Medserv Group issue Financial Statements
Earlier today, Medserv plc announced a profit for the year ended 2013, a strong turnaround from 2012. During the forthcoming Annual General Meeting, the Board will also be proposing the payment of a dividend.
“I consider 2013 as the most successful year for Medserv’s management team. This bold statement is made not because the company has returned to positive territory as reported in the financial statements, but because the company has managed to meet the two main targets set in the previous year. In my statement for 2012 I reported "the company continued with its efforts to diversify both product and market. Both have been achieved.” said Anthony Diacono, Group Chairman.
The Company reports that Libya remains an important market for Medserv but the current instability will need time to improve. Replacing Libya and North Africa as the largest geographical area contributing to the company’s revenue with a new area of operations was high on the company agenda. As announced a couple of weeks ago, this target has been achieved with the award of a multimillion contract to Medserv (Cyprus) Ltd. The second important success registered in 2013 was the performance of the new maintenance unit which managed to secure significant business offshore Libya from the base in Malta.
Although the statements report that revenue for the year was lower than forecast, this is mainly a result of postponement of two projects that are now expected to commence in the second and third quarter of year 2014, one of which will continue for the next three years.
Another significant development during the year was the issuing of the first tranche of €13 million Notes pursuant to the €20 million debt issuance programme. The Issue was heavily oversubscribed and the Company has announced that, subject to MFSA approval, it intends to issue the second tranche of notes amounting to €7 million in the near future.
During 2013 action was also taken to help stimulate share trading activity by splitting the shares in the ratio of 1:2.5. “This demonstrates that the company listens to its stakeholders, in this case the shareholders who have been calling for action on this front over the last few years. Furthermore the proposed dividend distribution for 2013 indicates a high level of confidence.” added Mr Diacono.
The Company also reports that the solar farm project is nearing completion and will be commissioned before the end of 2014. This €5 million investment will generate steady returns over the next twenty years.
2014 is expected to be a very busy year for the Group and the Company reports that expansion plans for the Malta base are at an advanced stage. “During 2013 every single milestone was achieved and this would not have been possible without the professionalism shown by all. I have to thank our COO, the management team and all the staff for the enormous effort put in. Earlier this year a highly qualified specialist has taken up the post of Group Health and Safety Manager and further additions to the management team are planned for the second quarter to ensure that resources are available to meet the increased business load and to provide continuity.” said Mr Diacono.