RNS Number : 0833J
Hermes Pacific Investments PLC
18 December 2020
18 December 2020
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September 2020
Chairman's Statement
I am pleased to report the results for Hermes Pacific Investments plc ("HPAC" or the "Company") for the six months ended 30 September 2020. During the period under review the Company made a loss on ordinary activities before taxation of £52,000 which is marginally more than the loss reported for the corresponding period in the previous year. The Company's financial performance is in line with our expectations. HPAC had no revenues owing to a lack of any operating business and it continues to manage its costs effectively whilst bringing its spending to a minimum. The Company is also considering possible investment opportunities which would be compatible with its investment strategy. As at 30 September 2020 the Company had net assets of £3,567,000 of which cash was £3,455,000.
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. During the period a number of investment opportunities were evaluated but after careful consideration we decided not to proceed on any of these possible opportunities as they did not fit our investment criteria. Good long term returns for our shareholders are uppermost in our minds and we will continue our search of possible investments with this objective in our mind. Whilst we appreciate that it is taking time to deploy our cash it is very important to preserve shareholder value and patiently seek out the right opportunities.
The outbreak of the Covid 19 pandemic dominated as a key economic issue throughout the world. Whilst the outbreak started early in 2020 some countries are now seeing second and third waves and this has caused serious damage to economies and many countries are reporting negative GDP numbers. Various Covid 19 vaccines have been developed at record speeds making them available for public use in under one year. Several countries have already started administering the vaccines and hopefully that will help bring back some form of normality and a return to economic growth but this will no doubt take a considerable amount of time.
Whilst the United Kingdom left the European Union in early 2020 transitional arrangements have enabled free trade to continue but these arrangements are to end on 31 December 2020 and negotiations are ongoing with a view to agreeing a trade deal. If a trade deal could be achieved than invariably the investment climate would be much improved.
I would like to thank shareholders for their continued support.
Haresh Kanabar
Chairman
17 December 2020
Contacts:
Hermes Pacific Investments plc
www.hermespacificinvestments.com
Haresh Kanabar, Chairman
+44 (0) 7802858893
WH Ireland Limited
www.whirelandplc.com
Mike Coe, Chris Savidge
+44 (0) 117 945 3470
Unaudited Income Statement for the year ended 30 September 2020
Note
Unaudited 6 Months ended 30 September 2020 £'000
Unaudited 6 Months ended 30 September 2019 £'000
Audited Year ended 31 March 2020 £'000
Continuing activities
Revenue
-
-
-
Cost of sales
-
-
-
Gross loss/profit
-
-
-
Other operating income
-
-
-
Administrative expenses
(54)
(53)
(113)
Operating loss
(54)
(53)
(113)
Finance income
2
5
19
Finance costs
-
-
-
Loss on ordinary activities before taxation
(52)
(48)
(94)
Tax expense
-
-
-
Loss for the period from continuing activities
(52)
(48)
(94)
Other comprehensive income
Gain/(Loss) Loss arising in the year
10
14
(39)
Loss for the period
(42)
(34)
(133)
Basic and diluted loss per share
From continuing operations
3
(2.2)p
(2.0)p
(4.0)p
Unaudited Balance Sheet as at 30 September 2020
Note
Unaudited 6 Months ended 30 September 2020 £'000
Unaudited 6 Months ended 30 September 2019 £'000
Audited Year ended 31 March 2020 £'000
Assets
Non-current assets
Investments
130
176
123
130
176
123
Current assets
Trade and other receivables
5
4
9
Cash and cash equivalents
3,455
3,555
3,506
Total current assets
3,460
3,559
3,515
Total assets
3,590
3,735
3,638
Liabilities
Current liabilities
Trade and other Payables
(23)
(27)
(29)
Net assets
3,567
3,708
3,609
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 (40)
139 3
139 (50)
Retained losses
(5,889)
(5,791)
(5,837)
Equity attributable to equity holders of the parent
3,567
3,708
3,609
Unaudited Statement of Changes in Equity
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 2019
At 31 March 2019
2,333
1,243
5,781
139
(11)
(5,743)
3,742
Total comprehensive loss for the period
-
-
-
-
14
(48)
(34)
At 30 September 2019
2,333
1,243
5,781
139
3
(5,791)
3,708
Period ended 31 March 2020
At 30 September 2019
2,333
1,243
5,781
139
3
(5,791)
3,708
Total comprehensive loss for the period
-
-
-
-
(53)
(46)
(99)
At 31 March 2020
2,333
1,243
5,781
139
(50)
(5,837)
3,609
Six months ended 30 September 2020
At 31 March 2020
2,333
1,243
5,781
139
(50)
(5,837)
3,609
Total comprehensive gain/loss for the period
-
-
-
-
10
(52)
(30)
At 30 September 2020
2,333
1,243
5,781
139
(40)
(5,889)
3,567
Unaudited Cash Flow Statement for the Year ended 30 September 2020
Note
Unaudited 6 Months ended 30 September 2020 £'000
Unaudited 6 Months ended 30 September 2019 £'000
Audited Year ended 31 March 2020 £'000
Cash outflow from operating activities
(53)
(46)
(109)
Net cash flow from operating activities
(53)
(46)
(109)
Cash flows from financing activities
Other income
2
5
19
Net cash used in financing activities-continuing operations
2
5
19
Net cash from financing activities
2
5
19
Decrease in cash and cash equivalents
(51)
(41)
(90)
Cash and cash equivalents at start of the period
3,506
3,596
3,596
Cash and cash equivalents at end of the period
3,455
3,555
3,506
Notes to the unaudited consolidated interim statement for the period ended 30 September 2020
1. Basis of preparation
Hermes Pacific Investments plc. is a public limited company incorporated and domiciled in the United Kingdom. The Company is an AIM listed investment vehicle.
These Interim accounts have been prepared using the accounting policies to be applied in the annual report and accounts for the period ending 31 March 2021. These are consistent with those included in the previously published annual report and accounts for the period ended 31 March 2020, which have been prepared in accordance with IFRS as adopted by the European Union.
The preparation of the interim statement requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
The interim financial statements are unaudited and do not constitute statutory accounts as defined in section 434(3) of the Companies Act 2006.
The figures for the year ended 31 March 2020 have been extracted from the audited annual report and accounts that have been delivered to the Registar of Companies. BSG Valentine, the Company's auditors, reported on those accounts. Their report was unqualified and did not contain a statement under section 498 of that Companies Act 2006.
2. Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
Going concern
The financial statements have been prepared on a going concern basis as, after making appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future at the time of approving the financial statements.
Critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of the company's accounting policies with respect to the carrying amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The judgements, estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, including current and expected economic conditions. Although these judgements, estimates and associated assumptions are based on management's best knowledge of current events and circumstances, the actual results may differ. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in any future years affected.
The judgements, estimates and assumptions which are of most significance to the Company are detailed below:
Valuation of share based payments
The charge for share based payments is calculated in accordance with the accounting policy as set out below. The model requires highly subjective assumptions to be made including the future volatility of the Company's share price, expected dividend yield and risk-free interest rates.
Revenue recognition
Revenue represents the fair value of the consideration received or receivable, net of Value Added Tax, for goods sold and services provided to customers after deducting discounts. Revenue is recognised when the significant risks and rewards of ownership are transferred.
Deferred taxation
Deferred taxation is provided in full using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid funds with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowing in current liabilities on the balance sheet.
Investments available for sale
Investments classified as available for sale are initially recorded at fair value including transaction costs. Quoted investments are held at fair value and measured either at bid price or latest traded price, depending on convention of the exchange on which the investment is quoted. Such instruments are subsequently measured at fair value with gains and losses being recognised directly in equity until the instrument is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is recycled to the income statement and recognised in profit or loss for the period. Impairment losses are recognised in the Income Statement when there is objective evidence of impairment.
Financial instruments
Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument.
Trade and other receivables
Trade receivables are measured at cost less any provision necessary when there is objective evidence that the Company will not be able to collect all amounts due.
Trade and other payables
Trade and other payables are not interest bearing and are measured at original invoice amount.
3. Loss per ordinary share
Unaudited 6 Months ended 30 September 2020 £'000
Unaudited 6 Months ended 30 September 2019 £'000
Audited Year ended 31 March 2020 £'000
Basic
Loss from continuing activities
(52)
(48)
(94)
Total loss
(52)
(48)
(94)
Basic loss per share (pence)
From continuing operations
(2.2)p
(2.0)p
(4.0)p
(2.2)p
(2.0)p
(4.0)p
Weighted average number of shares
2,333,295
2,333,295
2,333,295
There was no dilutive effect from the share options outstanding during the period.
4. Copies of this statement will be available on the Company's website www.hermespacificinvestments.com.
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