Worldsec Ltd.

Interim / Quarterly Report • Apr 29, 2013

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RNS Number : 4642D

Worldsec Ld

29 April 2013

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 2012.

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$304,000 compared with a loss of US$276,000 in previous year. Loss per share was US 2 cents (2011: Loss per share of US 2 cents).

THE YEAR IN REVIEW

For the year ended 31 December 2012, the Group incurred a net loss of US$304,000. This compares to the net loss of US$276,000 for the last year. The operating expenses were increased by US$28,000 as compared to the last year. At 31 December 2012, the Group shareholders' funds stood at US$0.63 million as compared to US$0.94 million at 31 December 2011.

PROSPECTS

During the year, the board of directors (the "Board") continued to explore opportunities in the financial services and other new suitable business. Shareholders will be informed as soon as the Board has evaluated a suitable business proposition.

In preparation for the rebuilding of the Group's equity capital, the Board has engaged financial and legal advisers to advise us on a fund raising exercise. Shareholders will be informed as soon as the fund raising proposal is finalized with the professional advisers.

Alastair GUNN-FORBES

Non-Executive Chairman

29 April 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2012                                                                                                                                 

			Year ended 31 December
		Notes	2012		2011
			US$'000		US$'000
Other income and gain			-		13
Staff costs			(16)		(15)
Other expenses			(288)		(274)
Loss before tax			(304)		(276)
Income tax expense		3	-		-
Loss for the year			(304)		(276)
Other comprehensive income, net of income tax
Exchange differences on translating foreign    operations			1		(5)
Other comprehensive income for the year, net of income tax			1		(5)
Total comprehensive income for the year			(303)		(281)
Loss attributable to :
Owners of the Company			(304)		(276)
Total comprehensive income attributable to :
Owners of the Company			(303)		(281)
Loss per share - basic and diluted		4	(2) cents		(2) cents

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2012                                                                                                                                                                        

		Notes	2012		2011
			US$'000		US$'000
Current assets
Cash and bank balances			909		1,217
Current liabilities
Other payables and accruals			(275)		(280)
Net current assets			634		937
Net assets			634		937
Capital and reserves
Share capital		5	13		13
Contributed surplus			9,646		9,646
Foreign currency translation reserve Special reserve			(4) 625		(5) 625
Accumulated losses			(9,646)		(9,342)
Total equity			634		937

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2012                                                                                                                                 

					Foreign
					currency
	Share		Contributed		translation		Special		Accumulated
	capital		surplus		reserve		reserve		losses		Total
	US$'000		US$'000		US$'000		US$'000		US$'000		US$'000
Balance at 1 January 2011	13		9,646		-		625		(9,066)		1,218
Loss for the year	-		-		-		-		(276)		(276)
Other comprehensive income for the year	-		-		(5)		-		-		(5)
Balance at 31 December 2011 and 1 January 2012	13		9,646		(5)		625		(9,342)		937
Loss for the year	-		-		-		-		(304)		(304)
Other comprehensive income for the year	-		-		1		-		-		1
Total comprehensive income for the year	-		-		1		-		(304)		(303)
Balance at 31 December 2012	13		9,646		(4)		625		(9,646)		634

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2012                                                                                                                                 

							Year ended 31 December
							2012		2011
							US$'000		US$'000
Cash flows from operating activities
Loss for the year							(304)		(276)
							(304)		(276)
Movements in working capital
(Decrease)/increase in other payables and accruals							(5)		16
Net cash used in operating activities							(309)		(260)
Net decrease in cash and cash equivalents							(309)		(260)
Cash and cash equivalents at 1 January							1,217		1,482
Effects of exchange rate changes							1		(5)
Cash and cash equivalents at 31 December							909		1,217

NOTES TO THE PRELIMINARY STATEMENT OF ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2012                                                                                                                                 

1.      Application OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs)

1.1    New and revised IFRSs applied with no material effect on the consolidated financial statements

The following new and revised IFRSs have been applied by the Group in the current year and have affected the presentation and disclosures set out in these consolidated financial statements. The application of these new and revised IFRSs has not had any material impact on the amounts reported for the current and prior years.

IFRS 1 (Amendments)	Severe Hyperinflation and Removal of Fixed Dates
	for First-time Adopters
IFRS 7 (Amendments)	Disclosures - Transfers of Financial Assets
IAS 12 (Amendments)	Deferred Tax: Recovery of Underlying Assets

1.2    New and revised IFRSs in issue but not yet effective

The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRSs (Amendments)	Annual improvements to IFRSs 2009-2011 cycle except for
	the amendments to IAS 12
IFRS 7 (Amendments)	Disclosures - Offsetting Financial Assets and Financial Liabilities2
IFRS 9	Financial Instruments4
IFRS 10	Consolidated Financial Statements2
IFRS 11	Joint Arrangements2
IFRS 12	Disclosure of Interests on Other Entities2
IFRS 13	Fair Value Measurement2
IAS 1 (Amendments)	Presentation of Items of Other Comprehensive Income1
IAS 19 (as revised in 2011)	Employee Benefits2
IAS 27 (as revised in 2011)	Separate Financial Statements2
IAS 28 (as revised in 2011)	Investments in Associates and Joint Ventures2
IAS 32 (Amendments)	Financial Instruments: Presentation - Offsetting Financial Assets
	and Financial Liabilities3
IFRIC 20	Stripping Costs in the Production Phase of a Surface Mine2

1   Effective for annual periods beginning on or after 1 July 2012

2   Effective for annual periods beginning on or after 1 January 2013

3   Effective for annual periods beginning on or after 1 January 2014

4   Effective for annual periods beginning on or after 1 January 2015

The amendments to IFRS 7 increase the disclosure requirements for transactions involving transfers of financial assets. These amendments are intended to provide greater transparency around risk exposures when a financial asset is transferred but the transferor retains some level of continuing exposure in the asset. The amendments also require disclosures where transfers of financial assets are not evenly distributed throughout the period.

The directors do not anticipate that these amendments to IFRS 7 will have a significant effect on the Group's disclosures regarding transfers of trade receivables previously affected. However, if the Group enters into other types of transfers of financial assets in the future, disclosures regarding those transfers may be affected.

IFRS 9 Financial Instruments issued in November 2009 and amended in October 2010 introduces new requirements for the classification and measurement of financial assets and financial liabilities and for derecognition.

Key requirements of IFRS 9 are described as follows:

·     IFRS 9 requires all recognized financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortized cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods.

·     The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the accounting for changes in the fair value of a financial liability (designated as at fair value through profit or loss) attributable to changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. Previously, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value through profit or loss was presented in profit or loss.

IFRS 9 is effective for annual periods beginning on or after 1 January 2015, with earlier application permitted.

The directors anticipate that IFRS 9 will be adopted in the Group's consolidated financial statements for the annual period beginning 1 January 2015 and that the application of IFRS 9 may have significant impact on amounts reported in respect of the Group's financial assets and financial liabilities. However, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.

IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The standard defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. The scope of IFRS 13 is broad; it applies to both financial instrument items and non-financial instrument items for which other IFRSs require or permit fair value measurements and disclosures about fair value measurements, except in specified circumstances. In general, the disclosure requirements in IFRS 13 are more extensive than those required in the current standards. For example, quantitative and qualitative disclosures based on the three-level fair value hierarchy currently required for financial instruments only under IFRS 7 Financial Instruments: Disclosures will be extended by IFRS 13 to cover all assets and liabilities within its scope. 

IFRS 13 is effective for annual periods beginning on or after 1 January 2013, with earlier application permitted.

The directors anticipate that IFRS 13 will be adopted in the Group's consolidated financial statements for the annual period beginning 1 January 2013 and that the application of the new Standard may affect the amounts reported in the financial statements and result in more extensive disclosures in the financial statements.

The amendments to IAS 1 retain the option to present profit or loss and other comprehensive income in either a single statement or in two separate but consecutive statements. However, the amendments to IAS 1 require additional disclosures to be made in the other comprehensive income section such that items of other comprehensive income are grouped into two categories: (a) items that will not be reclassified subsequently to profit or loss; and (b) items that will be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to be allocated on the same basis.

The amendments to IAS 1 are effective for annual periods beginning on or after 1 July 2012. The presentation of items of other comprehensive income will be modified accordingly when the amendments are applied in the future accounting periods.

2.      SEGMENT INFORMATION

No segment analysis is presented for the years ended 31 December 2012 and 31 December 2011 as the Group has only maintained a minimum operation during the years.

3.      INCOME TAX EXPENSE

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.

The tax charge for the year can be reconciled to the loss before tax per the consolidated statement of comprehensive income as follows:

		Year ended 31 December
		2012		2011
		US$'000		US$'000
Loss before tax		304		276
Loss before tax calculated at 16.5% (2011:16.5%)		50		46
Tax effect of estimated tax losses not recognized		(50)		(46)
Tax charge for the year		-		-

No deferred tax has been recognized in the financial statements as the Group and the Company did not have material temporary difference arising between the tax bases of assets and liabilities and their carrying amounts as at 31 December 2012 and 2011.

4.      LOSS PER SHARE  

The loss and weighted average number of ordinary shares used in the calculation of basic and diluted lossper share are as follows.

		Year ended 31 December
		2012		2011
Loss for the year attributable to owners of the Company		US$304,000		US$276,000
Weighted average number of ordinary shares for the purposes of basic and diluted loss per share		13,367,290		13,367,290
Loss per share - basic and diluted		2 cents		2 cents

5.      SHARE CAPITAL

	Number  of shares			US$
Authorized:
Ordinary shares of US$0.001 each as at 1 January 2011,
31 December 2011 and 31 December 2012		50,000,000,000		50,000,000
Called up, issued and fully paid:
Ordinary shares of US$0.001 each as at 1 January 2011,
31 December 2011 and 31 December 2012		13,367,290		13,367

6.      RESERVES

The contributed surplus of the Company represents the amount arising from the reduction in the nominal value of the authorised and issued shares of the Company and the reduction in the share premium account of the Company pursuant to an ordinary resolution passed on 23 July 2003.

This information is provided by RNS

The company news service from the London Stock Exchange

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