Medserv chairman toasts 2013 as ‘most successful year’

Medserv plc announced a €399,285 operating profit for the year ended 2013, a strong turnaround from 2012’s losses of €986,674 in the wake of the Libyan conflict.

“I consider 2013 as the most successful year for Medserv’s management team,” group chairman Anthony Diacono said.

“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: diversify both product and market. Both have been achieved.”

Revenue for year 2013 was €2.8 million lower than forecast, mainly due to the postponement of two projects for the provision of shore base activities to the offshore oil and gas industry carried out from the Malta base.

The logistic services of these two offshore oil and gas projections will commence in the second and third quarter of year 2014 one of which will continue for the next three years.

Group revenue of €6,899,315 (2012: €6,709,159) remained at the same level as previous year. The Group achieved an operating profit of €399,285 (2012: loss €986,674).

An improvement of 18% in gross profit margins thanks to shore base logistic services in anticipation of upcoming drilling campaigns in 2014.

The group registered a profit before tax of €131,939 during 2013 (2012: loss €1,153,130). Profit after accounting for taxation for 2013 amounted to €394,333 (2012: loss €377,902).

Diacono said that Libya remains an important market for Medserv, but replacing Libya and North Africa as the largest geographical area contributing to the company’s revenue with a new area of operations remains high on the company agenda. 

Another significant development was the issuing of the first tranche of €13 million Notes pursuant to the €20 million debt issuance programme.

The company also reports that a €5 million solar farm project is nearing completion and will be commissioned before the end of 2014.

“During 2013 every single milestone was achieved and this would not have been possible without the professionalism shown by all,” Diacono said. “I have to thank our COO, the management team and all the staff for the enormous effort put in.”

2014 is expected to be a very active year for the company as a number of offshore oil and gas projects in the Mediterranean basin including Malta commence for which Medserv has been appointed as the logistic support service provider.

As a result of this upcoming business in both Malta and Cyprus expansion plans are at an advanced stage. This includes sourcing additional plant and equipment, open yard space, building a new floor on the administration block to accommodate all clients wishing to take up office space, and the construction of a new 8,000 sqm warehouse.

In addition, investment in equipment such as cranes, fork lifters, trailers and specialized containers totalling €6.8 million will be made in 2014. These investments are designed to improve the service offered to clients and raise the financial performance of the company.

State of affairs

Group total assets at reporting date stood at €22,459,383 (2012: €13,243,243). The group’s short term liquidity position as at 31 December 2013 was 5.6:1 (2012: 0.9:1).

Owners’ funds, excluding non-controlling interest, amounted to €7,879,204 (2012: €7,605,682) and finance 35% (2012: 57%) of the Group’s total assets. The Group’s net asset value per share stands at €0.32 (2012: €0.30) at reporting date

Off balance sheet assets amounted to €40.3 million as at 31 December 2012 (the preceding financial year). This represents the value of the property rights held by the Group over industrial property forming part of the Malta Freeport at the Port of Marsaxlokk.