LifeStar Holding plc - Full-Year Results
On 7 August, GlobalCapital plc published it’s the Annual Report and financial statements for the year ended 31 December 2014.
Performance Overview
During 2014, the Group registered a turnaround in performance with a pre-tax profit of €0.81 million compared to the pre-tax loss of €4.2 million in the previous financial year. The turnaround was mainly due to the €1.3 million balance on the long-term insurance business in contrast to the loss incurred from this line of business in the previous financial year.
After accounting for a tax charge of €0.59 million (2013: tax credit of €0.52 million), the Group’s net profit amounted to €0.22 million which translates into an earnings per share of €0.017 (2013: negative earnings per share of €0.277).
The Statement of Financial Position shows a 1.2% drop in total assets to €89.5 million largely reflecting a 13% drop in property, plant and equipment to €2.7 million and a 66.1% drop in cash and cash equivalents. Total liabilities also contracted by 1.3% to €86.3 million largely reflecting the 16.9% drop in borrowings to €14 million. Overall, the Group’s equity base increased by 2.7% to €3.16 million on the back of the profit generated during the period under review.
Post-Reporting Period Events
The notes to the financial statements explain that 48.45% of the shares held by BAI Co (Mtius) Ltd are currently the subject of a conditional share purchase agreement with EIP plc. The Directors also explain that they intend to finance the redemption of the outstanding €13.8 million bonds through a rights issue subject to approval from shareholders during the upcoming Annual General Meeting, now scheduled to take place on 4 September.
On condition that EIP acquires the aforementioned stake in the Company, EIP has already committed itself to participate in the planned rights up to its pro-rata share such that a minimum equity investment of €14 million is secured. If the rights issue is not successful, the Directors are considering a number of other financing options.
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GlobalCapital plc – 2014 Annual Report and Financial Statements