REG - Hermes Pacific Inv - Final Results
12 September 2018
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Final results for the year ended 31 March 2018
Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2018.
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 2018. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of £100,000, which is marginally higher than the loss of £95,000 reported for the previous financial year. Our focus very much remains to minimise our costs whilst we are looking for opportunities to deploy or cash. At the financial year end the Company had net assets of £3,861,000.
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 good position from a Balance Sheet perspective and our cash balance as at 31 March 2018 stands at £3.725 million. We continue to evaluate other suitable opportunities in emerging markets and with our strong balance sheet hope to make further investments in the future. Our total comprehensive loss for the year was £61,000 compared to a loss of £66,000 for the previous financial year.
Rising trade tensions, particularly between the United States and China, have prompted a cautious investor outlook, affecting emerging markets over the short term. What has been hurting sentiment is not trade policy itself, but the uncertainty caused by escalating trade tensions. Dollar strength is one of the big challenges faced by emerging markets. The dollar's strength has taken many investors by surprise, raising concerns about how much further it can run. A slight upward move in the US interest rate trajectory has no doubt contributed to its strength. In this uncertain environment we have to be cautious about making significant investments in the emerging markets.
Business optimism in the UK is hitting low levels the decline in optimism comes as key questions on the
UK's trading relationship with the EU after Brexit remain unanswered and the government ramps up preparations for no deal. The short‐term market impact is likely to be significant if Britain leaves the European Union without a deal. Should the UK choose to remain in the single market after Brexit, the economic risks are likely to be minimised, although they may still affect the financial services sector. However, if the UK chooses to leave the single market it is likely to suffer significant negative impacts to the economy based on trade with the EU. At the same time, these negative impacts of Brexit may be outweighed by new trade deals and opportunities with emerging economies and countries outside the EU.
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.
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
Haresh Kanabar, Non-Executive Chairman
Tel: +44 (0) 207 290 3340
WH Ireland Limited (Nominated Adviser & Broker)
Mike Coe/Ed Allsopp
Tel: +44 (0) 117 945 3470
Statement of comprehensive income for the year ended 31 March 2018
Year ended
31 March
Year ended
31 March
Note
2018
2017
£'000
£'000
Continuing operations
Revenue
-
-
Cost of sales
-
-
gross profit
-
-
Other operating income
-
-
Administrative expenses
2
(107)
(106)
Operating loss
(107)
(106)
Finance income
7
11
Finance costs
-
-
Loss on ordinary activities before tax
(100)
(95)
Tax expense
-
-
Loss for the year from continuing activities
(100)
(95)
Discontinued operations
Loss for the year from discontinued operations
-
-
Loss for the year
(100)
(95)
Other comprehensive income
Available-for-sale financial assets:
Gains/(losses) arising in the year
Total comprehensive loss for the year
39
(61)
29
(66)
Basic and diluted loss per share
From continuing operations
3
(4.3)p
(4.0)p
(4.3)p
(4.0)p
Statement of financial position as at 31 March 2018
As at
31 March
As at
31 March
2018
2017
£'000
£'000
ASSETS
Non-current assets
Investments
174
135
174
135
Current assets
Trade and other receivables
1
1
Cash and cash equivalents
3,725
3,814
3,726
3,815
LIABILITIES
Current liabilities
Trade and other payables
(39)
(28)
(39)
(28)
Net current assets
3,687
3,787
NET ASSETS
3,861
3,922
SHAREHOLDERS' EQUITY
Issued share capital
3,576
3,576
Share premium account
5,781
5,781
Share based payments reserve
Revaluation reserve
139
1
139
(38)
Retained earnings
(5,636)
(5,536)
TOTAL EQUITY
3,861
3,922
Cash flow statement for the year ended 31 March 2018
Year ended
31 March 2018
Year ended
31 March 2017
£'000
£'000
Cash flows from operating activities
(95)
(113)
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
-
6
-
-
11
-
Net cash from financing activities
6
11
(Decrease)/increase in cash and cash equivalents
(89)
(102)
Cash and cash equivalents at start of period
3,814
3,916
Cash and cash equivalents at end of period
3,725
3,814
Statement of changes in equity for the year ended 31 March 2018
Ordinary share capital
Deferred share capital
Share premium
Share
based payments reserve
Retained earnings
Revaluation reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 April 2016
Share re-organisation
2,333
-
1,243
-
5,781
- -
139
-
(5,441)
-
(67)
-3,988
-
Share issue
-
-
-
-
-
-
-
Total comprehensive loss/profit for the
period
-
-
-
-
(95)
29
(66)
At 1 April 2017
2,333
1,243
5,781
139
(5,536)
(38)
3,922
Share re-organisation
-
-
-
-
-
-
-
Share issue
-
-
-
-
-
-
-
Total comprehensive loss/profit for the
period
-
-
-
-
(100)
39
(61)
At 31 March 2018
2,333
1,243
5,781
139
(5,636)
1
3,861
Notes to the financial statements for the year ended 31 March 2018
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 2018
Year ended
31 March 2017
£'000
£'000
The operating loss is stated after charging the following, included in administrative expenses:
Staff costs
44
44
Other admin costs
63
62
107
106
3. Loss per share
Year ended
31 March 2018
Year ended
31 March 2017
Basic
Loss from continuing activities (£'000)
(100)
(95)
(100)
(95)
Number of shares
2,333,295
2,333,295
Basic loss per share (p)
From continuing operations
(4.3)p
(4.0)p
(4.3)p
(4.0)p
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 2018 or 31 March 2017. The financial information has been extracted from the statutory accounts of the Company for the years ended 31 March 2018 and 31 March 2017.
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 2017 have been delivered to the Registrar of Companies, whereas those for the year ended 31 March 2018 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDFR UUAVRWNAKAAR
Recent news on Hermes Pacific Investments
See all newsREG - AIM Hermes Pacific Inv - Cancellation - HERMES PACIFIC INVESTMENTS PLC
AnnouncementREG - Hermes Pacific Inv - Result of General Meeting
AnnouncementREG - Hermes Pacific Inv - Proposed cancellation of admission
AnnouncementREG - Hermes Pacific Inv - Change of Registered Office
AnnouncementREG - Hermes Pacific Inv - Director Declaration
Announcement