Information  X 
Enter a valid email address

Worldsec Ld (WSL)

  Print      Mail a friend

Thursday 28 August, 2014

Worldsec Ld

Half Yearly Report

RNS Number : 2538Q
Worldsec Ld
28 August 2014
 



 

 

 

 

 

 

 


 

WORLDSEC LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interim Report for the six months ended 30 June 2014

 

 


 

Worldsec Limited

 

Interim Report for the six months ended 30 June 2014

 

 

The board (the "Board") of directors of Worldsec Limited (the "Company") hereby submits the interim report on the Company and its subsidiaries (collectively known as the "Group") for the six months ended 30 June 2014. 

 

For the six months ended 30 June 2014, the unaudited results of the Group showed a net loss of US$176,000 , equivalent to a loss per share of 0.3 US cent.  This compares with a net loss of US$108,000 and a loss per share of 0.8 US cent for the corresponding period in the previous year.  The decline in the loss per share basically reflects the increase in the number of shares as a result of the share issue associated with the fund raising exercise in August 2014.  As at 30 June 2014, the Group's total equity stood at US$4.07 million, as compared to US$4.24 million as at the 31 December 2013, and the unaudited net asset value per share amounted to 7.2 US cents.

 

During the first six months of the current financial year, the Group had been actively looking for and exploring potential investment opportunities. In this connection, a number of investment proposals had been identified and put forward to the Board for review and discussion.  However, due to the valuation expectations of the investee companies in question, the Board noted that the amounts of investment required for these proposals were generally significant relative to the size or the gross assets of the Group and after due and careful evaluation and deliberation concluded that the risk return profiles of these proposals, with the exception of one, were not particularly favourable to suit the investment criteria of the Company.  The one that remains under further consideration is a new start-up company aiming to provide education services to kindergartens in China (the "Kindergarten Project").  The Group is in the process of carrying out more in-depth analysis of this potential investment proposal; and based on the information currently available, it appears that this investment is a viable and attractive proposition.  Subject to satisfactory due diligence and the approval of the proposed expansion in the scope of the Company's Investment Policy as discussed below, the Board intends to make an investment in the Kindergarten Project.

 

Reference is made to the Investment Policy of the Company, which currently excludes investments in new start-up companies.  In the course of attempting to source and identify target investment opportunities, however, it has become apparent that the prevailing investment environment for investing particularly in larger established companies with proven turnover track records as required under the current Investment Policy of the Company has become increasingly competitive against the backdrop of the highly accommodative policies adopted by the central banks in advanced economies.  The competition for quality targets has as a consequence been driving up the valuations of these companies, thereby adversely affecting the risk reward balance for investing in them.  This in turn has an adverse and restraining effect on the Group to make investments consistent with the current Investment Policy of the Company.  Meantime, during the sourcing process, the Group has come across a number of potentially attractive investment opportunities involving new start-up companies.  While investing in such companies generally entails a higher degree of risks, the potential for capital appreciation associated with them is commensurately stronger.  In the absence of proven track records, the valuations of such companies are also less demanding, thus further enhancing the risk reward balance for investing in them.  Accordingly, in order to allow greater flexibility for the Group to capture market opportunities under the prevailing investment environment and to cater for the potential investment in the Kindergarten Project as described above, the Board intends to seek shareholders' approval to expand the scope of the Company's Investment Policy in the forthcoming Annual General Meeting to include investments in new start-up companies.

 

The Group's recently formed wholly-owned subsidiary, Worldsec Investment (Hong Kong) Limited, has reached agreement to rent a new office. Upon completion of the renovation of the new office, the Group will be in a position to accommodate additional staff to cope with the expected increase in its business activities.  The Board is also confident that, should the proposed expansion in the scope of the Company's Investment Policy be approved by shareholders, the Group will be in a better position to achieve the investment objective of the Company with greater flexibility and hence more efficiently.

 

 

 

 

 

 

By order of the Board

 

 

Alastair GUNN-FORBES

Non-Executive Chairman

 

28th August 2014

 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2014                                           

 

 



Unaudited


Audited



Six months ended


Year ended


Notes

30.6.2014


30.6.2013


31.12.2013



US$'000


US$'000


US$'000








Other income and gain

5

-


-


-

Staff costs


(43)


(7)


(45)

Other expenses


(133)


(86)


(228)








Loss before tax


(176)


(108)


(273)

Income tax expense

6

-


-


-








Loss for the period/year


(176)


(108)


(273)

 

 














Other comprehensive income, net of







income tax







Exchange differences on translating foreign







operations


(1)


(1)


2








Other comprehensive income for the period/year,







net of income tax


(1)


(1)


2








Total comprehensive income for the period/year


(177)


(109)


(271)








Loss attributable to:







Owners of the Company


(176)


(108)


(273)








Total comprehensive income attributable to:







Owners of the Company


(177)


(109)


(271)















Loss per share - basic and diluted

7

(0.3) cent


(0.8) cent


(1) cent












 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2014                                                         

 

 



Unaudited


Audited



Six months ended


Year ended


Notes

30.6.2014


30.6.2013


31.12.2013



US$'000


US$'000


US$'000

Current assets







Cash and bank balances


4,339


774


4,702








Current liabilities







Other payables and accruals


(272)


(249)


(458)








Net current assets


4,067


525


4,244








Net assets


4,067


525


4,244















Capital and reserves







Share capital

Share premium

8

9

57

3,837


13

-


57

3,837

Contributed surplus

9

9,646


9,646


9,646

Foreign currency translation reserve

9

(3)


(5)


(2)

Special reserve

9

625


625


625

Accumulated losses

9

(10,095)


(9,754)


(9,919)








Total equity


4,067


525


4,244








 

 



CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE PERIOD ENDED 30 JUNE 2014                                                 

 

 


Unaudited


Audited


Six months ended


Year ended


30.6.2014


30.6.2013


31.12.2013


US$'000


US$'000


US$'000

Cash flow from operating activities






Loss for the period/year

(176)


(108)


(273)







Interest income

-


-


-








(176)


(108)


(273)

Movement in working capital






Increase/(decrease) in other payables and accruals

(186)


(26)


183







Net cash used in operating activities

(362)


(134)


(90)







Cash flow from financing activities

Proceeds from issue of new shares

 

-


 

-


 

4,337

Payment for Share issue costs

-


-


(456)







Net cash from financing activities

-


-


3,881













Net increase/(decrease) in cash and cash equivalents

(362)


(134)


3,791







Cash and cash equivalents at






beginning of the period/year

4,702


909


909







Effects of exchange rate changes

(1)


(1)


2







Cash and cash equivalents at






end of the period/year






Cash and bank balances

4,339


774


4,702

 

 

 



NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 2014                                   

 

 

1.   GENERAL INFORMATION

 

The Company is an exempted company incorporated in Bermuda and its shares are listed on the London Stock Exchange. The addresses of the registered office and principal place of business of the Company are disclosed in the corporate information in the interim report.

 

 

2.   ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ( "IFRSs")

 

In the current period, the Group had adopted all of the new and revised IFRSs issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC") of the IASB that were relevant to its operations and effective for accounting periods beginning on or after 1 January 2014. The adoption of these new and revised IFRSs had no significant impact on the financial statements of the Group.

 

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

 

IAS 16

IAS 19

IAS 24

IAS 38

IAS 40

IFRS 2

IFRS 3 (as revised in 2008)

IFRS 8

IFRS 9

Property, Plant and Equipment1

Employee Benefits1

Related Party Disclosures1

Intangible Assets1

Investment Property1

Share-based Payment1

Business Combinations1

Operating Segments1

Financial Instruments2

IFRS 9 and IFRS 7

 

IFRS 14

Mandatory Effective Date of IFRS 9 and Transition Disclosures2

Regulatory Deferral Accounts3

 



                 

1        Effective for annual periods beginning on or after 1 July 2014

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

3    Effective for annual periods beginning on or after 1 January 2016

 

 

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.

 

Save as disclosed above, the accounting policies adopted in preparing this report were consistent with those adopted in preparing the consolidated financial statements of the Group for the year ended 31 December 2013.

 

 

 

 

 

 

 

 

 

NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2014                                    

 

 

3.   BASIS OF PREPARATION

 

The financial statements have been prepared in accordance with IFRSs. It has been prepared on a going concern basis using the historical cost convention except for certain financial instruments, if any, that are measured at fair values at the end of each reporting period. 

 

The Group's financial statements have consolidated the financial statements of the Company and its subsidiaries undertakings included in the Group.

 

 

4.   BUSINESS AND GEOGRAPHICAL SEGMENTS

 

No business and geographical segment analyses are presented for the periods ended 30 June 2014 and 30 June 2013 as the Group had only maintained a minimum operation during the periods.

 

 

5.   OTHER INCOME AND GAIN

 


Unaudited


Audited


Six months ended


Year ended


30.6.2014


30.6.2013


31.12.2013


US$'000


US$'000


US$'000







Sundry Income

-


-


-

Interest income

-


-


-


-


-


-







 

6.   INCOME TAX EXPENSE

 

No provision for taxation has been made as the Group did not generate any assessable profits for UK Corporation Tax, Hong Kong Profits Tax and tax in other jurisdictions.

 

 

7.   LOSS PER SHARE

 

Calculation of loss per share was based on the following:


Unaudited


Audited


Six months ended


Year ended


30.6.2014


30.6.2013


31.12.2013







Loss for the period/year

US$(176,000)


US$(108,000)


US$(273,000)













Weighted average number of shares in issue

56,734,580


13,367,290


27,387,400













Loss per share - basic and diluted

0.3 cent


0.8 cent


1 cent







 

 

 

 

 

NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2014                                    

 

 

8.   SHARE CAPITAL

 



Unaudited


Audited


Six months ended


Year ended


30.6.2014


30.6.2013


31.12.2013

 

Authorised:

US$'000


US$'000


US$'000

Ordinary shares of US$0.001each

60,000,000


50,000,000


60,000,000







Called up, issued and fully paid:






Ordinary shares of US$0.001each

56,735


13,367


56,735







 

 

9.   RESERVES

 









Foreign







 









Currency







 




Share



Contributed


Translation



Special



Accumulated

 




Premium



Surplus


Reserve



Reserve



Losses

 




US$'000



US$'000


US$'000



US$'000



US$'000

 
















 
















 

Balance as at 1 January 2013



-



9,646


(4)



625



(9,646)

 

Loss for the period


-



-


(1)



-



(108)

 














 

 

Balance as at 1 July 2013                         

 

-

 

 


 

9,646


 

(5)



 

625



 

(9,754)

 

Loss for the period

 

-



 

-


 

3



 

-



 

(165)

 

Issue of new shares by way of open offer and placing

 

4,293



 

-


 

-



 

-



 

-

 

Transaction costs attributable to issue of new shares

 

(456)



 

-


 

-



 

-



 

-

 

 

Balance as at 1 January 2014



 

3,837



 

9,646


 

(2)



 

625





 

(9,919)

 

Loss for the period



-



-


(1)



-





(176)

 

 

Balance as at 30 June 2014



3,837



9,646


(3)



625



(10,095)

 

 

 

 

10.  INTERIM REPORT

 

      The interim report will be sent to shareholders on or about 2nd September 2014.

 

 

 

 

 

CORPORATE INFORMATION

 

Board of Directors

 

Non-Executive Chairman

Alastair GUNN-FORBES

 

Executive Directors

Henry Ying Chew CHEONG (Deputy Chairman)

Ernest Chiu Shun SHE

 

Non-Executive Directors

Mark Chung FONG

Martyn Stuart WELLS

 

Company Secretary

Jordan Company Secretaries Limited

21 St Thomas Street, Bristol B51 6JS, United Kingdom

 

Registered Office Address

Canon's Court, 22 Victoria Street, Hamilton HM12, Bermuda

 

Registration Number

21466 Bermuda

 

Principal Bankers

The Hongkong and Shanghai Banking Corporation Limited

1 Queen's Road, Central, Hong Kong

 

Auditors

Menzies LLP

Ashcombe House, 5 The Crescent, Leatherhead, Surrey KT22 8DY, United Kingdom

 

Principal Share Registrar and Transfer Office

Appleby Management (Bermuda) Ltd.

Canon's Court, 22 Victoria Street, Hamilton HM12, Bermuda

 

International Branch Registrar

Capita Asset Services

12 Castle Street, St Helier, Jersey, JE2 3RT, Channel Islands

 

United Kingdom Transfer Agent

Capita Asset Services

The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, United Kingdom

 

Investor Relations

For further information about Worldsec Limited, please contact:

Henry Ying Chew CHEONG

Executive Director

Worldsec Group

6th Floor, New Henry House, 10 Ice House Street, Central, Hong Kong


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR EAAPPADNLEFF

a d v e r t i s e m e n t