GlobalCapital plc - Interim Results

Monday, September 3rd, 2018

On 31 August, GlobalCapital plc published its interim financial statements covering the six months ended 30 June 2018.

Performance Overview

During the period under review, GlobalCapital plc registered a net loss of €1.93 million (H1 2017: net profit of €1.38 million) reflecting a weaker performance across its three main business lines. This translates into a negative earnings per share of €0.065 compared to a positive earnings per share figure of €0.046 in the first half of 2017.

In fact, GlobalCapital Life Insurance Limited accounted for most of this loss with a net loss of €1.9 million on the back of negative fair value movements on the subsidiary’s investments as well as an increase in technical provisions in view of the additional business written during the period under review.

Similarly, GlobalCapital Financial Management Limited, incurred a loss after tax of €0.29 million compared to a net profit of €0.13 million in the first half of 2017. This subsidiary reported a decline in the level of activity whilst also incurring one-time operational costs and a marginal increase in provisioning.

The Group’s Health Insurance Agency reported a marginal net profit of €0.17 million which is still weaker than the net profit of €0.25 million reported in the previous comparable period. The weaker performance reflects a decline in the agency’s income as well as higher costs, particularly those related to IT and professional fees.

The Statement of Financial Position as at 30 June 2018 and compared to figures as at 31 December 2017, shows that total assets increased by 2.2% to €129.9 million largely reflecting increases in other investments, reinsurer’s share pf technical provisions as well as trade and other receivables. On the other hand, total liabilities increased by 4.4% to €113.7 million largely reflecting the 6.4% increase in technical provisions to €95.16 million. Overall, the Group’s equity base contracted by 11.2% to €16.2 million on the back of the loss incurred during the period under review. This translates into a net asset value per share of €0.54 compared to just below €0.61 as at 31 December 2017.

Dividend

The Directors did not declare an interim dividend.

Outlook

The Directors’ noted their intention to conduct a rights issue for an amount not exceeding €6 million in nominal value by the end of the year, subject to obtaining the approval of the Listing Authority. The rights will be conducted with the aim of achieve long-term financial stability for the Group.

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GlobalCapital plc – Interim Report covering the six months ended 30 June 2018.

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