GlobalCapital registered a loss after tax of €4,193,670 for the year which ended on December 31, compared to a loss after tax of €8,251,275 for the previous year.
In a statement, the company said the 2011 reported loss was inclusive of a number of non-cash items such as goodwill impairment and depreciation totalling €0.7 million compared to €4.3 million in 2010.
These included other non-recurring non-cash items and unrealised fair value losses on the group's investment portfolio of €0.8 million compared to unrealised gains of €0.6 million in 2010.
The results also reflect a further €0.7 million write down of the valuation of the Baronial castle, situated outside Rome (2010 write down of this property was €1.5 million). This reduction was made following a re-assessment of the property's value by the directors. During the year, the board engaged two reputable international real estate agencies to actively market the property for sale.
The company said that the prevailing uncertainty within the eurozone has increased volatility within the financial markets hampering the turnaround of the operating results.
Results achieved through the core operational activity were mixed. The group's business of insurance registered a loss of €1,146,135 compared to a loss of €216,258 in 2010.
The life insurance business registered a substantial growth in new regular premium, the mainstay line of business of the company, registering a significant improvement over 2010.
During the period, the division focused on product development and enhancing the skills of management and the sales force so as to be in a position to grow the business radically when market conditions improve.
The health insurance income grew by eight per cent over the prior year despite a heavily competitive market.
The agency and brokerage business generated a combined pre-tax profit of €320,494 compared to the €298,683 achieved in 2010. The group's investment services division incurred a loss amounting to €449,981 compared to a prior year loss of €550,786.
Property activity has been scaled down substantially with the group concentrating its focus on its core financial businesses.
The group said its board of directors continued to remain vigilant and focused in its endeavours to turn around the company's performance and create value for shareholders.