GlobalCapital in negative territory as depressed investment markets affect equity

GlobalCapital's consolidated financial results for the current financial year will remain in negative territory impact adversely the equity at both Company and subsidiary levels, the company said in its interim statement.

The company directors said they remain totally focused on the  necessary measures for the group to return to profitability as soon as possible, and that they were actively monitoring the balance sheet position of the group to maintain appropriate capital and liquidity levels and meet regulatory requirements for 2012.

Revenue results continue to be mixed, with GlobalCapital Life Insurance experiencing sustained growth in its regular premium revenue during 2011 alongside a decline in single premium business; whilst insurance claims including partial and total policy surrenders increased compared to the same period in 2010.

Revenues of GlobalCapital Financial Management Limited and GlobalCapital Insurance Brokers Limited on the other hand have declined compared with 2010, while GlobalCapital Health Insurance Agency Ltd has registered positive revenue growth between June and November 2011.

The company said the prevailing political and economic turmoil in the Eurozone and the resulting instability in all markets continue to have an adverse effect on the fair valuations of the Group's portfolio of financial investments, on investor confidence, and on the demand for the Group's financial products.

"The Group has a well diversified investment portfolio predominantly focused on the local market but with significant property holdings mainly in the EU. There is no direct exposure to Greek or Italian sovereign debt. As a result the Group is likely to benefit once the financial and real estate property markets start to recover, but market uncertainty and volatility seems likely to continue in the near term."

GlobalCapital said the depressed investment markets and the aggressive competitive environment within which it operated had presented significant challenges and hampered the group's endeavours to return to positive operating results during the current financial year.