Hermes Pacific Inv - Half-year Report
13/12/2017 07:00
RNS Number : 1101Z
Hermes Pacific Investments PLC
13 December 2017
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September 2017
Chairman's Statement
I am pleased to report the results and developments at Hermes Pacific Investments plc ("HPAC" or the "Company") for the six months ended 30 September 2017. During the period under review the Company made a loss of 47,000 which is in line with the loss reported for the corresponding period in the previous year. HPAC had no revenues owing to a lack of any operating business and it continues to manage its costs effectively while bringing the spending to a minimum. The Company continues to seek investments opportunities which would fit its business strategy. At the period end the Company had net assets of 3,884,000 of which cash was 3,774,000.
Review of the Company's activities
Hermes Pacific Investments plc is an investing company with a focus on investing in the emerging markets of the Far East including South East Asia. An investment can be via an acquisition of an equity interest or direct interests in projects. it made no investments in the six months under review.
The period under review has been influenced by the recent unprecedented national events resulting in the devaluation of sterling further to the outcome of the EU referendum on 23 June 2016, where the UK voters' decided to leave the European economic zone, and the UK government commencing exit negotiations together with the sudden, unpredicted change of the UK government. The main impact of those changes has been a significant drop in the British currency. The devaluation of the pound against the US dollar, which is a preferred currency for overseas transactions, has affected Company's investment evaluation process by making opportunities more expensive..
Developments reflecting anti-globalisation moods have been observed not only in Europe but also North America. The sentiment encouraging "we are better off alone" movement can be seen through events such as the election of populist leaders who tend to promote isolationist policies. Since the election of Donald Trump the US has rejected the Trans Pacific Partnership which connects East Asia (excluding China) with the US, Canada, South America and Australasia in a broad-spectrum trade agreement. A similar event to the rejection by the UK of the European economic cooperation model.
This is in contrast to Asia where the trend is reversed. The Association of South East Asian Nations consisting of 10 Member States recently approved the ASEAN Economic Community with free trade and free labour movement. The company's preferred investment targets are within these emerging economies where countries leaders have recognised greater economic outcomes may be achieve by growing together rather than apart. More so, over 0.5 billion people of the Far East region experienced a drastic change in the standard of living and increased opportunities over the past decade. The region continues to grow faster than the rest of the world. The region's domestic demand and consumption is bound to be driven by its growing middle class and supported by corporate earnings and the anticipated long period of economic growth.
Outlook
Despite the uncertainty in the global market, the Company sees great growth potential in the higher-yielding emerging markets. Therefore, while the Company may assess other investment opportunities, Asia remains the focus of its investment strategy.
I would like to thank shareholders for their continued support.
Haresh Kanabar
Chairman
15 December 2017
| Contacts: | |
| Hermes Pacific Investments plc | www.hermespacificinvestments.com |
| Haresh Kanabar, Chairman | +44 (0) 207 290 3340 |
| WH Ireland Limited | www.whirelandcb.com |
| Mike Coe, Ed Allsopp | +44 (0) 117 945 3470 |
| Note | Unaudited 6 months ended 30 September 2017 '000 | Unaudited 6 months ended 30 September 2016 '000 | Audited Year ended 31 March 2017 '000 | ||
| Continuing activities | |||||
| Revenue | - | - | - | ||
| Cost of sales | - | - | - | ||
| Gross loss/profit | - | - | - | ||
| Other operating income | - | - | - | ||
| Administrative expenses | (50) | (39) | (106) | ||
| Operating loss | (50) | (39) | (106) | ||
| Finance income | 3 | 8 | 11 | ||
| Finance costs | - | - | - | ||
| Loss on ordinary activities before taxation | (47) | (31) | (95) | ||
| Tax expense | - | - | - | ||
| Loss for the period from continuing activities | (47) | (31) | (95) | ||
| Other comprehensive income | |||||
| Gain/(loss) arising in the year | 9 | - | 29 | ||
| Loss for the period | (38) | (25) | (66) | ||
| Basic and diluted loss per share | |||||
| From continuing operations | 2 | (1.6)p | (1.9)p | (4.0)p | |
| Note | Unaudited 6 months ended 30 September 2017 '000 | Unaudited 6 months ended 30 September 2016 '000 | Audited Year ended 31 March 2017 '000 | |
| Assets | ||||
| Non-current assets | ||||
| Investments | 144 | 112 | 135 | |
| 144 | 112 | 135 | ||
| Current assets | ||||
| Trade and other receivables | 5 | 5 | 1 | |
| Cash and cash equivalents | 3,774 | 3,873 | 3,814 | |
| Total current assets | 3,779 | 3,878 | 3,815 | |
| Total assets | 3,923 | 3,990 | 3,950 | |
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | (39) | (27) | (28) | |
| Net assets | 3,884 | 3,963 | 3,922 | |
| Equity | ||||
| Share capital | 2,333 | 2,333 | 2,333 | |
| Deferred share capital | 1,243 | 1,243 | 1,243 | |
| Share premium account | 5,781 | 5,781 | 5,781 | |
| Share based payments reserves Revaluation reserve | 139 (29) | 139 (61) | 139 (38) | |
| Retained losses | (5,583) | (5,472) | (5,536) | |
| Equity attributable to equity holders of the parent | 3,884 | 3,963 | 3,922 | |
| Ordinary share capital | Deferred share capital | Share premium | Share based payments reserves | Revaluation reserve | Retained earnings | Total | |
| '000 | '000 | '000 | '000 | '000 | '000 | '000 | |
| Six months ended 30 September 2016 | |||||||
| At 31 March 2016 | 2,333 | 1,243 | 5,781 | 139 | (67) | (5,441) | 3,988 |
| Total comprehensive gain/loss for the period | - | - | - | - | 6 | (31) | (25) |
| At 30 September 2016 | 2,333 | 1,243 | 5,781 | 139 | (61) | (5,472) | 3,963 |
| Period ended 31 March 2017 | |||||||
| At 30 September 2016 | 2,333 | 1,243 | 5,781 | 139 | (61) | (5,472) | 3,963 |
| Total comprehensive gain/loss for the period | - | - | - | - | 23 | (64) | (41) |
| At 31 March 2017 | 2,333 | 1,243 | 5,781 | 139 | (38) | (5,536) | 3,922 |
| Six months ended 30 September 2017 | |||||||
| At 31 March 2017 | 2,333 | 1,243 | 5,781 | 139 | (38) | (5,536) | 3,922 |
| Total comprehensive gain/loss for the period | - | - | - | - | 9 | (47) | (38) |
| At 30 September 2017 | 2,333 | 1,243 | 5,781 | 139 | (29) | (5,583) | 3,884 |
| Note | Unaudited 6 months ended 30 September 2017 '000 | Unaudited 6 months ended 30 September 2016 '000 | Audited Year ended 31 March 2017 '000 | |
| Cash outflow from operating activities | (43) | (51) | (113) | |
| Net cash flow from operating activities | (43) | (51) | (113) | |
| Cash flows from financing activities | ||||
| Other income | 3 | 8 | 11 | |
| Net cash used in financing activities - continuing operations | 3 | 8 | 11 | |
| Net cash from financing activities | 3 | 8 | 11 | |
| Decrease in cash and cash equivalents | (40) | (43) | (102) | |
| Cash and cash equivalents at start of the period | 3,814 | 3,916 | 3,916 | |
| Cash and cash equivalents at end of the period | 3,774 | 3,873 | 3,814 | |
| Unaudited 6 months ended 30 September 2017 '000 | Unaudited 6 months ended 30 September 2016 '000 | Audited Year ended 31 March 2017 '000 | ||
| Basic | ||||
| Loss from continuing activities | (25) | (25) | (95) | |
| Total loss | (25) | (25) | (95) | |
| Basic loss per share (pence) | ||||
| From continuing operations | (1.07)p | (1.07)p | (4.0)p | |
| (1.07)p | (1.07)p | (4.0)p | ||
| Weighted average number of shares | 2,333,295 | 2,333,295 | 2,333,295 | |