Worldsec Ld - Final Results
16 6월 1999 - 12:27AM
UK Regulatory
RNS No 8362m
WORLDSEC LIMITED
15 June 1999
Preliminary Statement of Annual Results
Worldsec Limited is pleased to release today its preliminary statement of
annual results for the year ended 31 December 1998.
The directors do not recommend the payment of a dividend.
The Chairman's Statement and extracts from the annual financial statements
are reproduced below. The results have been agreed with the Company's
auditors, Deloitte Touche Tohmatsu, Certified Public Accountants, Hong
Kong.
Investor Relations
For further information please contact:
In the United Kingdom In Hong Kong
Mr Alastair Gunn-Forbes Mr Paul K K Cheng
Director Chief Operating Officer and Finance Director
+44 171 972 0880 +852 2867 7213
CHAIRMAN'S STATEMENT
RESULTS
The audited consolidated loss after taxation and minority interests of the
Company was $3.73m (1997: profit of $2.19m).
Loss per share based on the weighted average number of shares in issue
during the year amounted to US 28.7 cents (1997: earnings per share of US
19.2 cents).
THE YEAR IN REVIEW
In my review of 1997 I highlighted the difficult and volatile operating
environment then prevailing and regrettably this has deteriorated further
in 1998. Russia's abrupt decision in mid-August to let the rouble fall in
value and its subsequent debt default triggered a worldwide selling of
financial assets of all kinds. The global sell-off hit Asian stock markets
particularly hard and materially affected our business.
Within the region, the year started on a promising note with most Asian
stock markets rallying in January and February. By March, however, the
initial optimism seen at the start of the year faded in the face of worse
than expected economic news, which generally prompted dramatic downward
revisions of real GDP and earnings forecasts throughout Asia. Lack of
progress on economic reforms in the region and increasing political
tensions in Indonesia weighed on investor sentiment. Japan's continuing
recession also depressed investor confidence and this in turn added to the
strength of the U.S. dollar. This put further pressure on those regional
currencies that had avoided the sharp exchange rate declines recorded in
the second half of 1997. The Hong Kong currency, being pegged to the U.S.
dollar, had remained stable, but in the summer of 1998, it came under
severe speculative attack. Hong Kong interest rates, the first line of
defence in the fight against speculators, rose sharply. This, in turn, put
pressure on the stock market and eventually prompted government
intervention on a massive scale. During the last two weeks of August,
trading volumes on the Hong Kong stock market soared as the government
purchased shares worth a total of US$15.2bn representing approximately 9%
of the then total market capitalisation of the Hang Seng Index constituent
stocks. Elsewhere in Asia, the Malaysian government in September 1998
reacted to the financial turmoil in its market by imposing capital
controls.
The turmoil in Asian financial markets in the third quarter was part of a
larger picture of instability which engulfed the world. The U.S. Federal
Reserve Bank cut interest rates three times within seven weeks in an
attempt to stabilise markets.
One of the largest Asian financial services group became a high profile
victim of the currency crisis. Its closure in January 1998, amidst rumours
of widespread brokerage failures in Asia led to a so-called "flight to
quality" by institutional investors. Unfortunately for our company, quality
in the eyes of many compliance officers is equated with size. Our capital
base is modest compared to those of our competitors who undertake
proprietary trading, but it is more than adequate for a pure agency broker.
However, this fact was overlooked amidst the turmoil. The perception that
quality is related to balance sheet size made last year's difficult
operating environment even more difficult for small brokers like ourselves.
During 1998, our turnover fell in all Asian markets resulting in a 22% drop
in group turnover to US$18.5m. The fall in commission income was magnified
by the weakness of the regional currencies. This meant that the Group
incurred an operating loss during the year, its first since its inception
in 1991.
The Group's corporate finance division concentrated more on advisory work
than on capital raising. Although turnover halved in 1998, the corporate
finance business managed to break even.
PROSPECTS
Subsequent to the cuts in U.S. interest rates last year, Asian equity
markets staged a strong rebound. This rally has since been extended, driven
by continued rapid declines in interest rates and easier liquidity
conditions resulting from a large build-up of current account surpluses. In
recent months there has been growing evidence that the Asian economies are
past their low point and are starting to recover though the pace is both
slow and uneven. Inventories are starting to be rebuilt, which is reviving
intra-regional trade and therefore domestic demand in some countries is
beginning to recover. Investors have also been encouraged by governments
determination to reform their economies and, more particularly, to
recapitalise their banking systems. The Asian equity markets have also
benefitted from the perception that the Japanese economy could be turning
around.
The rally in equities indicates that investors have become more positive
about the outlook for the region and there is evidence that international
fund managers have increased weightings in Asia and are prepared to raise
asset allocations during periods of market weakness.
We tend to be more cautious. Asian economies have already begun to recover
though we expect this process to be gradual. The return to historical rates
of economic growth in Asia will take some time. Weak labour markets do not
bode well for domestic consumption while overcapacity in many industries
and stretched corporate balance sheets will inhibit investment expenditure.
Against the backdrop of a slowing world economy it would be optimistic to
expect growth in Asia to be propelled by a stronger export performance. For
many countries the benefits of restructuring their corporate sector debt
will take years to realise. The conclusion we are forced to draw therefore
is that Asian equity markets have run ahead of fundamentals and are
discounting too far ahead.
While markets remain volatile, the bias against dealing with smaller
brokers is likely to continue. Furthermore, in the light of our cautious
market view and our expectation that the operating environment will remain
difficult, we continue to reduce overheads wherever possible whilst
ensuring that the quality of our services to clients is maintained.
David Archibald Evelyn Lyle
Non-Executive Chairman
15 June 1999
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 1998
Year ended 31 December
Notes 1998 1997
US$'000 US$'000
Turnover 1 18,539 23,682
Fees and commissions payable (2,559) (3,382)
15,980 20,300
Other operating income 1,326 1,025
17,306 21,325
Staff costs (12,033) (12,774)
Other operating costs (6,827) (6,027)
Operating (loss)/profit before exceptional items (1,554) 2,524
Exceptional items 2 (2,069) (549)
Operating (loss)/profit 1 (3,623) 1,975
Gain on disposal of a subsidiary 43 -
Interest receivable and similar income 1,341 1,192
Interest payable and similar charges (1,167) (293)
(Loss)/profit on ordinary activities before
taxation (3,406) 2,874
Tax on profit on ordinary activities 3 (260) (674)
(Loss)/profit for the year before minority
interest (3,666) 2,200
Equity minority interest (67) (12)
(Loss)/profit for the financial year (3,733) 2,188
Equity dividends 4 - (516)
(Loss)/retained profit (3,733) 1,672
======= =====
(Loss)/earnings per share 5 (29) cents 19 cents
========= ========
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 1998
1998 1997
US$'000 US'000
Fixed assets
Intangible assets - 15
Tangible fixed assets 1,526 1,354
Investments 5,041 4,428
Purchased goodwill 1,183 -
7,750 5,797
Current assets
Debtors 11,883 14,730
Bank deposits and cash 47,612 67,437
59,495 82,167
Creditors: Amounts falling due within one year (36,213) (52,804)
Net current assets 23,282 29,363
Total assets less current liabilities 31,032 35,160
Provisions for liabilities and charges (30) (30)
Equity minority interest (10) (209)
Net assets 30,992 34,921
====== ======
Capital and reserves
Called up share capital 13,367 12,900
Share premium 11,664 10,776
Special reserve 625 625
Profit and loss account 3,977 7,710
Revaluation reserve 2,059 3,664
Currency translation reserve (700) (754)
Equity shareholders' funds 30,992 34,921
====== ======
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 1998
1. ANALYSIS OF TURNOVER, OPERATING PROFIT AND NET ASSETS
The turnover attributable to the different classes of the Group's
business is as follows:
Year ended 31 December
1998 1997
US$'000 US$'000
Analysis by class of business:
Broking 17,182 20,920
Corporate finance 1,098 2,127
Investment advisory 259 635
18,539 23,682
====== ======
Geographical analysis of turnover:
Hong Kong 14,709 17,057
Thailand 1,441 1,525
Malaysia 630 999
Philippines 388 608
Taiwan 317 673
Singapore 251 1,449
United Kingdom 125 14
Others 678 1,357
18,539 23,682
====== ======
The operating (loss)/profit attributable to the different classes
of the Group's business is as follows:
Broking (3,759) 945
Corporate finance 1 923
Investment advisory 135 107
(3,623) 1,975
====== =====
The net assets utilised in the Group relate substantially to broking
activities.
2. EXCEPTIONAL ITEMS
Year ended 31 December
1998 1997
US'1000 US$'000
Provision for doubtful receivables (1,148) (549)
Provision for offices downsizing (921) -
(2,069) (549)
======= =====
Provisions for doubtful receivables were made for certain receivables
arising in the ordinary course of broking activities.
3. TAX ON PROFIT ON ORDINARY ACTIVITIES
Year ended 31 December
1998 1997
US$'000 US$'000
The charge comprises:
UK Corporation Tax at 31% (1997: 31%)
current year 144 153
Hong Kong Profits Tax at 16% (1997:16.5%)
current year 100 482
Other overseas taxation 16 39
260 674
=== ===
4. EQUITY DIVIDENDS
Year ended 31 December
1998 1997
US$'000 US$'000
Interim paid of US 2 cents per share - 258
Final proposed of US 2 cents per share - 258
- 516
=== ===
Dividend per share Nil 4 cents
====== ======
5. (LOSS)/EARNINGS PER SHARE
Calculation of (loss)/earnings per share was based on the following:
Year ended 31 December
1998 1997
(Loss)/profit for the financial year US$(3,733,000) US$2,188,000
============== ============
Weighted average number of shares in
issue 13,021,623 11,397,945
========== ==========
(Loss)/earnings per share (29) cents 19 cents
========== ========
END
FR ALLLLRIIELAA
Worldsec Ld (LSE:WSL)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Worldsec Ld (LSE:WSL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
