On 5 April, GlobalCapital plc published its Annual Report and Financial Statements for the year ended 31 December 2016.
During 2016, GlobalCapital registered pre-tax profits of €2.78 million compared to €5.61 million in 2015. The results include a significant reduction in fair value gains on the Group’s financial and property investment portfolios amounting to €1.4 million against €7.3 million in the previous comparable period. After accounting for a tax charge of €0.93 million (FY2015: €1.48 million), the Group’s net profit for the year amounted to €1.85 million (FY2015: €4.12 million) which translates into an earnings per share of €0.071 (FY2015: €0.157).
The Statement of Financial Position shows a 12% increase in total assets to €113.1 million while total liabilities advanced by 4.6% to €98 million. The Group’s equity base more than doubled to €15.1 million from €7.36 million in 2015 largely reflecting a rights issue exercise undertaken in the first half of 2016. This translates into a net asset value per share of €0.504.
The Directors’ Report explained that during 2016, GlobalCapital plc embarked on consolidating its position in the local market by strengthening its financial base through a capitalisation exercise, debt restructuring and strengthening the financial operating results of its subsidiaries. Looking ahead, it is the Directors’ intention to increase further the issued share capital of the Group, subject to any necessary regulatory approval, in order to increase the capital base by raising additional equity to meet the general financing requirements and to repay the Company’s unsecured bonds maturity in 2021.