LifeStar Holding plc - Interim Results
On 30 August 2019, GlobalCapital plc published its interim financial statements covering the six-month period ended 30 June 2019.
Performance Overview
During the period under review, GlobalCapital plc registered a net profit of €1.29 million compared to a net loss of €1.93 million recorded in the first half of 2018. In this respect, the company explained that the profit generated in H1 2019 was mainly the result of positive movements in the fair value of its investments as well as increases in the value of in-force business within its life insurance arm. Furthermore, GlobalCapital Health Insurance Agency also reported improved profitability reflecting a slight increase in commission income which was also coupled with a reduction in overall costs. On the other hand, GlobalCapital Finance Management incurred a loss of €0.47 million (H1 2018: loss of €0.29 million) as the company increased its investments in HR in order to satisfy local license conditions.
The Statement of Financial Position as at 30 June 2019, when compared to figures as at 31 December 2018, shows that net assets increased by 6.9% to €19.8 million. This translates into a net asset value per share of €0.6586 (31 December 2018: €0.6160 per share). Total assets expanded by 8% to €148.9 million mainly reflecting increases in the value of investments (+€5.34 million to €78.6 million), cash balances (+€2.18 million to €13.2 million) and reinsurer’s share of technical provisions (+€1.96 million to €15.3 million). Similarly, total liabilities increased by 8.2% to €129.1 million mostly due to higher levels technical provisions and trade and other payables.
Outlook
In their commentary, the Directors of GlobalCapital explained that the company is looking at further capitalisation in the next months to support its future plans. In this respect, GlobalCapital appointed a major international consulting firm to prepare a holistic plan and forecast, supporting the future of the business. The plan will incorporate a strategy on:
- the streamlining of activities which are loss making;
- the capitalisation of the Group’s entities, where this is considered necessary;
- a plan on inter-group distribution of retained profits; and
- a plan towards the future servicing of its commitments with special emphasis relating to the current 5% bond in issue which is due for repayment in June 2021.
GlobalCapital noted that the abovementioned plan is in the process of being finalised for submission to the Malta Financial Services Authority. The Directors also expressed their confidence that subject to any necessary approvals required for GlobalCapital to implement its strategic plan, the company will continue to improve and strengthen its financial performance and financial position, thus continuing to operate on a going concern basis.