On 23 March 2007, the Board of Directors of GlobalCapital plc issued the preliminary financial statements for the year ended 31 December 2006.
The Board of Directors are proposing a final ordinary gross dividend of 1 cent per share and a special dividend of 5 cents gross per share, representing a total final dividend of 6 cents gross per share (3c9 net). Including the interim dividend of 2 cents gross per share, the total gross dividend for the year ended 31 December 2006 amounted to 8 cents per share (5c2 net). If approved, the final dividend will be paid by 6 July 2007 to all shareholders appearing on the Company’s register as at close of trading on 23 May 2007 (for settlement on 29 May 2007). The equity will trade ex-dividend on 24 May 2007.
During the year ended 31 December 2006 turnover from commissions and fees receivable amounted to Lm4.8 million representing a rise of 56.4%, mainly as a result of a Lm1.8 million increase in a performance fee which amounted to Lm2.5 million in 2006. On the other hand income from the insurance technical account dropped significantly from Lm786,912 to Lm64,959, with a drop in the value of in-force business from Lm315,000 to Lm129,000. The Group benefited from a gain in investment property of Lm792,740. The Group’s total income for 2006 amounted to Lm5.8 million against Lm4.2 million registered in the previous comparative period, representing a rise of 39%. Administrative expenses for the year rose by 37% to Lm2.4 million (2005: Lm1.8 million) and commission payable and direct marketing costs dropped by 18.8% to Lm368,038. After accounting for a goodwill impairment of Lm300,000 and a minor loss related to an associated undertaking, the Group generated an operating profit of Lm2.7 million compared to a profit of Lm1.7 million in 2005.
During the year ended 31 December 2006, GlobalCapital plc generated investment income of Lm445,774 compared to Lm992,260 in 2005. The Group’s profit before tax reached a record level of Lm3.17 million, 21% higher than the Lm2.62 million registered during the comparative year. After accounting for taxation, profits for the financial year stand 12% higher than the previous year at Lm2 million (2005: Lm1.6 million) resulting in earnings per share of 15c4 (2005: 12c2).
The Group’s balance sheet as at 31 December 2006 shows total assets rising 46% to Lm41.4 million. Total equity stood at Lm12.7 million, 13% up from 31 December 2005. This translates into a net asset value per share of Lm0.96 and a return on equity (profit after tax divided by shareholders’ funds) of 17.08% (2005: 15.25%). Return on assets stands marginally lower at 5.83% when compared to 6.39% registered in 2005.