ISP Holdings Limited — Earnings Release 2006

Jul 13, 2006

Listed Company Information

Listed Company Information
SYNERGIS HOLD<02340> - Results Announcement Synergis Holdings Limited announced on 13/07/2006: (stock code: 02340 ) Year end date: 31/03/2006 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2005 from 01/04/2004 to 31/03/2006 to 31/03/2005 Note ('000 ) ('000 ) Turnover : 390,555 382,445 Profit/(Loss) from Operations : 36,476 30,810 Finance cost : N/A (13) Share of Profit/(Loss) of Associates : 116 N/A Share of Profit/(Loss) of Jointly Controlled Entities : 445 (44) Profit/(Loss) after Tax & MI : 31,220 25,837 % Change over Last Period : +20.8 % EPS/(LPS)-Basic (in dollars) : 0.094 0.078 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 31,220 25,837 Final Dividend : 4.5 cents 4.0 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 05/09/2006 to 08/09/2006 bdi. Payable Date : 15/09/2006 B/C Dates for Annual General Meeting : 05/09/2006 to 08/09/2006 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Basis of preparation The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment properties and financial assets at fair value through profit or loss, which are carried at fair value. The preparation of financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The adoption of new/revised HKFRSs The Group adopted the new/revised Hong Kong Accounting Standards ("HKASs") and interpretations of HKFRSs below, which are relevant to its operation. The 2005 comparatives figures have been restated solely due to the adoption of the new HKASs as required, in accordance with the relevant requirements. (a) The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 17, 18, 19 (Amendment), 21, 23, 24, 27, 28, 31, 33, 36, 37, 38 and HKAS-Int 15 did not result in substantial changes to the Group's accounting policies. In summary: - HKAS 1 has affected the presentation of minority interest, share of net after-tax results of associate and jointly controlled entities and other disclosures. - HKASs 2, 7, 8, 10, 12, 14, 16, 17, 18, 19 (Amendment), 21, 23, 27, 28, 31, 33, 36, 37, 38 and HKAS-Int 15 have no material effect on the Group's policies. - HKAS 24 has affected the identification of related parties and some other related party disclosures. (b) HKAS 32 and HKAS 39 The adoption of HKASs 32 and 39 has resulted in a change in the accounting policy relating to the classification of other investments. Other investments have been re-designated as financial assets at fair value through profit or loss. They are carried at fair value in the balance sheet. Any change in fair value shall be recognised in the income statement. Since the Group has adopted the fair value model in prior years, comparative amounts have not been restated. (c) HKAS 40 In prior years, changes in the fair values of investment properties were dealt with as movements in the investment property revaluation reserve. If the total of this reserve was insufficient to cover a deficit, on a portfolio basis, the excess of the deficit was charged to the income statement. Any subsequent revaluation surplus was credited to the income statement to the extent of the deficit previously charged. Upon the adoption of HKAS 40, gains or losses arising from changes in the fair values of investment properties are included in the income statement in the period in which they arise. Any gains or losses on the retirement or disposal of an investment property are recognised in the income statement in the period of the retirement or disposal. Since the Group has adopted the fair value model in prior years, there is no requirement for the Group to restate the comparative information. An adjustment has been made to reclassify the amount held in revaluation surplus for investment properties to retained profits at 1 April 2004. Effect of adopting HKAS 40 on the financial statements is as follows: 2006 2005 HK$'000 HK$'000 Decrease in investment property revaluation reserve - 146 Increase in retained profits - 146 Increase in income 100 - (d) HKAS-Int 21 The adoption of revised HKAS-Int 21 has resulted in a change in the accounting policy relating to the measurement of deferred tax liabilities arising from the revaluation of investment properties. Such deferred tax liabilities are measured on the basis of tax consequences that would follow from recovery of the carrying amount of that asset through use. In prior years, deferred tax liabilities were measured on the basis that the carrying amount of that asset was to be recovered through sale. Effect of adopting HKAS-Int 21 on the financial statements is as follows: 2006 2005 HK$'000 HK$'000 Increase in deferred tax liabilities 18 25 Decrease in retained profits - 25 Increase in tax expenses 18 - (e) HKICPA has issued certain new standards, amendments and interpretations to existing standards ("New Standards") which are effective for accounting periods beginning on or after 1 January 2006. The Group has not early adopted these New Standards in the financial statements for the year ended 31 March 2006 and is in the process of assessing the impact of these New Standards on future accounting periods. The New Standards include: HKAS 1 (Amendment) Capital Disclosures HKAS 21 (Amendment) The effects of changes in Foreign Exchange Rates - Net Investment in a Foreign Operation HKFRS 7 Financial Instruments : Disclosures HKFRS-Int 4 Determining whether an Arrangement contains a Lease 2. Turnover and Other Revenues The Group is principally engaged in the provision of property management and facility management services, security services, cleaning services, laundry services, repair and maintenance works and trading of related products. Revenues recognised during the year are as follows: 2006 2005 HK$'000 HK$'000 Turnover Property management and facility management services 343,161 337,929 Security services 10,854 10,865 Cleaning services 10,512 9,481 Laundry services 2,667 2,123 Repair and maintenance works 17,132 17,436 Trading of related products 6,229 4,611 --------- ---------- 390,555 382,445 --------- ---------- Other revenues Copying services 380 702 Rental income 179 184 Membership programmes 657 180 Interest income on bank deposits 3,453 508 Gain on disposal of financial assets at fair value through profit or loss - 82 Miscellaneous income 375 1,277 --------- ---------- 5,044 2,933 --------- ---------- 395,599 385,378 ========= ========== 3. Operating profit Operating profit is stated after crediting and charging the following: 2006 2005 HK$'000 HK$'000 Crediting Gain on disposal of financial assets at fair value through profit or loss - 82 Net exchange gain 17 - Write back of provision for impairment of receivables 173 - Charging Staff costs, including directors' emoluments 285,521 284,935 Depreciation 3,551 4,053 Auditors' remuneration 619 627 Loss on disposal of property, plant and equipment 32 160 Provision for impairment of receivables - 297 Operating lease rental on land and buildings 3,038 3,287 ========== ======== 4. Earnings per share The calculation of basic earnings per share is based on the Group's profit attributable to equity holders of the Company of HK$31,220,000 (2005: HK$ 25,837,000) and the weighted average number of ordinary shares of 332,000 ,000 (2005: 332,000,000) shares in issue during the year. No diluted earnings per share for the years ended 31 March 2006 and 31 March 2005 are presented as there were no dilutive potential ordinary shares outstanding during these years.