Interim report

Worldsec Ld
27 September 2006

                                Worldsec Limited

              Interim Report for the six months ended 30 June 2006



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 2006 (the 'Period').

For the six months ended 30 June 2006, the Group had a net loss of US$1,166,000
comprised of an operating loss of US$133,000 and the realization of US$1,033,000
standing on the currency translation reserve to the income statements. This
currency translation reserve was the cumulative exchange differences arisen from
the translation of the Group's various foreign operating subsidiaries
denominated in the respective local currencies into U.S. dollars in the
consolidated financial statements in prior years. The realization of this
reserve to the income statements in this financial period is in accordance with
the International Accounting Standard 21 and has no impact on the Group's net
asset value. Excluding this one-off release of the reserve, the Group's
operating loss of US$133,000 for the six months represented a decline in loss of
approximately 39% when compared with an operating loss of US$218,000 for the
same period last year. The shareholders' funds of the Group stood at US$2.02
million at the end of June 2006, compared to US$2.16 million at the end of
December 2005.

Noting the intention of Grand Acumen Holdings Limited, the new key shareholder,
to maintain the Group in the securities investment businesses, the Board is
actively looking into the process to reposition its current strategy.
Shareholders will be informed or approval sought (as necessary) as soon as
discussion comes to fruition.



By order of the Board


Alastair GUNN-FORBES

Non-Executive Chairman

27 September 2006



CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2006

                                                       Unaudited       Audited
                                                Six months ended    Year ended
                                  Notes   30.6.2006    30.6.2005    31.12.2005
                                            US$'000      US$'000       US$'000

Gain on disposal of investments                   -           20            20
Recovery of doubtful receivables                 16           98           148
Interest income                      5           20            2            19
Other income                                      -           23            21

                                                 36          143           208
Staff costs                                     (67)        (145)         (289)
Impairment losses                                 -          (87)            -
Other expenses                                 (102)        (128)         (300)

Operating loss                                 (133)        (217)         (381)
Finance costs                        5            -           (1)           (1)
Loss on disposal of subsidiaries     6            -            -           (85)
Currency translation reserve
released upon                                (1,033)           -             -
disposal of subsidiaries

Loss before tax                              (1,166)        (218)         (467)
Tax charge                           7            -            -             -

Loss for the period/year                     (1,166)        (218)         (467)

Loss per share - basic and
diluted                              8   (9) cents    (2) cents    (3) cents





CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

FOR THE PERIOD ENDED 30 JUNE 2006

                                                       Unaudited       Audited
                                                Six months ended    Year ended
                                          30.6.2006    30.6.2005    31.12.2005
                                            US$'000      US$'000       US$'000

Exchange differences on translation of
foreign Operations                                -          (16)            -

Currency translation reserve released
upon disposal of subsidiaries                 1,033            -             -


Net income/(expense) recognised directly
in Equity                                     1,033          (16)            -

Loss for the period/year                     (1,166)        (218)         (467)

Total recognised expense for the
period/year                                    (133)        (234)         (467)





CONSOLIDATED BALANCE SHEET

AT 30 JUNE 2006

                                                      Unaudited        Audited
                                 Notes   30.6.2006    30.6.2005     31.12.2005
                                           US$'000      US$'000        US$'000
Current assets
Investments                         9            -          363              -
Debtors                                          4          257            278
Bank deposits and cash                       2,470        2,166          2,293

                                             2,474        2,786          2,571
Creditors: Amounts falling due     10         (450)        (396)          (414)
within one year

Net current assets                           2,024        2,390          2,157

Net assets                                   2,024        2,390          2,157

Capital and reserves
Share capital                      11           13           13             13
Contributed surplus                12        9,646        9,646          9,646
Special reserve                    12          625          625            625
Accumulated losses                 12       (8,260)      (6,845)        (7,094)
Currency translation reserve       12            -       (1,049)        (1,033)

Equity shareholders' funds                   2,024        2,390          2,157



CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2006

                                                       Unaudited       Audited
                                                Six months ended    Year ended
                                   Note   30.6.2006    30.6.2005    31.12.2005
                                            US$'000      US$'000       US$'000

Loss before tax                              (1,166)        (218)         (467)

Adjustment for:
Finance costs                                     -            1             1
Interest income                                 (20)          (2)          (19)
Dividend received                                 -            -            (6)
Impairment losses                                 -           87             -
Loss on disposal of subsidiaries     6            -            -            85
Gain on disposal of investments                   -          (20)          (20)
Currency translation reserve
released upon                                 1,033            -             -
disposal of subsidiaries

Operating cash flows before
movements in working capital                   (153)        (152)         (426)

Decrease in trade debtors                        15        1,560         1,527
Increase in other debtors and
prepayments                                       -          (30)            -
Increase/(Decrease) in other
creditors and Accruals                           36          (10)            8


Cash (used in)/generated from
operations                                     (102)       1,368         1,109
Interest paid                                     -           (1)           (1)

NET CASH (USED IN)/FROM OPERATING
ACTIVITIES                                     (102)       1,367         1,108


Investing Activities
Interest received                                20            2            19
Dividend received                                 -            -             6
Proceeds on disposal of
subsidiaries                                    259            -           363
Proceeds on disposal of
investments                                       -           20            20

NET CASH FROM INVESTING                         279           22           408
ACTIVITIES


NET INCREASE IN CASH AND CASH                   177        1,389         1,516
EQUIVALENTS

CASH AND CASH EQUIVALENTS AT                  2,293          777           777
BEGINNING OF THE PERIOD/YEAR

CASH AND CASH EQUIVALENTS AT                  2,470        2,166         2,293
END OF THE PERIOD/YEAR
Bank deposits and cash




NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 2006


 1. GENERAL INFORMATION

The Company is a public listed 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 to the interim report.


 2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

In the current period, the Group has adopted all of the new and revised
Standards and Interpretations issued by the International Accounting Standards
Board (the 'IASB') and the International Financial Reporting Interpretations
Committee ('IFRIC') of the IASB that are relevant to its operations and
effective for accounting periods beginning on or after 1 January 2006. The
adoption of these new and revised Standards and Interpretations has no
significant impact on the financial statements of the Group.

At the date of authorisation of these financial statements, the following
Standards and Interpretations were in issue but not yet effective:


IAS 1 (Amendment) Capital Disclosures1

IFRS 7            Financial Instruments: Disclosures1

IFRIC 7           Applying the Restatement Approach under IAS 29

Financial Reporting in Hyperinflationary Economies2

IFRIC 8           Scope of IFRS 23

IFRIC 9           Reassessment of Embedded Derivatives4

IFRIC 10          Interim Financial Reporting and Impairment5


1 Effective for annual periods beginning on or after 1 January 2007

2 Effective for annual periods beginning on or after 1 March 2006

3 Effective for annual periods beginning on or after 1 May 2006

4 Effective for annual periods beginning on or after 1 June 2006

5 Effective for annual periods beginning on or after 1 November 2006


The directors anticipate that the adoption of these Standards and
Interpretations in the future periods will have no material impact on the
financial statements of the Group.

Save as disclosed above, 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 2005.



NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2006


 3. BASIS OF PREPARATION

The financial statements have been prepared in accordance with International
Financial Reporting Standards as adopted for use in the European Union. It has
been prepared on a basis other than that of a going concern which includes,
where appropriate, writing down the company's assets to net realisable value.
Provision has also been made for any onerous contractual commitments at the
balance sheet date. The financial statements do not include any provision for
the future costs of terminating the business of the company except to the extent
that such costs were committed at the balance sheet date. Accordingly, all
assets are classified as current assets.

The Group's financial statements consolidate the financial statements of the
Company and the subsidiary undertakings included in the Group.

The results of subsidiaries disposed of during the periods/year are included in
the consolidated income statement up to the effective date of disposal.


 4. BUSINESS AND GEOGRAPHICAL SEGMENTS

No business and geographical segment analyses are presented for the periods
ended 30 June 2006 and 30 June 2005 as the Group has only maintained a minimum
operation to continue the realization of its remaining assets in Hong Kong.

 5. INTEREST

                                                   Unaudited          Audited
                                            Six months ended       Year ended
                                      30.6.2006    30.6.2005       31.12.2005
                                        US$'000      US$'000          US$'000

Interest comprises:

Interest income
Bank interest receivable                     20            2               19

Finance costs
Bank loans and overdrafts                     -           (1)              (1)
repayable within five years





NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2006


 6. LOSS ON DISPOSAL OF SUBSIDIARIES

During the period, the Group disposed of its entire interests in Worldsec
Nominees International Limited, a company incorporated in the British Virgin
Islands, together with its wholly-owned subsidiary, Worldsec Nominees Limited, a
company incorporated in Hong Kong. In the year ended 31 December 2005, the Group
disposed of its entire interests in Worldsec International Securities
(Philippines) Inc., a company incorporated in Philippines.
The loss on disposal is analysed as
follows:
                                                       Unaudited       Audited
                                                Six months ended    Year ended
                                          30.6.2006    30.6.2005    31.12.2005
                                            US$'000      US$'000       US$'000

Loss on disposal of subsidiaries                  -            -           (85)


Incidental to the disposal of subsidiaries during the period, the total amount
of currency translation reserve USD1,033,000 has been released to the
consolidated income statement.


 7. TAX

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


 8. LOSS PER SHARE

Calculation of loss per share was based on the following:

                                                       Unaudited       Audited
                                                Six months ended    Year ended
                                         30.6.2006     30.6.2005    31.12.2005

Loss for the period/year             US$(1,166,000)  US$(218,000)  US$(467,000)

Weighted average number of
shares in issue                         13,367,290    13,367,290    13,367,290

Loss per share - basic and diluted   (9) cents       (2) cents     (3) cents





NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2006


 9. INVESTMENTS HELD AS CURRENT ASSETS

                                                       Unaudited       Audited
                                          30.6.2006    30.6.2005    31.12.2005
                                            US$'000      US$'000       US$'000

Investments held as current assets at             -          363             -
net realisable value


10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

                                                   Unaudited          Audited
                                      30.6.2006    30.6.2005       31.12.2005
                                        US$'000      US$'000          US$'000

Other creditors and accruals                450          396              414

                                            450          396              414




11. SHARE CAPITAL

                                                                           US$
Authorised:
Ordinary shares of US$0.001 each as at 30 June 2005, 31 December    50,000,000
2005 and 30 June 2006

Called up, issued and fully paid:
Ordinary shares of US$0.001 each as at 30 June 2005, 31 December        13,367
2005 and 30 June 2006





NOTES TO THE INTERIM REPORT (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2006



12. RESERVES

                      Contributed        Special       Accumulated    Currency
                          surplus        reserve            losses translation
                                                                       reserve
                          US$'000        US$'000           US$'000     US$'000

Balance at 1
January 2005                9,646            625            (6,627)     (1,033)
Loss for the
period                          -              -              (218)          -
Translation
adjustment                      -              -                 -         (16)

Balance at 1
July 2005                   9,646            625            (6,845)     (1,049)
Loss for the
period                          -              -              (249)          -
Translation
adjustment                      -              -                 -          16

Balance at 1
January 2006                9,646            625            (7,094)     (1,033)
Loss for the
period                          -              -            (1,166)          -
Currency
translation
reserve
released upon                   -              -                 -       1,033
disposal of
subsidiaries

Balance at 30
June 2006                   9,646            625            (8,260)          -



13. INTERIM REPORT

The interim report will be sent to shareholders on or about 21 October 2006.

CORPORATE INFORMATION


Board of directors

Non-Executive Chairman

Alastair GUNN-FORBES

Executive directors

Henry Ying Chew CHEONG (Deputy Chairman)

Non-executive directors

Mark Chung FONG

HO Soo Ching

Company secretary

Michelle Kei Yim CHEUNG

Registered office address

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

Registration number

EC21466 Bermuda

Principal bankers

The Hong Kong and Shanghai Banking Corporation Limited

1 Queen's Road, Central, Hong Kong

Auditors

Deloitte Touche Tohmatsu, Certified Public Accountants

35th Floor, One Pacific Place, 88 Queensway, Hong Kong

Solicitors

Linklaters

One, Silk Street, London EC2Y 8HQ, England

Principal share registrar and transfer office

The Bank of Bermuda Limited

Bank of Bermuda Building, 6 Front Street, Hamilton HM11DX, Bermuda

International branch registrar

Capita IRG (Offshore) Limited

Victoria Chambers, Liberation Square, 1/3 the Esplanade, St Helier, Jersey,
Channel Islands

United Kingdom transfer agent

Capita Registrars

The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England

Investor relations

For further information about Worldsec Limited, please contact:

Executive director

Henry Ying Chew CHEONG

Worldsec Group

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



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