TIDMHPAC

RNS Number : 1974A

Hermes Pacific Investments PLC

28 September 2020

28 September 2020

HERMES PACIFIC INVESTMENTS PLC

(AIM: HPAC)

Final results for the year ended 31 March 2020

Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2020.

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 2020. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of GBP94,000, which is lower than the loss of GBP107,000 reported for the previous financial year. We continue our focus to minimise our costs whilst we are looking for opportunities to deploy our cash. At the financial year end the Company had net assets of GBP3,609,000.

Review of the Company's Activities

The Company is an investing company and has previously 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 2020 stands at GBP3,506 million. We have continued to evaluate possible suitable opportunities to deploy our cash resources but have not found any deal that we thought appropriate. Our total comprehensive loss for the year was GBP133,000 compared to a loss of GBP119,000 for the previous financial year. The deficit is higher this year compared to last year as there was a loss of GBP39,000 on investments held by the Company.

The last few years have been filled with Brexit uncertainty. The confusion that has been uppermost in people's minds has cleared up somewhat when the United Kingdom formally left the European Union. There are nonetheless still so many key questions still left unanswered. The United Kingdom is now in a transition period which will end on 31 December 2020. During this period, The United Kingdom is still in the Customs Union and also in the single market with all the applicable European rules still in force. It is anticipated that a deal with the European Union will be reached before the end of the transition period however if there is no agreement on a deal then World Trade Organisation Rules would come into effect. We will continue to monitor closely as this matter does have a significant economic impact.

The Covid-19 pandemic has sent shockwaves throughout the global economy and the uncertainties this has created has impacted investment prospects. Some economies have been affected more severely than others. Within different countries, the virus spread through the population at varying speeds depending on a range of factors such as the cultural and behavioural responses of the community. This pattern has led to substantial variation in the preparedness of countries and their responses to the crisis. Lockdowns were imposed and large parts of the economy were effectively shut down. The worrying aspect is that we still do not have an effective vaccine against Covid 19 and there is fear that countries and economies may be hit by a second wave of infections. Given the uncertainties this creates we will be cautious in any new investments that we make.

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

28 September 2020

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

Statement of Comprehensive Income for the year ended 31 March 2020

 
 
                                                         Year ended     Year ended 
                                                           31 March       31 March 
                                                Note           2020           2019 
                                                            GBP'000       GBP '000 
 
 Continuing operations 
 Revenue                                                          -              - 
 Cost of sales                                                    -              - 
 
 g ross profit                                                    -              - 
 
 Other operating income                                           -              - 
 Administrative expenses                                      (113)          (124) 
 
 Operating loss                                               (113)          (124) 
 
 Finance income                                                  19             17 
 Finance costs                                                    -              - 
 
 Loss on ordinary activities before 
  tax                                                          (94)          (107) 
 
 Tax expense                                                      -              - 
 
 L oss for the year from continuing 
  activities                                                   (94)          (107) 
 Discontinued operations 
 Loss for the year from discontinued                              -              - 
  operations 
 
 L oss for the year                                            (94)          (107) 
 
   Other comprehensive income 
   Losses arising in the year on investments 
                                                               (39)           (12) 
   Total comprehensive loss for the 
   year                                                       (133)          (119) 
 Basic and diluted loss per share 
 From continuing operations                        4         (4.0)p         (4.6)p 
 

Statement of Financial Position as at 31 March 2020

 
 
                                                     As at                   As at 
                                                  31 March                31 March 
                                                      2020                 2019 
                                 Notes             GBP'000                 GBP'000 
 ASSETS 
 Non-current assets 
 Investments                                           123                     162 
 
                                                       123                     162 
 Current assets 
 Trade and other receivables                             9                       1 
 Cash and cash equivalents                           3,506                   3,596 
 
                                                     3,515                   3,597 
 LIABILITIES 
 Current liabilities 
 Trade and other payables                             (29)                    (17) 
 
                                                      (29)                    (17) 
 
 Net current assets                                  3,486                   3,580 
 
 NET ASSETS                                          3,609                   3,742 
 
 SHAREHOLDERS' EQUITY 
 Issued share capital                                3,576                   3,576 
 Share premium account                               5,781                   5,781 
 Share based payments reserve                          139                     139 
  Fair value reserve                                  (50)                    (11) 
 Retained earnings                                 (5,837)                 (5,743) 
 
 TOTAL EQUITY                                        3,609                   3,742 
 
 
 

Cash Flow Statement for the year ended 31 March 2020

 
                                         Note                  Year ended                 Year ended 
                                                                 31 March                   31 March 
                                                                     2020                       2019 
                                                                  GBP'000                    GBP'000 
 
 Cash flows from operating activities                               (109)                      (146) 
 
 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 operating activities                                           19                         17 
 
 Net cash from financing activities                                    19                         17 
 
 
 (Decrease)/increase in cash and 
  cash equivalents                                                   (90)                      (129) 
 Cash and cash equivalents at start 
  of period                                                    3,596                          3,725 
 
 
   Cash and cash equivalents at end 
   of period                                                        3,506                      3,596 
 
 
 

Statement of Changes in Equity for the year ended 31 March 2020

 
                                                             Share 
                         Ordinary    Deferred                based 
                            share       share     Share   payments       Retained      Revaluation 
                          capital     capital   premium    reserve       earnings          reserve    Total 
                          GBP'000     GBP'000   GBP'000    GBP'000        GBP'000          GBP'000  GBP'000 
 
At 1 April 2018             2,333       1,243     5,781        139        (5,636)                1    3,861 
Total comprehensive 
 loss/profit for the 
 period                         -           -         -          -          (107)             (12)    (119) 
 
At 1 April 2019             2,333       1,243   5,781          139        (5,743)             (11)    3,742 
Total comprehensive 
 loss for the 
 period                         -           -         -          -           (94)             (39)    (133) 
 
At 31 March 2020            2,333       1,243     5,781        139        (5,837)             (50)    3,609 
 
 

Notes to the financial statements for the year ended 31 March 2020

   1.     General information 
 
 Hermes Pacific Investments Plc is a company incorporated 
  in the United Kingdom under the Companies Act 2006. The 
  nature of the company's operations and its principal activities 
  are set out in the Directors' Report on page 3. 
 

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, various 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). The Directors have considered these 
          new standards and interpretations and do not expect them to have 
          a material impact on the company. 
 
 
 
   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. The outbreak of Covid 19 which has spread globally does not have any impact on our going concern status as we have sufficient cash to fund our activities in the foreseeable future.

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 year. 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.

Management have not made any material estimates or judgements that may result in a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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.

Investments

The company carries its investments at fair value. Gains and losses are either recorded in profit or loss or other comprehensive income. For investments in equity instruments that are not held for trading, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

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.     Operating loss 
 
 
                                          Year ended     Year ended 
                                            31 March       31 March 
                                                2020           2019 
                                             GBP'000        GBP'000 
  The operating loss is stated after 
   charging the following, included 
   in administrative expenses: 
  Staff costs                                     44             44 
  Other admin costs                               69             80 
 
                                                 113            124 
 
 
 
   4.    Loss per share 
 
                                     Year ended   Year ended 
                                       31 March     31 March 
                                           2020         2019 
  Basic 
  Loss from continuing activities 
   (GBP'000)                               (94)        (107) 
 
                                           (94)        (107) 
 
  Number of shares                    2,333,295    2,333,295 
 
  Basic loss per share (p) 
  From continuing operations             (4.0)p       (4.6)p 
 
                                         (4.0)p       (4.6)p 
 
 
   5.    Publication of non-statutory accounts 

The Annual Report will be posted to shareholders and will be available on the Company's website (www.hermespacificinvestments.com) shortly.

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END

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September 28, 2020 02:00 ET (06:00 GMT)

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