In compliance with the recent addition of Listing Rule 9.51 and 9.53, Medserv plc issued its Interim Directors’ Statement on 22 May. The Directors announced that the intensive activity expected in the oil industry offshore Libya has been delayed in coming on stream. As a result, this has led to a slowdown in the Company’s operations which has adversely affected the Company’s financial performance. However, the Report also explains that the Company’s financial stability remains sound and well able to sustain the temporarily slowdown in business. The Directors believe that the delay in the commencement of a number of operations and the award of contracts should only have a temporary effect on the Company and this should merely postpone matters to the third or forth quarter of the current financial year.
The Interim Directors’ Statement also mentions that Medserv plc has now registered the Libyan subsidiary, Medserv Misurata F.Z.C. (MMFZC) and that the Company will own a 60% equity interest for the operation and management of its base in Misurata that will enable it to take on new business. According to the Report, a number of existing and new customers are in discussions with the Company with regard to the provision of services. The commencement of operations in Misurata is targeted for the end of June 2007.