TIDMHPAC
RNS Number : 5178M
Hermes Pacific Investments PLC
22 September 2021
22 September 2021
HERMES PACIFIC INVESTMENTS PLC
(AIM:HPAC)
Final results for the year ended 31 March 2021
Hermes Pacific Investments Plc today reports its financial
results for the year ended 31 March 2021
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 2021.
During the year, the Company had no revenues as it does not have
any operating business and the Company made a loss of GBP106,000,
which is higher than the loss of GBP94,000 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
GBP3,554,000.
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 2021 stands at GBP3.395 million. During the
year we have continued to evaluate possible suitable opportunities
to deploy our cash resources but have not found any deal that met
our criteria. Our total comprehensive loss for the year was
GBP55,000 compared to a loss of GBP133,000 for the previous
financial year. The deficit is lower this year compared to last
year as there was a gain of GBP51,000 on investments held by the
Company.
Stock markets overall have performed well in the last year
driven by rapid successful vaccinations in many countries and
recovering economies and this has resulted in some lofty
valuations. The stronger than expected recovery in the economy has
raised fears of inflation rising. Inflation is certainly a big risk
factor threatening a continuation of the rally in equities that we
have seen. Recent trading updates from companies have mentioned
inflation as a key risk. Some economists argue that the current
factors affecting rising inflation are likely to be transitory and
that conditions for a longer-term regime shift in inflation aren't
in place. Whilst inflation has been low for a while it could
quickly turn around. This could then force the hand of central
banks use their interest rate levers that would launch major
economies on a potentially painful rate hike spiral.
John Berry stepped down from the board on 28 February 2021. On
behalf of the board I would like to thank John Berry for 9 years of
service to the company and his significant contributions to the
company. We would like to wish John Berry well for the future.
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
22 September 2021
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
2021
Year ended Year ended
31 March 31 March
Note 2021 2020
GBP'000 GBP '000
Continuing operations
Revenue - -
Cost of sales - -
g ross profit - -
Other operating income - -
Administrative expenses 3 (114) (113)
Operating loss (114) (113)
Finance income 8 19
Finance costs - -
Loss on ordinary activities before
tax (106) (94)
Tax expense 7 - -
L oss for the year from continuing
activities (106) (94)
Discontinued operations
Loss for the year from discontinued - -
operations
L oss for the year (106) (94)
Other comprehensive income
Gain/(losses) arising in the year
on investments
51 (39)
Total comprehensive loss for the
year (55) (133)
Basic and diluted loss per share
From continuing operations 8 (4.5)p (4.0)p
Statement of Financial Position as at 31 March 2021
As at As at
31 March 31 March
2021 2020
Notes GBP'000 GBP'000
ASSETS
Non-current assets
Investments 9 173 123
173 123
Current assets
Trade and other receivables 11 9 9
Cash and cash equivalents 10 3,395 3,506
3,404 3,515
LIABILITIES
Current liabilities
Trade and other payables 12 (23) (29)
(23) (29)
Net current assets 3,381 3,486
NET ASSETS 3,554 3,609
SHAREHOLDERS' EQUITY
Issued share capital 13 3,576 3,576
Share premium account 5,781 5,781
Share based payments reserve 139 139
Fair value reserve 1 (50)
Retained earnings (5,943) (5,837)
TOTAL EQUITY 3,554 3,609
Cash Flow Statement for the year ended 31 March 2021
Note Year ended Year ended
31 March 31 March
2021 2020
GBP'000 GBP'000
Cash flows from operating activities 15 (119) (109)
Cash flows from investing activities
Acquisition of investments - -
Income from disposal of subsidiary - -
undertakings
Investment income 8 19
Net cash (used in)/from investing
activities 8 19
Cash flows from financing activities
Proceeds of share issues - -
Other operating activities - -
Net cash from financing activities - -
(Decrease)/increase in cash and
cash equivalents (111) (90)
Cash and cash equivalents at start
of period 10 3,506 3,596
Cash and cash equivalents at end
of period 10 3,395 3,506
Statement of Changes in Equity for the year ended 31 March
2021
Share
Ordinary Deferred Share based
share share premium payments Retained Revaluation
capital capital reserve earnings reserve Total
At 1 April
2019 2,333 1,243 5,781 139 (5,743) (11) 3,742
Total
comprehensive
loss/profit
for the
period - - - - (94) (39) (133)
At 1 April
2020 2,333 1,243 5,781 139 (5,837) (50) 3,609
Total
comprehensive
loss for the
period - - - - (106) 51 (55)
At 31 March
2021 2,333 1,243 5,781 139 (5,943) 1 3,554
Notes to the financial statements for the year ended 31 March
2021
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 4.
Statement of compliance
The Group financial statements were prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006.
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
2021 2020
GBP'000 GBP'000
The operating loss is stated after
charging the following, included
in administrative expenses:
Staff costs 43 44
Other admin costs 71 69
114 113
4. Auditors' remuneration
Year ended Year ended
31 March 31 March
2021 2020
GBP'000 GBP'000
Audit fees:
- statutory audit of the accounts 12 12
12 12
5. Directors' emoluments
Year ended Year ended
31 March 31 March
2021 2020
GBP'000 GBP'000
Emoluments for qualifying services:
H Kanabar 22 22
J Berry 9 10
J Morton 12 12
43 44
6. Employees and staff costs
The company has no employees. Staff costs comprises payments
made in respect of services provided by the directors.
7. Taxation
Year ended Year ended
31 March 31 March
2021 2020
GBP'000 GBP'000
Continuing operations:
Current tax charge - -
Adjustment in respect of prior
years - -
Current tax credit - -
Factors affecting the tax charge
for the period
Loss from continuing operations
before taxation (106) (94)
Loss from continuing operations
before taxation multiplied by standard
rate of corporation tax of 19%
(2020: 19%) (20) (18)
Effects of:
Temporary timing differences - -
Non deductible expenses - -
Depreciation in excess of capital
allowances - -
Unutilised tax losses 20 18
Current tax charge - -
The company has approximately GBP4m (2020: GBP3.9m) of trading
losses to carry forward and offset against future trading
profits
8. Loss per share
Year ended Year ended
31 March 31 March
2021 2020
Basic
Loss from continuing activities
(GBP'000) (106) (94)
(106) (94)
Number of shares 2,333,295 2,333,295
Basic loss per share (p)
From continuing operations (4.5)p (4.0)p
(4.5)p (4.0)p
9. Investments
Investments
GBP'000
Cost or valuation
Brought forward 123
Fair value movement 50
At 31 March 2021 173
The directors have elected to hold the investments at fair value
through OCI as it is their intention to hold these for the long
term
10. Cash and cash equivalents
2021 2020
GBP'000 GBP'000
Cash at bank and in hand 3,395 3,506
3,395 3,506
Cash, cash equivalents and bank overdrafts include the following
for the purposes of the cash flow statement:
2021 2020
GBP'000 GBP'000
Cash and cash equivalents 3,395 3,506
3,395 3,506
11. Trade and other receivables
2021 2020
GBP'000 GBP'000
Other receivables 9 9
9 9
12. Trade and other payables
2021 2020
GBP'000 GBP'000
Trade payables 8 11
Accruals and deferred income 15 18
23 29
13. Share capital
2021 2020
GBP'000 GBP'000
Issued and fully paid
2,333,295 ordinary shares of 100p each 2,333 2,333
13,079,850 deferred shares of 9.5p each 1,243 1,243
3,576 3,576
All ordinary shares rank equally in respect of shareholders'
rights.
The deferred shares have no voting and dividend rights. On
winding up of the company, they will be entitled to the nominal
value only after all ordinary shareholders receive the nominal
value of their shares plus GBP10m per share.
As at 31 March 2021and 31 March 2020 the authorised share
capital was 3,500,000 ordinary shares of 100p and 200,000,000
deferred shares of 9.5p.
14. Financial Instruments
Financial risk management
The company's activities expose the company to a number of risks
including credit risk, interest rate risk and liquidity risk. The
Board manages these risks through a risk management programme. The
fair value of the company's assets and liabilities at 31 March 2021
are not materially different from their book value.
2021 2020
GBP'000 GBP'000
Financial assets at fair value
through other comprehensive income 173 123
173 123
The fair value measured is categorised within level 1 of the
fair value hierarchy.
Financial assets at amortised cost 2021 2020
GBP'000 GBP'000
Loan and receivables:
Trade and other receivables 9 9
Cash and cash equivalents 3,395 3,506
3,404 3,515
Financial liabilities at amortised
cost 2021 2020
GBP'000 GBP'000
Trade and other payables 23 29
23 29
Credit risk
The company monitors credit risk on an on-going basis and
manages risk by concentrating on trading and placing bank deposits
with reliable counterparties. The company has no significant
concentration of credit risk associated with trading
counterparties. Credit risk predominantly arises from cash and cash
equivalents.
Interest rate risk
The company has interest bearing assets. Interest bearing assets
comprise cash balances which earn interest at a variable rate. The
financial liabilities in the current year are all non-interest
bearing. The company has not entered into derivatives transactions
and has not traded in financial instruments during the period under
review. The entire company's debt is non-interest bearing there
would be no effect on the company if interest rates changed.
Liquidity risk
The company seeks to manage liquidity risk by ensuring
sufficient liquidity is available to meet foreseeable needs and to
invest cash assets safely and profitably. All cash and cash
equivalents are immediately accessible.
Price risk
The company's exposure to equity securities price risk arises
from investments held by the company and classified in the
statement of financial position either as at fair value through
other comprehensive income or at fair value through profit or loss.
The risk is managed by regular reviews of the portfolio of
investments held to ensure that exposure to price movements is
within acceptable limits.
The maturity dates of the company's financial instruments are
shown below and are based on the period outstanding at the balance
sheet date up to the contractual maturity date.
Between Between
Less than 6 months 1 and
6 months and 1 5 years Total
year
GBP'000 GBP'000 GBP'000 GBP'000
2021
Financial Assets
Variable interest rate
instruments 3,395 - - 3,395
Non-interest bearing - 9 - 9
3,395 9 - 3,404
Financial Liabilities
Non-interest bearing 23 - - 23
23 - - 23
Between Between
Less than 6 months 1 and
6 months and 1 5 years Total
year
GBP'000 GBP'000 GBP'000 GBP'000
2020
Financial Assets
Variable interest rate
instruments 3,506 - - 3,506
Non-interest bearing - 9 - 9
3,506 9 - 3,515
Financial Liabilities
Non-interest bearing 29 - - 29
29 - - 29
15. Cash flows from operating activities
Year ended Year ended
31 March 2020 31 March
2020
GBP'000 GBP'000
Loss on ordinary activities before
tax (114) (113)
Depreciation of property, plant and - -
equipment
Operating cash flows before movements
in working capital (114) (113)
Decrease in trade and other receivables - (8)
(Decrease)/Increase in trade and
other payables (5) 12
Cash flows from operating activities (119) (109)
16. Related party transactions
Key Management Personnel and Director Transactions
A number of key management personnel, or their related parties,
hold positions in other entities that result in them having control
or significant influence over the financial and operating policies
of these entities.
A number of these entities transacted with the company during
the year. The terms and conditions of these transactions with key
management personnel and their related parties were no more
favourable than those available, or which might reasonably be
expected to be available, on similar transactions to non-key
management personnel related entities on an arm's length basis.
The aggregate value of transactions related to key management
personnel and entities over which they have control or significant
influence was GBP42,800 (2020: GBP43,600).
During the year, the company used the services of Poonam &
Roshni Limited totalling GBP21,600 (2020: GBP21,600). H Kanabar is
a director of both companies. No balance was outstanding at the
year end (2020: Nil).
During the year the company used the services of John Berry
Associates Limited totalling GBP9,000 (2020: GBP10,000). J Berry
resigned on 28 February 2021 but was a director of both companies.
No balance was outstanding at the year end (2020: Nil).
During the year the company used the services of Thirty Acre
Stables totalling GBP12,000 (2020: GBP12,000). J Morton is the
owner of that business. No balance was outstanding at the year end
(2020: Nil).
The compensation of key management is as disclosed in the
directors' emoluments note.
17. Annual report
The Annual Report will be posted to shareholders shortly and
will be available on the Company's website
http://www.hermespacificinvestments.com. Copies will be available
thereafter in hard copy format from the Company's registered
office, 22 Great James Street, London WC1N 3ES.
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END
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