Further growth in Globe group

Newly renamed GlobalCapital last week announced the annual results of the Global Financial Services Group for the year ended December 31, 2005.

CEO Nicholas Portelli told The Sunday Times all the group's divisions had contributed to the lion's share of earnings. Notable was the turnaround in the brokerage and the BUPA agency businesses.

Pre-tax profits had been doubled to over Lm2.6 million and a dividend of 6c is being proposed, split between 3c and a special 3c dividend - double that of 2004.

There had been an increase in total assets and net asset value had increased from over Lm9 million to over Lm11 million.

"I am pleased to see that the market has reacted positively to the anticipated good results," he observed. "In the past fortnight we have seen the share price increase from the Lm1.30 level to Lm1.95 - over 60c."

Asked about developments on pensions, Mr Portelli said GlobalCapital was "geared to take on the new challenge, exploiting pension reform, and expanding operations overseas in a scheduled manner".

In terms of the group's valuation, he observed that the PE ratio in the region of 16 was one of the lowest PEs on the market. "We see scope for further growth if the market keeps on performing and the company keeps on growing."