Global Financial Services Group today issued its interim results as at 30 June 2005. The Board of Directors declared a gross interim dividend of 1c5 per share (2004: nil) to those shareholders on the company’s register as at close of trading on Friday 12 August. The net dividend of 0c975 will be paid on 2 September 2005.
Global Financial Services Group has registered a profit before taxation of Lm674,588 for the six months ended 30 June 2005. This represents an increase of 69% over the corresponding result for 2004 of Lm397,998.
Commission and fees receivable increased by Lm501,525 (61%) and totalled Lm1,324,480 compared to Lm822,755 for the same period in 2004.
Administrative expenses increased by 20.5% to Lm850,762 with commission payable and direct marketing costs rising to Lm261,093 from Lm121,467 in 2004.
Operating profit has increased by 139% from Lm182,425 for the first six months in 2004 to Lm435,661 for the six months ended 30 June 2005.
Earnings per share for the six months ended 30 June 2005 increased to 4c0 from 2c3 – an increase of 1c7 over the corresponding six months of the previous year.
Net assets of the Group stood at Lm10.2 million as at 30 June 2005 compared with Lm10 million as at 31 December 2004. The net asset value per share works out at 77c5.
The Group has adopted a number of new and revised accounting standards this year. One of these standards is IAS 39 'Financial Instruments: Recognition and Measurement'. The Group has re-designated its available-for-sale financial instruments and investments previously recognised as originated loans and receivables as financial assets through profit or loss. Fair value gains recognised in the income statement for the period ended 30 June 2005 amounted to Lm213,356.
In its financial review of the interim results, the Directors explain that the interim dividend reflects the Board’s commitment to delivering the best possible return to shareholders. The Directors remain confident that the Group will be able to deliver further positive results in the future.