Worldsec Regulatory News (WSL)

25 Apr 2008 12:23

Worldsec Ld25 April 2008 Worldsec Limited Preliminary Statement of Annual Results Worldsec Limited is pleased to release today its preliminary statement of annualresults for the year ended 31 December 2007. The Chairman's Statement and extracts from the audited financial statementsare reproduced below. Investor Relations For further information please contact: In Hong KongMr. Henry Ying Chew CHEONGExecutive Director and Deputy Chairman+852 2971 4280 CHAIRMAN'S STATEMENT RESULTS The audited consolidated loss for the year was US$217,000 compared with a lossof US$1,010,000 in previous year. Loss per share was US 2 cents (2006: Loss pershare of US 8 cents). THE YEAR IN REVIEW For the year ended 31 December 2007, the Group incurred a net loss ofUS$217,000. This compares to the net loss of US$1,010,000 for the last yearwhich included the realization of US$1,033,000 (being a one time charge)standing on the Group's currency translation reserve to the income statementsand write back of over-provision of expenses carried forward from prior year.The operating expenses was reduced by US$54,000 as compared to last year. At theend of 31 December 2007, Group shareholders' funds stood at US$1.96 millionas compared to US$2.18 million at the end of December 2006. PROSPECTS It is the intention of the Group to remain in the financial services industryand also to seek new suitable business opportunities. This intention is in linewith the wish of the Group's new major shareholders, Grand Acumen HoldingsLimited and HC Investment Holdings Limited (the latter is wholly-owned by Mr.Henry Ying Chew Cheong, the Group's Executive Director). Shareholders will beinformed or if necessary, their approval sought, as soon as the Board hasevaluated a suitable business proposition. Alastair GUNN-FORBES Non-Executive Chairman 25 April 2008 CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2007 Year ended 31 December Notes 2007 2006 US$'000 US$'000Recovery of doubtful receivables - 16Interest income 39 42Other income - 275 39 333Staff costs (40) (89)Other expenses (216) (221) (217) 23Currency translation reserve released upon disposal of - (1,033)subsidiariesLoss before tax (217) (1,010)Income tax expense 3 - -Loss for the year (217) (1,010) Loss per share - basic and diluted 4 (2) cents (8) cents CONSOLIDATED BALANCE SHEETAT 31 DECEMBER 2007 Notes 2007 2006 US$'000 US$'000Current assetsOther receivables - 2Cash and bank balances 2,282 2,506 2,282 2,508 Current liabilitiesOther payables and accruals (319) (328) Net current assets 1,963 2,180 Net assets 1,963 2,180 Capital and reservesShare capital 5 13 13Contributed surplus 6 9,646 9,646Special reserve 6 625 625Accumulated losses 6 (8,321) (8,104) Equity shareholders' funds 1,963 2,180 CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2007 Year ended 31 December 2007 2006 US$'000 US$'000Cash flows from operatingactivitiesLoss for the year (217) (1,010) Interest income (39) (42)Currency translation reserve - (1,033)released upon disposal of subsidiaries (256) (19) Movements in working capitalDecrease in other receivables 2 17Decrease in other payables and accruals (9) (86)Net cash used in operating activities (263) (88) Cash flows from investing activitiesInterest received 39 42Proceeds from disposal of subsidiaries - 259Net cash generated from investing activities 39 301Net increase in cash and cash equivalents (224) 213Cash and cash equivalents as at 1 January 2,506 2,293Cash and cash equivalents as at 31 December 2,282 2,506 Cash and bank balances NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTSFOR THE YEAR ENDED 31 DECEMBER 2007 1. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group has adopted all of the new and revised Standardand 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 effectivefor annual reporting periods beginning on 1 January 2007. The adoption of thesenew and revised Standards and Interpretations has no significant impact on thefinancial statements of the Group. At the date of authorization of these financial statements, the followingStandards and Interpretations were in issue but not yet effective: IAS 1 (Revised) Presentation of Financial Statements 4IAS 23 (Revised) Borrowing Costs 4IFRS 8 Operating Segments 4IFRIC - Int 11 IFRS 2 - Group and Treasury Share Transactions 1IFRIC - Int 12 Service Concession Arrangements 2IFRIC - Int 13 Customer Loyalty Programmes 3IFRIC - Int 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 2 1 Effective for annual periods beginning on or after 1 March 2007.2 Effective for annual periods beginning on or after 1 January 2008.3 Effective for annual periods beginning on or after 1 July 2008.4 Effective for annual periods beginning on or after 1 January 2009. The directors anticipate that the adoption of these Standards andInterpretations in the future periods will have no material financial impact onthe financial statements of the Group. 2. BUSINESS AND GEOGRAPHICAL SEGMENTS No business and geographical segment analysis are presented for the years ended31 December 2007 and 31 December 2006 as the Group has only maintained a minimumoperation during the years. 3. INCOME TAX No provision for taxation has been made as the Group did not generate anyassessable profit for UK Corporation Tax, Hong Kong Profits Tax and tax in otherjurisdictions. No deferred tax liabilities are recognised in the financial statements as theGroup and the Company did not have material temporary difference arising betweenthe tax bases of liabilities and their carrying amounts as at 31 December 2007(2006: Nil). The taxation for the year can be reconciled to the loss before tax per theconsolidated income statement as follows: 2007 2006 US$'000 US$'000 Loss before tax 217 1,010 Tax charge at income tax rate of 17.5% 38 177Tax effect of estimated tax losses not recognised (45) (6)Tax effect of expenses not deductible for tax purpose - (181)Tax effect of income not taxable for tax purpose 7 10 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 2007 2006 Loss for the year (US$217,000) (US$1,010,000) Weighted average number of shares in issue 13,367,290 13,367,290 Loss per share !V basic and diluted (2) cents (8) cents 5. SHARE CAPITAL US$Authorised:Ordinary shares of US$0.001 each as at 1 January 2006, 31 December 2006and 31 December 2007 50,000,000 Called up, issued and fullypaid:Ordinary shares of US$0.001 each as at 1 January 2006, 31December 2006and 31 December 2007 13,367 6. RESERVES Movements on reserves were as follows: Currency Contributed Special Accumulated translation surplus reserve losses reserve US$'000 US$'000 US$'000 US$'000The GroupBalance as at 1 January 2006 9,646 625 (7,094) (1,033)Loss for the year - - (1,010) -Currency translation reserve released - - - 1,033upon disposal of subsidiariesBalance as at 1 January 2007 9,646 625 (8,104) -Loss for the year - - (217) -Balance as at 31 December 2007 9,646 625 (8,321) - This information is provided by RNS The company news service from the London Stock Exchange