26th Sep 2019 12:15
(Alliance News) - Worldsec Ltd on Thursday said its loss narrowed in the first half of 2019 thanks to a sharp drop in fair value loss.
The investment company, which puts money mostly into unlisted companies based predominantly in China and south east Asia, posted a USD220,000 pretax loss for the six months ended June 30, less than half the USD558,000 loss the year before.
Most significant in this change was a reduction in fair value loss. Worldsec reported a GBP26,000 loss on a change in fair value of financial assets, well below its USD351,000 loss on fair value the year before.
Non-Executive Chair Alastair Gunn-Forbes said: "Looking forward, the group's investment in the [ICBC Specialised Ship Leasing Investment Fund] will continue to generate a stable stream of recurring income at a favourable yield under the persistently low interest rate environment. On the other hand, as most of the group's investee companies remain at an early development phase, they are not expected in the foreseeable future to provide any meaningful contribution to the results of the group, except for any positive or negative fair value change that may be recognised under IFRS 9. Likewise, [Oasis Education Group Ltd] is also unlikely to have any meaningful impact on the group's bottom-line in the near term.
"The uncertain outcome of Britain's exit from the European Union, in the meantime, should not directly affect the investing activity of the group, which focuses mainly on investing in the Greater China and South East Asian region; but on a broader perspective, the additional threat associated with the pervasive uncertainty surrounding Brexit, on top of a slowing world economy that has been disrupted and hampered by the drawn-out trade war between the US and China, would further complicate the investment climate and pose increased challenges for the investment community at large."
Shares in Worldsec were untraded at 3.50 pence in London on Thursday at midday.
By Anna Farley; [email protected]
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