WTS.L Regulatory News (WTS)

24 Jul 2007 16:19

World Trade Systems PLC24 July 2007 WORLD TRADE SYSTEMS PLC -------------------------------------- INTERIM REPORT Six months ended 31 March 2007 -------------------------------------- CHAIRMAN'S STATEMENT INTRODUCTION The Company had no trading activities in the six month period from 1 October2006 to 31 March 2007. RESULTS The loss for the period of £26,000: £59,000) arises from administrative expensesand charges. TRADING PROSPECTS While it has been a long time since the Company has had a trading business andit seems that little progress has been made, in fact a great many possibilitieshave been considered. There are also a number of favourable factors which havebecome evident in Asian markets such as Japan's recovery and the outwardexpansion of Chinese companies. We are confident that discussions which havecommenced in the past few months will bear some fruit this year. Robert LeeNon Executive Chairman 24 July 2007 CONDENSED CONSOLIDATED INCOME STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2007 Note 6 months to 6 months to 31 March 31 March 2007 2006 £'000 £'000 Continuing operations Operating income 2 2Administrative expenses (28) (61) ______ ______ Loss from operations (26) (59)Finance income - - ______ ______Loss before tax (26) (59)Taxation 6 - - ______ ______Loss for the financial period (26) (59)from continuing operations Attributable to equity holders of theparent (26) (59) ______ ______ Basic and diluted loss per ordinary share 4 (0.003)p (0.006)p -------- -------- CONDENSED CONSOLIDATED BALANCE SHEETAS AT 31 MARCH 2007 Note As at As at 31 March 30 September 2007 2006 £'000 £'000Assets Non-current assetsInvestment property 7 40 40 ________ _______ 40 40 ________ _______Current assetsTrade and other receivables 8 14Cash and cash equivalents 137 72 _______ _______ 145 86 _______ _______Total assets 185 126 _______ _______Current liabilitiesTrade and other payables (65) (80)Financial Liabilities - borrowings 9 (380) (280) ______ _______Total liabilities (445) (360) ______ _______ Net Current (liabilities)/assets (300) (274) ______ _______ Net Liabilities (260) (234) ______ _______ Equity Capital and reservesShare capital 5 4,378 4,378Own shares (102) (102)Retained earnings (4,536) (4,510) _______ _______ Total deficit of equity attributable to equityholders of the parent (260) (234) _______ _______ CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR SIX MONTHS ENDED 31 MARCH 2007 Share Own Retained Total capital shares Earnings £'000 £,000 £'000 £'000 Balance at 1 October 2005 4,,378 (102) (4,353) (77) Loss for the period - - (59) (59) ______ ______ ______ ______ Balance at 31 March 2006 4,378 (102) (4,514) (136) ______ ______ ______ ______ Balance at 1 October 2006 4,378 (102) (4,510) (234) Loss for the period - - (26) (26) _______ ______ ______ ______ Balance at 31 March 2007 4,378 (102) (4,536) (260) ________ ______ ______ ______ CONDENSED CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2007 6 months to 6 months to 31 March to 31 March 2007 2006 £'000 £'000 Net cash used in operating activities (35) (50) Net cash received from/ (used in) financingactivitiesNew loan raised 100 - ____ _____Net increase/(decrease) in cash and cash equivalents 65 (50) Cash and cash equivalents atbeginning of period 72 81 ____ _____ Cash and cash equivalents at end ofperiod 137 31 ____ _____ Notes to the condensed consolidated financial statementsfor the period ended 31 March 2007 1. Basis of preparation The condensed financial statements have been prepared using accounting policiesconsistent with International Financial Reporting Standards and in accordancewith International Accounting Standard (IAS) 34 Interim Financial Reporting. 2. Significant accounting policies The condensed financial statements have been prepared under the historical costconvention. The same accounting policies, presentation and methods ofcomputation are followed in these condensed financial statements as were appliedin the preparation of the Group's financial statements for the year ended 30September 2006. 3. Going Concern The financial statements have been prepared on the going concern basis. KudrowFinance Limited, the ultimate parent company, has made available unsecuredinterest free loans totalling £260,000 for which the earliest repayment date hasbeen extended to 31 October 2008 and have also confirmed to the directors thatit has made arrangements with a non-executive director, Mr Antares Cheng toprovide such further financial support as the Company may require to meet itsfinancial obligations as they fall due and to seek and develop new businessopportunities. The earliest date for repayment of other loans amounting to £120,000 has beenextended to 31 October 2008. Taking account of these factors the directors are satisfied that the Company andthe Group has adequate working capital for the foreseeable future. 4. Loss per Ordinary Share has been calculated as follows: 6 months to 6 months to 30 March 31 March 2006 2006 £'000 £'000 This has been calculated on a loss attributable toordinary shareholders of (26) (59)The weighted average number of shares listed was:Basic and diluted 8,747,377 8,747,377 5. Called up share capital At 31 March 2007 At 30 September 2006 Number £'000 Number £'000AuthorisedOrdinary shares of 50p each - - 11,041,237 5,521Ordinary shares of 1p each 11,041,237 110 - -Deferred shares of 49p each 11,041,237 5,411 - - _______ _______ 5,521 5,521 _______ ______Allotted, called up and fully paidOrdinary shares of 50p each - - 8,753,867 4,378Ordinary shares of 1p each 8,753,867 88 - -Deferred shares of 49p each 8,753,867 4,290 - - ______ _____ 4,378 4.378 ______ _____ The deferred shares do not entitle the holder to payment of any dividend orother distribution or to receive Notice of or attend or vote at any GeneralMeeting of the company or on a return of capital to the repayment of the amountpaid on such deferred shares until after repayment of the capital paid up on theOrdinary Shares together with payment of £1,000,000 on each Ordinary Share andthe Deferred Shares shall not be capable of transfer at any time other than withthe consent of the Directors. 6. Taxation There is no taxation charge for the six months ended 31 March 2007. (2006:£Nil). Unutilised tax losses carried forward are £996,000 (2005: £873,000). 7. Investment property The company's investment property comprises approximately 67 acres ofagricultural land in the UK. The directors consider that the fair value of theCompany's investment in freehold land is £110,000. The rental income earned bythe Group in the period to 31 March 2007,from its investment property which isleased out on an agricultural tenancy, amounted to £1,500.(2006: £1,500). 8. Disposal of subsidiary On 6 February 2007, following an application made by the Directors to theRegistrar of Companies , Lifecare International Limited, a wholly ownedsubsidiary, was dissolved under the provisions of section 652a of The CompaniesAct 1985. This resulted in a profit on disposal of £2,000 as follows and isdealt with in the financial statements of the parent company: £'000 £'000 Redemption of amounts owed to subsidiary 511 Cost of investment in subsidiary 3,377 Impairment provision 2,868 ----- Net carried value of Investment in subsidiary (509) ----- Profit on disposal 2 ---- 9. Financial liabilities - borrowings These represent unsecured interest free loans totalling £380,000 (2006:£160,000). These loans are interest free and repayable on demand. However, thelenders have by written consent agreed not to call for repayment of the amountsdue until after 31 October 2008. During the period, the Group obtained a new loan of £100,000 from its ultimateparent company Kudrow Finance Limited. The proceeds were used to meet short termexpenditure needs and to provide on-going funding for future working capitalpurposes. 10. Related party Transactions Murzban Mehta an executive director of the Company is a partner in the firm ofCitroen Wells, Chartered Accountants. During the period the Company paid feestotalling £9,000 (2006: £8,750) for accountancy services provided by CitroenWells. The total balance outstanding as 31 March 2007 was £9,000 (2005: £7,000) Robert Lee a non-executive director is the principal of Robert Lee Law Officesand a Director of Inter-Asia Consulting Group Inc. Under the terms of anagreement Inter-Asia Consulting Group Inc is entitled to receive a fee of£50,000 on the Company successfully concluding new business arrangements. At 31March 2007 the company owed Robert Lee £6,700 in respect of unpaid director'sfees (2005: £5,700) Richard Lascelles a non-executive director is owed £4,000 in respect of unpaiddirector's fees. (2006: £3,000) Kudrow Finance Limited, the ultimate parent company, has provided unsecured,interest free loans totalling £260,000 (2005: £160,000), which have been sourcedfrom a company under the control of a non-executive director, Mr Antares Cheng.£105,000 of the loan was due for repayment on 31 December 2006 but the repaymentperiod has been extended to 31 October 2008. £55,000 was due for repayment on 28July 2007 but the repayment period has been extended to 31 October 2008. Thebalance of £100,000 was due for repayment on 5 February 2008 but the repaymentperiod has been extended to 31 October 2008. 11. ThIs interim financial report is neither audited nor reviewed by theauditors and was approved by the Board on 24 July 2007. This announcement isbeing circulated to all Shareholders of the Company, and copies will beavailable to the public at the Company's registered office at Devonshire House,1 Devonshire Street, London W1W 5DR. This information is provided by RNS The company news service from the London Stock Exchange