Final Results
01 5월 2003 - 1:34AM
UK Regulatory
RNS Number:5921K
Worldsec Ld
30 April 2003
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 2002.
The directors do not recommend the payment of a dividend.
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 Paul K K Cheng
Chief Operating Officer and Finance Director
+852 2867 7213
CHAIRMAN'S STATEMENT
RESULTS
The audited consolidated loss after taxation was US$7.87m (2001: US$7.96m).
Loss per share based on the weighted average number of shares in issue during
the year amounted to
US 59 cents (2001: US 60 cents).
THE YEAR IN REVIEW
Operating conditions in agency broking and corporate finance continued to be
difficult and the prospects of improvement were not bright. The Board of
Directors recommended in the circular dated 1st August 2002 to shareholders, the
disposal of two subsidiaries, research materials and certain trading assets of
the Group to UOB Kay Hian Private Limited, resulting in the Group's withdrawing
from broking, research and corporate finance activities. Shareholders approved
the disposals at the special general meeting held on 19th August 2002. In
connection with these disposals, on 1st October 2002, a majority of the Group's
staff involved in broking and corporate finance took up employment with the
purchaser. The Group also sold to the same purchaser its Futures Trading Right
and B Share Trading Seat in the Shanghai Stock Exchange. Following these
disposals, the Group has practically completed its withdrawal from the broking
business which began with the closure of its Philippines and Malaysian offices
in 2001.
The Group now comprises a number of subsidiaries which have no significant
trading activity. These subsidiaries, together with the Company are still
holding certain assets which were used to facilitate trading activities,
including brokerage trading rights on the Hong Kong stock market. Other assets
of the Group include investments, debtors, cash, and some fixed assets. All the
Group's assets are stated in the financial statements at their expected
recoverable amounts and provisions have been made where appropriate for
impairment.
Chairman's Statement
PROSPECTS
The Group is in the process of realizing its assets into cash. Certain assets of
the Group such as its remaining brokerage trading rights and office property in
the Philippines would take time to dispose. The Directors intend to invest the
cash raised from liquidating assets in money market investments and deposits
whilst appropriate steps are taken in preparation for returning the proceeds to
shareholders as soon as possible. In the absence of unforeseen circumstances, we
expect to make the first interim distribution to shareholders in the third
quarter of 2003 with further distribution as and when the remaining assets of
the Group are realised.
David Archibald Evelyn Lyle
Non-Executive Chairman
30-Apr-2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
AT 31 DECEMBER 2002
Year ended 31 December
Notes 2002 2001
US$'000 US$'000
Turnover 1 5,402 8,035
Fees and commissions payable (1,131) (1,155)
___________ ___________
4,271 6,880
Gain on disposal of intangible assets 159 181
Gain on disposal of investments - 541
Unrealised gain on investments 93 -
Recovery of doubtful receivables - 232
Other operating income 662 794
___________ ___________
5,185 8,628
Staff costs (6,382) (8,305)
Provision for doubtful receivables (3,250) (1,193)
Loss on revaluation of investments - (1,824)
Impairment losses (201) -
Other operating costs (3,062) (4,397)
___________ ___________
Operating loss 1 (7,710) (7,091)
Interest receivable and similar income 204 473
Interest payable and similar charges (277) (480)
Provision for closure of operations - (123)
Goodwill written off - (591)
Loss on disposal of subsidiaries and research materials (111) -
___________ ___________
Loss on ordinary activities before taxation (7,894) (7,812)
Tax on loss on ordinary activities 2 27 (149)
___________ ___________
Loss for the financial year (7,867) (7,961)
=========== ===========
Loss per share - basic and diluted 3 (59) cents (60) cents
=========== ===========
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2002
Notes 2002 2001
US$'000 US$'000
Fixed assets
Intangible assets - 875
Tangible fixed assets - 832
Investments - 1,271
___________ ___________
- 2,978
___________ ___________
Current assets
Investments 3,047 1,548
Debtors 5,698 25,086
Bank deposits and cash 18,011 36,167
___________ ___________
26,756 62,801
Creditors: Amounts falling due within one year (10,735) (41,541)
___________ ___________
Net current assets 16,021 21,260
___________ ___________
Total assets less current liabilities 16,021 24,238
Provisions for liabilities and charges - (30)
___________ ___________
Net assets 16,021 24,208
=========== ===========
Capital and reserves
Called up share capital 13,367 13,367
Share premium 11,664 11,664
Special reserve 625 625
Profit and loss account (8,967) (1,270)
Revaluation reserve 294 989
Currency translation reserve (962) (1,167)
___________ ___________
Equity shareholders' funds 16,021 24,208
=========== ===========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002
Year ended 31 December
Note 2002 2001
US$'000 US$'000
Cash outflow from operating activities (1,073) (2,207)
___________ ___________
Returns on investments and servicing of finance
Interest received from banks and deposit taking companies 204 473
Interest paid on bank loans and overdrafts (277) (480)
___________ ___________
Net cash outflow from returns on investments and servicing of finance (73) (7)
___________ ___________
Taxation
Tax paid (144) (230)
___________ ___________
Capital expenditure and financial investment
Sale of intangible assets 443 458
Purchase of tangible fixed assets - (166)
Sale of tangible fixed assets 149 -
___________ ___________
Net cash inflow from capital expenditure and financial investment 592 292
___________ ___________
Acquisition and disposal
Net cash inflow from disposal of subsidiaries 53 -
Net cash outflow from disposal of research materials and futures (63) -
trading right
___________ ___________
Net cash outflow from acquisition and disposal (10) -
___________ ___________
Net cash outflow before use of liquid resources and financing (708) (2,152)
Management of liquid resources
Decrease/(increase) in time deposits of maturity exceeding 1 day 2,427 (71)
___________ ___________
Decrease in cash 5 (1,719) (2,223)
=========== ===========
NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2002
1. ANALYSIS OF TURNOVER, OPERATING LOSS AND NET ASSETS
The turnover attributable to the different classes of the Group's business is
as follows:
Year ended 31 December
2002 2001
US$'000 US$'000
Analysis by class of business:
Broking and related services 4,683 6,389
Corporate finance 719 1,646
_______ ______
5,402 8,035
======= ======
Geographical analysis of turnover:
Hong Kong 4,420 6,369
Thailand 889 1,012
Malaysia 6 46
Singapore 37 130
Philippines 6 76
Others 44 402
_______ ______
5,402 8,035
======= ======
The operating loss attributable to the different classes of the Group's business
is as follows:
Broking and related services (7,586) (7,637)
Corporate finance (124) 546
_______ ______
(7,710) (7,091)
======= ======
The operating loss of the Group is mainly derived from the Group's operations
based in Hong Kong. The net assets utilised in the Group relate substantially to
broking activities and situated in Hong Kong.
2. TAX ON LOSS ON ORDINARY ACTIVITIES
Year ended 31 December
2002 2001
US$'000 US$'000
The credit/(charge) comprises:
UK Corporation Tax
current year at 30% (2001: 30%) - (46)
Hong Kong Profits Tax
current year at 16% (2001:16%) 2 (86)
Other overseas taxation (5) (19)
___________ ___________
(3) (151)
Deferred taxation 30 2
___________ ___________
27 (149)
=========== ===========
3. LOSS PER SHARE
Calculation of loss per share was based on the following:
Year ended 31 December
2002 2001
Loss for the financial year US$(7,867,000) US$(7,961,000)
============ ============
Weighted average number of shares in issue 13,367,290 13,367,290
============ ============
Loss per share (59) cents (60) cents
============ ============
4. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
ACTIVITIES
Year ended 31 December
2002 2001
US$'000 US$'000
Operating loss (7,710) (7,091)
Gain on disposal of intangible assets (159) (181)
(Gain)/loss on disposal of tangible fixed assets (38) 81
Depreciation 196 301
Provision for doubtful receivables 3,250 1,193
Loss on revaluation of investments - 1,824
Unrealised gain on investments (93) -
Impairment loss 201 -
Amortisation of intangible assets 93 118
Amortisation of purchased goodwill - 197
Exchange difference 207 (38)
Decrease in investments held as current assets 67 199
Decrease/(increase) in trade debtors 16,761 (9,492)
(Increase)/decrease in other debtors and prepayments (580) 1,264
Decrease in cash at bank - trust accounts 10,214 5,048
(Decrease)/increase in trade creditors (23,982) 4,846
Increase/(decrease) in other creditors and accruals 500 (476)
_____________ ____________
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (1,073) (2,207)
============= ============
5. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Year ended 31 December
2002 2001
US$'000 US$'000
Increase/(decrease) in cash 1,719 (2,223)
Cash (inflow)/outflow from (decrease)/increase in liquid resources (2,427) 71
_____________ ____________
Movement in net funds (708) (2,152)
Net funds brought forward 10,106 12,258
_____________ ____________
Net funds carried forward 9,398 10,106
============ ===========
This information is provided by RNS
The company news service from the London Stock Exchange
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