REG - Hermes Pacific Inv - Interim Results
15/12/2023 07:00
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RNS Number : 8891W Hermes Pacific Investments PLC 15 December 2023
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.
15 December 2023
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September 2023
Chairman's Statement
I am pleased to present the interim results for Hermes Pacific Investments plc
("HPAC" or the "Company") for the six months ended 30 September 2023 (the
"Period").
Financial Performance: I am delighted to report that HPAC has made a profit on
ordinary activities before taxation of £8,000 during the Period (H1 2022:
loss of £44,000). This marks a significant improvement compared to the
corresponding period in the previous year. Our financial performance is in
line with our expectations, reflecting the effective management of costs and
prudent spending, resulting in a positive outcome for our shareholders.
Investment Strategy: HPAC remains committed to its core focus on investing in
the property sector within Europe and the Middle East, with an additional
interest in emerging markets of the Far East, including South East Asia.
Despite a challenging economic environment, there were no further investments
or disposals during the Period. The Company is actively exploring potential
investment opportunities that align with our investment strategy.
Financial Position: As of 30 September 2023, the Company's net assets stood at
£3,441,000 (H1 2022: £3,460,000). It hascash reserves of £529,000 (H1 2022:
£2,625,000) and treasury deposits of £2,039,000 (H1 2022: £Nil). The value
of the existing investments has remained stable, showcasing the resilience of
our portfolio in the face of market fluctuations.
Market Overview: The property market has experienced shifts, particularly in
mortgage rates following the rise in base rates and expectations of further
increases. While we observed some downward movements in mortgage rates in
recent weeks, residential house prices have softened, primarily attributed to
higher interest rates. This has prompted caution in making further investments
in residential property at this stage of the economic cycle.
Income Generation: Despite these challenges, HPAC generated rental income from
its investment property during the period. Additionally, we earned interest
income on our cash reserves due to the rapid increase in interest rates in the
United Kingdom.
Appreciation: I extend my sincere appreciation to our shareholders for their
continued support. Your trust in HPAC enables us to navigate the dynamic
property market successfully.
In conclusion, HPAC remains resilient in a changing economic landscape, and
our conservative approach has positioned us well to weather uncertainties. We
are actively monitoring market trends and remain agile to capitalise on
opportunities that align with our strategic vision.
Haresh Kanabar
Chairman
15 December 2023
Contacts:
Hermes Pacific Investments plc www.hermespacificinvestments.com (http://www.hermespacificinvestments.com)
Haresh Kanabar, Chairman +44 (0) 7802858893
WH Ireland Limited www.whirelandplc.com/capital-markets
Mike Coe, Sarah Mather +44 (0) 20 7220 1666
Unaudited Income Statement for the six months ended 30 September 2023
Note Unaudited
Unaudited 6 Months
6 Months ended
ended 30 September 2022 Audited
30 September 2023 £'000 Year ended
£'000 31 March 2023
£'000
Revenue 14 7 21
Cost of sales - - -
Gross loss/profit 14 7
21
Other operating income - - -
(59) (53) (113)
Administrative expenses
Operating loss (45) (53) (92)
Finance income 53 2 30
Finance costs - - -
Gain/(Loss) on ordinary activities before taxation 8 (44) (62)
- -
Tax expense -
Gain/(Loss) for the period 8 (44) (62)
Other comprehensive income
Gain arising in the period 1 10 8
Gain/(Loss) for the period 9 (34) (54)
Basic and diluted profit/(loss) per share 3 0.39p (1.9)p (2.7)p
Unaudited Balance Sheet as at 30 September 2023
Note
Unaudited Audited
6 Months Year ended
ended Unaudited 31 March 2023
30 September 2023 6 Months £'000
£'000 ended
30 September 2022
£'000
Assets
Investments and fixed assets
Investments and property 855 856 853
855 856 853
Current assets
Trade and other receivables 43 4 24
Treasury deposit 2,039 - 2,000
Cash and cash equivalents 529 2,625 571
Total current assets 2,611 2,629
2,595
Total assets 3,466 3,485 3,448
Liabilities
Current liabilities
Trade and other payables (25) (25) (16)
Net assets 3,441 3,460 3,432
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 47 56 46
Retained losses (6,102) (6,092) (6,110)
Equity attributable to equity holders of the parent 3,441 3,460 3,432
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 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
Year ended 31 March 2023
At 30 September 2022 2,333 1,243 5,781 139 56 (6,092) 3,460
Total comprehensive loss for the period
- - - - (10) (18) (28)
At 31 March 2023 2,333 1,243 5,781 139 46 (6,110) 3,432
Six months ended 30 September 2023
At 31 March 2023 2,333 1,243 5,781 139 46 (6,110) 3,432
Total comprehensive gain for the period
- - - - 1 8 9
At 30 September 2023 2,333 1,243 5,781 139 47 (6,102) 3,441
Unaudited Cash Flow Statement for the six months ended 30 September 2023
Note Audited
Unaudited Year ended
6 Months Unaudited 31 March 2023
ended 6 Months £'000
30 September 2023 ended
£'000 30 September 2022
£'000
Cash outflow from operating activities (109) (40) (108)
Net cash flow from operating activities (109) (40) (108
Cash flows from financing activities
Other income 67 16 30
Purchase of property - (635) (635)
Treasury deposit (2,000)
Net cash from financing activities 67 (619) (2,605)
(42) (659)
(2713)
Decrease in cash and cash equivalents
Cash and cash equivalents at start of the period 571 3,284 3,284
Cash and cash equivalents at end of the period 529 2,625 571
Notes to the unaudited consolidated interim statement for the period ended 30
September 2023
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 2023, 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 2023 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 comprises rental income which is recognised on a straight line and
accruals basis over the rental period.
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.
Investment property
Investment property, which is property held to earn rentals and/or for capital
appreciation, is stated at fair value at the reporting date. Gains or losses
arising from changes in the fair value of investment property are included in
profit or loss for the period in which they arise.
3. Profit/ (Loss) per ordinary share
Unaudited
Unaudited 6 Months
6 Months ended
ended 30 September 2022 Audited
30 September 2023 £'000 Year ended
£'000 31 March 2023
£'000
Basic
Profit/(loss) from continuing activities 8 (44) (62)
Total loss 8 (44) (62)
Basic profit/(loss) per share (pence)
From continuing operations 0.39p (1.9)p (2.7)p
0.39p (1.9)p (2.7)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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