Preliminary Statement
April 26 2006 - 11:59AM
UK Regulatory
RNS Number:0490C
Worldsec Ld
26 April 2006
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 2005.
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
Deputy Chairman
+852 2971 4280
CHAIRMAN'S STATEMENT
RESULTS
The audited consolidated loss for the year was US$467,000 compared with a profit
for the previous year amounted to US$522,000. Loss per share based on the
weighted number of shares in issue during the year was US 3 cents (2004:
Earnings per share of US 4 cents).
THE YEAR IN REVIEW
During the year under review, the Group maintained a minimum operation to
continue the realization of its remaining assets. The most significant income
received by the Group was US$148,000 resulting from further recovery of doubtful
debts.
In August 2005, the Group completed the sale of its Philippines subsidiary for a
consideration of USD363,000 net of expenses. This signifies our complete exit
from the Philippines.
Subsequent to the year end, the Group disposed to a third party its nominees
subsidiary which has been assigned the right to collect the remaining debtors,
for a consideration of US$271,000 thus completing our debt recovery programme.
PROSPECTS
On 6 December 2005, the Bank of Tokyo-Mitsubishi, Ltd., ("BTM"), a key
shareholder of the Company, sold its entire interest in 3,225,000 ordinary
shares, representing approximately 24.1% shareholding in the Company, to Grand
Acumen Holdings Limited ("GAH"). GAH is associated with the Mr. Henry Ying Chew
Cheong, the Company's Deputy Chairman. The Board has been informed by GAH its
intention to maintain the Group in the securities investment businesses which,
will change our current strategy of ceasing all business operations.
Shareholders will be informed of the relevant development in future.
I intend to retire from the board effective from the conclusion of the
forthcoming general meeting. Mr. Paul Kwok Kin Cheng, who has been managing the
company since 2003 and responsible for the realization of the Group's assets,
will also retire from the board on 27 April, 2006 and Mr. Henry Ying Chew Cheong
will be re-designated as an executive director on the same date.
David Archibald Evelyn Lyle
Non-Executive Chairman 26 April 2006
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
Year ended 31 December
Notes 2005 2004
US$'000 US$'000
Revenue 2 - 11
Gain on disposal of investments 20 602
Recovery of doubtful receivables 148 670
Interest income 19 21
Other income 21 94
___________ ___________
208 1,398
Staff costs (289) (381)
Other expenses (300) (526)
___________ ___________
(381) 491
(Loss) Gain on disposal of (85) 36
subsidiary
Finance costs (1) (5)
___________ ___________
(Loss) Profit before tax (467) 522
Tax charge 3 - -
___________ ___________
(Loss) Profit for the year (467) 522
___________ ___________
(Loss) Earnings per share - 4 (3) cents 4 cents
basic and diluted
___________ ___________
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2005
Note 2005 2004
US$'000 US$'000
(Restated)
Current assets
Investments - 448
Debtors 278 1,805
Bank deposits and cash 2,293 777
___________ ___________
2,571 3,030
Creditors: Amounts falling due within one (414) (406)
year
___________ ___________
Net current assets 2,157 2,624
___________ ___________
Net assets 2,157 2,624
___________ ___________
Capital and reserves
Called up share capital 5 13 13
Contributed surplus 5 9,646 9,646
Special reserve 5 625 625
Accumulated losses 5 (7,094) (6,627)
Currency translation 5 (1,033) (1,033)
reserve
___________ ___________
Equity shareholders' funds 2,157 2,624
___________ ___________
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
Year ended 31 December
2005 2004
US$'000 US$'000
(Restated)
(Loss) Profit (467) 522
before tax
Adjustment for :
Finance costs 1 5
Interest income (19) (21)
Loss(Gain) on disposal of 85 (36)
subsidiary
Gain on disposal of (20) (602)
investments
Dividend received (6) -
(426) (132)
Operating cash flows before movements in working capital
Decrease in debtors 1,527 1,080
Decrease in other debtors and - 99
prepayments
Decrease in trade creditors - (1,293)
Increase (Decrease) in other creditors 8 (734)
and accruals
Cash generated from (used in) 1,109 (980)
operations
Interest paid (1) (5)
NET CASH FROM (USED IN) OPERATING ACTIVITIES 1,108 (985)
Investing Activities
Interest received 19 21
Dividend received 6 -
Proceeds on disposal of 363 410
subsidiary
Proceeds on disposal of 20 3,683
investments
NET CASH FROM INVESTING ACTIVITIES 408 4,114
FINANCING ACTIVITIES
Distribution paid - (9,357)
NET CASH USED IN FINANCING ACTIVITIES - (9,357)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,516 (6,228)
CASH AND CASH EQUIVALENTS AT 1 JANUARY 777 7,001
Effect of foreign exchange rate changes - 4
CASH AND CASH EQUIVALENTS AT 31 DECEMBER 2,293 777
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2005
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
("IFRIC") of the IASB that are relevant to its operations and effective for
accounting periods beginning on 1 January 2005. The adoption of these new and
revised Standards and Interpretations has resulted in the changes to the Group's
accounting policies in the following area that have affected the amounts
reported for the current or prior years:
Investment Properties
In the current year, the Group has, for the first time, applied International
Accounting Standard 40 Investment Property ("IAS 40"). The Group has elected to
use the fair value model to account for its investment properties which requires
gains or losses arising from changes in the fair value of investment properties
to be recognised directly in consolidated income statement for the year in which
they arise. In previous years, investment properties under the predecessor
Standard were measured at open market values, with revaluation surplus or
deficits credited or charged to revaluation reserve unless the balance on this
reserve was insufficient to cover a revaluation decrease, in which case the
excess of the revaluation decrease over the balance on the investment property
revaluation reserve was charged to the income statement. Where a decrease had
previously been charged to the income statement and a revaluation surplus
subsequently arose, that increase was credited to the income statement to the
extent of the decrease previously charged. The Group has applied IAS 40
retrospectively. Accordingly, the amount held in the revaluation reserve at 1
January 2004 has been transferred to the Group's accumulated losses. Comparative
figures for 2004 have been restated.
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 Disclosures1
IAS 19 (Amendment) Actuarial Gains and Losses, Group Plans and
Disclosures2
IAS 21 (Amendment) Net Investment in a Foreign Operation2
IAS 39 (Amendment) Cash Flow Hedges of Forecast Intragroup Transactions2
IAS 39 (Amendment) The Fair Value Option2
IAS 39 and IFRS 4 (Amendments)Financial Guarantee Contracts2
IFRS 6 Exploration for and Evaluation of Mineral Resources2
IFRS 7 Financial Instruments: Disclosures1
IFRIC 4 Determining whether an Arrangement contains a Lease2
IFRIC 5 Rights to Interests Arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds2
IFRIC 6 Liabilities arising from Participating in a
Specific Market -
Waste Electrical and Electronic Equipment3
IFRIC 7 Applying the Restatement Approach under IAS 29
Financial
Reporting in Hyperinflationary Economies4
IFRIC 8 Scope of IFRS 25
IFRIC 9 Reassessment of Embedded Derivatives6
1 Effective for annual periods beginning on or after 1 January 2007
2 Effective for annual periods beginning on or after 1 January 2006
3 Effective for annual periods beginning on or after 1 December 2005
4 Effective for annual periods beginning on or after 1 March 2006
5 Effective for annual periods beginning on or after 1 May 2006
6 Effective for annual periods beginning on or after 1 June 2006
The directors anticipate that the adoption of these Standards and
Interpretations in the future periods will have no material 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 2005 and 31 December 2004 as the Group has only maintained a minimum
operation to continue the realization of its remaining assets in Hong Kong.
3. TAX CHARGE
No provision for taxation has been made as the Group did not generate any
assessable profit for UK Corporation Tax, Hong Kong Profit Tax and tax in other
jurisdictions.
The taxation for the year can be reconciled to the (loss) profit before tax per
the consolidated income statement as follows:
2005 2004
US$'000 US$'000
(Loss) Profit before tax (467) 522
___________ ___________
Tax charge (credit) at income tax rate of 17.5% 82 (91)
Tax effect of estimated tax losses not recognized (97) (29)
Tax effect of expenses not deductible for tax (15) (1)
purpose
Tax effect of income not taxable for tax purpose 30 121
___________ ___________
Total current tax charge for the year - -
___________ ___________
4. (LOSS) EARNINGS PER SHARE
Calculation of (loss) earnings per share was
based on the following:
Year ended 31 December
2005 2004
(Loss) Profit for the year (US$467,000) US$522,000
________________ ________________
Weighted average number of shares in issue 13,367,290 13,367,290
________________ ________________
(Loss) Earnings per share - basic and (3) cents 4 cents
diluted
________________ ________________
5. CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL
US$
Authorised:
Ordinary shares of US$0.001 each as at 1 January 2004,
31 December 2004 and 31 December 2005 50,000,000
_______________
Called up, issued and fully paid:
Ordinary shares of US$0.001 each as at 1 January 2004,
31December 2004 and 31 December 2005 13,367
_______________
RESERVES
Movements on reserves were as follows:
Contributed Special Accumulated Revaluation Currency
surplus reserve losses reserve translation
reserve
US$'000 US$'000 US$'000 US$'000 US$'000
The Group
Balance at 1 19,003 625 (7,430) 281 (986)
January 2004
Effect of change in
accounting policy
(Note 1) - - 281 (281) -
At restated 19,003 625 (7,149) - (986)
Profit for the year - - 522 - -
Translation - - - - (47)
adjustment
Distribution paid (9,357) - - - -
(Note 6)
Balance at 1 9,646 625 (6,627) - (1,033)
January 2005
Loss for the year - - (467) - -
Balance at 31 9,646 625 (7,094) - (1,033)
December 2005
6. DISTRIBUTIONS
No distribution is made during the year. Distribution out of the contributed
surplus account of US$0.70 per share totaling US$9,357,103 was paid during the
year ended 31 December 2004.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKAKQPBKDKQB
Worldsec Ld (LSE:WSL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Worldsec Ld (LSE:WSL)
Historical Stock Chart
From Jul 2023 to Jul 2024
