Last checked at 20 Apr 2011 11:46
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 2010.
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$187,000 compared with a loss of US$300,000 in previous year. Loss per share was US 1 cent (2009: Loss per share of US 2 cents).
THE YEAR IN REVIEW
For the year ended 31 December 2010, the Group incurred a net loss of US$187,000. This compares to the net loss of US$300,000 for the last year. The operating expenses was reduced by US$105,000 as compared to the last year. At the end of 31 December 2010, Group shareholders' funds stood at US$1.22 million as compared to US$1.41 million at the end of December 2009.
PROSPECTS
During the year, the Board continued to explore opportunity in the financial services and other new suitable business. Shareholders will be informed as soon as the Board has evaluated a suitable business proposition.
Alastair GUNN-FORBES
Non-Executive Chairman
20 April 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2010
Year ended 31 December | ||||
Notes | 2010 | 2009 | ||
US$'000 | US$'000 | |||
Other gain | 4 | - | ||
Staff costs | (24) | (33) | ||
Other expenses | (167) | (267) | ||
Loss before tax | (187) | (300) | ||
Income tax expense | 3 | - | - | |
Loss for the year | (187) | (300) | ||
Total comprehensive income for the year | (187) | (300) | ||
Loss attributable to : | ||||
Owners of the Company | (187) | (300) | ||
Total comprehensive income attributable to : | ||||
Owners of the Company | (187) | (300) | ||
Loss per share - basic and diluted | 4 | (1) cents | (2) cents | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2010
Notes | 2010 | 2009 | |||
US$'000 | US$'000 | ||||
Current assets | |||||
Cash and bank balances | 1,482 | 1,687 | |||
Current liabilities | |||||
Other payables and accruals | (264) | (282) | |||
Net current assets | 1,218 | 1,405 | |||
Net assets | 1,218 | 1,405 | |||
Capital and reserves | |||||
Share capital | 5 | 13 | 13 | ||
Contributed surplus | 9,646 | 9,646 | |||
Special reserve | 625 | 625 | |||
Accumulated losses | (9,066) | (8,879) | |||
Total equity | 1,218 | 1,405 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2010
Share | Contributed | Special | Accumulated | |||||||
capital | surplus | reserve | losses | Total | ||||||
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||||||
Balance as at 1 January 2009 | 13 | 9,646 | 625 | (8,579) | 1,705 | |||||
Loss for the year and total comprehensive income for the year |
- |
- |
- |
(300) |
(300) | |||||
Balance as at 1 January 2010 | 13 | 9,646 | 625 | (8,879) | 1,405 | |||||
Loss for the year and total comprehensive income for the year |
- |
- |
- |
(187) |
(187) | |||||
Balance as at 31 December 2010 | 13 | 9,646 | 625 | (9,066) | 1,218 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2010
Year ended 31 December | |||
2010 | 2009 | ||
US$'000 | US$'000 | ||
Cash flows from operating activities | |||
Loss for the year | (187) | (300) | |
(187) | (300) | ||
Movements in working capital | |||
(Decrease) in other payables and accruals | (18) | (58) | |
Net cash used in operating activities | (205) | (358) | |
Net decrease in cash and cash equivalents | (205) | (358) | |
Cash and cash equivalents as at 1 January | 1,687 | 2,045 | |
Cash and cash equivalents as at 31 December | 1,482 | 1,687 | |
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2010
1. Application OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs)
1.1 New and revised IFRSs applied with no material effect on the consolidated financial statements
The following new and revised IFRSs have also been adopted in these consolidated financial statements. The application of these new and revised IFRSs has not had any material impact on the amounts reported for the current and prior years but may affect the accounting for future transactions or arrangements.
IFRS 3 (revised in 2008) Business Combinations
| IFRS 3(2008) has been applied in the current year prospectively to business combinations for which the acquisition date is on or after 1 January 2010 in accordance with the relevant transitional provisions.
IFRS 3(2008) allows a choice on a transaction-by-transaction basis for the measurement of non-controlling interests at the date of acquisition (previously referred to as 'minority' interests) either at fair value or at the non-controlling interests' share of recognised identifiable net assets of the acquiree.
|
| IFRS 3(2008) changes the recognition and subsequent accounting requirements for contingent consideration. Previously, contingent consideration was recognised at the acquisition date only if payment of the contingent consideration was probable and it could be measured reliably; any subsequent adjustments to the contingent consideration were always made against the cost of the acquisition. Under the revised Standard, contingent consideration is measured at fair value at the acquisition date; subsequent adjustments to the consideration are recognised against the cost of the acquisition only to the extent that they arise from new information obtained within the measurement period (a maximum of 12 months from the acquisition date) about the fair value at the date of acquisition. All other subsequent adjustments to contingent consideration classified as an asset or a liability are recognised in profit or loss.
|
IFRS 3(2008) requires the recognition of a settlement gain or loss when the business combination in effect settles a pre-existing relationship between the Group and the acquiree.
| |
IFRS 3 (revised in 2008) Business Combinations (continued)
| IFRS 3(2008) requires acquisition-related costs to be accounted for separately from the business combination, generally leading to those costs being recognised as an expense in profit or loss as incurred, whereas previously they were accounted for as part of the cost of the acquisition.
|
IAS 27 (revised in 2008) Consolidated and Separate Financial Statements
| The application of IAS 27(2008) has resulted in changes in the Group's accounting policies for changes in ownership interests in subsidiaries.
Specifically, the revised Standard has affected the Group's accounting policies regarding changes in ownership interests in its subsidiaries that do not result in loss of control. In prior years, in the absence of specific requirements in IFRSs, increases in interests in existing subsidiaries were treated in the same manner as the acquisition of subsidiaries, with goodwill or a bargain purchase gain being recognised, when appropriate; for decreases in interests in existing subsidiaries that did not involve a loss of control, the difference between the consideration received and the adjustment to the non-controlling interests was recognised in profit or loss. Under IAS 27(2008), all such increases or decreases are dealt with in equity, with no impact on goodwill or profit or loss.
When control of a subsidiary is lost as a result of a transaction, event or other circumstance, the revised Standard requires the Group to derecognise all assets, liabilities and non-controlling interests at their carrying amount and to recognise the fair value of the consideration received. Any retained interest in the former subsidiary is recognised at its fair value at the date control is lost. The resulting difference is recognised as a gain or loss in profit or loss.
These changes in accounting policies have been applied prospectively from 1 January 2010 in accordance with the relevant transitional provisions.
|
IAS 28 (revised in 2008) Investments in Associates
| The principle adopted under IAS 27(2008) (see above) that a loss of control is recognised as a disposal and re-acquisition of any retained interest at fair value is extended by consequential amendments to IAS 28. Therefore, when significant influence over an associate is lost, the investor measures any investment retained in the former associate at fair value, with any consequential gain or loss recognised in profit or loss.
|
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards - Additional Exemptions for First-time Adopters
| The amendments provide two exemptions when adopting IFRSs for the first time relating to oil and gas assets, and the determination as to whether an arrangement contains a lease.
|
Amendments to IFRS 2 Share-based Payment - Group Cash-settled Share-based Payment Transactions
| The amendments clarify the scope of IFRS 2, as well as the accounting for group cash-settled share-based payment transactions in the separate (or individual) financial statements of an entity receiving the goods or services when another group entity or shareholder has the obligation to settle the award.
|
Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (as part of Improvements to IFRSs issued in 2008)
| The amendments clarify that all the assets and liabilities of a subsidiary should be classified as held for sale when the Group is committed to a sale plan involving loss of control of that subsidiary, regardless of whether the Group will retain a non-controlling interest in the subsidiary after the sale.
|
Amendments to IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged Items
| The amendments provide clarification on two aspects of hedge accounting: identifying inflation as a hedged risk or portion, and hedging with options.
|
IFRIC 17 Distributions of Non-cash Assets to Owners | The Interpretation provides guidance on the appropriate accounting treatment when an entity distributes assets other than cash as dividends to its shareholders.
|
IFRIC 18 Transfers of Assets from Customers
| The Interpretation addresses the accounting by recipients for transfers of property, plant and equipment from 'customers' and concludes that when the item of property, plant and equipment transferred meets the definition of an asset from the perspective of the recipient, the recipient should recognise the asset at its fair value on the date of the transfer, with the credit being recognised as revenue in accordance with IAS 18 Revenue.
|
Improvements to IFRSs issued in 2009 | The application of Improvements to IFRSs issued in 2009 has not had any material effect on amounts reported in the consolidated financial statements. |
1.2 New and revised IFRSs in issue but not yet effective
The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:
Amendments to IFRSs | Improvements to IFRSs issued in 20101 |
Amendments to IFRS 1 | Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters2 |
Amendments to IFRS 7 | Disclosures - Transfers of Financial Assets3 |
IFRS 9 (as amended in 2010) | Financial Instruments4 |
Amendments to IAS 12 | Deferred Tax: Recovery of Underlying Assets7 |
IAS 24 (revised in 2009) | Related Party Disclosures5 |
Amendments to IAS 32 | Classification of Rights Issues6 |
Amendments to IFRIC 14 | Prepayments of a Minimum Funding Requirement4 |
IFRIC 19 | Extinguishing Financial Liabilities with Equity Instruments2 |
1 Effective for annual periods beginning on or after 1 July 2010 and 1 January 2011, as appropriate
2 Effective for annual periods beginning on or after 1 July 2010.
3 Effective for annual periods beginning on or after 1 July 2011.
4 Effective for annual periods beginning on or after 1 January 2013.
5 Effective for annual periods beginning on or after 1 January 2011.
6 Effective for annual periods beginning on or after 1 February 2010.
7 Effective for annual periods beginning on or after 1 January 2012.
IFRS 9 Financial Instruments issued in November 2009 and amended in October 2010 introduces new requirements for the classification and measurement of financial assets and financial liabilities and for derecognition.
IFRS 9 requires all recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods.
The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the accounting for changes in fair value of a financial liability (designated as at fair value through profit or loss) attributable to changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. Previously, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value through profit or loss was recognised in profit or loss.
IFRS 9 is effective for annual periods beginning on or after 1 January 2013, with earlier application permitted.
The directors anticipate that IFRS 9 that will be adopted in the Group's consolidated financial statements for the annual period beginning 1 January 2013 and that the application of the new Standard will have no significant impact on amounts reported in respect of the Groups' financial assets and financial liabilities.
The amendments to IFRS 7 titled Disclosures - Transfers of Financial Assets increase the disclosure requirements for transactions involving transfers of financial assets. These amendments are intended to provide greater transparency around risk exposures when a financial asset is transferred but the transferor retains some level of continuing exposure in the asset. The amendments also require disclosures where transfers of financial assets are not evenly distributed throughout the period.
The directors do not anticipate that these amendments to IFRS 7 will have a significant effect on the Group's disclosures. However, if the Group enters into any transactions involving transfers of financial assets in the future, disclosures regarding those transfers may be affected.
The amendments to IAS 12 titled Deferred Tax: Recovery of Underlying Assets mainly deal with the measurement of deferred tax for investment properties that are measured using the fair value model in accordance with IAS 40 Investment Property. Based on the amendments, for the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties measured using the fair value model, the carrying amounts of the investment properties are presumed to be recovered through sale, unless the presumption is rebutted in certain circumstances. The directors anticipate that the amendments to IAS 12 will have no impact on the consolidated financial statements.
IAS 24 Related Party Disclosures (as revised in 2009) modifies the definition of a related party and simplifies disclosures for government-related entities.
The disclosure exemptions introduced in IAS 24 (as revised in 2009) do not affect the Group because the Group is not a government-related entity. However, disclosures regarding related party transactions and balances in these consolidated financial statements may be affected when the revised version of the Standard is applied in future accounting periods because some counterparties that did not previously meet the definition of a related party may come within the scope of the Standard.
The amendments to IAS 32 titled Classification of Rights Issues address the classification of certain rights issues denominated in a foreign currency as either an equity instrument or as a financial liability. To date, the Group has not entered into any arrangements that would fall within the scope of the amendments. However, if the Group does enter into any rights issues within the scope ofthe amendments in future accounting periods, the amendments to IAS 32 will have an impact on the classification of those rights issues.
IFRIC 19 provides guidance regarding the accounting for the extinguishment of a financial liability by the issue of equity instruments. To date, the Group has not entered into transactions of this nature. However, if the Group does enter into any such transactions in the future, IFRIC 19 will affect the required accounting. In particular, under IFRIC 19, equity instruments issued under such arrangements will be measured at their fair value, and any difference between the carrying amount of the financial liability extinguished and the fair value of equity instruments issued will be recognised in profit or loss.
2. SEGMENT Information
No segment analysis is presented for the years ended 31 December 2010and 31 December 2009 as the Group has only maintained a minimum operation during the years.
3. INCOME TAX EXPENSE
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.
The tax charge for the year can be reconciled to the loss before tax per the consolidated statement of comprehensive income as follows:
Year ended 31 December | ||||
2010 | 2009 | |||
US$'000 | US$'000 | |||
Loss before tax | 187 | 300 | ||
Loss before tax calculated at 16.5% (2009:16.5%) | 30 | 49 | ||
Tax effect of estimated tax losses not recognized | (30) | (49) | ||
Tax charge for the year | - | - | ||
No deferred tax has been recognized in the financial statements as the Group and the Company did not have material temporary difference arising between the tax bases of assets and liabilities and their carrying amounts as at 31 December 2010 (2009: Nil).
4. LOSS PER SHARE
The loss and weighted average number of ordinary shares used in the calculation of basic and diluted lossper share are as follows.
Year ended 31 December | ||||
2010 | 2009 | |||
Loss for the year attributable to owners of the Company | US$187,000 | US$300,000 | ||
| ||||
Weighted average number of ordinary shares for the purposes of basic and diluted loss per share | 13,367,290 | 13,367,290 | ||
| ||||
Loss per share - basic and diluted | 1 cents | 2 cents | ||
5. SHARE CAPITAL
Number of shares | US$ |
| ||
Authorized: |
| |||
Ordinary shares of US$0.001 each as at 1 January 2009, | ||||
31 December 2009 and 31 December 2010 | 50,000,000,000 | 50,000,000 |
| |
| ||||
Called up, issued and fully paid: |
| |||
Ordinary shares of US$0.001 each as at 1 January 2009, | ||||
31 December 2009 and 31 December 2010 | 13,367,290 | 13,367 |
| |
6. RESERVES
The contributed surplus of the Company represents the amount arising from the reduction in the nominal value of the authorised and issued shares of the Company and the reduction in the share premium account of the Company pursuant to an ordinary resolution passed on 23 July 2003.