Worldsec Ld26 April 2007
2007-04-26 12:38:30
Worldsec Ld - Preliminary Results
RNS Number:5760V
Worldsec Ld
26 April 2007
Worldsec Limited
Preliminary Statement of Annual Results
Worldsec Limited is pleased to release today its preliminary statement of annual
results for the year ended 31 December 2006.
The Chairman's Statement and extracts from the audited financial statements are
reproduced below.
Investor Relations
For further information please contact:
In Hong Kong
Mr. Henry Ying Chew CHEONG
Executive Director and Deputy Chairman
+852 2971 4280
CHAIRMAN'S STATEMENT
RESULTS
The audited consolidated loss for the year was US$1,010,000 compared with a loss
of US$467,000 in previous year. Loss per share was US 8 cents (2005: Loss per
share of US 3 cents).
THE YEAR IN REVIEW
The loss of US$1,010,000 for the year was due to the realization of the currency
translation reserve of US$1,033,000 to the income statements under the
requirement of International Accounting Standard 21. Excluding this one-off
release of reserve, the Group recorded an operating income of US$23,000; this
compares with an operating loss of US$467,000 in 2005. This operating income was
the result of the combination of net cost savings of US$280,000 and the write
back of over-provision of expenses carried forward from prior years.
In March 2006, the Group completed the sale of its nominee subsidiary which had
been assigned the right to collect the remaining debts for a consideration of
US$271,000 to a third party.
PROSPECTS
In line with the direction of the new key shareholder to maintain the Group in
the securities investment business, the Board is examining suitable business
opportunities. Shareholders will be informed and/or approval sought (as
necessary) as soon as the Group decides on the future direction of its business.
Alastair GUNN-FORBES
Non-Executive Chairman
26 April 2007
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
Year ended 31 December
Notes 2006 2005
US$'000 US$'000
Gain on disposal of investments - 20
Recovery of doubtful receivables 16 148
Interest income 42 19
Other income 275 21
333 208
Staff costs (89) (289)
Other expenses (221) (300)
23 (381)
Loss on disposal of subsidiaries - (85)
Finance costs - (1)
Currency translation reserve released upon disposal of (1,033) -
subsidiaries
Loss before tax (1,010) (467)
Income tax expense 3 - -
Loss for the year (1,010) (467)
Loss per share - basic and diluted 4 (8) cents (3) cents
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2006
Notes 2006 2005
US$'000 US$'000
Current assets
Trade and other receivables 2 278
Cash and bank balances 2,506 2,293
2,508 2,571
Current liabilites
Other payables and accruals (328) (414)
Net current assets 2,180 2,157
Net assets 2,180 2,157
Capital and reserves
Share capital 5 13 13
Contributed surplus 6 9,646 9,646
Special reserve 6 625 625
Accumulated losses 6 (8,104) (7,094)
Currency translation reserve 6 - (1,033)
Equity shareholders' funds 2,180 2,157
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
Year ended 31 December
2006 2005
US$'000 US$'000
Cash flows from operating
activities
Loss for the year (1,010) (467)
Finance costs - 1
Interest income (42) (19)
Loss on disposal of subsidiaries - 85
Gain on disposal of investments - (20)
Dividend received - (6)
Currency translation reserve 1,033 -
released
upon disposal of subsidiaries
(19) (426)
Movements in working capital
Decrease in trade and other 17 1,527
receivables
(Decrease)/increase in other payables and accruals (86) 8
Cash (used in)/generated from operations (88) 1,109
Interest paid - (1)
Net cash (used in)/generated from operating activities (88) 1,108
Cash flows from investing activities
Interest received 42 19
Dividend received - 6
Proceeds from disposal of subsidiaries 259 363
Proceeds from disposal of investments - 20
Net cash generated from investing activities 301 408
Net increase in cash and cash equivalents 213 1,516
Cash and cash equivalents as at 1 January 2,293 777
Cash and cash equivalents as at 31 December 2,506 2,293
Cash and bank balances
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2006
1. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
In the current year, the Group has adopted all of the new and revised Standards
and Interpretations issued by the International Accounting Standards Board (the
"IASB") and the International Financial Reporting Interpretations Committee (the
"IFRIC") of the IASB that are relevant to its operations and effective for
annual reporting periods beginning on 1 January 2006. The adoption of these new
and revised Standards and Interpretations has no significant impact on the
financial statements of the Group.
At the date of authorisation of these financial statements, the following
Standards and Interpretations were in issue but not yet effective:
IAS 1 (Amendment) Capital Disclosures (1)
IFRS 7 Financial Instruments: Disclosures(1)
IFRIC 7 Applying the Restatement Approach under IAS 29
Financial Reporting in Hyperinflationary Economies(2)
IFRIC 8 Scope of IFRS 23
IFRIC 9 Reassessment of Embedded Derivatives(4)
IFRIC 10 Interim Financial Reporting and Impairment(5)
IFRIC 11 Group and Treasury Share Transactions(6)
IFRIC 12 Service Concession Arrangements(7)
(1) Effective for annual periods beginning on or after 1 January 2007
(2) Effective for annual periods beginning on or after 1 March 2006
(3) Effective for annual periods beginning on or after 1 May 2006
(4) Effective for annual periods beginning on or after 1 June 2006
(5) Effective for annual periods beginning on or after 1 November 2006
(6) Effective for annual periods beginning on or after 1 March 2007
(7) Effective for annual periods beginning on or after 1 January 2008
The directors anticipate that the adoption of these Standards and
Interpretations in the future periods will have no material financial impact on
the financial statements of the Group.
2. BUSINESS AND GEOGRAPHICAL SEGMENTS
No business and geographical segment analysis are presented for the years ended
31 December 2006 and 31 December 2005 as the Group has only maintained a minimum
operation during the years.
3. INCOME TAX
No provision for taxation has been made as the Group did not generate any
assessable profit for UK Corporation Tax, Hong Kong Profits Tax and tax in other
jurisdictions.
No deferred tax liabilities are recognised in the financial statements as the
Group and the Company did not have material temporary difference arising between
the tax bases of liabilities and their carrying amounts as at 31 December 2006
(2005: Nil).
The taxation for the year can be reconciled to the loss before tax per the
consolidated income statement as follows:
2006 2005
US$'000 US$'000
Loss before tax 1,010 467
Tax charge at income tax rate of 17.5% 177 82
Tax effect of estimated tax losses not recognised (6) (97)
Tax effect of expenses not deductible for tax purpose (181) (15)
Tax effect of income not taxable for tax purpose 10 30
Total current tax charge for the year - -
4. LOSS PER SHARE
Calculation of loss per share was based on the following:
Year ended 31 December
2006 2005
Loss for the year (US$1,010,000) (US$467,000)
Weighted average number of shares in issue 13,367,290 13,367,290
Loss per share - basic and diluted (8) cents (3) cents
5. SHARE CAPITAL
US$
Authorised:
Ordinary shares of US$0.001 each as at 1 January 2005, 31 December 2005
and 31 December 2006 50,000,000
Called up, issued and fully
paid:
Ordinary shares of US$0.001 each as at 1 January 2005, 31December 2005
and 31 December 2006 13,367
6. RESERVES
Movements on reserves were as follows:
Currency
Contributed Special Accumulated translation
surplus reserve losses reserve
US$'000 US$'000 US$'000 US$'000
The Group
Balance as at 1 January 2005 9,646 625 (6,627) (1,033)
Loss for the year - - (467) -
Balance as at 1 January 2006 9,646 625 (7,094) (1,033)
Loss for the year - - (1,010) -
Currency translation reserve released - - - 1,033
upon disposal of subsidiaries
Balance as at 31 December 2006 9,646 625 (8,104) -
This information is provided by RNS
The company news service from the London Stock Exchange
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