Global Capital announces financial results for 2007

The board of directors of GlobalCapital plc have declared a profit before tax for the group of €353,743(Lm151,862) for January 1, 2007, to December 31, 2007, (2006: €7,388,039/Lm 3,171,685) which translates into a profit after tax of €579,935 (Lm 248,966) compared to €4,750,370 (Lm2,039,334) in 2006. This represents earnings per share of €4c4 (Lm1c9) when compared to €36 (Lm15c4) in 2006. As a result the group's total assets increased to €105,060,466 (Lm45,102,458).

"2007 proved to be a challenging year for the international financial services industry with turmoil in most aspects of the financial markets," GlobalCapital plc chairman Christopher J. Pace said. "The international credit crisis has resulted in a severe correction in the bond, equity and property markets. This had a two-fold impact on the group's business. The group's equity and bond investment portfolio has suffered severe reduction in values resulting in an unrealised investment loss as at year end. While, on the other hand, the turbulence in the markets has also influenced investor confidence with investors assuming a defensive position into cash."

Income from performance fees for the year 2007 decreased by €5,706,182 (Lm2,449,664) from €5,840,839 (Lm2,507,472) to €134,656 (Lm57,808). The group's business of insurance segment continued to register steady progress which is reflected in the growth of premiums written. In 2007, these amounted to Lm5,423,888 (€12,634,260) compared with Lm4,169,850 (€9,713,138) in 2006. The same positive trend was experienced in the group's agency and brokerage services segments whereby turnover increased to €1,908,330 (Lm819,246) in 2007 compared to €1,279,434 (Lm549,261) in 2006. This also led to a segment result of €646,837 (Lm277,687) in 2007 compared to €33,566 (Lm14,410) in 2006.

The group's property segment has continued to perform at good levels in line with previous years with turnover of €1,091,593 (Lm468,621) in 2007 compared to €186,196 (Lm 79,934) in 2006. The corresponding result for this segment is €4,462,739 (Lm1,915,854) in 2007 compared to €1,746,355 (Lm749,710) in 2006.

The board of directors said that despite the prevailing environment in the local and international capital markets, the group is well-positioned to take advantage of an upturn in due course. The board believes that there are imperfections in the market and opportunities, including acquisitions, are being actively pursued.

GlobalCapital is a diversified financial services group operating in three main areas of business: investments, insurance and property.