Global Financial Services Group plc on Friday announced a significant increase in earnings for the financial year ended December 31, 2004.
Profit before tax and amortisation of goodwill was Lm1,363,954. After charging tax of Lm299,337 and amortisation of goodwill, amounting to Lm160,244, the group reported a profit for 2004 of Lm904,373.
This represents an increase of Lm669,206 (+285%) over 2003. Operating profit also increased by Lm1,023,648 from Lm247,234 in 2003 to Lm 1,270,882 in 2004 (+414%). Earnings per share rose to 6c8 in 2004 from 1c8 in 2003.
The Global Group's net asset base continued to strengthen from Lm8,996,432 at the end of 2003 to Lm9,970,029 (+10.8%) at December 31. The results for the year represent a return on shareholders' funds of 9.07%.
Through its various subsidiaries, the Global Group has diversified its revenue streams, the company said in a statement. It is involved in the provision of investment services, fund advisory services, life and health insurance, insurance broking, and property management and advisory services.
Globe's board is recommending a 200% increase in dividend over 2003, amounting to a final gross dividend of Lm396,226 (Lm257,547 net). This represents a gross dividend of 3c per share (representing a net payment of 1c95 per share), for approval of the shareholders at the next annual general meeting. The dividend will be paid to shareholders who are on the company's Register of Members on April 14.
"The Global Group has delivered some strong results and we are in excellent shape," Global Group chief executive officer Nicholas Portelli said. "These results are very encouraging but do not, in any way, make us complacent.
"Quite the opposite. They encourage us to keep on working to attain consistent and even better results in the years to come.
"The directors, management and staff continue to look forward to positive results in the future and remain committed to maximising shareholders' return on investment.
"The directors' recommendation, subject to approval of the shareholders at the next AGM, of a significantly higher dividend compared to previous years is testament of this commitment."
Global Group chairman Christopher J. Pace added: "We are building on the positive results achieved in the previous year and are constantly seeking innovative and profitable avenues of revenue which complement our operations.
"Our strategy is focused, clear and well placed, and we now have some excellent results to work and improve on. We have a strong balance sheet and I am looking forward with confidence to the group achieving another successful year in 2005, which will further enhance shareholder value."
The Global Group has a staff complement of over 130 and is made up of Globe Financial Management Ltd, British American Insurance Co. (Malta) Ltd, BUPA Agencies Ltd, Globe Fund Advisors Ltd and MY Insurance Brokers Ltd all of which are licensed by the Malta Financial Services Authority. The Group also includes Quadrant Ltd, a property management and consultancy company.
Highlights
Profit before tax and amortisation of goodwill of Lm1,363,954 for 2004 (2003: Lm512,000)
Profit after charging tax and amortisation of goodwill of Lm904,373 for 2004 (Lm235,167)
Earnings per share increased to 6c8 in 2004 (1c8)
Net asset base at December 31, 2004, totalled Lm9,970,029 (Lm8,996,432)
Return on shareholders' funds of 9.07% (2.61%)
200% increase over 2003 by way of a final gross dividend payment of Lm396,226 (net dividend of Lm257,547) representing a gross dividend of 3c per share equivalent to a net payment of 1c95 per share