FIMBank issued its Interim Directors’ Statement on 8 November in which it stated that further to the unaudited financial results announced for the six months ended 30 June 2007, no material events and transactions have taken place, that would have an impact on the financial position of the Group. For the remainder of 2007, the general trend and diversification in the Company’s business is expected to continue to follow the same pattern experienced in recent financial periods.
The short-term outlook for the Group continues to reflect the strategic mix of mature and emerging products, services and markets. In spite of increasing competition in some of the more traditional markets and business areas, the Group’s core trade finance services are expected to continue delivering good revenue streams, at the same time new and structured products and services are being considered to enhance the offering in these markets. Moreover, the results from the Indian associated company, Global Trade Finance Limited (GTF), have outperformed expectations so far in 2007 and buoyed by strong market opportunities in the sub-continent, are expected to make a significant contribution to final Group profits for 2007.
On the other hand, the start-up associates – MENAFACTORS Limited and Egypt Factors Limited – will be expected to start making meaningful contributions to Group results in 2008. The outlook for London Forfaiting Company Limited (LFC) performance for the rest of 2007 is also positive, especially as future recognition of the deferred tax asset in this subsidiary will start contributing directly to Group profit. In particular, the future of GTF and LFC will depend significantly on the level and depth of equity support which should improve the quality and mix of the shareholdings in both companies.
Subject to any unforeseen negative events or developments, the Directors expect the Group’s operating performance for 2007 to show a strong improvement over that of 2006, and such improvement to be reflected in the results of the 2007 financial year.