Issue link: https://maltatoday.uberflip.com/i/554768
maltatoday, WEDNESDAY, 12 AUGUST 2015 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Profi t turnaround for GlobalCapital for fi rst time in seven years GlobalCapital records profi t despite continuing challenges For the fi rst time in seven years, GlobalCapital plc is reporting a turnaround to profi t-making opera- tions for the fi nancial year ending on 31 December, 2014. The group reported a profit after taxation of €222,671 compared to a prior year loss after taxation of €3,661,194. "A careful implementation of the aggressive transformation strategy launched in early June 2014 helped improve the results of all the regulated businesses forming part of the group," GlobalCapital said. "The aim of this plan was to ensure the long-term sustainability and profitability of the group primarily by reducing overall operational costs and increasing revenues from the group's core business activity, life and health insurance." The adverse impact of one-off restructuring and redundancy costs was reflected in the 2014 financial results but the group still registered an encouraging profit after taxation for the full year under review. Life insurance business registered significant growth, from a loss of €505,614 in 2013 to €3,146,443 in profit for 2014. The profit for the year is inclusive of a gross dividend from the company's participating holding amounting to €1,086,154. The health insurance agency's profit after taxation for 2014 reduced to €574,328 from €930,974 in 2013, the result of an increase in the tax charge over the previous year together with an increase in the level of claims and reduction in premiums, which had an adverse impact on the profit commission recognised by the agency. GlobalCapital directors said they were aware that more work was required to eliminate the drag of legacy issues on the group's bottom line and to increase overall liquidity. The group's property portfolio registered substantially smaller impairments in 2014 amounting to €323,090, compared to €3,174,376 in 2013, arising on properties that were sold after year-end and which have adversely impacted profitability. "The group remains actively engaged in disposing of immoveable assets that are in excess to requirements. Substantial progress has already been registered in this area and a number of promise-of-sale agreements on certain properties have been signed. The group is currently in advanced negotiations with potential buyers to dispose of other excess property and the aim is to conclude all disposals by end of 2016," the company said. Its investment company recorded a smaller loss of €464,224 in 2014 compared to a loss of €1,109,322 in the previous financial year. Mitigation measures led to a reduction in losses by €645,098 compared to the previous year, but the investment company increased year-on-year revenue by 14%. On the other hand, the increase in revenue was partially offset by an increase in costs, mostly one- off costs incurred to reduce future operational costs, and a change in provisioning policy resulting in a higher provisioning charge to the company. Earlier this year, the Financial Services Commission in Mauritius appointed conservators for BAI Co (Mauritius) Ltd which holds 48.45% of the ordinary shares of GlobalCapital plc, and in in July 2015 a share purchase agreement was entered into between EIP plc and the conservator for the transfer of the 48.45% shareholding subject to certain conditions. "As a result of these developments, the present reconstituted board has reversed the prior board decision to divest of the group's investment and advisory function, having been informed that it is the intention of the prospective shareholder to expand the investment operation both locally and in other European territories," GlobalCapital said. "While it is positive to note the profit registered for 2014, I firmly believe that the entire positive impact of the aggressive restructuring exercise undertaken throughout the second half of 2014 is yet to manifest itself to the full in the financial results for 2015," CEO Reuben Zammit said. "This turnaround in 2014 will not relax or relent our efforts to continue consolidating the group's operations. We remain vigilant for changing market conditions, cost- control and revenue generation. Our work is far from over and more remains to be accomplished across the group's core business activities and asset portfolio to ensure the long-term sustainability and profitability of the group." Zammit was appointed group CEO in June 2014, specifically mandated to implement the transformation strategy and to help the group return to profitability. Emirates and Bangkok Airways announce codeshare agreement Emirates, a global connector of peo- ple and places, has announced a new codeshare agreement with Thailand- based Bangkok Airways, a regional boutique airline, which is set to open up new destinations for Bangkok Air- ways and Emirates passengers from Europe, Australasia and South-East Asia regions. The new agreement will see Emirates' code added to 19 Bangkok Airways routes across a number of Southeast Asian cities, adding a total of 14 new destinations to the Emirates global network and seamlessly connecting customers to new tourist destinations such as Koh Samui and Chiang Mai in Thailand, Siem Reap in Cambodia, and Yangon and Mandalay in Myanmar. Passengers travelling to Bangkok Suvranabhumi, Phuket, Kuala Lumpur and Singapore will be able to take advantage of Bangkok Airways codeshare routes. This agreement also offers a choice of stopover in Hong Kong, Kuala Lumpur, Singapore and Phuket for Emirates passengers travelling to and from Koh Samui. The Bangkok Airways flights will seamlessly connect with Emirates flights from Dubai and beyond, including European gateways, and will also provide increased connectivity for passengers from Australia and New Zealand. Thierry Antinori, Emirates' executive vice president and chief commercial officer, said: "Our new codeshare agreement with Bangkok Airways will provide our passengers with increased choice, flexibility and ease of connection to different cities across Southeast Asia to and from Dubai, ultimately offering a smoother, more convenient travel experience. "Emirates already offers six daily services to Bangkok, and from December, four of these services will be operated by our flagship A380 aircraft. This provides many options to connect to the region as part of our new codeshare. Together with Bangkok Airways, we are taking more people to more places and opening up new South East Asian destinations to people around the world. "The region has some of the most stunning tourist and World Heritage sites, including Schwedagon Pagoda and Angkor Wat, and these sites will now be more accessible to Emirates travellers. It's an important partnership as we continue to expand the destinations available to Emirates' passengers." Bangkok Airways' Senior Vice President Network Management, Peter Wiesner, said: "This new codeshare agreement with Emirates is yet another important milestone and an exciting development in the continued growth of Bangkok Airways. It allows us to give our customers around the region convenient, seamless access to Dubai and onwards to the rest of the world through our extensive regional route network, direct from their local airport." Bangkok Airways operates 31 routes to 24 Asian airports. Emirates customers travelling on Bangkok Airways will enjoy the same luggage allowance they are entitled to on Emirates, checked through to their final destination. All Emirates' passengers on Bangkok Airways flights will receive boarding passes on check-in at their first international departure point for connecting international services. Emirates currently has codeshare agreements in place with 15 partners around the world. With the new codeshare partnership with Bangkok Airways, Emirates customers can now enjoy connectivity to 104 destinations in Asia Pacific, including those offered by Qantas and Jetstar. Emirates operates a daily scheduled flight between Dubai and Malta via Larnaca, Cyprus. For further information and flight schedules, one can visit the site: www.emirates.com/ mt VISA Europe CEO visits Bank of Valletta The strong relationship that has de- veloped over the years between Bank of Valletta, the largest card issuer in Malta, and Visa Europe was under- lined when Nicolas Huss, CEO of Visa Europe, paid a visit during his recent visit to Malta, to the House of the Four Winds in Valletta, where he was welcomed by Charles Borg, CEO of Bank of Valletta. Present for the meeting were Berna Ülman, executive director for South Eastern Europe, Catalin Cretu, subregional manager, and Efraim Preisler, senior sales executive at Visa Europe. Bank of Valletta was also represented by Michael Galea, chief electronic banking officer, Ivo Camilleri, executive head electronic banking, and John Pace, executive head, cards business. Charles Borg spoke about the bank's strategic role in the Maltese economy. "Being the largest financial institution in Malta and a major contributor to the communities in which we operate, we are committed to continue to support the Maltese economy. We are focused on continuing to provide our customers with innovative banking and payments solutions, both physical and digital, so as to facilitate seamless interactions according to the client's preferences," Borg said. Thanking Bank of Valletta for the warm welcome, Huss said Visa Europe was committed to helping Malta fully grasp the opportunities provided by electronic payments. "We look forward to continuing our work with members such as the Bank of Valletta, and other partners across the ecosystem, to make payments simple, smart and secure for all consumers and businesses." Bank of Valletta CEO Charles Borg (left) and Visa Europe CEO Nicolas Huss