GlobalCapital said today that it registered a loss after tax for the year ended 31 December 2010 of €8,251,275 compared to a loss after tax of €760,744 in 2009.

"Results for 2010 were adversely affected by a number of non-cash/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," the group said.

"Furthermore financial investments experienced a slowdown, with net unrealised fair value gains of €621,921 in 2010 compared to net gains of €2,606,856 in 2009."

Within the Group's core operational activity, the insurance sector registered a loss before tax of €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.

The directors are not recommending a dividend.

Commenting on the results, GlobalCapital Chairman Nicholas Ashford-Hodges stated: "The financial results for 2010 reflect the past and not the future and will not impact the steps already taken during the year to focus on the core business of financial services, under new leadership."

"We have a strong balance sheet and the asset base has been only marginally affected by the 2010 results. I am very pleased that we are seeing positive signs of a turnaround and I express full confidence in Mr Khatib, our new CEO, who brings with him a wealth of experience and an excellent track record which will enable us to explore new horizons both in the local market and internationally," added Mr Ashford-Hodges.

Mr Khatib said GlobalCapital had carried out a necessary exercise to remove paper losses and non-recurring items from its accounts, which enabled it to focus on steering the Group operations towards revenue growth and expense management.

"It is expected that 2011 will show an improvement in operational performance as is already being demonstrated in the first part of the year," he added.