Last checked at 20 Apr 2009 12:48
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 2008.
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$258,000 compared with a loss of US$217,000 in previous year. Loss per share was US 2 cents (2007: Loss per share of US 2 cents).
THE YEAR IN REVIEW
For the year ended 31 December 2008, the Group incurred a net loss of US$258,000. This compares to the net loss of US$217,000 for the last year. At the end of 31 December 2008, Group shareholders' funds stood at US$1.71 million as compared to US$1.96 million at the end of December 2007.
PROSPECTS
During the year, the Board looked at few investment opportunities in Asia but found those valuation were relatively high. The financial crisis in the fourth quarter of 2008 saw prices returned to a more reasonable level and hence a better investment environment. The Board will continue to explore opportunities in the financial services and other new suitable business. Shareholders will be informed as soon as the Board has evaluated a suitable business proposition.
Alastair GUNN-FORBES
Non-Executive Chairman
20 April 2009
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
| Year ended 31 December | |||||
| Notes | 2008 | 2007 | |||
| US$'000 | US$'000 | ||||
|
| |||||
| Interest income | 3 | 39 | |||
| Staff costs | (34) | (40) | |||
| Other expenses | (227) | (216) | |||
| Loss before tax | (258) | (217) | |||
| Income tax expense | 3 | - | - | ||
| Loss for the year | (258) | (217) | |||
| Loss per share - basic and diluted | 4 | (2) cents | (2) cents | ||
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2008
| Notes | 2008 | 2007 | |||
| US$'000 | US$'000 | ||||
| Current assets | |||||
| Cash and bank balances | 2,045 | 2,282 | |||
| Current liabilities | |||||
| Other payables and accruals | (340) | (319) | |||
| Net current assets | 1,705 | 1,963 | |||
| Net assets | 1,705 | 1,963 | |||
| Capital and reserves | |||||
| Share capital | 5 | 13 | 13 | ||
| Contributed surplus | 6 | 9,646 | 9,646 | ||
| Special reserve | 6 | 625 | 625 | ||
| Accumulated losses | 6 | (8,579) | (8,321) | ||
| Equity shareholders' funds | 1,705 | 1,963 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
| Year ended 31 December | |||||||||
| 2008 | 2007 | ||||||||
| US$'000 | US$'000 | ||||||||
| Cash flows from operating activities | |||||||||
| Loss for the year | (258) | (217) | |||||||
| Interest income | (3) | (39) | |||||||
| (261) | (256) | ||||||||
| Movements in working capital | |||||||||
| Decrease in other receivables | - | 2 | |||||||
| Increase/(decrease) in other payables and accruals | 21 | (9) | |||||||
| Net cash used in operating activities | (240) | (263) | |||||||
| Cash flows from investing activities | |||||||||
| Interest received | 3 | 39 | |||||||
| Net cash generated from investing activities | 3 | 39 | |||||||
| Net decrease in cash and cash equivalents | (237) | (224) | |||||||
| Cash and cash equivalents as at 1 January | 2,282 | 2,506 | |||||||
| Cash and cash equivalents as at 31 December Cash and bank balances | 2,045 | 2,282 | |||||||
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2008
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 March 2007. 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 authorization of these financial statements, the following Standards and Interpretations were in issue but not yet effective:
IAS 1 (Revised) Presentation of Financial Statements 1
IAS 23 (Revised) Borrowing Costs 1
IAS 27 (Revised) Consolidated and Separate Financial Statements 2
IFRS 8 Operating Segments 1
IFRIC - Int 15 Agreements for the Construction of Real Estate 1
1 Effective for annual periods beginning on or after 1 January 2009.
2 Effective for annual periods beginning on or after 1 July 2009.
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 2008 and 31 December 2007 as the Group has only maintained a minimum operation during the years.
3. INCOME TAX EXPENSES
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 recognized 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 2008 (2007: Nil).
The taxation for the year can be reconciled to the loss before tax per the consolidated income statement as follows:
| Year ended 31 December | ||||
| 2008 | 2007 | |||
| US$'000 | US$'000 | |||
| Loss before tax | 258 | 217 | ||
| Loss before tax calculated at 16.5% (2007:17.5%) | 43 | 38 | ||
| Tax effect of estimated tax losses not recognized | (44) | (45) | ||
| Tax effect of income not taxable for tax purpose | 1 | 7 | ||
| 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 | ||||
| 2008 | 2007 | |||
| Loss for the year | (US$258,000) | (US$217,000) | ||
| Weighted average number of shares in issue | 13,367,290 | 13,367,290 | ||
| Loss per share - basic and diluted | (2) cents | (2) cents | ||
No diluted effect in loss per share as no diluting events occurred during either year.
5. SHARE CAPITAL
| US$ | |||
| Authorized: | |||
| Ordinary shares of US$0.001 each as at 1 January 2007, 31 December 2007 | |||
| and 31 December 2008 | 50,000,000 | ||
| Called up, issued and fully paid: | |||
| Ordinary shares of US$0.001 each as at 1 January 2007, 31 December 2007 | |||
| and 31 December 2008 | 13,367 | ||
6. RESERVES
Movements on reserves were as follows:
| | Contributed surplus | | Special reserve | | Accumulated losses | | Currency translation reserve |
| | US$’000 | | US$’000 | | US$’000 | | US$’000 |
| The Group | | | | | | | |
| Balance as at 1 January 2007 | 9,646 | | 625 | | (8,104) | | - |
| Loss for the year | - | | - | | (217) | | - |
| | | | | | | | |
| Balance as at 1 January 2008 | 9,646 | | 625 | | (8,321) | | - |
| Loss for the year | - | | - | | (258) | | - |
| | | | | | | | |
| Balance as at 31 December 2008 | 9,646 | | 625 | | (8,579) | | - |