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GlobalCapital
p.l.c. issues half-year results
29 August 2008
During a board meeting
held on Thursday 28 August 2007, the Directors of GlobalCapital
p.l.c. considered and approved the interim financial statements
for the first six months of 2008.
Against a backdrop of a
severe downturn in global major economies and the financial
industry in particular, GlobalCapital registered a net loss of
Eur 4,375,217 for the six months ended 30 June 2008 compared to
a profit of Eur 905,939 for the corresponding period in 2007.
The results were majorly impacted by adverse valuation movements
due to market conditions. The net loss for the period excluding
fair valuations, revaluations, tax and impairment charges was
Eur 1,556,671 compared to a net loss of Eur 847,446 for the same
period in 2007, on a like-for-like basis.
“The impact of
the market volatility on the Group’s business has been two-fold.
On the one hand, volatility in the markets substantially
impacted the Group’s equity and bond holdings. On the other
hand, reduced investor confidence affected appetite for
investment products, resulting in reduced sales” said Group
Chief Executive Officer, Nicholas Portelli.
The Board of Directors
has re-affirmed its focus on improving operational efficiencies,
robust risk management practices and effective cost management,
and that it will continue to explore initiatives to strengthen
the Group’s core businesses.
GlobalCapital has also
re-affirmed its active pursuit of the announced strategic
direction to enter into banking and, whilst the Group has
announced that it will now not be proceeding with the
acquisition of Mediterranean Bank, it will be activating
alternative means to fulfil its banking ambition. The Directors
believe that the fulfilment of this strategy will go a long way
in enhancing value creation to stakeholders, particularly
shareholders.
“Over the
remaining period of this financial year, the Board does not
expect capital markets to recover. Despite the prevailing
environment in the domestic and foreign capital markets, the
Group is however well-positioned to take advantage of an upturn
in due course. The Group still retains a strong and healthy cash
position to enter into new initiatives” said GlobalCapital
Chairman Nicholas Ashford-Hodges.
Click here to download Half-yearly report
for the period ended 30 June 2008
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