On 15 May, GlobalCapital plc published its Interim Directors’ Statement explaining that the previous adverse impact on the fair valuations of the Group’s portfolio of financial investments persists but has not materially deteriorated further. However the persisting instability in the international and local bond markets continues to adversely impact the Group’s life insurance and investment products business forcing GlobalCapital’s operating performance lower when compared to the same period last year. On a positive note, the Group’s property, agency and brokerage divisions continue to operate profitably.
The Directors also stated that the Company has initiated a comprehensive review of its business activities in order to identify and implement further process efficiencies and business re-alignment. Throughout the second quarter of 2009, the Company will be implementing a number of actions to address the findings of the aforementioned report. This is being done in response to the current economic circumstances and to reposition the Company in time to capitalize on the benefits of the eventual market upturn.
In conclusion the Directors stated that the Company continues to operate on sound foundations and remains well positioned to deliver its long-term strategy around risk mitigation and selective business development.