GlobalCapital reduces half-year losses and operational costs

The GlobalCapital plc Group has improved on last year's interim results by containing losses to less than half those reported in the first six months of 2008. The company registered a net loss before tax of € 2,394,200 for the six months ended June 30 compared to a net loss before tax of €4,962,153 for the corresponding period in 2008.

The severe downturn in global major economies and the financial services industry has continued to negatively impact GlobalCapital during the first six months of 2009. The group's portfolio of investment securities was further negatively impacted by the continued stockmarket downturn during the first quarter of the year. However the second quarter registered an improvement in the performance of the group's investment portfolio.

This improvement, together with other measures taken, are primarily reflected in the balance on the long term business of insurance technical account before tax (the technical account of the life insurance company) which produced a positive result of €437,574 compared to a loss of €1,697,779 in the same period last year.

The focus directed towards identifying and improving operational efficiencies coupled with the review and management of costs continued throughout this period, resulting in a 14 per cent decrease in administrative expenses when compared to the same period last year.

"During the past six months, international markets have produced mixed signals, with some signs of improvements although the road to recovery remains uncertain. Our total premium income and revenues from the agency and brokerage business are up when compared to the same period last year; however, reduced investor confidence has continued to affect market appetite for investment products, resulting in reduced sales and weaker commission income from investment sales.

The property portfolio has remained stable, and will be further strengthened with the addition of two important property projects that are currently underway. These projects are expected to be completed early next year," said group CEO Nicholas Portelli.