REG - Hermes Pacific Inv - Interim Results
20/12/2022 07:00
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RNS Number : 2213K Hermes Pacific Investments PLC 20 December 2022
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
20 December 2022
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September 2022
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 2022 (the "Period").
During the Period the Company made a loss on ordinary activities before
taxation of £44,000 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 has generated small amount of revenue
in the Period through the rental income on our residential property. We
continue to manage our 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 2022. The Company is also considering
possible investment opportunities which would be compatible with its
investment strategy. As at 30 September 2022 the Company had net assets of
£3,460,000 of which cash was £2,625,000.
Review of the Company's activities
Hermes Pacific Investments plc is an investing company and its focus is to
invest principally, but not exclusively, in the property sector.
In the Period the Company purchased a two-bedroom leasehold flat and a single
garage in Westcliff-on-sea, Southend-on-Sea as announced on 19 May 2022. The
purchase price of £594,907 was funded from the Company's existing cash
resources. This flat has been now been rented out on assured shorthold tenancy
agreement.
Inflation levels are compared to historic levels quite high at the moment and
in response the Bank of England has been increasing the base rate of interest
during 2022 which is currently standing at 3.5% and this has also impacted the
mortgage rates which have increased substantially compared to the recent past.
The housing market is likely to slow down and some predict that property
prices will fall in the near term. We will therefore proceed very carefully
before we make further investments in the property sector.
I would like to thank shareholders for their continued support.
Haresh Kanabar
Chairman
Contacts:
Hermes Pacific Investments plc www.hermespacificinvestments.com (http://www.hermespacificinvestments.com)
Haresh Kanabar, Chairman +44 (0) 7802858893
WH Ireland Limited https://www.whirelandplc.com/capital-markets
Mike Coe, Sarah Mather +44 (0)20 7220 1666
Unaudited Income Statement for the six months ended 30 September 2022
Note Unaudited
Unaudited 6 Months
6 Months ended
ended 30 September 2021 Audited
30 September 2022 £'000 Year ended
£'000 31 March 2022
£'000
Continuing activities
Revenue 7 - -
Cost of sales - - -
Gross loss/profit 7 -
-
Other operating income - - -
(53) (50) (111)
Administrative expenses
Operating loss (46) (50) (111)
Finance income 2 - 6
Finance costs - - -
Loss on ordinary activities before taxation (44) (50) (105)
- -
Tax expense -
Loss for the period from continuing activities (44) (50) (105)
Other comprehensive income
Gain arising in the year 10 11 37
Gain/(Loss) for the period (34) (39) (68)
Basic and diluted loss per share
From continuing operations 3 (1.9)p (2.2)p (4.5)p
Unaudited Balance Sheet as at 30 September 2022
Note
Unaudited Audited
6 Months Year ended
ended Unaudited 31 March 2022
30 September 2022 6 Months £'000
£'000 ended
30 September 2021
£'000
Assets
Investments and fixed assets
Investments and property 856 180 211
856 180 211
Current assets
Trade and other receivables 4 4 10
Cash and cash equivalents 2,625 3,358 3,284
Total current assets 2,629 3,362
3,294
Total assets 3,485 3,542 3,505
Liabilities
Current liabilities
Trade and other payables (25) (27) (19)
Net assets 3,460 3,515 3,486
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 139 139 139
Revaluation reserve 56 12 38
Retained losses (6,092) (5,993) (6,048)
Equity attributable to equity holders of the parent 3,460 3,515 3,486
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 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
Period ended 31 March 2022
At 30 September 2021 2,333 1,243 5,781 139 12 (5,993) 3,515
Total comprehensive gain/(loss) for the period
- - - - 26 (55) (29)
At 31 March 2022 2,333 1,243 5,781 139 38 (6,048) 3,486
Six months ended 30 September 2022
At 31 March 2022 2,333 1,243 5,781 139 38 (6,048) 3,486
Total comprehensive gain/(loss) for the period
- - - - 18 (44) (26)
At 30 September 2022 2,333 1,243 5,781 139 56 (6,092) 3,460
Unaudited Cash Flow Statement for the six months ended 30 September 2022
Note Audited
Unaudited Year ended
6 Months Unaudited 31 March 2022
ended 6 Months £'000
30 September 2022 ended
£'000 30 September 2021
£'000
Cash outflow from operating activities (40) (42) (117)
Net cash flow from operating activities (40) (42) (117)
Cash flows from financing activities
Other income 16 5 6
Purchase of property (635) - -
Net cash from financing activities (619) 5 6
(659) (37)
(111)
Decrease in cash and cash equivalents
Cash and cash equivalents at start of the period 3,284 3,395 3,395
Cash and cash equivalents at end of the period 2,625 3,358 3,284
Notes to the unaudited consolidated interim statement for the period ended 30
September 2022
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 2023.
These are consistent with those included in the previously published annual
report and accounts for the period ended 31 March 2022, 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 2022 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 2021 Audited
30 September 2022 £'000 Year ended
£'000 31 March 2022
£'000
Basic
Loss from continuing activities (44) (50) (105)
Total loss (44) (50) (105)
Basic loss per share (pence)
From continuing operations (1.9)p (2.2)p (4.5)p
(1.9)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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