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New Chairman
for GlobalCapital plc
24 July 2008
“Becoming a
one stop shop in financial services remains our main objective”
– CEO tells AGM
Following the
Annual General Meeting and the first meeting of the Board of
Directors of GlobalCapital plc, Mr. Nicholas Ashford-Hodges has
been appointed Chairman of the Group.
 Mr.
Hodges brings a wealth of experience in international finance to
GlobalCapital and will undoubtedly contribute positively to the
Group’s plans of entering into banking. Mr. Hodges has served as
Director of GlobalCapital plc since 2003.
Currently, Mr.
Hodges is Vice Chairman of British American Investment Co. (Mtius)
Ltd and is Chairman of its operations in Kenya, British American
Investment Company Ltd and its subsidiaries, with a key stake in
Kenya’s fastest growing and highest capitalised bank, Equity
Bank. He also holds Directorships in British American Insurance
Co. (Mtius) Ltd and several other key operating companies of the
British American Group.
Mr.
Hodges is a Fellow of the Institute of Chartered Accountants in
England & Wales (FCA) and holds a Masters Degree in Engineering
Science from Wadham College, Oxford (MA).
He assumes the
Chairmanship of GlobalCapital plc from Mr. Christopher J. Pace,
founder, Director and outgoing Chairman. The Board of Directors
thanked Mr. Pace for his dedication, commitment and
determination shown throughout his years at the helm of the
Group. Mr. Pace remains on the Board as a Non-Executive
Director.
Mr. Hodges said
“Chris has dedicated his life and career to the growth of
GlobalCapital and its transformation into a leading financial
services organisation. I am taking over as Chairman of a listed
company which has experienced significant growth and
diversification over the years and has exciting plans for future
growth”.
“Throughout 2007,
despite a downturn in the stock markets, the Group has been
highly active in consolidating its market position and
undertaking preparations to embark on further activities. The
Board members have a diverse spectrum of skills and experience
matching the Group’s strategic objectives, including banking”
Mr. Hodges said.
Commenting on his
future plans, Mr. Pace said “The Group’s banking ambitions
demand a clear and distinct direction and energy. After taking
GlobalCapital to uncharted heights, I feel this is the most
suitable time to step down as Chairman. After taking a short
break, I intend focusing on local and international property
investments and will serve as Director on the Group’s main
Board. The Group’s property investments have performed very well
in the past and have huge potential to return excellent value to
shareholders in the future and this revenue stream needs further
consolidation”.
“Nick Hodges has
a sound understanding of the insurance and financial services
sectors. He brings a wealth of experience in international
finance and the strong backing of the British American Group”
Mr. Pace said.
The Group’s Chief
Executive Officer, Mr. Niki Portelli, explained that the
appointment of Mr. Hodges as Chairman ensures continuity in the
Group’s growth plans. “In essence, the Group’s activity is based
on two main revenue pillars – a wide array of financial services
including insurance, and a second pillar based on property
investments. Over his 15 years of involvement in British
American Group and beforehand, Mr. Hodges has gained extensive
experience in a number of business sectors and therefore, as
Chairman, his direction will undoubtedly contribute to achieving
the Group’s strategic objectives” Mr. Portelli said.
2008 and
beyond
During the Annual
General Meeting held this morning, GlobalCapital’s Chief
Executive Officer reiterated that the Group needs to continue
developing and expanding the services it currently offers -
banking currently being the missing link.
Mr. Portelli said
that the Group remains committed to continue developing its
operation into a one-stop financial services point for
individuals and corporations alike.
Earlier this
year, GlobalCapital announced the proposed acquisition of 85.5%
of the issued share capital of Medifin Holding Limited, which
holds 99.9% of the issued share capital of Mediterranean Bank
p.l.c. Mediterranean Bank p.l.c. is licensed by the Malta
Financial Services Authority to operate as a bank under the
Banking Act, 1994 and to provide investment services under the
Investment Services Act, 1994.
“The
agreed terms were subject to confirmation following due
diligence and further to all necessary regulatory approvals.
Presently we are working with all the parties involved to have
the deal confirmed and in due course to obtain regulatory
approval.
These processes, however, take time to complete in view of their
complexity. In the meantime, we are preparing the structures
required to enable us to pursue our banking strategy alongside
our existing businesses. We look towards to our future with
confidence and optimism” said Mr. Portelli.
During his
address at the AGM, Mr. Portelli explained that GlobalCapital
has been successful in identifying new opportunities and turning
those opportunities into profitable initiatives. “In our
relatively short history, GlobalCapital has witnessed
exponential growth in its business. Today, we are facing new
challenges which we view as excellent opportunities to continue
strengthening our business” he added.
“Notwithstanding
the 2007 results, GlobalCapital is in a strong and stable
financial position and able to withstand uncertain times.
Despite the prevailing environment in the local and
international capital markets, the Group is well-positioned to
take advantage of the eventual upturn in the markets” he
concluded.
2007
Our overall
performance for 2007 follows similar results of many other
international financial services organisations which have been
remarkably affected by unfavourable market conditions,
turbulence and loss of investors’ confidence.
The year has been
marked by a number of major events which have negatively
impacted the global economy. Notwithstanding these harsh
conditions, GlobalCapital has succeeded in registering growth in
certain areas of its business. The property portfolio made a
significant contribution both in terms of valuation and rental
income. Similarly, insurance brokerage and private medical
insurance contributed positively to the Group’s performance.
Volatility in the
markets substantially impacted on the Group’s equity and bond
holdings while reduced investor confidence affected appetite for
investment products, thus resulting in reduced sales.
Inevitably, these
conditions affected the Group’s performance. GlobalCapital
registered a profit before tax for the period ended 31 December
2007 of €353,743 (Lm151,862).
Areas of
growth in 2007
The Group’s Life
Insurance business registered a 30% growth in premiums written
over 2006. In 2007, these amounted to €12,634,260 (Lm5,423,888)
compared to €9,713,138 (Lm4,169,850) in 2006.
The Group’s
agency and brokerage services segments registered a 49% increase
in turnover over the previous year resulting in a positive
segment result. In 2007, turnover totalled €1,908,330
(Lm819,246) compared to €1,279,434 (Lm549,261) in 2006. This led
to a segment result of €646,837 (Lm277,687) in 2007 compared to
€33,566 (Lm14,410) in 2006.
The property
segment has also performed exceptionally well. The Group’s
property portfolio has now developed into a significant and
internationally diversified portfolio of properties spanning a
number of countries across several continents. In 2007, turnover
totalled €1,091,593 (Lm468,621) compared to €186,196 (Lm79,934)
in 2006. This led to a positive segment result of €4,460,410
(Lm1,914,854) in 2007 compared to €1,746,355 (Lm749,710) in
2006.
GlobalCapital
also holds substantial shareholding in the Metropolis project,
located in Gzira. This site has been granted SDA (Special
Designated Area) status which therefore allows non-residents to
purchase more than one unit within the development.
Overleaf:
Note on British American Group
About British
American Group
Under the listed
holding company British American Investment Co. (Mtius) Ltd, the
Group's reach already extends from Mauritius to Madagascar,
Kenya, South Africa, Dubai, Malta, France and the UK. Areas of
operation include:
· Insurance, leasing, money transfer, foreign exchange dealing,
fund management and stock broking
· In transportation, our holdings represent amongst others
Mercedes-Benz, Peugeot, Mitsubishi and Saab in Mauritius, and
London Taxi International in South Africa
· Our construction company operates in Mauritius and the region
· Courts, our furniture and electrical goods retail chain, is the
market leader in Mauritius and has expanded to Madagascar
· Tourism services include inbound and outbound travel, car rental
and airline representation
Latest milestones
include the acquisition of the South East Asian Bank, which has
six branches in Mauritius and the construction of the Apollo
Bramwell Hospital in Mauritius, with our own construction
company as lead contractor. The 200-bed hospital is scheduled to
be operational in early 2009 and promises to alter the medical
landscape of the region by providing first-class healthcare for
Mauritians and overseas patients.
The history of the
Group is linked directly to that of British American Insurance
in the Caribbean, a branch of which was set up in Mauritius in
1969.Thirty-nine years later, and after local incorporation in
1989, the small insurance branch has undergone a metamorphosis,
spreading its activities outside of insurance into leasing,
financing, mortgage finance, fund management and money transfer.
The British
American Group employs approximately 3500 people. In 2007,
British American generated a turnover approaching $400 million.
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