During a board meeting held on 24 August, the directors of GlobalCapital plc considered and approved the interim financial statements for the period ended 30 June. In its half-yearly financial results, GlobalCapital announced a profit after tax of Lm388,919 (EUR905,938) compared to Lm735,180 (EUR1,712,509) for the same period in 2006. This represents an earning per share of 2c9 (EUR0.6c8) compared to 5c6 (EUR0.13) in 2006. GlobalCapital registered an operating profit of Lm802,579 (EUR1,869,506) compared to Lm658,316 (EUR1,533,464) in 2006 which represents an increase of 21.9% over the same period last year. This increase in operating profit is mainly attributable to returns on international investment property held by the company and its subsidiaries, supporting the group’s strategy of further diversification of revenues. GlobalCapital’s property portfolio has performed particularly well with a number of projects in the pipeline which are expected to deliver further growth in the near future.
As stated in the company announcement, the directors expect that the level of trading activity experienced during the six months to June 2007, which shows an overall improvement in turnover over the corresponding period last year, should be sustained in the latter half of the current year.
Turnover for the group increased by 60.5 per cent to Lm4,406,316 (EUR10,263,
955) compared to Lm2,745,900 (EUR6,396,226) as at 30 June 2006. The increase in turnover was driven by stronger sales in long-term life assurance business which should serve as a catalyst for stronger results in the second half of the year. However, recent stock market volatility, and global economic uncertainty may affect trading and investment performance. Investment returns were negatively affected in the financial period under review mainly due to a lacklustre stock market performance. An increasing interest rate scenario has also affected prices in the bond market which have negatively impacted on the investment portfolio performance.
Christopher J. Pace – chairman of GlobalCapital plc stated “Despite witnessing a decrease in profits for the first six months of the year, a number of important milestones were achieved in the same period. These initiatives are expected to contribute to positive results for the company in the coming future. In particular, the group acquired, through its subsidiary GlobalCapital Investments Ltd, a licence to act as a financial institution.”
The financial institutions licence further diversifies the range of services available through GlobalCapital. In particular, the company, through its money-broking facilities, is in a position to identify among an array of local and international banks, the best bank deposit interest rates for its clients.
Mr Pace also added, “Within our property division, an associated company – Metropolis Developments Ltd recently obtained an outline development permit as well as a demolition permit from Mepa for a major real estate project in Gzira which will see the regeneration of the area. This is a project worth in excess of Lm30 million (EUR69.88 million) which will most definitively have a positive impact on the company’s bottom line in the years to come.”