Christopher J. Pace, chairman of Global Financial Services Group plc, commented on the listed company's 2002 financial results, reported through the Stock Exchange last week, to The Sunday Times.
"Last year was one of the most difficult years for stocks and shares, not just in Malta but also worldwide," he said. "This had an obvious direct effect on the business generated by one of our companies, Globe Financial Management Ltd, which is mainly involved in investment services.
"It did not adversely affect our other companies, British American Insurance Co (Malta) Ltd and BUPA Agencies Ltd, which operate in life and health insurance. British American and BUPA Agencies, in 2002, actually registered a profit of Lm300,000.
"The registered loss over the company as a whole principally consists of a depreciation charge of Lm149,995. Cash flow remains unaffected."
Mr Pace pointed out that last year saw intensive preparation for the merger of the three companies under the name of the Global Financial Services Group plc. "This burdened us with significant merger costs, including considerable legal, audit and actuarial fees, due diligence exercises and extensive restructuring. We are now all operating out of the same office building on the Gzira Strand."
Despite the reported loss, Mr Pace remains confident and positive. "There is no reason to look ahead with anything but optimism, and this includes our shareholders," he said.
"One must bear in mind that the financial year to which that loss applies was an exceptional one of extraordinary costs. In the current year, we are already experiencing the benefits of the merger, and the view is certainly rosier.
"We are also cross-selling the products and services of all three companies, and we can see the fruits coming through."
The company is now experiencing the benefits of its shareholding by Aberdeen Asset Management, the international financial services company that, until recently, was going through a rough patch. "Aberdeen has now turned the corner and its fortunes have improved quite dramatically," Mr Pace said.
"This, too, has a positive effect in turn on our own situation. Investor sentiment has also improved, and people are regaining confidence in the market.
"The merger with British American has also given the company a stable source of income that releases it from dependence on a single and volatile market. This has made us much stronger."