WTS.L Regulatory News (WTS)

27 Jan 2006 11:08

World Trade Systems PLC27 January 2006 PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2005 CHAIRMAN'S STATEMENT INTRODUCTION The Company had no trading activities in the year ended 30 September 2005. RESULTS The loss for the period of £59,000 (Eighteen month period ended 30 September2004: £129,000) arises from administrative expenses and charges less rent andinterest receivable. The anticipated asset disposal has not materialised. The Board were advised thatthe costs associated with the sale including the costs of obtaining shareholderapproval would be disproportionate to the benefit to be gained by the Company. TRADING PROSPECTS Your directors have been continuously reviewing and considering other businessopportunities for the group. Inter Asia Consulting Group Inc. continues to be in active discussions withthird parties in the Far East and the Board is monitoring the situation closely. We will keep shareholders advised of any significant developments. Robert LeeNon Executive Chairman 25 January 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the year ended 30 September 2005 18 month Year ended period ended 30 September 30 September 2005 2004 £'000 £'000 Operating costs (76) (131) Other income 15 - Interest receivable 2 2 ----- ----- Loss on ordinary activities before taxation (59) (129) Taxation - - ----- -----Loss for the financial period and transferred from reserves (59) (129) ====== ===== Basic and diluted loss per ordinary share (0.006) p (0.02) p ========= ======== RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' DEFICIT Group Company 2005 2004 2005 2004 £'000 £'000 £'000 £'000 Retained (loss) for the (59) (129) (61) (129) financial period Shareholders'(deficit)/ funds at 1 October 2004 (18) 111 (18) 111 ---- --- ---- --- Shareholders' deficit at 30 September 2005 (77) (18) (79) (18) ==== ==== ==== ==== CONSOLIDATED BALANCE SHEETat 30 September 2005 2005 2004 £'000 £'000 Fixed assets Tangible assets 40 40 Investments - - --- --- 40 40 === === Current assets Debtors due within one year 4 8 Cash at bank 81 92 -- -- 85 100 Creditors: amounts falling due within one year (42) (53) ---- ---- Net current assets 43 47 ==== ==== Total assets less current liabilities 83 87 Creditors: amounts falling due after more than one year (160) (105) ----- ----- Net liabilities (77) (18) ===== ==== Capital and reserves Called up share capital 4,378 4,378 Profit and loss account (4,455) (4,396) ------- ------- Total Equity Shareholders' deficit (77) (18) ====== ===== CONSOLIDATED CASH FLOW STATEMENTfor the period ended 30 September 2005 18 month Year ended period ended 30 September 30 September 2005 2004 £'000 £'000 Net cash outflow from operating (68) (107) ----- -----activities Returns on investments and servicing of finance Interest received 2 2 ------ ------ Taxation Tax paid - (50) ------ ------ Financing Increase in debt 55 105 -------- ------ Decrease in cash (11) (50) ======== ====== RECONCILIATION OF OPERATING LOSS TO NETCASH OUTFLOW FROM OPERATING ACTIVITIES 2005 2004 £'000 £'000 Operating loss (61) (131) Decrease/(increase) in debtors 4 (3) (Decrease)/increase in creditors (11) 27 ----- ---- Net cash outflow from operating activities (68) (107) ===== ===== RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET (DEBT) 2005 2004 £'000 £'000 Decrease in cash in the period (11) (50) Cash inflow from financing (55) (105) Change in net debt resulting from cash (66) (155) flows ______ ____ Movement in net debt in the (66) (155) period Net (debt)/funds at 1 October 2004 (13) 142 ------ ----- Net (debt) at 30 September 2005 (79) (13) ====== ===== ANALYSIS OF CHANGES IN NET DEBT At 1 At 30 October September 2004 Cash flow 2005 £'000 £'000 £'000 Cash at bank and in hand 92 (11) 81 Debt due after one year (105) (55) (160) ----- ---- ----- (13) (66) (79) ===== ==== ===== NOTES TO THE PRELIMINARY STATEMENTfor the year ended 30 September 2005 1. BASIS OF PREPARATION The Board is active in considering business opportunities for the Company butshould such an opportunity not materialise, having regard to the cash flowprojections, the directors consider that the Company has sufficient liquidresources to meet its financial requirements for the period up to 31 December2006 excluding repayments of the existing loans to Kudrow Finance Limited, afterwhich it is reliant upon further financial support from Kudrow Finance Limited. Kudrow Finance Limited, the ultimate parent company, has provided interest free,unsecured long term loans totalling £160,000 to support the company's financingrequirements for the foreseeable future and has further confirmed to theDirectors that it has made arrangements with a non executive director, MrAntares Cheng to provide such financial support as the Company and the Group mayrequire to enable it to meet its financial obligations as they fall due and toseek and develop new business opportunities. Taking account of these factors the Directors believe that the Company and theGroup has adequate resources to continue as a going concern for the foreseeablefuture. 2. DIVIDENDS The directors take a prudent approach to dividend payments and will makepayments only when commercially viable to do so, subject to the availability ofdistributable reserves. No final dividend is proposed (2004: Nil) and no interim dividend was paid(2004: Nil). 3. TAXATION ON ORDINARY ACTIVITIES 18 month Year ended period ended 30 September 30 September 2005 2004 £'000 £'000 Reconciliation of UK tax charge and losses carried forward Tax on loss on ordinary activities at - - standard rate Adjustment in respect of prior years - - ---- ----Current tax charge for year - - Loss on ordinary activities before tax (59) (129) Losses brought forward (754) (625) ------ -----Losses carried forward (813) (754) ====== ===== A deferred tax asset has not been recognised in respect of these losses, as theconditions for recognising such an asset are not evident. The estimated value ofthe deferred tax asset not recognised, at a standard rate of 30%, is £244,000(2004: £225,000). 4. LOSS PER SHARE The basic and diluted loss per share has been calculated on 8,747,377 ordinaryshares (2004: 8,747,377) being the weighted average number of shares in issueduring the period and losses attributable to ordinary shareholders for the yearof £59,000 (Eighteen month period ended 30 September 2004: £129,000). The options are non-dilutive. 5. CALLED UP SHARE CAPITAL 2005 2004 Number £'000 Number £'000 Authorised 50p Ordinary shares 11,041,237 5,521 11,041,237 5,521 ========== ===== ========== ===== Allotted, called up and fully paid 50p New Ordinary shares 8,753,867 4,378 8,753,867 4,378 ========= ====== ========= ===== 6. PRELIMINARY STATEMENT This preliminary statement, which has been agreed with the auditors, wasapproved by the Board on 25 January 2006 and does not constitute the company'sstatutory accounts, which will be sent to shareholders shortly. The statutory accounts for the eighteen month period ended 30 September 2004have been delivered to the Registrar of Companies and received an audit reportwhich was unqualified and did not contain statements under s237 (2) or (3) ofthe Companies Act 1985. The statutory accounts for the year ended 30 September2005 have not yet been approved, audited or filed. This information is provided by RNS The company news service from the London Stock Exchange