The Malta Independent 22 September 2019, Sunday

Global Capital loses close to €2 million in first six months of financial year

Tuesday, 4 September 2018, 08:37 Last update: about 2 years ago

GlobalCapital p.l.c. sustained a loss after taxation on a consolidated basis for the six months ended 30 June 2018 totalling €1,934,374 compared to the prior period profit after taxation of €1,377,545, a company statement on the Malta Stock Exchange said.

GlobalCapital Life Insurance Limited incurred a loss after taxation of €1,911,626 compared to a profit after taxation of €1,469,408 for the same period last year, the statement added.

The continued efforts to register new business resulted in an increase in the value of in-force business for the period under review of €961,994 (June 2017: €1,207,692). The loss in the current period resulted mainly from negative movement in the fair value of investments coupled with an increase in technical provisions consequent to additional business being written during the period under review.

During the period under review, GlobalCapital Financial Management Limited sustained a decline in the level of activity whilst incurring one-time operational costs, the statement added. This together with a marginal increase in provisioning led to a loss after taxation of €291,861 compared to a profit after taxation of €131,607 for the period ended 30 June 2017.

The Health Insurance Agency's commission income declined marginally when compared to the first six months of 2017. Costs, excluding group recharges, increased mainly as a result of increases in IT costs and professional fees. The increase in costs was partly mitigated by an increase in the profit commission, which resulted in a profit after taxation amounting to €173,761 (2017: €253,933).

The statement said it is the Board's intention to exercise its existing authority to issue new ordinary shares by conducting a rights issue in respect of an amount of shares not exceeding €6,000,000 in nominal value before the end of the year, subject to the approval of the Listing Authority.

The Directors do not recommend the payment of an interim dividend.

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