During its annual general meeting this week, GlobalCapital Group chairman Nicholas Ashford-Hodges announced a substantial turnaround in 2009 as the result of the successful implementation of the revitalisation programme launched in 2009.

Earlier this year, the Group reported a reduction in losses, declaring an after tax loss of €760,744 for the year ended 31 December 2009. This result was a significant improvement, when compared to the loss after tax of €6,886,162 for the year ended 31 December 2008.

Mr Ashford-Hodges noted that the overall performance improved as the Group focused on increasing staff training, improving management practices, streamlining processes, reducing costs and increasing overall sales efforts. These improvements resulted a loss almost 90 per cent lower than the one reported in 2008.

“GlobalCapital has emerged from 2009 as a stronger company, well positioned for further growth. Even though the worldwide economic crisis triggered in 2008 continued to have serious implications on its economic performance in 2009, GlobalCapital was able to reverse most of the 2008 losses through a number of changes aimed at increasing long-term shareholder value and protecting value creation for its clients,” said Mr Ashford-Hodges. In 2009, GlobalCapital plc became an employer of choice, registering an increase in its sales force that almost doubled in a year – a clear improvement from 2008, which recorded a high staff attrition rate.

Shaping the future

The year 2009 ended with a comprehensive review of the Group’s long-term strategy, making way for growth initiatives in 2010.

The Group’s long-term strategy has been modified to suit the current financial situation. Mr Ashford-Hodges said that, due to the implementation of stringent and demanding regulations, as well as the uncertainty of the world economic environment, the company needs to ensure that its long-term strategy provides a sufficient shield from any future economic after-shocks and any erratic performance of the local and international stock market.

With the launch of its new brand identity in April, GlobalCapital plc announced the consolidation of its financial services operations into a strong, unified, client-orientated service provider under the banner of ‘the insurance specialists’. With the unveiling of the Group’s core values and beliefs – ‘Trust, Peace of Mind, Wealth and Reward’ – GlobalCapital has highlighted its vision, progress and forward momentum as well as the constant dedication and commitment to customers for the provision of specialised insurance services and advice on investments to produce the positive results customers ultimately expect. The company also envisages a rapid growth from new investments in the property division that includes construction management and finishing, as well as property development. Through its specialised international knowledge and professional in-depth research and understanding of the market, GlobalCapital plc aims to create a quality brand renowned for its creative and innovative property solutions, offering a new range of properties in the Maltese market.

“The Group has now entered a new phase of diversification and expansion. With the constant transformation of the financial market, we are confident that through uncompromising commitment to knowledge and a friendly service we will enhance our growth and value for our clients and shareholders. We will also continue to focus on efficient investment management of our shareholders’ funds through the exploration of a number of other development opportunities in a range of industries and markets,” said Mr Ashford-Hodges.

Revitalisation programme

Efficiency was the main force behind the revitalisation programme, which was launched in 2009. According to Group CEO Nicholas Portelli, improving efficiency across the company was the first task set out by the programme, while the second phase, which is currently underway, involves the front office segment. A review of every line of business and every process was conducted with the aim of reducing costs.

“We have rationalised on both human and financial resources, leading to cost savings. We have also begun a process of rationalisation of the Group’s corporate structure, creating a leaner organisation by composing two main, clearly distinct divisions within the company: the financial services division and the property division,” said Mr Portelli during the AGM.

Mr Portelli also said that the recent launch of the company’s evolved identity was the result of an in-depth study of the market and the Group’s business objectives, while taking into account factors such as opportunities and limitations existing within the market.