Medserv registered a profit before tax of €131,939 during 2013 (2012: loss €1,153,130).
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,” group chairman Anthony Diacono said.
“In my statement for 2012 I reported ‘the company continued with its efforts to diversify both product and market’. Both have been achieved.”
The company reported that Libya remained an important market for Medserv but the current instability would 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.
The statements report that revenue for the year was €6.9 million, €2.8 million lower than forecast, mainly as a result of the 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, subject to MFSA approval, intends to issue the second tranche of notes amounting to €7 million in the near future.
The company also reported that the solar farm project was nearing completion and would be commissioned before the end of 2014.
Expansion plans for the Malta base are at an advanced stage, including a new floor on the administration block and the construction of a 8,000 sq.m. warehouse. In addition, €6.8 million will be invested in equipment such as cranes, fork lifters, trailers and specialised containers.
A number of offshore oil and gas projects in the Mediterranean basin including Malta commence in 2014, for which Medserv has been appointed as the logistic support service provider.