GlobalCapital plc - Interim Results

Thursday, August 31st, 2017

On 30 August, GlobalCapital plc published its 2017 interim financial statements covering the six months ended 30 June 2017.

Performance Overview

During the period under review, GlobalCapital plc registered a pre-tax profit of €2.38 million compared to €1.88 million in the corresponding six months of 2016. The improvement in profitability largely reflects the increase in the value of in-force business at the Group’s life insurance subsidiary (GlobalCapital Life Insurance Limited) as well as the higher levels of investment income received by the same subsidiary. Furthermore, GlobalCapital Financial Management Limited also registered an improved level of activity which was however partially offset by increased operational costs and enhanced provisions. On the other hand, the Group’s Health Insurance Agency reported lower profitability as the improvement in commission income was offset by an increase in claims and medical costs.

After accounting for an unchanged tax expense of €1 million (H1 2016: €1 million), the Group reported a net profit of €1.38 million compared to €0.87 million in the first six months of 2016. This translates into an earnings per share figure of €0.046 (H1 2016: €0.037).

The Statement of Financial Position as at 30 June 2017 compared to the corresponding figures as at 31 December 2016 shows a 4.4% increase in total assets to €118.15 million reflecting the 23.1% increase in ‘other investments’ to €71.87 million which was partially offset by the 57.3% drop in cash and cash equivalents to €6.1 million. Total liabilities also increased by 3.5% to €101.48 million largely due to the 5.2% increase in technical provisions to €84.34 million which was only partially offset by the 23% decline in trade and other payables to €4.59 million. Overall, the Group’s equity base grew by 10.2% to €16.67 million reflecting the profit registered during the period under review. This translates into a net asset value per share of €0.556 (Dec 2016: €0.504).

Dividend

The Directors did not declare an interim dividend.

Outlook

The Directors noted that it is their intention to exercise the existing authority to issue new ordinary shares by conducting a rights issue in respect of an amount of shares not exceeding €15 million in nominal value by the end of this year, subject to approval of the Listing Authority. The completion of this capitalisation plan will help facilitate the Group’s growth strategy going forward and as such the Directors are looking at the next six months of the year with cautious optimism.

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GlobalCapital plc – Half-Year Report for the six months ended 30 June 2017

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