The Board of Directors at Medserv plc has approved the audited consolidated financial statements for the financial year ended 31 December 2014 which will be submitted for the approval of the shareholders at the forthcoming Annual General Meeting scheduled for Thursday, 28 May.
The financial results being reported by the Group for the year under review, 2014, exceed targets. This reflects the optimism expressed in the chairman's statement issued in last year's reports. The Board also proposed the payment of a net dividend of €1,400,000, representing a net dividend per ordinary share of €0.056.
The Group has reported revenues of €32.4m for year 2014, a significant increase on last year's figures, attributable to the commencement of oil major drilling contracts awarded during the year. Earnings before interest, tax and depreciation, amounted to €5.8m while profit before tax amounted to €3m, an increase of €0.8m over published forecast.
"The constantly changing requirements of the market in which the Group operates, together with the geo political realities and challenges, demanded and will continue to necessitate restructuring of the way in which the Group does business," said Anthony Diacono, chairman at Medserv plc. "The Group has not only positioned itself to consolidate its position in the Mediterranean region but is now well placed to expand its services to other regions of the world."
The Group reports that operations at the Misurata base remains at a low level due to the situation in Libya but a skeleton management team of Libyan nationals is still in place. However, Medserv Libya Ltd maintains a branch situated in Tripoli which continues to perform well and which has secured contracts for the provision of back office administration services to their clients.
A strong investment programme has been put in place over the past 18 months financed in part by the bond issue of €20m. The Medserv Hal Far site now extends to 43,000 square metres, the vast majority of which is already fully utilised and earning storage fees from clients.
The solar farm suspended on the roofs of the Medserv Malta base has been completed and went on line in July 2014. This is expected to yield an average of two MWp of electricity annually over the next 20 years.
While Libya remains an important market for the Group, the company has continued with its efforts to diversify into other geographical areas. The base in Cyprus started generating revenues from June 2014 and efforts are continuing to further expand operations. A dedicated management team has been appointed to specifically oversee this process, with the objective of future growth.
The Group reports that 2015 promises to be an extremely busy year as a number of planned projects have commenced. The company's Maintenance Unit has also become a significant contributor to the Groups' revenues. With the recent announcement of the offshore maintenance contract, valued at approximately €4m, due to commence in the second quarter of 2015, this new division at Medserv has to date won four major contracts totalling just over €7m in turnover.
The Audited Financial Statements will be available for viewing on www.medservenergy.com from 28 March.