amount of USD denominated bond as a resort of foreign currency movements since 1 January, recognised in OCI | €523,343 | €(305,269)
Change in value of hedged item used to the extent of the debt principal to determine hedge effectiveness | €(523,343) | €305,269
Weighted average hedged rate for the year | USD 1.08: EUR 1 | USD 1.08: EUR 1

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
115
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.3 Interest rate risk
Interest rate risk is the risk that the value or cash flows of a financial instrument will fluctuate due to changes in market interest rates. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of financial instrument will fluctuate because of changes in market interest rates. The Group is exposed to cash flow interest rates principally through bank loans which bear variable interest rates. The Group’s secured and unsecured notes as well as its investment in debt instruments classified as financial assets at fair value through profit or loss bear interest at fixed rates and expose the Group to fair value interest rate risk.
Profile
At the reporting date the interest rate profile of the Group’s and the Company’s interest-bearing financial instruments was:

| Carrying amount
| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Variable-rate instruments |  |  |  |
Financial assets: |  |  |  |
-Cash at bank | 18,952,370 | 16,293,444 | 146,043 | 79,696
Financial liabilities: |  |  |  |
-Bank loans | (6,749,397) | (6,246,940) | - | -
-Loan from subsidiary | - | - | (3,645,623) | (3,285,000)
-Bank overdraft | (2,002,344) | (2,396,811) | - | -
Net exposure to cash flows interest rate risk | 10,200,629 | 7,649,693 | (3,499,580) | (3,205,304)

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
116
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.3 Interest rate risk (continued)

| Carrying amount
| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Fixed-rate instruments |  |  |  |
Financial assets: |  |  |  |
-Investment in debt instruments at FVTPL | 1,352,742 | 1,504,302 | - | -
-Loans receivable from subsidiaries | - | - | - | 23,810,165
Financial liabilities: |  |  |  |
-Bank loan | - | - | - | -
-Secured notes | (12,713,000) | (12,663,017) | (12,713,000) | (12,663,017)
-Unsecured notes | (29,954,915) | (30,042,090) | (30,326,881) | (30,705,943)
| (41,315,173) | (41,200,805) | (43,039,881) | (19,558,795)

The Group manages its exposure to changes in cash flows in relation to interest rates on interest-bearing by entering into financial arrangements that are based on fixed rates on interest whenever practicable. The Group is exposed to fair value interest rate risk on its financial assets and liabilities bearing fixed rates of interest, but with the exception of the investments in bond securities which are measured at fair value, all the other instruments are measured at amortised cost and accordingly a shift in interest rates would not have an impact on profit or loss or total comprehensive income. Management does not consider a reasonable shift in interest to have a significant impact on the Group’s equity and post-tax profit as a result of a change in the fair value of its investments in bond securities.
Cash flow sensitivity analysis for variable-rate instruments
The Group’s interest rate risk principally arises from bank loans, bank overdraft and loan from related parties issued at variable rates which expose the Group to cash flow interest rate risk while the Company’s interest rate risk principally arises on loans to subsidiaries. Floating interest rates on these instruments are linked to reference rates such as Euribor or the respective banker’s base rate. While the cash at bank is also subject to interest rates which are linked to the risk-free rates, the interest on these balances is considered insignificant.
A reasonably possible change of 250 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
117
31 Financial instruments – Fair values and risk management (continued)
31.6 Market risk (continued)
31.6.3 Interest rate risk (continued)

| Impact on profit and loss and equity
| The Group | The Company
| € | €
31 December 2024 |  |
(+) 250 basis points | 218,794 | 91,141
(-) 250 basis points | (218,794) | (91,141)
31 December 2023 |  |
(+) 250 basis points | 216,094 | 82,125
(-) 250 basis points | (216,094) | (82,125)

31.6.4 Other market price risk
The primary goal of the Group’s investment in equity securities is to hold the investments for the long term for strategic purposes. Management is assisted by external advisors in this regard. Certain investments are designated at FVTPL because their performance is actively monitored and they are managed on a fair value basis. The Group’s equity investments are marketable or listed securities classified as FVTPL. The impact of a 5% increase in the market price at the reporting date would have resulted in an increase of €169,310 (2023: €180,447) on profit or loss. An equal change in the opposite direction would have decreased profit or loss by an equal but opposite effect.
31.7 Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks, such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Group’s operations.
The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative.
The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
118
31 Financial instruments – Fair values and risk management (continued)
31.7 Operational risk (continued)
This responsibility is supported by the development of overall Group standards for the management of operational risk in the following areas:
•requirements for appropriate segregation of duties, including the independent authorisation of transactions
•requirements for the reconciliation and monitoring of transactions
•compliance with regulatory and other legal requirements
•documentation of controls and procedures
•requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified
•requirements for the reporting of operational losses and proposed remedial action
•development of contingency plans
•training and professional development
•ethical and business standards
•risk mitigation, including insurance where this is effective.
The management team is taking actions to ensure that its Group entities’ operations remain ongoing, with the lowest possible disruptions, through its business continuity plan across all the jurisdictions in which the Group is present.
31.8 Capital management
The Group defines capital as paid-in capital stock, additional paid-in capital and retained earnings, both appropriated and unappropriated. Other components of equity such as cumulative translation adjustments are excluded from capital for the purposes of capital management.
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Group defines as the result from operating activities divided by total shareholders’ equity.
The table below provides information on the Group’s equity and borrowings at the reporting date. The Group monitors the level of capital on the basis of the ratio of aggregated net debt to total capital. Net debt is calculated as total borrowings (as shown in the statement of financial position) less cash and cash equivalents. Total capital is calculated as equity, as shown in the respective statement of financial position, plus net debt.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
119
31 Financial instruments – Fair values and risk management (continued)
31.8 Capital management (continued)

| The Group | The Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Bank loans | 6,749,397 | 6,246,940 | - | -
Secured notes | 12,713,000 | 12,663,017 | 12,713,000 | 12,663,017
Unsecured notes | 29,954,915 | 30,042,090 | 30,326,881 | 30,705,943
Lease liabilities | 20,072,140 | 19,442,664 | - | -
Loan from subsidiary | - | - | 3,645,623 | 3,285,000
Less: |  |  |  |
Cash and cash equivalents (Note 23) | (16,950,026) | (13,896,633) | (146,043) | (79,696)
Net debt | 52,539,426 | 54,498,078 | 46,539,461 | 46,574,264
Total equity | 57,608,911 | 58,050,741 | 24,493,299 | 20,716,635
Total capital | 110,148,337 | 112,548,819 | 71,032,760 | 67,290,899
Net debt ratio | 48% | 48% | 66% | 69%

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. In view of the nature of the Group’s activities and the extent of borrowings or debt, the capital level as at the end of the reporting period is deemed adequate by the Board of Directors. There were no changes in the Group’s approach to capital management during the year.
32 Leases
32.1 As a lessee
The Group has several parcels of leased land and buildings in Malta, Cyprus, Libya, UAE, Oman, Iraq and Uganda. For certain leases, the Group is restricted from entering into any sub-lease arrangements.
Information about leases for which the Group is a lessee is presented below.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
120
32 Leases (continued)
32.1 As a lessee (continued)
32.1.1 Right-of-use assets

| Property
| 2024 | 2023
| € | €
Balance at 1 January | 52,349,165 | 48,506,978
Additions | 3,255,542 | 8,215,130
Depreciation | (4,420,553) | (3,984,754)
Modifications | 217,380 | (206,019)
Effect of movement in exchange rates | 295,867 | (182,170)
Balance at 31 December | 51,697,401 | 52,349,165

The Group’s leasing activities
Medserv Operations Limited, the Company’s operating subsidiary in Malta, maintains lease agreements for key operational facilities. The subsidiary leases a quay, premises, and ancillary facilities at Malta Freeport, Kalafrana, as well as premises at the Hal Far Industrial Estate under separate lease arrangements.
The lease at Malta Freeport, Kalafrana, is held under a temporary emphyteusis title and extends for a period of 48 years, commencing on 5 December 2012. The leases at Hal Far Industrial Estate have an initial term of 13 years, starting from 20 October 2014, with an option for the subsidiary to extend the lease for up to three additional periods of 10 years each. In August 2024, the Company entered into a new lease agreement for additional premises in Hal Far, which will run for a period of 33 years.
Additionally, the subsidiary leases three electric light passenger vehicles under lease terms averaging five years.
Medserv (Cyprus) Limited, the Company’s subsidiary in Cyprus, leases various yard facilities at the Port of Limassol under multiple agreements, as follows:
•An open yard area of 21,900 sqm and a warehouse, leased since 2018, with a term expiring on 18 June 2028;
•An open yard area of 5,000 sqm, leased for a three-year term expiring on 14 July 2025;
•A land area of 1,250 sqm, leased for a three-year term expiring on 14 July 2025.
Medserv Libya Limited leases a 7,000 sqm warehouse and a 2,000 sqm paved yard within the Misurata Free Zone port. This lease agreement remains in effect until 31 December 2024.
These agreements can be renewed depending on the clients’ requirements.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
121
32 Leases (continued)
32.1 As a lessee (continued)
32.1.1 Right-of-use assets (continued)
In the Middle East, the Company’s subsidiaries have the following lease arrangements at the reporting date:
•Middle East Tubular Services Limited (Sharjah branch) holds right-of-use assets in the Hamriyah Free Zone under the following lease arrangements:
-A 43,196 sqm plot leased for a five-year term, renewable every five years, with the current lease valid until 2027.
-A 10,000 sqm plot and an associated 300 sqm warehouse, with a remaining lease term of four years, expiring in 2028, with the option for renewal.
-In 2024, the Company entered into a new lease agreement for a 26,000 sqm plot for an initial period of four years, with renewal subject to the subsidiary’s request and the lessor’s consent.
•Sohar: Middle East Tubular Services LLC (FZC) leases a plot of land of 49,442 sqm in the Sohar Freezone until 31 August 2029.
•Duqm: Middle East Comprehensive Tubular Services Limited leases multiple land plots within the Port of Duqm under the following agreements:
-Two plots of 57,500 sqm and 62,122 sqm, leased until 31 July 2027, with an option to extend or renew for up to three additional five-year periods, subject to mutual agreement with the lessor.
-A 25,060 sqm plot, leased in 2023, with an initial term expiring in 2028, extendable for a further five-year period by mutual agreement.
-A further 25,818 sqm plot has been leased during the year, with an initial term expiring in 2029, also extendable for a further five-year period.
•Iraq: Middle East Tubular Services (Iraq) Limited, the right-of-use asset comprises the following facilities in Khor Al Zubair Freezone:
-Plots of land with an area of 49,698 sqm for a period of 15 years until 22 December 2025, renewable at the request of the subsidiary and consent of the lessor.
In Uganda, the Company’s subsidiary Regis Uganda Limited has the following lease arrangements at the reporting date:
•A 99-year lease of a plot of land measuring 24,000 sqm for the Group’s new base for the upcoming projects in Buliisa, Uganda. The lease is renewable for another 99 years;
•A property of 4,047 sqm that is being used as the main office of the subsidiary in Uganda; and
•A residential property of 8,094 sqm being used as accommodation for the staff until 2031.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
122
32 Leases (continued)
32.1 As a lessee (continued)
32.1.2 Lease liabilities

| 2024 | 2023
| € | €
Maturity analysis - contractual undiscounted cash flows |  |
Less than one year | (4,410,819) | (3,877,684)
One to five years | (10,768,112) | (11,729,916)
Five years to ten years | (3,971,301) | (2,986,080)
More than ten years | (19,770,215) | (17,794,226)
Total undiscounted lease liabilities at 31 December | (38,920,447) | (36,387,906)
Current | 3,364,425 | 3,000,597
Non-current | 16,707,715 | 16,442,067
Lease liabilities included in the statement of financial position at 31 December | 20,072,140 | 19,442,664

The table below provide a reconciliation of the Group’s lease liabilities:

| 2024 | 2023
| € | €
Balance at 1 January | 19,442,664 | 14,307,945
Modifications | 217,380 | (206,019)
New leases | 3,255,542 | 8,215,130
Payments during the year | (4,382,821) | (3,772,421)
Interest charges during the year | 1,217,419 | 1,098,149
Effect of movement in exchange rates | 321,956 | (200,120)
Balance at 31 December | 20,072,140 | 19,442,664

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
123
32 Leases (continued)
32.1 As a lessee (continued)
32.1.2 Lease liabilities (continued)
Amounts recognised in profit or loss

| 2024 | 2023
| € | €
Interest on lease liabilities (included in finance cost) | 1,217,419 | 1,098,149
Depreciation charge (included in cost of sales) | 4,420,553 | 3,984,754
Low value and short-term lease (included in cost of sales) | 259,163 | 1,148,674
Low value and short-term lease (included in administrative) | 21,296 | 149,811

Amounts recognised in the statement of cash flows

| 2024 | 2023
| € | €
Total cash outflow for leases | 4,382,821 | 3,772,421

32.1.3 Critical judgements, estimates and assumptions with respect to lease
Some leases contain extension options exercisable by the Group up to one year before the end of the contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable by the Group and not by the lessors. The Group assesses at the lease commencement whether it is reasonably certain to exercise the extension options and subsequently reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. The extension options provided to the Group were assessed by management and any extension options exercisable by the Group that were considered to be reasonably certain to be exercised were recognised.
The Group has estimated that the potential future cash outflows (undiscounted), should it exercise the extension options which have not been recognised would amount to approximately €15.7 million (2023: €14.1 million).
Incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
124
32 Leases (continued)
32.1 As a lessee (continued)
32.1.3 Critical judgements, estimates and assumptions with respect to lease (continued)
The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
33 Financial assets
The financial assets as at 31 December 2024 comprise of fixed-term deposits with banks in the Sultanate of Oman and Cyprus with credit ratings of BB+. These financial assets are used as a collateral against credit facilities.
34 Provisions

| 2024
| €
Current |
Provisions made during the year | 113,343
Provisions used during the year | (1,564)
Effect of movement in exchange rates | 3,803
Balance at 31 December | 115,582

The Group’s operating subsidiary in Mozambique has recognized a provision for potential liabilities relating to tax and regulatory matters. These provisions represent management’s best estimate of the obligations as at the reporting date, based on ongoing discussions with the relevant authorities.
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
125
35 Related parties
35.1 Significant shareholders
The Company is a public limited liability company incorporated in Malta and listed on the Malta Stock Exchange, with its registered office situated at Port of Marsaxlokk, Birzebbugia, Malta. Following the share-for-share exchange between the Company and Regis Holdings Limited, which was completed on 25 June 2021, 49.995% of the issued share capital of the Company was acquired by DOCOB Limited, a Mauritius company with its registered office at C/o ICAECAP (Mauritius) Limited, Block 1C, Uniciti Business Park, Cascavelle, Mauritius.
On 18 February 2025, DOCOB Limited, which was beneficially owned by the Siger Trust and the Renaissance Trust, transferred 50,813,816 ordinary shares held in the Company to these trusts. As a result of this transfer, DOCOB Limited no longer holds any shares in the Company. The current shareholding structure of the Company is as follows:
•The Siger Trust, a trust established under the laws of Seychelles, now holds 28,455,737 ordinary shares, representing 27.997% of the total issued share capital of the Company. The appointed beneficiary of the Siger Trust is Mr. David O’Connor, CEO and director of the Company, with the named beneficiaries being Mr. O’Connor’s spouse and descendants.
•The Renaissance Trust, a trust established under the laws of Mauritius, now holds 22,358,079 ordinary shares, representing 21.998% of the total issued share capital of the Company. The appointed beneficiary of the Renaissance Trust is Mr. Olivier Bernard, Deputy CEO and director of the Company, with the named beneficiaries being Mr. Bernard’s descendants.
•Mr. Anthony S. Diacono, Chairman and non-executive director of the Company, holds 13.23% of the issued share capital of the Company, either directly or indirectly.
The above shareholding percentages remain unchanged from 2023.
35.2 Identity of related parties
The Group has a related party relationship with its directors (“key management personnel”), shareholders and an immediate relative of a director (“other related parties”). All transactions entered into with group companies have been eliminated in the preparation of these financial statements.
The Company has a related party relationship with its subsidiaries (see note 20), its directors and companies controlled by subsidiaries (“other related companies”).
MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
126
35 Related parties (continued)
35.3 Transactions with key management personnel
There were no loans to directors during the current and comparative year. Compensation for services provided to the Group by key management personnel during the year amounted to €2,611,812 (2023: €2,103,560). The total remuneration paid to directors during the year amounted to €1,442,734 (2023: €1,264,356). In addition to their salaries, the Company also provides non-cash benefits to directors and executive officers. Directors’ remuneration is included in note 11.
A number of key management personnel, or their related parties, hold positions in other companies that result in them having control or significant influence over the financial or operating policies of these companies.
35.4 Other related party transactions
In addition to the transactions disclosed in the statements of changes in equity and cash flows and notes 18, 19, 20, 21, 27, and 29 to these financial statements, there were the following related party transactions:
The Company
2024
2023
€
€
Subsidiaries
Interest charged to
115,754
1,390,633
Interest charged by
230,136
227,732
Management fees
1,825,000
1,600,000
Net advances(by)/ to
(4,582,689)
1,350,824
Recharges
1,320,025
1,388,646

| The Group
| 2024 | 2023
| € | €
Other related parties |  |
Services provided by | 57,882 | 92,970
Associates and Joint ventures |  |
Services provided by | 493,610 | 133,072
Recharges to | 49,776 | 57,354
Loans repayment from | 30,894 | -
Loans advanced by | - | 181,218
Other related companies |  |
Services provided to | 234,579 | 287,575
Directors |  |
Services provided to | 17,713 | 20,456

MedservRegis p.l.c.
Notes to the Financial Statements (continued)
For the year ended 31 December 2024
127
35 Related parties (continued)
35.5 Related party balances
Information on amounts due from or payable to related parties are set out in notes 18, 19, 20, 21, 27 and 29 to these financial statements.
36 Subsequent events
In February 2025, the Company repurchased a total of USD 99,900 of the 5.75% MedservRegis plc Unsecured USD Bonds 2026, bearing ISIN MT0000311242 at the price of USD 99.90 per bond. The repurchased bonds have been cancelled, reducing the outstanding nominal balance to USD 8,048,100 following the aforementioned cancellation.
37 Comparative information
Comparative figures disclosed in the main components of these financial statements have been reclassified to conform with the current year’s presentation format for the purpose of fair presentation.

Independent auditor’s report

To the Shareholders of MedservRegis p.l.c.

Report on the audit of the financial statements

Our opinion

In our opinion:

● The Group financial statements and the Parent Company financial statements (the “financial statements”) of MedservRegis p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 31 December 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and

● The financial statements have been prepared in accordance with the requirements of the Maltese Companies Act (Cap. 386).

##### Our opinion is consistent with our additional report to the Audit Committee.

##### What we have audited

MedservRegis p.l.c.’s financial statements comprise:

● the Consolidated and Parent Company statements of financial position as at 31 December 2024;

● the Consolidated and Parent Company statements of profit or loss and other comprehensive income for the year then ended;

● the Consolidated and Parent Company statements of changes in equity for the year then ended;

● the Consolidated and Parent Company statements of cash flows for the year then ended; and

● the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

##### Independence

We are independent of the Group and the Parent Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.

To the best of our knowledge and belief, we declare that non-audit services that we have provided to the parent company and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).

The non-audit services that we have provided to the parent company and its subsidiaries, in the period from 1 January 2024 to 31 December 2024, are disclosed in note 10 to the financial statements.

Our audit approach

#####

##### Overview

| Overall group materiality: €700,000, which represents 1% of revenue
We conducted a full scope audit of the significant components and performed specified audit procedures on certain account balances in other significant components. The group auditor performed oversight procedures on the work of component teams.
● Impairment assessment of goodwill, intangible assets, right-of-use assets and property, plant and equipment at Group level ● Recoverability of deferred tax assets at Group level ● Impairment assessments of investments in subsidiaries at parent company level

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

##### Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Overall group materiality | €700,000
How we determined it | 1% of revenue
Rationale for the materiality benchmark applied | We chose revenue as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users, and is a generally accepted benchmark. We chose 1% which is within the range of quantitative materiality thresholds that we consider acceptable.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €70,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

#### Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter | How our audit addressed the key audit matter
Impairment assessment of goodwill, intangible assets, right-of-use assets and property, plant and equipment at Group level The Group’s assets include goodwill and intangible assets amounting to €14,309,071, right-of-use assets amounting to €51,697,401 and property, plant and equipment amounting to €32,188,061 relating to businesses operating in the Oil Country Tubular Goods (“OCTG”) segment (collectively referred to as “METS sub-group”) and businesses operating in Integrated Logistics Support Services (“ILSS segment”) (Notes 14, 15 and 32). Each of those businesses is considered by the Group to be a separate cash generating unit (“CGU” or “CGUs”). Goodwill arising from the reverse acquisition of the Medserv group of companies has been allocated to a collection of CGUs (i) the OCTG segment as a whole (“OCTG CGU”) and (ii) ILSS segment as a whole (“ILSS CGU”). | We involved our valuation experts, as appropriate, in performing our procedures. As part of those procedures, for each individual asset, separate CGUs, the OCTG CGU and the ILSS CGU identified in this key audit matter: - we compared the Group’s 2024 budgets with the actual performance of each relevant business unit for the reporting period and made enquiries as to the reasons for any significant variations identified and assessed the reasonableness of the explanations provided, by corroborating these against supporting documentation and our knowledge of the Group; - we assessed the impact of the underlying business risk factors and the assumptions applied in the value-in-use analysis, at reporting date, including projected revenue growth and EBITDA margins with reference to our understanding of the Group, historical trends, available industry information, available market data and relevant documentation on contracted and current business pipeline;

At each reporting date, the Company is required to determine whether there are any indications of impairment in relation to goodwill, intangible assets, right-of-use assets and property, plant and equipment. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. If such indicators exist (at the asset or separate CGU level), the Company is required to estimate the recoverable amount of that asset or that CGU of which the asset forms part. The OCTG CGU and ILSS CGU, to which the goodwill relates to, are separately tested for impairment annually. The key risk factors identified by the Group for the businesses to which the separate CGUs, OCTG CGU and ILSS CGU relate are: (i)the global, country and macroeconomic risks; (ii)customer concentration risk and, (iii)Market volatility in oil and gas prices driven by the related demand and their impact on the customers business activity in the context of geopolitical tensions and trends in the energy generation markets. The recoverable amount for each asset (tested individually) and each separate CGU, the OCTG CGU and ILSS CGU was estimated using either the Fair Value Less Costs of Disposal (‘FVLCD’) or Value in Use (‘VIU’) as per the applicable financial reporting framework. The key inputs, specific to the Group, comprise future cash flows, growth rates and discount rates for VIU assessments and market prices and rates for comparable assets under the FVLCD assessments. The client has developed models which estimate the recoverable amount for each asset factoring the above inputs as applicable to the respective method which are approved by the board of directors. The resulting fair values are also challenged and approved by the Board before being reflected in the Group consolidated financial statements. The valuation models and related inputs are complex, unobservable and subject to inherent estimation uncertainty and therefore, require significant judgement. Hence, we have identified this area as a key audit matter. | - we assessed whether the discount rates applied in the discounted cash flow forecasts under the VIU model were within an appropriate range by reference to comparable market data; - through sensitivity analysis, we assessed the impact on the impairment assessment of reasonable possible changes in the key assumptions in the value-in-use analysis including discount rate, annual revenue growth rate and EBITDA margins used for estimating the recoverable amount; - we sourced independent market values and rates for comparable assets in the respective markets and compared them to the client’s assessed values which in many instances were based on third party valuations; - We tested the key assumptions applied in the valuation of the right-of-use asset, including selling price per square meter (by independently sourcing property listings in the respective locations), areas, capitalization rate, inflation rate, discount rate, number of years and leasehold factor; - through sensitivity analysis, we assessed the impact on the value to reasonable possible changes in the key assumptions in the valuation, including selling rates per square meter, leasehold factor and discount rates used for estimating the recoverable amount of the right-of-use asset; - we tested the mathematical accuracy of the valuation models prepared by management to assess the recoverable amount of goodwill, intangible assets, right-of-use assets and property, plant and equipment, and; - we evaluated the adequacy of disclosures made in Notes 3, 4.5, 4.6, 4.7, 14, 15 and 32 to the financial statements, including those regarding the key assumptions. Based on the work performed, we found the value of goodwill, intangible assets, right-of-use assets and property, plant and equipment, as well as the related disclosures required by IAS 36 and IFRS 16, to be consistent with the explanations and evidence obtained.

Recoverability of deferred tax assets at Group level At 31 December 2024, one of the Group’s subsidiaries, Medserv Operations Limited, has deferred tax assets recognized on unutilized investment tax credits amounting to €8,548,770 (Note 16). In accordance with the applicable financial reporting framework, deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available, against which these tax benefits can be utilised. The recognition of deferred tax assets, therefore, requires significant judgement in estimating future taxable profits based on profit forecasts drawn up by management at the reporting date. The amount of deferred tax assets recognised in the financial statements are expected to be recovered within the foreseeable future. Such estimation uncertainty might lead to material differences between the projected period for utilization of tax credits compared with actual timing of utilization and hence we have selected this area as a key audit matter. | As part of our audit procedures: - we compared the budget prepared for 2024 with the actual performance for the reporting period for Medserv Operations Limited and enquired about any significant variations identified. We assessed and verified the reasonableness of the explanations provided, by corroborating these against supporting documentation and our knowledge of Medserv Operations Limited; - we reviewed the profitability projections prepared by management and evaluated the assumptions adopted in the preparation of taxable profit forecasts at the reporting date with reference to our understanding of Medserv Operations Limited’s business, historical trends, available industry information and available market data and relevant documentation on its contracted and current business pipeline; - we recomputed the utilisation of tax credits in line with the taxable profit projections and assessed whether these tax credits are expected to be utilised within a reasonable timeframe and; - we evaluated the adequacy of disclosures made in Notes 3, 4.15 and 16 to the financial statements, including those regarding the key assumptions. Based on the work performed, we found the value of deferred tax assets, as well as the related disclosures to be consistent with the explanations and evidence obtained.

Impairment assessments of investments in subsidiaries at parent company level The Company’s assets include, amongst others, investments in subsidiaries amounting to €75,616,036 (Note 20). Each subsidiary comprises a separate cash generating unit. At each reporting date, the Company is required to determine whether there is any indication of impairment on the investments in subsidiaries. If such indicators exist (at separate CGU level), the Company is required to estimate the recoverable amount of that CGU. The key risk factors identified by the Company for the businesses to which the separate CGUs relate are: (i) the global, country and macroeconomic risks; (ii)customer concentration risk and (iii)market volatility in oil and gas prices driven by the related demand and their impact on the customers business activity in the context of geopolitical tensions and trends in the energy generation markets. In estimating the recoverable amount, as per the applicable financial reporting framework, the directors prepare a value-in-use analysis for each separate CGU. The key inputs, specific to the Company, comprise future cash flows, growth rates and discount rates. Those inputs are subject to inherent estimation uncertainty and therefore, significant judgement. Hence, we have identified this area as a key audit matter. | We involved our valuation experts, as appropriate, in performing our procedures in relation to the ‘investment in subsidiaries’. As part of those procedures, for each separate CGU: - we compared the Group’s 2024 budgets with the actual performance of each relevant business unit for the reporting period and made enquiries as to the reasons for any significant variations identified and assessed the reasonableness of the explanations provided, by corroborating these against supporting documentation and our knowledge of the Group; - we assessed the impact of the underlying business risk factors and the assumptions applied in the value-in-use analysis, at reporting date, including projected revenue growth and EBITDA margins with reference to our understanding of the Group, historical trends, available industry information, available market data and relevant documentation on contracted and current business pipeline; - we assessed whether the discount rates applied in the discounted cash flow forecasts under the VIU model were within an appropriate range by reference to comparable market data; - through sensitivity analysis, we assessed the impact on the impairment assessment of reasonable possible changes in the key assumptions in the value-in-use analysis including discount rate, annual revenue growth rate and EBITDA margins used for estimating the recoverable amount, and; - we tested the mathematical accuracy of the valuation models prepared by management to assess the recoverable amount of the investment in subsidiaries. We evaluated the adequacy of disclosures made in Notes 3, 4.1, 4.3 and 20 to the financial statements, including those regarding the key assumptions. Based on the work performed, we found the value of investments in subsidiaries, as well as the related disclosures to be consistent with the explanations and evidence obtained.

How we tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

The Group includes a number of subsidiaries, mainly operating in Malta, Cyprus, Egypt, UAE, Oman, Iraq, Uganda, Mozambique and Mauritius. It also holds a few investments in associates. The financial statements are a consolidation of all of these components.

We therefore assessed what audit work was necessary in each of these components, based on their financial significance to the financial statements and our assessment of risk and group materiality. At the component level, we performed full scope audits in order to achieve the desired level of audit evidence on all the significant components and performed specified audit procedures on certain account balances in other components.

In establishing the overall audit approach to the Group audit, we determined the type of work that needed to be performed by us, as the group auditor, or by component auditors. For the work performed by component auditors operating under our instructions, we determined the level of involvement we needed to have in the audit work at those locations to be satisfied that sufficient audit evidence had been obtained for the purposes of our opinion. We kept in regular communication with component auditors throughout the year with phone calls, discussions and written instructions and review of working papers where appropriate.

We ensured that our involvement in the work of our component auditors, together with the additional procedures performed at the Group level, were sufficient to allow us to conclude on our opinion on the Group financial statements as a whole.

The group auditor performed all of this work by applying the overall group materiality, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the Group financial statements as a whole.

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Other information

The directors are responsible for the other information. The other information comprises all of the information in the Annual Report (but does not include the financial statements and our auditor’s report thereon).

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

#### Responsibilities of the directors and those charged with governance for the financial statements

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6

We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of MedservRegis p.l.c. for the year ended 31 December 2024, entirely prepared in a single electronic reporting format.

Responsibilities of the directors

The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.

Our responsibilities

Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.

Our procedures included:

● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.

● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.

● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the Annual Financial Report for the year ended 31 December 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.

Other reporting requirements

The Annual Report 2024 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.

The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.

Area of the Annual Report 2024 and the relat ed Directors’ responsibilities | Our responsibilities | Our reporting
Directors’ Report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. | We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements. We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements. In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements. With respect to the information required by paragraphs 8 and 11 of the Sixth Schedule to the Act, our responsibility is limited to ensuring that such information has been provided. | In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386). We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.

Directors’ Statement of Compliance with the Code of Principles of Good Corporate Governance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles. | We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements. We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97. We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. | In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.

Remuneration Statement and Report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. | We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. | In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
| Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion: ● adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. ● the financial statements are not in agreement with the accounting records and returns. ● we have not received all the information and explanations which, to the best of our knowledge and belief, we require for our audit. We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. | We have nothing to report to you in respect of these responsibilities.

Other matter – use of this report

Our report, including the opinions, has been prepared for and only for the Parent Company’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.

Appointment

We were first appointed as auditors of the Company on 29 July 2022. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of three years.

Stephen Mamo

Principal

For and on behalf of

PricewaterhouseCoopers

78, Mill Street

Zone 5, Central Business District

Qormi

Malta

22 April 2025