27th Apr 2010 12:21
Worldsec Limited
Preliminary Statement of Annual Results
Worldsec Limited is pleased to release today its preliminary statement of annual results for the year ended 31 December 2009.
The Chairman's Statement and extracts from the audited financial statements are reproduced below.
Investor Relations
For further information please contact:
In Hong Kong
Mr. Henry Ying Chew CHEONG
Executive Director and Deputy Chairman
+852 2971 4280
CHAIRMAN'S STATEMENT
RESULTS
The audited consolidated loss for the year was US$300,000 compared with a loss of US$258,000 in previous year. Loss per share was US 2 cents (2008: Loss per share of US 2 cents).
THE YEAR IN REVIEW
For the year ended 31 December 2009, the Group incurred a net loss of US$300,000. This compares to the net loss of US$258,000 for the last year. The increased loss was due to higher legal and professional fee charge during the year which amounted to approximately US$116,000 as compared with US$18,000 the previous year. Of the US$116,000, approximately US$100,000 were payments for advisory services related to the Company reactivation project. Other administrative expenses items had been reduced slightly. At the end of 31 December 2009, Group shareholders' funds stood at US$1.41 million as compared to US$1.71 million at the end of December 2008.
PROSPECTS
During the year, the Board continued to explore opportunity in the financial services and other new suitable business, and in the meantime we have engaged a financial adviser and legal adviser in the U.K. to advise us on the reactivation of the Company. Shareholders will be informed as soon as the Board has evaluated a suitable business proposition.
Alastair GUNN-FORBES
Non-Executive Chairman
27 April 2010
CONSOLIDATED STATEMENTOF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
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Year ended 31 December |
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Notes |
2009 |
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2008 |
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|
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|
US$'000 |
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US$'000 |
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
3 |
|
Staff costs |
|
|
(33) |
|
(34) |
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Other expenses |
|
|
(267) |
|
(227) |
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|
|
|
|
|
|
|
Loss before tax |
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|
(300) |
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(258) |
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Income tax expense |
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3 |
- |
|
- |
|
|
|
|
|
|
|
|
Loss for the year |
|
|
(300) |
|
(258) |
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|
|
|
|
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Loss attributable to : |
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|
|
|
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Owners of the Company |
|
|
(300) |
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(258) |
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|
|
|
|
|
|
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Loss per share - basic and diluted |
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4 |
(2) cents |
|
(2) cents |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2009
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Notes |
2009 |
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2008 |
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US$'000 |
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US$'000 |
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|
|
|
|
|
|
|
Current assets |
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|
|
|
|
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Cash and bank balances |
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1,687 |
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2,045 |
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|
|
|
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Current liabilities |
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|
|
|
|
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Other payables and accruals |
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|
(282) |
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(340) |
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|
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Net current assets |
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|
1,405 |
|
1,705 |
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|
|
|
|
|
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Net assets |
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1,405 |
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1,705 |
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|
|
|
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|
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Capital and reserves |
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|
|
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|
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Share capital |
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5 |
13 |
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13 |
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Contributed surplus |
|
6 |
9,646 |
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9,646 |
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Special reserve |
|
6 |
625 |
|
625 |
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Accumulated losses |
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6 |
(8,879) |
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(8,579) |
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|
|
|
|
|
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Equity shareholders' funds |
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|
1,405 |
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1,705 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2009
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Year ended 31 December |
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Note |
2009 |
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2008 |
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|
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US$'000 |
|
US$'000 |
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Cash flows from operating activities |
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|
|
|
|||
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Loss for the year |
|
(300) |
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(258) |
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|
|
|
|
|
|
|||
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Interest income |
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- |
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(3) |
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|
|
|
|
|
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(300) |
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(261) |
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Movements in working capital |
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(Decrease)/Increase in other payables and accruals |
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(58) |
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21 |
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Net cash used in operating activities |
(358) |
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(240) |
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Cash flows from investing activities |
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Interest received |
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- |
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3 |
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Net cash generated from investing activities |
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- |
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3 |
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|
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|
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|||
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Net decrease in cash and cash equivalents |
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(358) |
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(237) |
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|
|
|
|
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Cash and cash equivalents as at 1 January |
|
2,045 |
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2,282 |
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Cash and cash equivalents as at 31 December Cash and bank balances |
|
1,687 |
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2,045 |
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NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2009
1. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
In the current year, the Group has adopted all of the new and revised Standards and 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 for annual reporting periods beginning on 1 January 2009. The adoption of these new and revised Standards and Interpretations has no significant impact on the financial statements of the Group.
The impact of the application of the new and revised Standards and Interpretation is discussed below.
Standards affecting presentation and disclosure
IAS 1 (as revised in 2007) Presentation of Financial Statements
IAS 1(2007) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial statements.
IFRS 8 Operating Segments
IFRS 8 is a disclosure Standard that has resulted in a redesignation of the Group's reportable segments.
Improving Disclosures about Financial Instruments (Amendments to IFRS 7 Financial Instruments: Disclosures)
The amendments to IFRS 7 expand the disclosures required in respect of fair value measurements and liquidity risk. The Group has elected not to provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in these amendments.
Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (adopted in advance of effective date of 1 January 2010)
Disclosures in these financial statements have been modified to reflect the IASB's clarification (as part of Improvements to IFRSs (2009)) that the disclosure requirements in Standards other than IFRS 5 do not generally apply to non-current assets classified as held for sale and discontinued operations.
Amendments to IAS 7 Statement of Cash Flows (adopted in advance of effective date of 1 January 2010)
The amendments (part of Improvements to IFRSs (2009)) specify that only expenditures that result in a recognized asset in the statement of financial position can be classified as investing activities in the statement of cash flows. Consequently, cash flows in respect of development costs that do not meet the criteria in IAS 38 Intangible Assets for capitalisation as part of an internally generated intangible asset (and, therefore, are recognized in profit or loss as incurred) have been reclassified from investing to operating activities in the statement of cash flows.
Standards and Interpretations adopted with no effect on financial statements
The following new and revised Standards and Interpretations have also been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements but may impact the accounting for future transactions or arrangements.
IAS 28 (as revised in 2008) Investments in Associates
IAS 28(2008) has been adopted in advance of its effective date (annual periods beginning on or after 1 July 2009). The principle adopted under IAS 27(2008) that a loss of control is recognized as a disposal and re-acquisition of any retained interest at fair value is extended by consequential amendment to IAS 28; therefore, when significant influence is lost, the investor measures any investment retained in the former associate at fair value, with any consequential gain or loss recognized in profit or loss.
IAS 28(2008) has been adopted for periods beginning on or after 1 January 2009 and has been applied prospectively in accordance with the relevant transitional provisions.
IFRIC 13 Customer Loyalty Programmes
The adoption of IFRIC 13 has resulted in a change to the Group's accounting policy for its customer loyalty programme. IFRIC 13 requires that transactions be accounted for as 'multiple element revenue transactions' and that the consideration received in the initial sale transaction be allocated between the sale and the discount entitlements earned by the customer in that sale transaction.The charge in accounting policy has been applied retrospectively, in accordance with the transitional provision of IFRJC13.
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards IAS 27 Consolidated and Separate Financial Statements - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
The amendments deal with the measurement of the cost of investments in subsidiaries, jointly controlled entities and associates when adopting IFRSs for the first time and with the recognition of dividend income from subsidiaries in a parent's separate financial statements.
Amendments to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations
The amendments clarify the definition of vesting conditions for the purposes of IFRS 2, introduce the concept of 'non-vesting' conditions, and clarify the accounting treatment for cancellations.
IAS 23 (as revised in 2007) Borrowing Costs
The principal change to the Standard was to eliminate the option to expense all borrowing costs when incurred. This change has had no impact on these financial statements because it has always been the Group's accounting policy to capitalise borrowing costs incurred on qualifying assets.
Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation
The revisions to IAS 32 amend the criteria for debt/equity classification by permitting certain puttable financial instruments and instruments (or components of instruments) that impose on an entity an obligation to deliver to another party a pro-rata share of the net assets of the entity only on liquidation, to be classified as equity, subject to specified criteria being met.
Standards and Interpretations in issue but not yet effective
The Group has not early applied the following new and revised Standards and Interpretations that have been issued but not yet effective.
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IFRS (Amendment) |
Improvement to IFRSs issued in 2009 2 |
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IAS 24 (Revised) |
Related Party Disclosure 5 |
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IAS 27 (Revised) |
Consolidated and Separate Financial Statements 1 |
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IAS 32 (Amendment) |
Classification of Right issues 3 |
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IAS 39 (Amendment) |
Eligible Hedging Items 1 |
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IFRS 1 (Amendment) |
Additional Exemption for First-time Adopters 2 |
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IFRS 2 (Amendments) |
Group Cash-settled Share-based Payment Transactions 2 |
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IFRS 3 (Revised) |
Business Combinations 1 |
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IFRS 9 and IAS 39 (Amendment) |
Financial Instruments - Classification and Measurement 6 |
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IFRIC - Int 17 |
Distribution of Non-cash Assets to Owners 1 |
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IFRIC - Int 18 |
Transfer of Assets from Customers 1 |
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IFRIC - Int 19 |
Extinguishing Financial Liabilities with Equity Instruments 4 |
1 Effective for annual periods beginning on or after 1 July 2009.
2 Effective for annual periods beginning on or after 1 January 2010.
3 Effective for annual periods beginning on or after 1 February 2010.
4 Effective for annual periods beginning on or after 1 July 2010.
5 Effective for annual periods beginning on or after 1 January 2011.
6 Effective for annual periods beginning on or after 1 January 2013.
The directors anticipate that the application of these Standards, Amendments and Interpretations in the future periods will have no material financial impact on the financial statements of the Group.
2. BUSINESS AND GEOGRAPHICAL SEGMENTS
No business and geographical segment analysis are presented for the years ended 31 December 2009 and 31 December 2008 as the Group has only maintained a minimum operation during the years.
3. INCOME TAX EXPENSES
No provision for taxation has been made as the Group did not generate any assessable profit for UK Corporation Tax, Hong Kong Profits Tax and tax in other jurisdictions.
No deferred tax liabilities are recognized in the financial statements as the Group and the Company did not have material temporary difference arising between the tax bases of liabilities and their carrying amounts as at 31 December 2009 (2008: Nil).
The taxation for the year can be reconciled to the loss before tax per the consolidated income statement as follows:
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Year ended 31 December |
||
|
|
|
2009 |
|
2008 |
|
|
|
US$'000 |
|
US$'000 |
|
|
|
|
|
|
|
Loss before tax |
|
300 |
|
258 |
|
|
|
|
|
|
|
Loss before tax calculated at 16.5% (2008:16.5%) |
|
49 |
|
43 |
|
Tax effect of estimated tax losses not recognized |
|
(49) |
|
(44) |
|
Tax effect of income not taxable for tax purpose |
|
- |
|
1 |
|
|
|
|
|
|
|
Total current tax charge for the year |
|
- |
|
- |
4. LOSS PER SHARE
|
Calculation of loss per share was based on the following: |
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|
|
|
|
|
|
Year ended 31 December |
||
|
|
|
2009 |
|
2008 |
|
|
|
|
|
|
|
Loss for the year |
|
(US$300,000) |
|
(US$258,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares in issue |
|
13,367,290 |
|
13,367,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - basic and diluted |
|
( 2 ) cents |
|
(2) cents |
5. SHARE CAPITAL
|
|
|
US$ |
|
|
Authorized: |
|
|
|
|
Ordinary shares of US$0.001 each as at 1 January 2008, 31 December 2008 |
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and 31 December 2009 |
50,000,000 |
||
|
|
|
|
|
|
Called up, issued and fully paid: |
|
|
|
|
Ordinary shares of US$0.001 each as at 1 January 2008, 31 December 2008 |
|||
|
and 31 December 2009 |
13,367 |
||
6. RESERVES
Movements on reserves were as follows:
|
|
Contributed surplus |
|
Special reserve |
|
Accumulated losses |
|
Currency translation reserve |
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
The Group |
|
|
|
|
|
|
|
|
Balance as at 1 January 2008 |
9,646 |
|
625 |
|
(8,321) |
|
- |
|
Loss for the year |
- |
|
- |
|
(258) |
|
- |
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2009 |
9,646 |
|
625 |
|
(8,579) |
|
- |
|
Loss for the year |
- |
|
- |
|
(300) |
|
- |
|
|
|
|
|
|
|
|
|
|
Balance as at 31 December 2009 |
9,646 |
|
625 |
|
(8,879) |
|
- |
Related Shares:
Worldsec