Worldsec Regulatory News (WSL)

26 Apr 2007 12:38

Worldsec Ld26 April 2007 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 2006. The Chairman's Statement and extracts from the audited financial statements arereproduced 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$1,010,000 compared with a lossof US$467,000 in previous year. Loss per share was US 8 cents (2005: Loss pershare of US 3 cents). THE YEAR IN REVIEW The loss of US$1,010,000 for the year was due to the realization of the currencytranslation reserve of US$1,033,000 to the income statements under therequirement of International Accounting Standard 21. Excluding this one-offrelease of reserve, the Group recorded an operating income of US$23,000; thiscompares with an operating loss of US$467,000 in 2005. This operating income wasthe result of the combination of net cost savings of US$280,000 and the writeback of over-provision of expenses carried forward from prior years. In March 2006, the Group completed the sale of its nominee subsidiary which hadbeen assigned the right to collect the remaining debts for a consideration ofUS$271,000 to a third party. PROSPECTS In line with the direction of the new key shareholder to maintain the Group inthe securities investment business, the Board is examining suitable businessopportunities. Shareholders will be informed and/or approval sought (asnecessary) as soon as the Group decides on the future direction of its business. Alastair GUNN-FORBESNon-Executive Chairman26 April 2007 CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2006 Year ended 31 December Notes 2006 2005 US$'000 US$'000Gain on disposal of investments - 20Recovery of doubtful receivables 16 148Interest income 42 19Other income 275 21 333 208Staff costs (89) (289)Other expenses (221) (300) 23 (381)Loss on disposal of subsidiaries - (85)Finance costs - (1)Currency translation reserve released upon disposal of (1,033) -subsidiariesLoss before tax (1,010) (467)Income tax expense 3 - -Loss for the year (1,010) (467) Loss per share - basic and diluted 4 (8) cents (3) cents CONSOLIDATED BALANCE SHEETAT 31 DECEMBER 2006 Notes 2006 2005 US$'000 US$'000Current assetsTrade and other receivables 2 278Cash and bank balances 2,506 2,293 2,508 2,571 Current liabilitesOther payables and accruals (328) (414) Net current assets 2,180 2,157 Net assets 2,180 2,157 Capital and reservesShare capital 5 13 13Contributed surplus 6 9,646 9,646Special reserve 6 625 625Accumulated losses 6 (8,104) (7,094)Currency translation reserve 6 - (1,033) Equity shareholders' funds 2,180 2,157 CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2006 Year ended 31 December 2006 2005 US$'000 US$'000Cash flows from operatingactivitiesLoss for the year (1,010) (467) Finance costs - 1Interest income (42) (19)Loss on disposal of subsidiaries - 85Gain on disposal of investments - (20)Dividend received - (6)Currency translation reserve 1,033 -released upon disposal of subsidiaries (19) (426) Movements in working capitalDecrease in trade and other 17 1,527receivables(Decrease)/increase in other payables and accruals (86) 8Cash (used in)/generated from operations (88) 1,109Interest paid - (1)Net cash (used in)/generated from operating activities (88) 1,108 Cash flows from investing activitiesInterest received 42 19Dividend received - 6Proceeds from disposal of subsidiaries 259 363Proceeds from disposal of investments - 20Net cash generated from investing activities 301 408Net increase in cash and cash equivalents 213 1,516Cash and cash equivalents as at 1 January 2,293 777Cash and cash equivalents as at 31 December 2,506 2,293 Cash and bank balances NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTSFOR THE YEAR ENDED 31 DECEMBER 2006 1. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group has adopted all of the new and revised Standardsand 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 forannual reporting periods beginning on 1 January 2006. The adoption of these newand revised Standards and Interpretations has no significant impact on thefinancial 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 Disclosures (1)IFRS 7 Financial Instruments: Disclosures(1)IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies(2)IFRIC 8 Scope of IFRS 23IFRIC 9 Reassessment of Embedded Derivatives(4)IFRIC 10 Interim Financial Reporting and Impairment(5)IFRIC 11 Group and Treasury Share Transactions(6)IFRIC 12 Service Concession Arrangements(7) (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(6) Effective for annual periods beginning on or after 1 March 2007(7) Effective for annual periods beginning on or after 1 January 2008 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 2006 and 31 December 2005 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 2006(2005: Nil). The taxation for the year can be reconciled to the loss before tax per theconsolidated income statement as follows: 2006 2005 US$'000 US$'000 Loss before tax 1,010 467 Tax charge at income tax rate of 17.5% 177 82Tax effect of estimated tax losses not recognised (6) (97)Tax effect of expenses not deductible for tax purpose (181) (15)Tax effect of income not taxable for tax purpose 10 30 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 2006 2005 Loss for the year (US$1,010,000) (US$467,000) Weighted average number of shares in issue 13,367,290 13,367,290 Loss per share - basic and diluted (8) cents (3) cents 5. SHARE CAPITAL US$Authorised:Ordinary shares of US$0.001 each as at 1 January 2005, 31 December 2005and 31 December 2006 50,000,000 Called up, issued and fullypaid:Ordinary shares of US$0.001 each as at 1 January 2005, 31December 2005and 31 December 2006 13,367 6. RESERVES Movements on reserves were as follows: Currency Contributed Special Accumulated translation surplus reserve losses reserve US$'000 US$'000 US$'000 US$'000The GroupBalance as at 1 January 2005 9,646 625 (6,627) (1,033)Loss for the year - - (467) -Balance 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 31 December 2006 9,646 625 (8,104) - This information is provided by RNS The company news service from the London Stock Exchange