REG - Hermes Pacific Inv - Final Results <Origin Href="QuoteRef">HPAC.L</Origin>

Hermes Pacific InvestmentsAnnouncement

21/09/2017 07:06

RNS Number : 3446R
Hermes Pacific Investments PLC
20 September 2017
21 September 2017
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Final results for the year ended 31 March 2017
Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2017.
Chairman's statement
I am pleased to report the results of Hermes Pacific Investments Plc ("HPAC" or the "Company") for the year ended 31 March 2017. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of 95,000, which is marginally higher than the loss of 91,000 reported for the previous financial year. Our focus as in previous years has been on managing our costs during this period whilst we look to deploy our cash resources and until we do our objective is to keep costs at a minimum level. At the year end the Company had net assets of 3,922,000.
Review of the Company's Activities
The Company is an investing company and has made some investments in line with its investing policy in companies involved in financial activities within the emerging market sector. These investments have performed in line with our expectations. We are in a strong position from a balance sheet perspective and our cash balance as at 31 March 2017 stands at 3.814 million. We continue to evaluate other suitable opportunities in emerging markets and with our strong balance sheet intend to make further investments in the near future. Our total comprehensive loss for the year was 66,000 compared to a loss of 129,000 for the previous financial year.
Hermes is looking for exposure in the emerging markets through investment in well established companies with proven business models, with strong management teams with a good track record. In addition, we are looking to invest in businesses that have long term favourable economic prospects. The growth rate in emerging markets is very attractive as opposed to the growth rate in advanced economies. Despite the waning commodity prices together with a prospect of an interest rate hike in USA interest in emerging markets remain strong.
Britain's decision to leave the European Union ("Brexit") has created a period of increased uncertainly and is a significant issue for most businesses in most sectors. Most UK providers of financial services and investment companies like Hermes cannot say with certainty to their shareholders what impact Brexit will have on them. The main impact of Brexit so far has been a significant fall in the value of the pound. The fall in the pound against the US dollar, a preferred currency for overseas transactions, has had a significant impact on the Company's investment decision making process. It has tightened Company's evaluation criteria.
The Company continues to seek attractive investment opportunities that will enhance the shareholder value while minimising the downside risks.
Outlook
We have a strong balance sheet and cash resources that place us in a strong position to exploit investment opportunities as they arise.


Haresh Kanabar
Chairman
Contacts
Hermes Pacific Investments Plc
www.hermespacificinvestments.com
Haresh Kanabar, Non-Executive Chairman
Tel: +44 (0) 207 290 3340
WH Ireland Limited (Nominated Adviser & Broker)
www.whirelandcb.com
Mike Coe/Ed Allsopp
Tel: +44 (0) 117 945 3470

Statement of comprehensive income for the year ended 31 March 2017

Year ended
31 March
Year ended
31 March

Note
2017
2016


'000
'000




Continuing operations



Revenue

-
-
Cost of sales

-
-


 
 
gross profit

-
-




Other operating income

-
-
Administrative expenses
2
(106)
(104)


 
 
Operating loss

(106)
(104)




Finance income

11
13
Finance costs 

-
-


 
 
Loss on ordinary activities before tax

(95)
(91)




Tax expense

-
-


 
 
Loss for the year from continuing activities

(95)
(91)
Discontinued operations

Loss for the year from discontinued operations

-
-


 
 
Loss for the year

(95)
(91)
Other comprehensive income
Available-for-sale financial assets:
Gains/(losses) arising in the year
Total comprehensive loss for the year

 
29
 
(66)
 
 (38)
 
(129)
 
Basic and diluted loss per share



From continuing operations
3
(4.0)p
(3.9)p


 
 


(4.0)p
(3.9)p


  
  






Statement of financial position as at 31 March 2017


As at
31 March
As at 
31 March


2017
2016


'000
'000
ASSETS



Non-current assets



Investments

 135
 106


 
 


 135
 106
Current assets



Trade and other receivables

1
 1
Cash and cash equivalents

 3,814
 3,916


 
 


 3,815
 3,917
LIABILITIES



Current liabilities



Trade and other payables

(28)
(35)


 
 


(28)
(35)


 
 
Net current assets

 3,787
 3,882


 
 
NET ASSETS

 3,922
 3,988


 
 
SHAREHOLDERS' EQUITY



Issued share capital

 3,576
 3,576
Share premium account

 5,781
 5,781
Share based payments reserve
Revaluation reserve

 139
 (38)
 139
 (67)
Retained earnings

(5,536)
 (5,441)


 
 
TOTAL EQUITY

 3,922
 3,988


 
 





Cash flow statement for the year ended 31 March 2017


 Year ended
31March2017
Year ended
31 March 2016


'000
'000




Cash flows from operating activities

(113)
(105)




Cash flows from investing activities



Acquisition of investments

-
 - 
Income from disposal of subsidiary undertakings

 -
 -


Net cash (used in)/from investing activities

-
 -


Cash flows from financing activities



Proceeds of share issues
Other income
Cost of share issue

 -
11
-
 -
13
-


Net cash from financing activities

 11
 13




(Decrease) in cash and cash equivalents

 (102)
(92)
Cash and cash equivalents at start of period

 3,916
 4,008


Cash and cash equivalents at end of period

 3,814
 3,916


 





Statement of changes in equity for the year ended 31 March 2017

Ordinary share capital
Deferred share capital
Share premium
Share 
based payments reserve
Retained earnings
Revaluation reserve
Total

'000
'000
'000
'000
'000
'000
'000








At1April2015
Sharere-organisation
2,333
-
1,243
-
5,781
-
139
-
(5,350)
 -
(29)
 -
4,117
 -
Share issue
-
-
-
-
 -
 -
-
Total comprehensive loss for the period
-
-
-
-
 (91)
 (38)
 (129)

 
 
 
 
 
 
At 1 April 2016
2,333
1,243
5,781
139
(5,441)
 (67)
3,988
Share re-organisation
-
-
-
-
-
 -
 -
Share issue
-
-
-
-
-
 -
 -
Total comprehensive loss/profit for the period
-
-
-
-
(95)
29
 (66)

 
 
 
 
 
At 31 March 2017
2,333
1,243
5,781
 139
(5,536)
(38)
 3,922

 
 
 
 
 
 

Notes to the financial statements for the year ended 31 March 2017
1. Statement of compliance
The financial statements comply with International Financial Reporting Standards as adopted by the European Union. At the date of approval of these financial statements, the following Standards and Interpretations affecting the Company, which have not been applied in these financial statements, were in issue, but not yet effective (and in some cases had not been adopted by the EU):
2. Operating loss


Year ended
31 March 2017

Year ended
31 March 2016


'000

'000

The operating loss is stated after charging the following, included in administrative expenses:




Staff costs
44

48

Other admin costs
62

56





106

104




3. Loss per share


Year ended
31 March2017

Year ended
31 March 2016

Basic




Loss from continuing activities ('000)
(95)

(91)


   

   


(95)

(91)






Number of shares 
2,333,295

2,333,295


   

   

Basic loss per share (p)




From continuing operations
(4.0)p

(3.9)p



   


(4.0)p

(3.9)p


   

   
There was no dilutive effect from the share options outstanding during the year.
4. Publication of non-statutory accounts
The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 31 March 2017 or 31 March 2016. The financial information has been extracted from the statutory accounts of the Company for the years ended 31 March 2017 and 31 March 2016. 
The auditors' opinion on those accounts was unmodified and did not contain a statement under 498 (2) or section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by the way of emphasis. 
The statutory accounts for the year ended 31 March 2016 have been delivered to the Registrar of Companies, whereas those for the year ended 31 March 2017 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
5. Annual Report
The Annual Report will be posted to shareholders and will be available from the Company's website (www.hermespacificinvestments.com) today.

This information is provided by RNS
The company news service from the London Stock Exchange
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