REG - Hermes Pacific Inv - Interim Results
13/12/2021 07:00
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RNS Number : 3422V Hermes Pacific Investments PLC 13 December 2021
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September 2021
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 2021. During the
period under review the Company made a loss on ordinary activities before
taxation of £50,000 which is marginally less 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
keeping its spending to a minimum. There was no material change in the value
of the Company's existing investments from that as at 31 March 2021. The
Company is also considering possible investment opportunities which would be
compatible with its investment strategy. As at 30 September 2021 the Company
had net assets of £3,515,000 of which cash was £3,358,000.
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 no further investments were made. The Board has considered
and has made recommendations to shareholders to adopt a new investing policy.
A circular has been recently sent to shareholders setting out details of the
new investing policy and to explain why the Board considers the new investing
policy to be in the best interests of the Company and its shareholders. The
shareholders general meeting to consider this proposal will be held on 14
December 2021
The Company made a few minor investments when the current investing policy was
first adopted but the Company has not found any suitable significant deals in
South East Asia (in the financial sector or elsewhere) into which to deploy
its cash resources. Therefore, the Board consider that it would be appropriate
to change the strategic direction of the Company and implement a new investing
policy which allows the Company's resources to be deployed in other geographic
areas and business sectors.
It is proposed that the Company's new investing policy will be to invest
principally, but not exclusively, in the property sector. The Directors
consider the property sector will provide the Company with significantly more
suitable investment opportunities that can provide significant growth
potential for the future ("New Investing Policy").
In the first instance, the Company will be use the existing capital available
to it in order to locate, evaluate and select investment opportunities that
offer satisfactory potential capital returns for shareholders.
Proposed New Investing Policy
It is proposed that the Company's New Investing Policy will be to invest
principally, but not exclusively in the property sector within Europe and the
Middle East.
Accordingly, subject to the passing of the Resolution, the New Investing
Policy will be:-
The proposed investments to be made by the Company may be either quoted or
unquoted; in debt and/or in equity instruments, may be in companies,
partnerships, joint ventures; or direct interests in property or property
projects (either residential or commercial property). The Company's equity
interest in a proposed investment may range from a minority position to 100
per cent. ownership.
The Directors believe there are opportunities to invest in and acquire
commercial and/or residential properties where the properties may be
undervalued and/or suitable for redevelopment to enhance capital value.
The Company will identify and assess potential properties and where it
believes further investigation is required, and subject to assessment of
potential risk, intends to appoint appropriately qualified advisers to assist.
Where further investigation is required, the Company intends to carry out a
comprehensive and thorough investment review process in which all material
aspects of any potential property investment will be subject to due diligence.
The Company's financial resources may be invested in a small number of
properties or investments or potentially in just one investment which may be
deemed to be a reverse takeover of the Company under the AIM Rules. Where this
is the case, it is intended to mitigate the risk by undertaking an appropriate
due diligence process. Any transaction constituting a reverse takeover under
the AIM Rules would require Shareholders' approval. The possibility of
building a broader portfolio of properties has not, however, been excluded.
The Company may also continue to review and investigate non-property related
investments as it has done to date.
The Company's investments may take the form of equity, debt or convertible
instruments. Investments may be made in all types of assets falling within the
remit of the New Investing Policy and there will be no investment
restrictions. Proposed investments may be made in either quoted or unquoted
companies and structured as a direct acquisition, joint venture or as a direct
interest in a project or property. The Directors may consider it appropriate
to take an equity interest in any proposed investment which may range from a
minority position to 100 per cent ownership. The Company may be either an
active investor or passive investor. Where the Company is an active investor,
it may seek representation on the board of investee companies.
I would like to thank shareholders for their continued support.
Haresh Kanabar
Chairman
13 December 2021
Contacts:
Hermes Pacific Investments plc www.hermespacificinvestments.com (http://www.hermespacificinvestments.com)
Haresh Kanabar, Chairman +44 (0) 7802858893
WH Ireland Limited www.wh-ireland.co.uk (http://www.wh-ireland.co.uk)
Mike Coe, Sarah Mather +44 (0) 117 945 3470
Unaudited Income Statement for the six months ended 30 September 2021
Note Unaudited
Unaudited 6 Months
6 Months ended
ended 30 September 2020 Audited
30 September 2021 £'000 Year ended
£'000 31 March 2021
£'000
Continuing activities
Revenue - - -
Cost of sales - - -
Gross loss/profit - -
-
Other operating income - - -
(50) (54) (114)
Administrative expenses
Operating loss (50) (54) (114)
Finance income - 2 8
Finance costs - - -
Loss on ordinary activities before taxation (50) (52) (106)
- -
Tax expense -
Loss for the period from continuing activities (50) (52) (106)
Other comprehensive income
Gain/(loss) Loss arising in the year 11 10 (51)
Loss for the period (39) (42) (55)
Basic and diluted loss per share
From continuing operations 3 (2.1)p (2.2)p (4.5)p
Unaudited Balance Sheet as at 30 September 2021
Note
Unaudited Audited
6 Months Year ended
ended Unaudited 31 March 2021
30 September 2021 6 Months £'000
£'000 ended
30 September 2020
£'000
Assets
Non-current assets
Investments 180 130 173
180 130 173
Current assets
Trade and other receivables 4 5 9
Cash and cash equivalents 3,358 3,455 3,395
Total current assets 3,362 3,460
3,404
Total assets 3,542 3,590 3,577
Liabilities
Current liabilities
Trade and other payables (27) (23) (23)
Net assets 3,515 3,567 3,554
Equity
Share capital 2,333 2,333 2,333
Deferred share 1,243 1,243 1,243
capital
Share premium account 5,781 5,781 5,781
Share based payments reserves 139 139 139
Revaluation reserve 12 (40) 1
Retained losses (5,993) (5,889) (5,943)
Equity attributable to equity holders of the parent 3,515 3,567 3,554
Unaudited Statement of Changes in Equity
Share
Ordinary share capital Deferred share capital based
Share premium payments Revaluation reserve Retained earnings
reserves Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 30 September 2020
At 31 March 2020 2,333 1,243 5,781 139 (50) (5,837) 3,609
Total comprehensive loss for the period
- - - - 10 (52) (42)
At 30 September 2020 2,333 1,243 5,781 139 (40) (5,889) 3,567
Period ended 31 March 2021
At 30 September 2020 2,333 1,243 5,781 139 (40) (5,889) 3,567
Total comprehensive loss for the period
- - - - 41 (54) (13)
At 31 March 2021 2,333 1,243 5,781 139 1 (5,943) 3,554
Six months ended 30 September 2021
At 31 March 2021 2,333 1,243 5,781 139 1 (5,943) 3,554
Total comprehensive gain/loss for the period
- - - - 11 (50) (39)
At 30 September 2021 2,333 1,243 5,781 139 12 (5,993) 3,515
Unaudited Cash Flow Statement for the six months ended 30 September 2021
Note Audited
Unaudited Year ended
6 Months Unaudited 31 March 2021
ended 6 Months £'000
30 September 2021 ended
£'000 30 September 2020
£'000
Cash outflow from operating activities (42) (53) (119)
Net cash flow from operating activities (42) (53) (119)
Cash flows from financing activities
Other income 5 2 8
Net cash from financing activities 5 2 8
(37) (51)
(111)
Decrease in cash and cash equivalents
Cash and cash equivalents at start of the period 3,395 3,506 3,506
Cash and cash equivalents at end of the period 3,358 3,455 3,395
Notes to the unaudited consolidated interim statement for the period ended 30
September 2021
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 2021, 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 2021 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
Unaudited 6 Months
6 Months ended
ended 30 September 2020 Audited
30 September 2021 £'000 Year ended
£'000 31 March 2021
£'000
Basic
Loss from continuing activities (50) (52) (106)
Total loss (50) (52) (106)
Basic loss per share (pence)
From continuing operations (2.1)p (2.2)p (4.5)p
(2.1)p (2.2)p (4.5)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 (http://www.hermespacificinvestments.com)
.
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