We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Worldsec Ld | LSE:WSL | London | Ordinary Share | BMG9774L1019 | ORD USD0.001 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.25 | 0.75 | 1.75 | 1.25 | 1.25 | 1.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Security Brokers & Dealers | 630k | 58k | 0.0007 | 17.86 | 1.06M |
RNS No 5689e WORLDSEC LIMITED 28th September 1998 Worldsec Limited Interim Report for the six months ended 30 June 1998 The Directors submit the interim report on Worldsec Limited (the "Company") and its subsidiaries (collectively known as the "Group") for the six months ended 30 June 1998 (the "Period"). HIGHLIGHTS * Turnover for the Period dropped by 46% as compared with the same period in 1997 to US$6,362,000. * Loss from ordinary activities after taxation and minority interests for the Period was US$4,505,000. REVIEW OF OPERATIONS AND PROSPECTS The repercussions of the Asian currency crisis continue to impact the Asian economies adversely. This impact was of course reflected in the performance of the stockmarkets in the region. After collapsing in the second half of 1997, Asian stockmarkets staged a technical rebound in the first quarter of this year only to fall sharply once more in the second quarter. The overall performance for the first half was poor with the main regional market indices falling by between 5.8% in the case of the Philippines, which was the best performing market, and 30.3% in the case of Singapore, the region's worst performing stockmarket in local currency terms. The fall in value was accompanied by a sharp fall in market turnover, which translated into a dramatic collapse in commission income for stockbrokers. Our commission income reflected the fall in the volume of business in US dollar terms in the markets in the region. Since the start of the Asian currency crisis in July 1997, there has been a sharper compartmentalisation within the brokerage industry in Asia with smaller brokers suffering from a "flight to quality", particularly after a number of high profile brokerage failures. Unfortunately for us, quality in the eyes of many compliance officers is equated with size. What they overlook is that the brokerages which have failed in recent years have included very sizable firms and they failed primarily because of large proprietary positions rather than because of any problems in their agency brokerage business. As we do not run a proprietary book, our capital base is of course modest but large enough to make us a very high quality counterparty for the institutional clients for whom we deal. We are grateful for their support. Notwithstanding this support, as a result of the dramatic falls in market turnover, our broking business operated at a loss during the Period. REVIEW OF OPERATIONS AND PROSPECTS (CONTINUED) The acquisitions of the businesses of Jin Loong Securities Company Limited and Jin Loong Futures Limited were completed during the Period. These acquisitions add established retail equity and futures sales teams to the Group's operation in Hong Kong. Capital raising work has been difficult in Asia for some time and the Group's corporate finance division has been concentrating more on advisory work. Despite the difficult operating environment, the Group's corporate finance business continued to contribute positively during the Period. Because of the adverse market environment and as mentioned in our 1997 annual report, we are operating at a loss. The unaudited Group loss from ordinary activities, after taxation and minority interests, for the Period amounted to US$4,505,000, equivalent to loss per share of 35 US cents as compared to a profit of US$735,000 in the corresponding period of 1997, equivalent to earnings per share of 7 US cents. The Directors do not recommend any interim dividend payment for the current financial year. In recent months, the impact of the Asian currency crisis has spread well beyond Asia to emerging markets all over the globe. Financial instability in world emerging markets threatens the global economy including the economies of the developed industrialised nations. There is a growing belief that the balance of risks in the world economy is shifting away from inflation to deflation and possibly even depression. We see no early end to the recession affecting Asia and growing risks to the financial fabric of the world economy. There have been calls for a co-ordinated global response to turmoil in world financial markets and to economic problems, with a view to reducing destabilising volatility associated with large and sudden capital flows while at the same time promoting economic growth. Even if such a co-ordinated response were to materialise, recovery is likely to be slow. In response to their specific situations, Malaysia has instituted capital controls and introduced measures to reflate its economy, while the Hong Kong authorities have intervened in the stockmarket and money markets in defence of the Hong Kong currency peg. Our commission income in Hong Kong rose sharply in August benefiting from the surge in volume associated with the Government's intervention in the local stockmarket, but such an increase in our commission income is not sustainable. Although the surge in business in August is likely to mean that the second half results should be materially better than in the first half, we expect our operating environment will continue to be difficult and we are looking at ways to reduce costs It is very easy to be very pessimistic about prospects but at the micro level, value in individual stocks in certain Asian markets have begun to appear. We are confident our knowledge and experience of the region will give us an edge to help our clients take advantage of the value that falling share prices uncover. MANAGEMENT Mr. Toshiyuki Morioka was elected as a non-executive director of the Company by the members at the last Annual General Meeting of the Company held on 23 July 1998. Mr. Morioka is also the Managing Director of Tokyo-Mitsubishi International (HK) Limited. Mr. Kenichi Masuda, a non-executive director, and his alternate, Mr. Yasushi Ando, ceased to be directors of the Company when their terms of office came to an end on 23 July 1998. By order of the Board Henry Ying Chew Cheong Deputy Chairman and Chief Executive Officer 28 September 1998 CONSOLIDATED PROFIT AND LOSS ACCOUNT Unaudited Audited Six months ended Year ended Notes 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Turnover 3 6,362 11,782 23,682 Fees and (1,015) (2,221) (3,382) commission payable 5,347 9,561 20,300 Other operating 313 479 1,025 income 5,660 10,040 21,325 Staff costs (6,138) (6,094) (12,774) Other operating (3,219) (3,056) (6,027) costs Provision for doubtful 4 (1,018) - (549) receivables Operating 3 (4,715) 890 1,975 (loss)/profit Interest receivable and 528 397 1,192 similar charges Interest payable and similar (128) (149) (293) charges (Loss)/profit on ordinary (4,315) 1,138 2,874 activities before taxation Tax 5 (144) (291) (674) (Loss)/profit on ordinary (4,459) 847 2,200 activities after taxation Equity minority 6 (46) (112) (12) interest (Loss)/profit for the financial (4,505) 735 2,188 period/year Equity dividends 7 - (258) (516) Transfer (4,505) 477 1,672 (from)/to reserves (Loss) earnings 8 (35 cents) 7 cents 19 cents per share STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 (Loss)/profit for the (4,505) 735 2,188 period/year Deficit arising on revaluation of - - (173) investments and tangible fixed assets Currency translation (105) (37) (1,833) differences Total recognised (4,610) 698 182 (losses)/gains RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 (Loss)/profit for the (4,505) 735 2,188 period/year Equity dividends - (258) (516) (4,505) 477 1,672 Other recognised gains and losses relating to (105) (37) (2,006) the period/year Issue of shares - 17,226 17,226 Net (reduction)/addition to (4,610) 17,666 16,892 shareholders' funds during the period/year Shareholders' funds 34,921 18,029 18,029 brought forward Shareholders' funds 30,311 35,695 34,921 carried forward CONSOLIDATED BALANCE SHEET Unaudited Audited Notes 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Fixed assets Intangible assets 9 9 31 15 Tangible fixed 1,466 1,795 1,354 assets Investments 10 5,944 5,533 4,428 7,419 7,359 5,797 Current assets Debtors 17,203 37,546 14,730 Bank deposits and 11 55,399 59,298 67,437 cash 72,602 96,844 82,167 Creditors: Amounts falling 12 (49,435) (68,179) (52,804) due within one year Net current 23,167 28,665 29,363 assets Total assets less current 30,586 36,024 35,160 liabilities Creditors: Amounts falling due after more 13 - (10) - than one year Provisions for liabilities and 14 (30) (30) (30) charges Equity minority 6 (245) (289) (209) interest Net assets 30,311 35,695 34,921 Capital and reserves Called up share 15 12,900 12,900 12,900 capital Reserves 17,411 22,795 22,021 Equity 30,311 35,695 34,921 shareholders' funds CONSOLIDATED CASH FLOW STATEMENT Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Net cash outflow from operating activities (7,633) (6,205) (2,086) (Note 16) Returns on investments and servicing of finance Interest received from 528 397 1,192 banks Interest paid on bank loans and overdrafts (128) (148) (290) Interest paid on hire - (1) (3) purchase contracts Net cash inflow from returns on investments 400 248 899 and servicing of finance Tax paid (61) - (281) Capital expenditure and financial investment Purchase of fixed (303) (29) (413) assets Purchase of investments (1,570) - - Sale of fixed assets - - 50 Partial disposal of a subsidiary to minority - - 55 shareholders Net cash outflow from capital expenditure and (1,873) (29) (308) financial investment Equity dividend paid - - (258) Net cash outflow before use of liquid resources (9,167) (5,986) (2,034) and financing Management of liquid resources (Increase)/decrease in time deposits of (7) 58 (75) maturity exceeding 1 day Financing Issue of shares - 17,226 17,226 Capital element of payments under hire (3) (8) (21) purchase contracts Net cash (outflow)/inflow from (3) 17,218 17,205 financing (Decrease)/increase in (9,177) 11,290 15,096 cash (Note 17) NOTES TO THE INTERIM REPORT 1 BASIS OF PREPARATION The financial statements have been prepared by applying the merger accounting principles and include the financial positions and operating results of all subsidiary undertakings of the Company. 2 ACCOUNTING POLICIES The financial statements set out in this report have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets, in accordance with accounting principles generally accepted in the United Kingdom. The accounting policies adopted in preparing this report are consistent with those adopted in preparing the consolidated financial statements of the Group for the year ended 31 December 1997. The directors continue to adopt the going concern basis in preparing the interim report. NOTES TO THE INTERIM REPORT (CONTINUED) 3 ANALYSIS OF TURNOVER, OPERATING PROFIT AND NET ASSETS The turnover attributable to the different classes of the Group's business is as follows: Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Analysis by class of business Broking 5,479 11,315 20,920 Corporate finance 639 467 2,127 Investment advisory 244 - 635 6,362 11,782 23,682 Geographical analysis of turnover Hong Kong 4,668 7,791 17,057 Malaysia 387 689 999 Philippines 162 479 608 Thailand 598 1,334 1,525 Others 547 1,489 3,493 6,362 11,782 23,682 The operating (loss)/profit attributable to the different classes of the Group's business is as follows: Broking (4,966) 832 945 Corporate finance 129 58 923 Investment advisory 122 - 107 (4,715) 890 1,975 The net assets utilised in the Group relate substantially to broking activities. 4 PROVISION FOR DOUBTFUL RECEIVABLES The amount relates to certain receivables arising in the ordinary course of broking activities. NOTES TO THE INTERIM REPORT (CONTINUED) 5 TAX Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 The charge comprises: UK Corporation Tax at 31% - current year 72 39 153 Hong Kong Profits Tax at 16% - current year 34 177 482 Other overseas taxation 38 75 39 144 291 674 6 EQUITY MINORITY INTEREST The minority interest relates to the interests in Worldsec Capital Management Inc. and in PB Worldsec Securities Advisors Sdn. Bhd. (formerly known as Worldsec Securities Consulting (Malaysia) Sdn. Bhd.). 7 EQUITY DIVIDENDS Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Interim - 258 258 Final - - 258 - 258 516 Dividend per share - 2 cents 4 cents NOTES TO THE INTERIM REPORT (CONTINUED) 8 (LOSS) EARNINGS PER SHARE Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 (Loss)/profit for the financial period/year (4,505) 735 2,188 (Loss) earnings per (35 cents) 7 cents 19 cents share Number Number Number Weighted average number of shares in issue 12,900,000 9,870,994 11,397,945 9 INTANGIBLE ASSETS Intangible assets represent pre-operating expenses less amortisation over a period of three years on the straight line basis. 10 INVESTMENTS Unaudited Audited 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Exchange memberships - at directors' valuation *5,361 4,953 3,845 Unlisted investments - 583 580 583 at cost 5,944 5,533 4,428 * The amount includes additions at cost of US$1,570,000 in the six months ended 30 June 1998. NOTES TO THE INTERIM REPORT (CONTINUED) 11 ANALYSIS OF CASH Unaudited Audited 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Bank deposits and cash 55,399 59,298 67,437 Bank loans and (5,660) (3,586) (21) overdrafts 49,739 55,712 67,416 Less: Cash at bank - trust (31,815) (32,557) (40,322) accounts Time deposits of maturity exceeding 1 (1,921) (1,781) (1,914) day Cash (Note 18) 16,003 21,374 25,180 12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Unaudited Audited 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Bank loans and 5,660 3,586 21 overdrafts Trade creditors 41,206 61,369 49,154 Dividend payable 258 258 258 Taxation and social 555 370 472 security Other creditors, accruals and deferred 1,753 2,587 2,893 income Obligations under hire purchase contracts 3 9 6 49,435 68,179 52,804 13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR The amount represented the portion of obligations under hire purchase contracts falling due after more than one year. NOTES TO THE INTERIM REPORT (CONTINUED) 14 PROVISIONS FOR LIABILITIES AND CHARGES The amount represents provision for deferred taxation which is the tax effect of the excess of depreciation allowances claimed for tax purposes over the depreciation charged in the financial statements. Other timing differences are not significant. There was no movement in the provision for deferred taxation during the Period. The Group had no significant unprovided deferred taxation at 30 June 1998. 15 CALLED UP SHARE CAPITAL Unaudited Audited 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Authorised, issued and fully paid: 12,900,000 ordinary shares at US$1 each 12,900 12,900 12,900 To complete the acquisition of the securities and futures broking businesses from Jin Loong Securities Company and Jin Loong Futures Limited pursuant to an agreement dated 23 December 1997, 467,290 ordinary shares of US$1 each were issued by the Company at US$2.90 per share on 28 September 1998. These shares are credited as fully paid and the excess value of US$1.90 over par per ordinary share or an aggregate of US$887,851 is credited into the share premium account. NOTES TO THE INTERIM REPORT (CONTINUED) 16 RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Operating (loss)/profit (4,715) 890 1,975 Depreciation 191 220 385 Amortisation of 6 21 28 deferred expenditure Exchange difference (61) (22) (302) (Increase)/decrease in (2,473) (7,249) 15,567 debtors (Increase)/decrease in amounts due from - (4,131) 1,061 related companies Decrease/(increase) in cash at bank - trust 8,507 1,170 (6,595) accounts (Decrease)/increase in (7,948) 2,010 (10,205) trade creditors (Decrease)/increase in other creditors, accruals and deferred (1,140) 886 (4,000) income Net cash outflow from operating activities (7,633) (6,205) (2,086) NOTES TO THE INTERIM REPORT (CONTINUED) 17 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Unaudited Audited Six months ended Year ended 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 (Decrease)/increase in (9,177) 11,290 15,096 cash Cash outflow from increase in liquid 7 - 75 resources Cash inflow from decrease in liquid - (58) - resources Cash outflow from repayment of hire 3 8 21 purchase contracts Movement in net funds (9,167) 11,240 15,192 Net funds brought 27,088 11,896 11,896 forward Net funds carried 17,921 23,136 27,088 forward 18 ANALYSIS OF NET FUNDS Unaudited Audited 30.6.1998 30.6.1997 31.12.1997 US$'000 US$'000 US$'000 Cash in hand and deposits repayable on 21,663 24,960 25,201 demand Bank loans and (5,660) (3,586) (21) overdrafts Cash (Note 11) 16,003 21,374 25,180 Obligations under hire purchase contracts (3) (19) (6) Time deposits of maturity exceeding 1 1,921 1,781 1,914 day Net funds 17,921 23,136 27,088 NOTES TO THE INTERIM REPORT (CONTINUED) 19 INTERIM REPORT The interim report will be posted to shareholders on or about 12 October 1998. END IR AWUSKWBKKUAR
1 Year Worldsec Ld Chart |
1 Month Worldsec Ld Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions