UDL HOLDINGS<00620> - Results Announcement
UDL Holdings Limited announced on 27/11/2003:
(stock code: 00620 )
Year end date: 31/7/2003
Currency: HKD
Auditors' Report: Qualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 1/8/2002 from 1/8/2001
to 31/7/2003 to 31/7/2002
Note ('000 ) ('000 )
Turnover : 23,801 31,173
Profit/(Loss) from Operations : (4,542) (64,588)
Finance cost : (13,474) (13,809)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (18,256) (75,973)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.02) (0.13)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (18,256) (75,973)
Final Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. AUDITOR'S REPORT
The Company's auditors have issued an unqualified opinion on the financial
statements for the year ended 31 July 2003. In forming their opinion, the
auditors have considered that appropriate disclosures have been made on
the fundamental uncertainties relating to the preparation of the financial
statements on a going concern basis which is dependent upon: -
(i) The continued financial support of certain related companies which
have refinanced the secured borrowings of the Company's operating
subsidiaries that were overdue, into secured long term loans which at 31
July 2003 amounted to HK$115,985,000;
(ii) The ability of one of the related companies which has refinanced
approximately HK$62,395,000 of a subsidiary's secured borrowings to meet
the repayment schedule agreed with the original secured lender; failing
which the original secured lender has recourse to the subsidiary for
immediate repayment of the full amount due; and
(iii) The Group's ability to raise additional equity funding from the
Company's existing and/or new shareholders to overcome any short term
financing difficulties and possible negative cash flows arising from the
Group's business and the adverse effects on cash flow of any repayments
due under the Shortfall Undertaking arising from the Scheme of Arrangement
entered into by the Company in April 2000.
2. AN ANALYSIS OF TURNOVER
For the year ended 31 July 2003, turnover of the Group amounted to
approximately HK$ 23.8 million, as compared to 31.2 million for the
corresponding period in 2002. The decrease in turnover was due to the
continuous sluggish economy in Hong Kong and in the region and the
negative public sentiment towards reclamation projects over environmental
issue.
3. AN ANALYSIS OF PROFIT/(LOSS)
Net loss for the year ended 31 July 2003 for the Group has narrowed to
approximately HK$ 18.2 million as compared to HK$ 76 million for the
corresponding period in 2002. The Group's deficiency of capital and its
net current liabilities were reduced to approximately HK$ 3.9 million and
HK$ 22.4 million respectively as comparing to HK$ 52 million and HK$ 128.5
million respectively at 31 July 2002.
4. MATERIAL DISPOSAL OF SUBSIDIARIES
Universal Dockyard Limited, a 98.75 owned subsidiary of the Company, was
wound-up on 9 June 2003. From the date of winding up, Dockyard's net
liabilities was "deconsolidated" from the Group's balance sheet, resulting
in a gain on deemed disposal of a subsidiary of HK$ 17.6 million to the
Group, as the Group would not be required to settle these liabilities. No
security or guarantee has been given by the Company or any member of the
Group in support of Dockyard' liabilities due to third parties.
5. FLOATING CRAFT AND VESSELS
With effect from 31 January 2003, the Directors of the Company have
adopted the alternative treatment allowed under SSAP 17 "Property, plant,
and equipment" which allows the Group to state a class of assets, in the
case its floating craft and vessels, at valuation subsequent to its
initial recognition at cost.
As a result of adopting this new accounting policy for floating craft and
vessels, the Directors commissioned an independent professional valuer to
value its floating craft and vessels at 31 January 2003 and 31 May 2003.
Arising from these valuations, an amount of HK$ 19.6 million has been
credited to income for the year under review being the write-back of
impairment losses previously recognized on these assets and the balance of
the revaluation surplus amounting to HK$ 58.6 million credited to
revaluation reserve.
6. LOSS PER SHARE
The calculation of basic loss per share for 2003 is based on the loss
attributable to shareholders of HK$ 18,256,000 (2002: loss of HK$
75,973,000) and the adjusted weighted average numbers of 822,125,572
ordinary shares (2002: 605,534,868 ordinary shares) in issue during the
year.
Diluted earnings per share for the year ended 31 July 2003 has not been
shown, as there was no dilution potential ordinary share.
7.CHANGES IN COMPARATIVE FIGURES
Certain comparative figure was changed. The Loss Per Share ("LPS") figure
as of 31 July 2002 has been changed due to a rights issue completed during
the year under review.
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