Global Capital plc registers €8.2m loss

Global Capital plc, the financial services supplier, has registered a loss after tax for the year ended December 31, 2010, of €8.2 million, the company said in an announcement on the stock exchange last Thursday.

The post-tax loss for 2009 stood at €760,744.

The group said last year’s results were negatively impacted by non-cash and non-recurrent items totalling €5.8 million, including write-offs of goodwill, computer software, and tangible assets as well as negative fair value movements on investment property.

Financial investments experienced a slowdown, with net unrealised fair value gains of €621,921 last year, compared to net gains of €2,606,856 in 2009.

Within the investment property impairment charge is a write-down of €1.5 million specific to a group property, a Baronial castle outside Rome. According to the financial statements, Global Capital considered independent valuations obtained under the group’s accounting policy and the carrying value of the property as at December 31 was reduced by €1.5 million to €8.1 million. As part of the group’s efforts to create efficiencies and cost savings, two clusters of operational entities were merged into two companies reducing the number of subsidiaries by five.

Within the group’s core operational activity, the business of insurance registered a loss before tax during 2010 amounting to €118,869 compared to a pre-tax profit of €1,974,278 in 2009. The agency and brokerage business generated a combined pre-tax profit of €298,640 compared to the €352,687 achieved during 2009.

On the other hand, during 2010 the investment services division incurred a loss amounting to €557,836 compared to a loss of €1,306,301 in 2009.

Activity from the property division was scaled down during 2010, as the group restructured its senior management as a key element of its continued effort to grow revenue, manage expenses and create value for shareholders within its core financial services business.

Global Capital plc encompasses Global Capital Health Insurance Agency, the sole provider ofBupa health insurance, Global Capital Life Insurance Limited, previously agents of British American, Global Capital Financial Management Limited and Global Capital Insurance Brokers.