GlobalCapital plc issued its Interim Directors’ statement on 10 November where the Directors explained that the Group has continued to focus on its strategy to improve operational efficiencies and to reinforce robust risk management practices and effective cost management. The Directors also announced that although the Group did not proceed with the acquisition of Mediterranean Bank plc, it remains committed to adding banking to its existing business lines at the opportune time and under the right market conditions subject to the necessary regulatory approvals.
Furthermore, the Directors explained since 30 June 2008 the global financial markets have become increasingly difficult and volatile and this has continued to have an adverse effect on the fair valuations of the group’s portfolio of financial investments and on the demand for its products, leading to a decline in the earnings of the Company’s main divisions when compared to the same period in 2007. On the other hand, the property agency and brokerage segments of the group continue to perform well.
The Directors also explained that despite the prevailing economic uncertainty, the capital position of the Group remains sound and the Directors believe that the Company remains well positioned to handle the challenging environment and enhance stakeholder value in the long term.