On 15 November, GlobalCapital plc issued its Interim Directors’ Statement stating that since 30 June the Group has restructured its top management team with the appointment of Bashar Khatib as CEO in replacement of Nicholas Portelli. Moreover, the Directors stated that the Group registered a marginal overall decline in revenue thus delaying the Group’s return to profitability. However, the life insurance and investment services businesses recorded an upturn in new business with net inflows of premium and investments respectively compared to the same period in 2009.
The Directors also explained that the Group’s operational structures are being further streamlined through cost rationalisation while focusing on the core profitable lines of business to create value to shareholders. Nonetheless the Directors warned that the Group continues to operate in a competitive and challenging environment. In conclusion the Directors commented that although GlobalCapital has not yet returned to profitability, it remains financially sound.
Meanwhile, further to the announcement published on 26 August, GlobalCapital has now concluded the sale of its shareholding in Metropolis Development Ltd, Metropolis (Contracting) Ltd and M Plaza Investments for a total consideration of just over €3.8 million equivalent to the par value of the shares. The Directors stated that the divestment of this shareholding will enhance the Group’s flexibility in its finances while also enabling further investment in its front office infrastructure and improve efficiencies in its back office operations.