RNS Number:5588J
Worldsec Ld
27 September 2006
Worldsec Limited
Interim Report for the six months ended 30 June 2006
The Directors submit the interim report on Worldsec Limited (the "Company") and
its subsidiaries (collectively known as the "Group") for the six months ended 30
June 2006 (the "Period").
For the six months ended 30 June 2006, the Group had a net loss of US$1,166,000
comprised of an operating loss of US$133,000 and the realization of US$1,033,000
standing on the currency translation reserve to the income statements. This
currency translation reserve was the cumulative exchange differences arisen from
the translation of the Group's various foreign operating subsidiaries
denominated in the respective local currencies into U.S. dollars in the
consolidated financial statements in prior years. The realization of this
reserve to the income statements in this financial period is in accordance with
the International Accounting Standard 21 and has no impact on the Group's net
asset value. Excluding this one-off release of the reserve, the Group's
operating loss of US$133,000 for the six months represented a decline in loss of
approximately 39% when compared with an operating loss of US$218,000 for the
same period last year. The shareholders' funds of the Group stood at US$2.02
million at the end of June 2006, compared to US$2.16 million at the end of
December 2005.
Noting the intention of Grand Acumen Holdings Limited, the new key shareholder,
to maintain the Group in the securities investment businesses, the Board is
actively looking into the process to reposition its current strategy.
Shareholders will be informed or approval sought (as necessary) as soon as
discussion comes to fruition.
By order of the Board
Alastair GUNN-FORBES
Non-Executive Chairman
27 September 2006
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2006
Unaudited Audited
Six months ended Year ended
Notes 30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Gain on disposal of investments - 20 20
Recovery of doubtful receivables 16 98 148
Interest income 5 20 2 19
Other income - 23 21
36 143 208
Staff costs (67) (145) (289)
Impairment losses - (87) -
Other expenses (102) (128) (300)
Operating loss (133) (217) (381)
Finance costs 5 - (1) (1)
Loss on disposal of subsidiaries 6 - - (85)
Currency translation reserve
released upon (1,033) - -
disposal of subsidiaries
Loss before tax (1,166) (218) (467)
Tax charge 7 - - -
Loss for the period/year (1,166) (218) (467)
Loss per share - basic and
diluted 8 (9) cents (2) cents (3) cents
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE PERIOD ENDED 30 JUNE 2006
Unaudited Audited
Six months ended Year ended
30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Exchange differences on translation of
foreign Operations - (16) -
Currency translation reserve released
upon disposal of subsidiaries 1,033 - -
Net income/(expense) recognised directly
in Equity 1,033 (16) -
Loss for the period/year (1,166) (218) (467)
Total recognised expense for the
period/year (133) (234) (467)
CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2006
Unaudited Audited
Notes 30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Current assets
Investments 9 - 363 -
Debtors 4 257 278
Bank deposits and cash 2,470 2,166 2,293
2,474 2,786 2,571
Creditors: Amounts falling due 10 (450) (396) (414)
within one year
Net current assets 2,024 2,390 2,157
Net assets 2,024 2,390 2,157
Capital and reserves
Share capital 11 13 13 13
Contributed surplus 12 9,646 9,646 9,646
Special reserve 12 625 625 625
Accumulated losses 12 (8,260) (6,845) (7,094)
Currency translation reserve 12 - (1,049) (1,033)
Equity shareholders' funds 2,024 2,390 2,157
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2006
Unaudited Audited
Six months ended Year ended
Note 30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Loss before tax (1,166) (218) (467)
Adjustment for:
Finance costs - 1 1
Interest income (20) (2) (19)
Dividend received - - (6)
Impairment losses - 87 -
Loss on disposal of subsidiaries 6 - - 85
Gain on disposal of investments - (20) (20)
Currency translation reserve
released upon 1,033 - -
disposal of subsidiaries
Operating cash flows before
movements in working capital (153) (152) (426)
Decrease in trade debtors 15 1,560 1,527
Increase in other debtors and
prepayments - (30) -
Increase/(Decrease) in other
creditors and Accruals 36 (10) 8
Cash (used in)/generated from
operations (102) 1,368 1,109
Interest paid - (1) (1)
NET CASH (USED IN)/FROM OPERATING
ACTIVITIES (102) 1,367 1,108
Investing Activities
Interest received 20 2 19
Dividend received - - 6
Proceeds on disposal of
subsidiaries 259 - 363
Proceeds on disposal of
investments - 20 20
NET CASH FROM INVESTING 279 22 408
ACTIVITIES
NET INCREASE IN CASH AND CASH 177 1,389 1,516
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT 2,293 777 777
BEGINNING OF THE PERIOD/YEAR
CASH AND CASH EQUIVALENTS AT 2,470 2,166 2,293
END OF THE PERIOD/YEAR
Bank deposits and cash
NOTES TO THE INTERIM REPORT
FOR THE PERIOD ENDED 30 JUNE 2006
1. GENERAL INFORMATION
The Company is a public listed company incorporated in Bermuda and its shares
are listed on the London Stock Exchange. The addresses of the registered office
and principal place of business of the Company are disclosed in the corporate
information to the interim report.
2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
In the current period, 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 or after 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 Disclosures1
IFRS 7 Financial Instruments: Disclosures1
IFRIC 7 Applying the Restatement Approach under IAS 29
Financial Reporting in Hyperinflationary Economies2
IFRIC 8 Scope of IFRS 23
IFRIC 9 Reassessment of Embedded Derivatives4
IFRIC 10 Interim Financial Reporting and Impairment5
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
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.
Save as disclosed above, the accounting policies adopted in preparing this
report are consistent with those adopted in preparing the consolidated financial
statements of the Group for the year ended 31 December 2005.
NOTES TO THE INTERIM REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2006
3. BASIS OF PREPARATION
The financial statements have been prepared in accordance with International
Financial Reporting Standards as adopted for use in the European Union. It has
been prepared on a basis other than that of a going concern which includes,
where appropriate, writing down the company's assets to net realisable value.
Provision has also been made for any onerous contractual commitments at the
balance sheet date. The financial statements do not include any provision for
the future costs of terminating the business of the company except to the extent
that such costs were committed at the balance sheet date. Accordingly, all
assets are classified as current assets.
The Group's financial statements consolidate the financial statements of the
Company and the subsidiary undertakings included in the Group.
The results of subsidiaries disposed of during the periods/year are included in
the consolidated income statement up to the effective date of disposal.
4. BUSINESS AND GEOGRAPHICAL SEGMENTS
No business and geographical segment analyses are presented for the periods
ended 30 June 2006 and 30 June 2005 as the Group has only maintained a minimum
operation to continue the realization of its remaining assets in Hong Kong.
5. INTEREST
Unaudited Audited
Six months ended Year ended
30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Interest comprises:
Interest income
Bank interest receivable 20 2 19
Finance costs
Bank loans and overdrafts - (1) (1)
repayable within five years
NOTES TO THE INTERIM REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2006
6. LOSS ON DISPOSAL OF SUBSIDIARIES
During the period, the Group disposed of its entire interests in Worldsec
Nominees International Limited, a company incorporated in the British Virgin
Islands, together with its wholly-owned subsidiary, Worldsec Nominees Limited, a
company incorporated in Hong Kong. In the year ended 31 December 2005, the Group
disposed of its entire interests in Worldsec International Securities
(Philippines) Inc., a company incorporated in Philippines.
The loss on disposal is analysed as
follows:
Unaudited Audited
Six months ended Year ended
30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Loss on disposal of subsidiaries - - (85)
Incidental to the disposal of subsidiaries during the period, the total amount
of currency translation reserve USD1,033,000 has been released to the
consolidated income statement.
7. TAX
No provision for taxation has been made as the Group did not generate any
assessable profits for UK Corporation Tax, Hong Kong Profit Tax and tax in other
jurisdictions.
8. LOSS PER SHARE
Calculation of loss per share was based on the following:
Unaudited Audited
Six months ended Year ended
30.6.2006 30.6.2005 31.12.2005
Loss for the period/year US$(1,166,000) US$(218,000) US$(467,000)
Weighted average number of
shares in issue 13,367,290 13,367,290 13,367,290
Loss per share - basic and diluted (9) cents (2) cents (3) cents
NOTES TO THE INTERIM REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2006
9. INVESTMENTS HELD AS CURRENT ASSETS
Unaudited Audited
30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Investments held as current assets at - 363 -
net realisable value
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Unaudited Audited
30.6.2006 30.6.2005 31.12.2005
US$'000 US$'000 US$'000
Other creditors and accruals 450 396 414
450 396 414
11. SHARE CAPITAL
US$
Authorised:
Ordinary shares of US$0.001 each as at 30 June 2005, 31 December 50,000,000
2005 and 30 June 2006
Called up, issued and fully paid:
Ordinary shares of US$0.001 each as at 30 June 2005, 31 December 13,367
2005 and 30 June 2006
NOTES TO THE INTERIM REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2006
12. RESERVES
Contributed Special Accumulated Currency
surplus reserve losses translation
reserve
US$'000 US$'000 US$'000 US$'000
Balance at 1
January 2005 9,646 625 (6,627) (1,033)
Loss for the
period - - (218) -
Translation
adjustment - - - (16)
Balance at 1
July 2005 9,646 625 (6,845) (1,049)
Loss for the
period - - (249) -
Translation
adjustment - - - 16
Balance at 1
January 2006 9,646 625 (7,094) (1,033)
Loss for the
period - - (1,166) -
Currency
translation
reserve
released upon - - - 1,033
disposal of
subsidiaries
Balance at 30
June 2006 9,646 625 (8,260) -
13. INTERIM REPORT
The interim report will be sent to shareholders on or about 21 October 2006.
CORPORATE INFORMATION
Board of directors
Non-Executive Chairman
Alastair GUNN-FORBES
Executive directors
Henry Ying Chew CHEONG (Deputy Chairman)
Non-executive directors
Mark Chung FONG
HO Soo Ching
Company secretary
Michelle Kei Yim CHEUNG
Registered office address
Canon's Court, 22 Victoria Street, Hamilton HM12, Bermuda
Registration number
EC21466 Bermuda
Principal bankers
The Hong Kong and Shanghai Banking Corporation Limited
1 Queen's Road, Central, Hong Kong
Auditors
Deloitte Touche Tohmatsu, Certified Public Accountants
35th Floor, One Pacific Place, 88 Queensway, Hong Kong
Solicitors
Linklaters
One, Silk Street, London EC2Y 8HQ, England
Principal share registrar and transfer office
The Bank of Bermuda Limited
Bank of Bermuda Building, 6 Front Street, Hamilton HM11DX, Bermuda
International branch registrar
Capita IRG (Offshore) Limited
Victoria Chambers, Liberation Square, 1/3 the Esplanade, St Helier, Jersey,
Channel Islands
United Kingdom transfer agent
Capita Registrars
The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England
Investor relations
For further information about Worldsec Limited, please contact:
Executive director
Henry Ying Chew CHEONG
Worldsec Group
6th Floor, New Henry House, 10 Ice House Street, Central, Hong Kong
This information is provided by RNS
The company news service from the London Stock Exchange
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