Global reports Q1 losses

Global Consolidator, formerly Globalsoft, reported that during the first quarter of 2005 it lost CYP 150.527 compared to CYP 367.183 losses in the same period a year ago, but managed to stabilise the situation with respect to ongoing operations, where losses were the same.

A year ago in the first quarter, GLC had lost CYP 141.510 from ongoing operations and CYP 225.673 from operations that were terminated in the first quarter of 2004.

Total turnover during the first quarter fell to CYP 1.97 mln from CYP 2.75 mln a year ago, but gross profits improved to CYP 679.481 from CYP 543.091 with respect to ongoing operations.

Operating losses amounted to CYP 150.310, which were further burdened by CYP 16.040 in finance costs, but helped by positive taxation of CYP 15.823, resulting in net losses of CYP 150.527 for the quarter. Losses per share were 0.95 cent compared to 2.32 cent.

With respect to the IT division, Global announced total turnover amounted to CYP 713k vs. CYP 1.9 mln a year ago, but the unit turned profitable, reporting profits of CYP 202k vs. CYP 71k losses a year ago.

The Entertainment & Leisure division (4 units) reported total income of CYP 273k vs. CYP 148k a year ago, with profits of CYP 14k vs. a loss of CYP 122k a year ago.

The Global Bet, fixed odds division with 5 units island wide reported turnover amounting to CYP 916k vs. CYP 641k a year ago, with losses declining to CYP 75k vs. CYP 213k a year ago. Turnover of the division may be negatively affected following a decision by the company to scrap the absorbing of the bet tax, amounting to 25%, effective April 10, 2005. In an effort to grab market share when it commenced operations, Global Bet was absorbing and in effect paying the 25% bet tax on fixed odds, instead of imposing it on its clients. The scrapping of the move will however help boost profits.

The Consultancy & Training division reported total income of CYP 27k vs. CYP 36k while other divisions had minimal impact on the overall totals.