Worldsec Regulatory News (WSL)

26 Apr 2006 15:59

Worldsec Ld26 April 2006 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 2005. 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 CHEONGDeputy Chairman+852 2971 4280 CHAIRMAN'S STATEMENT RESULTS The audited consolidated loss for the year was US$467,000 compared with a profitfor the previous year amounted to US$522,000. Loss per share based on theweighted number of shares in issue during the year was US 3 cents (2004:Earnings per share of US 4 cents). THE YEAR IN REVIEW During the year under review, the Group maintained a minimum operation tocontinue the realization of its remaining assets. The most significant incomereceived by the Group was US$148,000 resulting from further recovery of doubtfuldebts. In August 2005, the Group completed the sale of its Philippines subsidiary for aconsideration of USD363,000 net of expenses. This signifies our complete exitfrom the Philippines. Subsequent to the year end, the Group disposed to a third party its nomineessubsidiary which has been assigned the right to collect the remaining debtors,for a consideration of US$271,000 thus completing our debt recovery programme. PROSPECTS On 6 December 2005, the Bank of Tokyo-Mitsubishi, Ltd., ("BTM"), a keyshareholder of the Company, sold its entire interest in 3,225,000 ordinaryshares, representing approximately 24.1% shareholding in the Company, to GrandAcumen Holdings Limited ("GAH"). GAH is associated with the Mr. Henry Ying ChewCheong, the Company's Deputy Chairman. The Board has been informed by GAH itsintention to maintain the Group in the securities investment businesses which,will change our current strategy of ceasing all business operations.Shareholders will be informed of the relevant development in future. I intend to retire from the board effective from the conclusion of theforthcoming general meeting. Mr. Paul Kwok Kin Cheng, who has been managing thecompany since 2003 and responsible for the realization of the Group's assets,will also retire from the board on 27 April, 2006 and Mr. Henry Ying Chew Cheongwill be re-designated as an executive director on the same date. David Archibald Evelyn Lyle Non-Executive Chairman 26 April 2006 CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Year ended 31 December Notes 2005 2004 US$'000 US$'000 Revenue 2 - 11Gain on disposal of investments 20 602Recovery of doubtful receivables 148 670Interest income 19 21Other income 21 94 ___________ ___________ 208 1,398Staff costs (289) (381)Other expenses (300) (526) ___________ ___________ (381) 491(Loss) Gain on disposal of (85) 36subsidiaryFinance costs (1) (5) ___________ ___________(Loss) Profit before tax (467) 522Tax charge 3 - - ___________ ___________(Loss) Profit for the year (467) 522 ___________ ___________(Loss) Earnings per share - 4 (3) cents 4 centsbasic and diluted ___________ ___________ CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2005 Note 2005 2004 US$'000 US$'000 (Restated) Current assetsInvestments - 448Debtors 278 1,805Bank deposits and cash 2,293 777 ___________ ___________ 2,571 3,030 Creditors: Amounts falling due within one (414) (406)year ___________ ___________Net current assets 2,157 2,624 ___________ ___________Net assets 2,157 2,624 ___________ ___________ Capital and reservesCalled up share capital 5 13 13Contributed surplus 5 9,646 9,646Special reserve 5 625 625Accumulated losses 5 (7,094) (6,627)Currency translation 5 (1,033) (1,033)reserve ___________ ___________Equity shareholders' funds 2,157 2,624 ___________ ___________ CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Year ended 31 December 2005 2004 US$'000 US$'000 (Restated) (Loss) Profit (467) 522before tax Adjustment for :Finance costs 1 5Interest income (19) (21)Loss(Gain) on disposal of 85 (36)subsidiaryGain on disposal of (20) (602)investmentsDividend received (6) - (426) (132) Operating cash flows before movements in working capitalDecrease in debtors 1,527 1,080Decrease in other debtors and - 99prepaymentsDecrease in trade creditors - (1,293)Increase (Decrease) in other creditors 8 (734)and accrualsCash generated from (used in) 1,109 (980)operationsInterest paid (1) (5)NET CASH FROM (USED IN) OPERATING ACTIVITIES 1,108 (985) Investing ActivitiesInterest received 19 21Dividend received 6 -Proceeds on disposal of 363 410subsidiaryProceeds on disposal of 20 3,683investmentsNET CASH FROM INVESTING ACTIVITIES 408 4,114FINANCING ACTIVITIESDistribution paid - (9,357)NET CASH USED IN FINANCING ACTIVITIES - (9,357)NET INCREASE (DECREASE) IN CASH AND CASHEQUIVALENTS 1,516 (6,228)CASH AND CASH EQUIVALENTS AT 1 JANUARY 777 7,001Effect of foreign exchange rate changes - 4CASH AND CASH EQUIVALENTS AT 31 DECEMBER 2,293 777 NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 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("IFRIC") of the IASB that are relevant to its operations and effective foraccounting periods beginning on 1 January 2005. The adoption of these new andrevised Standards and Interpretations has resulted in the changes to the Group'saccounting policies in the following area that have affected the amountsreported for the current or prior years: Investment Properties In the current year, the Group has, for the first time, applied InternationalAccounting Standard 40 Investment Property ("IAS 40"). The Group has elected touse the fair value model to account for its investment properties which requiresgains or losses arising from changes in the fair value of investment propertiesto be recognised directly in consolidated income statement for the year in whichthey arise. In previous years, investment properties under the predecessorStandard were measured at open market values, with revaluation surplus ordeficits credited or charged to revaluation reserve unless the balance on thisreserve was insufficient to cover a revaluation decrease, in which case theexcess of the revaluation decrease over the balance on the investment propertyrevaluation reserve was charged to the income statement. Where a decrease hadpreviously been charged to the income statement and a revaluation surplussubsequently arose, that increase was credited to the income statement to theextent of the decrease previously charged. The Group has applied IAS 40retrospectively. Accordingly, the amount held in the revaluation reserve at 1January 2004 has been transferred to the Group's accumulated losses. Comparativefigures for 2004 have been restated. At the date of authorisation of these financial statements, the followingStandards and Interpretations were in issue but not yet effective: IAS 1 (Amendment) Capital Disclosures1IAS 19 (Amendment) Actuarial Gains and Losses, Group Plans and Disclosures2IAS 21 (Amendment) Net Investment in a Foreign Operation2IAS 39 (Amendment) Cash Flow Hedges of Forecast Intragroup Transactions2IAS 39 (Amendment) The Fair Value Option2IAS 39 and IFRS 4 (Amendments)Financial Guarantee Contracts2IFRS 6 Exploration for and Evaluation of Mineral Resources2IFRS 7 Financial Instruments: Disclosures1IFRIC 4 Determining whether an Arrangement contains a Lease2IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds2IFRIC 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment3IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies4IFRIC 8 Scope of IFRS 25IFRIC 9 Reassessment of Embedded Derivatives6 1 Effective for annual periods beginning on or after 1 January 20072 Effective for annual periods beginning on or after 1 January 20063 Effective for annual periods beginning on or after 1 December 20054 Effective for annual periods beginning on or after 1 March 20065 Effective for annual periods beginning on or after 1 May 20066 Effective for annual periods beginning on or after 1 June 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. 2. BUSINESS AND GEOGRAPHICAL SEGMENTS No business and geographical segment analysis are presented for the years ended31 December 2005 and 31 December 2004 as the Group has only maintained a minimumoperation to continue the realization of its remaining assets in Hong Kong. 3. TAX CHARGE No provision for taxation has been made as the Group did not generate anyassessable profit for UK Corporation Tax, Hong Kong Profit Tax and tax in otherjurisdictions. The taxation for the year can be reconciled to the (loss) profit before tax perthe consolidated income statement as follows: 2005 2004 US$'000 US$'000(Loss) Profit before tax (467) 522 ___________ ___________Tax charge (credit) at income tax rate of 17.5% 82 (91)Tax effect of estimated tax losses not recognized (97) (29)Tax effect of expenses not deductible for tax (15) (1)purposeTax effect of income not taxable for tax purpose 30 121 ___________ ___________Total current tax charge for the year - - ___________ ___________ 4. (LOSS) EARNINGS PER SHARE Calculation of (loss) earnings per share wasbased on the following: Year ended 31 December 2005 2004(Loss) Profit for the year (US$467,000) US$522,000 ________________ ________________ Weighted average number of shares in issue 13,367,290 13,367,290 ________________ ________________ (Loss) Earnings per share - basic and (3) cents 4 centsdiluted ________________ ________________ 5. CAPITAL AND RESERVES CALLED UP SHARE CAPITAL US$Authorised:Ordinary shares of US$0.001 each as at 1 January 2004, 31 December 2004 and 31 December 2005 50,000,000 _______________Called up, issued and fully paid:Ordinary shares of US$0.001 each as at 1 January 2004, 31December 2004 and 31 December 2005 13,367 _______________ RESERVES Movements on reserves were as follows: Contributed Special Accumulated Revaluation Currency surplus reserve losses reserve translation reserve US$'000 US$'000 US$'000 US$'000 US$'000The GroupBalance at 1 19,003 625 (7,430) 281 (986)January 2004Effect of change inaccounting policy(Note 1) - - 281 (281) -At restated 19,003 625 (7,149) - (986)Profit for the year - - 522 - -Translation - - - - (47)adjustmentDistribution paid (9,357) - - - -(Note 6)Balance at 1 9,646 625 (6,627) - (1,033)January 2005Loss for the year - - (467) - -Balance at 31 9,646 625 (7,094) - (1,033)December 2005 6. DISTRIBUTIONS No distribution is made during the year. Distribution out of the contributedsurplus account of US$0.70 per share totaling US$9,357,103 was paid during theyear ended 31 December 2004. END This information is provided by RNS The company news service from the London Stock Exchange