GlobalCapital plc - Full-Year Results

Friday, April 27th, 2018

On 26 April 2018, GlobalCapital plc published its Annual Report and Financial Statements for the year ended 31 December 2017.

Performance Overview

During 2017, GlobalCapital registered a pre-tax profit of €4.64 million compared to €2.78 million in 2016. The increase in profitability was mainly driven by the performance of the life insurance business which contributed €4.4 million in pre-tax profits (FY2016: €3.5 million) to the Group results. In this respect, GlobalCapital explained that the life insurance company continued registering significant growth across all lines of business. In fact, gross premiums underwritten for the year amounted to €12.6 million compared to €10.7 million in 2016. Moreover, claims incurred net of reinsurance decreased by 15.2% to €7.9 million.

Furthermore, the Group’s financial management subsidiary reported a smaller pre-tax loss of €0.09 million compared to the pre-tax loss of €0.62 million incurred in 2016 on the back of a one-off increase in provisions of €0.52 million. The improved performance of this subsidiary also reflects the 15% increase in revenues to €0.67 million which was partially offset by the marginal increase in the cost base after the group decided to retain this business unit.

On the other hand, the Group’s health insurance subsidiary reported a lower pre-tax profit figure of €0.7 million compared to €1.1 million in 2016 reflecting both a decline in income as well as an increase in the subsidiary’s cost base.

The tax charge for the year amounted to €1.47 million. As a result, GlobalCapital posted a net profit of €3.17 million (FY2016: €1.85 million) which, in turn, translates into an earnings per share of €0.105 (FY2016: €0.071).

The Statement of Financial Position shows a 12.4% increase in total assets to €127.1 million, largely reflecting a substantial increase in other investments to €71.3 million (31 December 2016: €58.4 million). Similarly, total liabilities expanded by 11.1% to €108.9 million, mainly reflecting higher technical provisions. Overall, the Group’s equity base climbed to €18.2 million from €15.1 million as at the end of 2016, largely reflecting the profit registered during the year under review. This translates into a net asset value per share of €0.6083.

Outlook

In their commentary, the Directors made reference to the company announcement dated 23 March 2018 related to the application requesting the admissibility to listing of new ordinary shares pursuant to a €6 million rights issue. In this respect, GlobalCapital added that the additional equity to be raised through the proposed rights issue is directed at supporting the company’s business strategy and for settling intercompany balances. Moreover, the proposed amount of the rights issue is considered to be appropriate to strengthen the capital levels of GlobalCapital in the context of the evolving business and regulatory environment.

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GlobalCapital plc – 2017 Annual Report and Financial Statements.

 

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