Interim Results

Worldsec Ld
27 September 2005

                                Worldsec Limited



              Interim Report for the six months ended 30 June 2005



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 2005 (the 'Period').


During the Period, the Group maintained a minimum operation to continue the
realisation of its remaining assets into cash.  The Group results for the Period
are shown in the Consolidated Profit and Loss Account on page 2 of this report.
Over US$1.5 million had been collected from debtors in the Period and we expect
to collect the remaining balance in the coming months.  Subsequent to the end of
the Period until review, the Group managed to dispose of its Philippines
subsidiary for a consideration of US$363,000 net of expenses, payable in cash
which was received at the end of August 2005.


The collection of the debtors and the sale of the Group's Philippines assets
represent the practical completion of the exercise of realising all the Group's
assets into cash.  In connection with the disposal of the Philippines
subsidiary, the Group has granted the purchaser a limited warranty for a period
of six months with such warranty expiring in early 2006.  In the next few
months, it is expected that actions taken to wind up subsidiaries which are no
longer required and pay off all outstanding liabilities would be completed.
Once all the outstanding formalities are dealt with and the warranty time limit
mentioned above has passed, your board will be in a position to come to a
decision regarding the disposition of the cash assets.




                                                           By order of the Board





                                                             Paul Kwok Kin Cheng
                                                         Chief Operating Officer                                        
                                                            and Finance Director



                                                               27 September 2005




CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                              Unaudited                    Audited
                                                          Six months ended                Year ended
                                         Notes          30.6.2005        30.6.2004        31.12.2004


                                                          US$'000          US$'000           US$'000

Turnover                                        3               -                11                11
Fees and commission payable                                     -                 -                -  
                                                                -                11                11
Gain on disposal of investments                                 20              602               602
Recovery of doubtful receivables                               98               203               670
Other operating income                                          23               94                94

                                                               141              910             1,377
Staff costs                                                  (145)            (211)             (381)
Impairment losses                                             (87)                                 -
                                                                                  -
Other operating costs                                        (128)            (355)             (526)


Operating profit (loss)                                      (219)              344               470
Interest receivable and similar                                  2               15                21
income
Interest payable and similar charges
                                                               (1)              (5)               (5)
Profit on disposal of subsidiaries                              -                36                36

(Loss) Profit before taxation                                (218)              390               522
Tax charge                                      4               -                -                 -

(Loss) Profit for the financial
period / year                                                (218)              390               522

(Loss) Earnings per share - basic
   and diluted                                  5        (2) cents           3 cents           4 cents
                                                       
  Distributions                                 9               -             9,357            9,357





The results above relate entirely to discontinued operations.




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                              Unaudited                   Audited
                                                          Six months ended              Year ended
                                                     30.6.2005        30.6.2004         31.12.2004
                                                      US$'000          US$'000            US$'000

(Loss) Profit for the financial period/year               (218)              390                 522
Currency translation differences                           (16)             (67)                (47)

Total recognised (losses) / gains in the
   period/year                                            (234)              323                 475



RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS


                                                              Unaudited                   Audited
                                                          Six months ended              Year ended
                                                     30.6.2005        30.6.2004         31.12.2004
                                                       US$'000          US$'000            US$'000

(Loss) Profit for the financial period/year               (218)              390                 522
Other recognised losses relating to the period
/year
                                                           (16)             (67)                (47)


Net change in shareholders' funds during the
period/year
                                                          (234)              323                 475
Distribution out of contributed surplus                      -           (9,357)             (9,357)
Shareholders' funds brought forward                       2,624           11,506              11,506


Shareholders' funds carried forward                       2,390            2,472               2,624




CONSOLIDATED BALANCE SHEET


                                                                Unaudited                   Audited
                                          Notes       30.6.2005        30.6.2004         31.12.2004
                                                        US$'000          US$'000            US$'000
Current assets
Investments                                   6              363              448                 448
Debtors                                                      257            1,337               1,805
Bank deposits and cash                                     2,166            1,429                 777

Total assets                                               2,786            3,214               3,030

Current liabilities                           7            (396)            (742)               (406)

Total liabilities                                          (396)            (742)               (406)

Net assets                                                 2,390            2,472               2,624

Equity
Share capital                                 8               13               13                  13
Reserves                                                   2,377            2,459               2,611

Total Equity                                               2,390            2,472               2,624




CONSOLIDATED CASH FLOW STATEMENT


                                                                 Unaudited                 Audited
                                                              Six months ended            Year ended
                                                         30.6.2005      30.6.2004         31.12.2004
                                                          US$'000        US$'000           US$'000
Cash generated from operations (Note 10)                   1,368            (318)              (976)
Interest received                                              2               15                 21
Interest paid                                                (1)              (5)                (5)

Net cash from operating activities                         1,369            (308)              (960)

Cash flow from investing activities
Proceed from sale of subsidiaries                              -              410                410
Proceeds from sale of investments                             20            3,683              3,683

Net cash flow from investing activities                       20            4,093              4,093

Cash flow used in financing activities
Distribution paid                                             -           (9,357)            (9,357)

Net increase in cash and cash equivalents                  1,389          (5,572)            (6,224)

Cash and cash equivalents at beginning of period             777            7,001              7,001

Cash and cash equivalents at end of period                 2,166            1,429                777




NOTES TO THE INTERIM REPORT



1      BASIS OF CONSOLIDATION


      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.


2      BASIS OF Accounting


The Group has ceased business operations and has been realising its assets and
returning the cash proceeds to shareholders.  The financial statements have 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.  Accordingly, all assets are classified as current assets.


The financial statements for the six months ended 30 June 2005 have been
prepared in accordance with International Financial Reporting Standards ('IFRS')
for the first time.  The financial statements for the corresponding six month
period to 30 June 2004 and for the year ended 31 December 2004 were prepared in
accordance with accounting principles general accepted in the United Kingdom ('
UKGAAP').  The transition from UKGAAP to IFRS has not affected the Group's
financial position, performance and cash flows presented in this report.



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 2004.




NOTES TO THE INTERIM REPORT (CONTINUED)



3      ANALYSIS OF TURNOVER, OPERATING (LOSS) PROFIT AND NET ASSETS

                                                               Unaudited                   Audited
                                                             Six months ended              Year ended
                                                        30.6.2005        30.6.2004         31.12.2004
                                                          US$'000          US$'000            US$'000

Turnover analysed by class of business
        Broking and related services                         -                11                  11
                                                             -                11                  11

      Geographical analysis of turnover
        Hong Kong                                            -                11                  11
                                                             -                11                  11



The operating (loss) / profit attributed to
the different classes of the Group's business
is as follows:
        Broking and related services                          -              344                 470
        Others                                             (219)               -                   -
                                                           (219)             344                 470






   In the past, the operating profit of the Group was derived from the Group's
operations based in Hong Kong and the net assets of the Group were related to
broking activities and were substantially situated in Hong Kong.




NOTES TO THE INTERIM REPORT (CONTINUED)





4      TAX


                                                           Unaudited                   Audited
                                                       Six months ended              Year ended
                                                  30.6.2005        30.6.2004         31.12.2004
                                                   US$'000          US$'000            US$'000

The (charge)/credit comprises:
UK Corporation Tax and other overseas taxation               -                -                   -


                                                             -                -                   -
Deferred taxation                                            -                -                   -

                                                             -                -                   -




5      (LOSS) EARNINGS PER SHARE

                                                           Unaudited                   Audited
                                                       Six months ended              Year ended
                                                  30.6.2005        30.6.2004         31.12.2004

(Loss) Profit for the financial period/year     US$(218,000)        US$390,000          US$522,000

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

(Loss) Earnings per share - basic and diluted     (2) cents           3 cents               4 cents
                                                     


NOTES TO THE INTERIM REPORT (CONTINUED)




6      INVESTMENTS


                                                           Unaudited                   Audited
                                                  30.6.2005        30.6.2004         31.12.2004
                                                   US$'000          US$'000            US$'000

Investments held as current assets at net
realisable value                                      363              448                 448






   The Group's investments comprising of listed investments, right to trade on
or through the Philippine Stock Exchange and land and building were all held by
a subsidiary and represented all the assets of that subsidiary.  The subsidiary
was disposed of in August 2005 for a consideration of US$363,000 net of
associated expenses.




NOTES TO THE INTERIM REPORT (CONTINUED)


7      CURRENT LIABILITIES


                                                    Unaudited                     Audited
                                          30.6.2005          30.6.2004          31.12.2004
                                           US$'000            US$'000             US$'000

Other creditors and accruals                 396                742                 406
                                             396                742                 406




8      SHARE CAPITAL


                                                    Unaudited                      Audited
                                          30.6.2005           30.6.2004          31.12.2004
                                             US$                 US$                 US$
                                      Ordinary shares of Ordinary shares of  Ordinary shares of
                                        US$0.001 each       US$0.001 each       US$0.001 each

Authorised:                               50,000,000          50,000,000          50,000,000

Called up, issued and fully paid:             13,367              13,367              13,367




NOTES TO THE INTERIM REPORT (CONTINUED)



9      DISTRIBUTIONS


Distribution out of the contributed surplus account of US$0.70 per share
totalling US$9,357,103 was paid on 28 April 2004.


10   RECONCILIATION OF OPERATING (LOSS) / PROFIT TO NET CASH (OUTFLOW) / INFLOW
FROM OPERATING ACTIVITIES


                                                               Unaudited                   Audited
                                                           Six months ended              Year ended
                                                      30.6.2005        30.6.2004         31.12.2004
                                                       US$'000          US$'000            US$'000

Operating (loss) / profit                                 (218)              344                 470
Gain on disposal of investments                            (20)            (602)               (602)
Gain on disposal of subsidiaries                                              -                 (36)
Exchange difference                                        (19)             (53)                   4
Impairment losses                                            87                -                   -
Decrease in debtors                                       1,578            1,547               1,080
(Increase) / Decrease in other debtors and
prepayments
                                                           (30)              101                  99
Decrease in trade creditors                                  -           (1,255)             (1,293)
Decrease in other creditors and accruals                   (10)            (400)               (698)



Net cash inflow / (outflow) from operating
activities
                                                          1,368            (318)               (976)



NOTES TO THE INTERIM REPORT (CONTINUED)


11   ANALYSIS OF CASH AND CASH EQUIVALENTS

                                                             Unaudited               Audited
                                                    30.6.2005      30.6.2004       31.12.2004
                                                      US$'000        US$'000         US$'000

Cash in hand and deposits repayable on demand           464            902              568
Time deposits of maturity exceeding 1 day             1,702            527              209

Cash and cash equivalents at end of period             2,166          1,429              777



12   INTERIM REPORT


      The interim report will be sent to shareholders on or about 21 October 2005.




CORPORATE INFORMATION





Board of directors



Non-Executive Chairman
David Archibald Evelyn LYLE



Executive director
Paul Kwok Kin CHENG



Non-executive directors
Henry Ying Chew CHEONG (Deputy Chairman)
Mark Chung FONG
Alastair GUNN-FORBES
HO Soo Ching
Sakae HASHIZUME (appointed on 2nd September 2005)
Masao HASEGAWA (resigned on 2nd September 2005)



Company secretary
Paul Kwok Kin CHENG


Registered office address
Canon's Court, 22 Victoria Street, Hamilton HM12, Bermuda



Registration number
EC21466 Bermuda



Principal bankers

The Hongkong and Shanghai Banking Corporation Limited
1 Queen's Road, Central, Hong Kong



Auditors

Deloitte Touche Tohmatsu, Certified Public Accountants
26th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong



Solicitors
Linklaters
One, Silk Street, London EC2Y 8HQ, England




CORPORATE INFORMATION (CONTINUED)



Principal share registrar and transfer office
The Bank of Bermuda Limited
Bank of Bermuda Building, 6 Front Street, Hamilton HM11, 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:
The Chief Operating Officer
Worldsec Group
Room 1601, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong




PRINCIPAL OPERATING SUBSIDIARY


Worldsec Nominees Limited



Address:    Room 1601, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong
Telephone:  +(852) 2867 7288                         Fax:         +(852) 2810 0281






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