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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