Worldsec Regulatory News (WSL)

27 Sep 2006 15:36

Worldsec Ld27 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") andits subsidiaries (collectively known as the "Group") for the six months ended 30June 2006 (the "Period"). For the six months ended 30 June 2006, the Group had a net loss of US$1,166,000comprised of an operating loss of US$133,000 and the realization of US$1,033,000standing on the currency translation reserve to the income statements. Thiscurrency translation reserve was the cumulative exchange differences arisen fromthe translation of the Group's various foreign operating subsidiariesdenominated in the respective local currencies into U.S. dollars in theconsolidated financial statements in prior years. The realization of thisreserve to the income statements in this financial period is in accordance withthe International Accounting Standard 21 and has no impact on the Group's netasset value. Excluding this one-off release of the reserve, the Group'soperating loss of US$133,000 for the six months represented a decline in loss ofapproximately 39% when compared with an operating loss of US$218,000 for thesame period last year. The shareholders' funds of the Group stood at US$2.02million at the end of June 2006, compared to US$2.16 million at the end ofDecember 2005. Noting the intention of Grand Acumen Holdings Limited, the new key shareholder,to maintain the Group in the securities investment businesses, the Board isactively looking into the process to reposition its current strategy.Shareholders will be informed or approval sought (as necessary) as soon asdiscussion comes to fruition. By order of the Board Alastair GUNN-FORBES Non-Executive Chairman 27 September 2006 CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 Unaudited Audited Six months ended Year ended Notes 30.6.2006 30.6.2005 31.12.2005 US$'000 US$'000 US$'000 Gain on disposal of investments - 20 20Recovery of doubtful receivables 16 98 148Interest income 5 20 2 19Other income - 23 21 36 143 208Staff 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 reservereleased 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 anddiluted 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$'000 Exchange differences on translation offoreign Operations - (16) - Currency translation reserve releasedupon disposal of subsidiaries 1,033 - - Net income/(expense) recognised directlyin Equity 1,033 (16) - Loss for the period/year (1,166) (218) (467) Total recognised expense for theperiod/year (133) (234) (467) CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006 Unaudited Audited Notes 30.6.2006 30.6.2005 31.12.2005 US$'000 US$'000 US$'000Current assetsInvestments 9 - 363 -Debtors 4 257 278Bank deposits and cash 2,470 2,166 2,293 2,474 2,786 2,571Creditors: 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 reservesShare capital 11 13 13 13Contributed surplus 12 9,646 9,646 9,646Special reserve 12 625 625 625Accumulated 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 1Interest income (20) (2) (19)Dividend received - - (6)Impairment losses - 87 -Loss on disposal of subsidiaries 6 - - 85Gain on disposal of investments - (20) (20)Currency translation reservereleased upon 1,033 - -disposal of subsidiaries Operating cash flows beforemovements in working capital (153) (152) (426) Decrease in trade debtors 15 1,560 1,527Increase in other debtors andprepayments - (30) -Increase/(Decrease) in othercreditors and Accruals 36 (10) 8 Cash (used in)/generated fromoperations (102) 1,368 1,109Interest paid - (1) (1) NET CASH (USED IN)/FROM OPERATINGACTIVITIES (102) 1,367 1,108 Investing ActivitiesInterest received 20 2 19Dividend received - - 6Proceeds on disposal ofsubsidiaries 259 - 363Proceeds on disposal ofinvestments - 20 20 NET CASH FROM INVESTING 279 22 408ACTIVITIES NET INCREASE IN CASH AND CASH 177 1,389 1,516EQUIVALENTS CASH AND CASH EQUIVALENTS AT 2,293 777 777BEGINNING OF THE PERIOD/YEAR CASH AND CASH EQUIVALENTS AT 2,470 2,166 2,293END OF THE PERIOD/YEARBank 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 sharesare listed on the London Stock Exchange. The addresses of the registered officeand principal place of business of the Company are disclosed in the corporateinformation 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 revisedStandards and Interpretations issued by the International Accounting StandardsBoard (the "IASB") and the International Financial Reporting InterpretationsCommittee ("IFRIC") of the IASB that are relevant to its operations andeffective for accounting periods beginning on or after 1 January 2006. Theadoption of these new and revised Standards and Interpretations has nosignificant impact on the financial statements of the Group. At the date of authorisation of these financial statements, the followingStandards 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 andInterpretations in the future periods will have no material impact on thefinancial statements of the Group. Save as disclosed above, the accounting policies adopted in preparing thisreport are consistent with those adopted in preparing the consolidated financialstatements 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 InternationalFinancial Reporting Standards as adopted for use in the European Union. It hasbeen 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 thebalance sheet date. The financial statements do not include any provision forthe future costs of terminating the business of the company except to the extentthat such costs were committed at the balance sheet date. Accordingly, allassets are classified as current assets. The Group's financial statements consolidate the financial statements of theCompany and the subsidiary undertakings included in the Group. The results of subsidiaries disposed of during the periods/year are included inthe 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 periodsended 30 June 2006 and 30 June 2005 as the Group has only maintained a minimumoperation 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 incomeBank interest receivable 20 2 19 Finance costsBank 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 WorldsecNominees International Limited, a company incorporated in the British VirginIslands, together with its wholly-owned subsidiary, Worldsec Nominees Limited, acompany incorporated in Hong Kong. In the year ended 31 December 2005, the Groupdisposed of its entire interests in Worldsec International Securities(Philippines) Inc., a company incorporated in Philippines.The loss on disposal is analysed asfollows: Unaudited Audited Six months ended Year ended 30.6.2006 30.6.2005 31.12.2005 US$'000 US$'000 US$'000 Loss on disposal of subsidiaries - - (85) Incidental to the disposal of subsidiaries during the period, the total amountof currency translation reserve USD1,033,000 has been released to theconsolidated income statement. 7. TAX No provision for taxation has been made as the Group did not generate anyassessable profits for UK Corporation Tax, Hong Kong Profit Tax and tax in otherjurisdictions. 8. LOSS PER SHARE Calculation of loss per share was based on the following: Unaudited Audited Six months ended Year ended 30.6.2006 30.6.2005 31.12.2005 Loss for the period/year US$(1,166,000) US$(218,000) US$(467,000) Weighted average number ofshares 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 50,000,0002005 and 30 June 2006 Called up, issued and fully paid:Ordinary shares of US$0.001 each as at 30 June 2005, 31 December 13,3672005 and 30 June 2006 NOTES TO THE INTERIM REPORT (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2006 12. RESERVES Contributed Special Accumulated Currency surplus reserve losses translation reserve US$'000 US$'000 US$'000 US$'000 Balance at 1January 2005 9,646 625 (6,627) (1,033)Loss for theperiod - - (218) -Translationadjustment - - - (16) Balance at 1July 2005 9,646 625 (6,845) (1,049)Loss for theperiod - - (249) -Translationadjustment - - - 16 Balance at 1January 2006 9,646 625 (7,094) (1,033)Loss for theperiod - - (1,166) -Currencytranslationreservereleased upon - - - 1,033disposal ofsubsidiaries Balance at 30June 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