TIDMHPAC
RNS Number : 3422V
Hermes Pacific Investments PLC
13 December 2021
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Unaudited interim results for the six months ended 30 September
2021
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 2021. During the period under review the Company made
a loss on ordinary activities before taxation of GBP50,000 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 had no revenues owing to a lack of
any operating business and it continues to manage its 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 2021. The Company is also considering
possible investment opportunities which would be compatible with
its investment strategy. As at 30 September 2021 the Company had
net assets of GBP3,515,000 of which cash was GBP3,358,000.
Review of the Company's activities
Hermes Pacific Investments plc is an investing company with a
focus on investing in the emerging markets of the Far East
including South East Asia. During the period no further investments
were made. The Board has considered and has made recommendations to
shareholders to adopt a new investing policy. A circular has been
recently sent to shareholders setting out details of the new
investing policy and to explain why the Board considers the new
investing policy to be in the best interests of the Company and its
shareholders. The shareholders general meeting to consider this
proposal will be held on 14 December 2021
The Company made a few minor investments when the current
investing policy was first adopted but the Company has not found
any suitable significant deals in South East Asia (in the financial
sector or elsewhere) into which to deploy its cash resources.
Therefore, the Board consider that it would be appropriate to
change the strategic direction of the Company and implement a new
investing policy which allows the Company's resources to be
deployed in other geographic areas and business sectors.
It is proposed that the Company's new investing policy will be
to invest principally, but not exclusively, in the property sector.
The Directors consider the property sector will provide the Company
with significantly more suitable investment opportunities that can
provide significant growth potential for the future ("New Investing
Policy").
In the first instance, the Company will be use the existing
capital available to it in order to locate, evaluate and select
investment opportunities that offer satisfactory potential capital
returns for shareholders.
Proposed New Investing Policy
It is proposed that the Company's New Investing Policy will be
to invest principally, but not exclusively in the property sector
within Europe and the Middle East.
Accordingly, subject to the passing of the Resolution, the New
Investing Policy will be:-
The proposed investments to be made by the Company may be either
quoted or unquoted; in debt and/or in equity instruments, may be in
companies, partnerships, joint ventures; or direct interests in
property or property projects (either residential or commercial
property). The Company's equity interest in a proposed investment
may range from a minority position to 100 per cent. ownership.
The Directors believe there are opportunities to invest in and
acquire commercial and/or residential properties where the
properties may be undervalued and/or suitable for redevelopment to
enhance capital value.
The Company will identify and assess potential properties and
where it believes further investigation is required, and subject to
assessment of potential risk, intends to appoint appropriately
qualified advisers to assist. Where further investigation is
required, the Company intends to carry out a comprehensive and
thorough investment review process in which all material aspects of
any potential property investment will be subject to due
diligence.
The Company's financial resources may be invested in a small
number of properties or investments or potentially in just one
investment which may be deemed to be a reverse takeover of the
Company under the AIM Rules. Where this is the case, it is intended
to mitigate the risk by undertaking an appropriate due diligence
process. Any transaction constituting a reverse takeover under the
AIM Rules would require Shareholders' approval. The possibility of
building a broader portfolio of properties has not, however, been
excluded. The Company may also continue to review and investigate
non-property related investments as it has done to date.
The Company's investments may take the form of equity, debt or
convertible instruments. Investments may be made in all types of
assets falling within the remit of the New Investing Policy and
there will be no investment restrictions. Proposed investments may
be made in either quoted or unquoted companies and structured as a
direct acquisition, joint venture or as a direct interest in a
project or property. The Directors may consider it appropriate to
take an equity interest in any proposed investment which may range
from a minority position to 100 per cent ownership. The Company may
be either an active investor or passive investor. Where the Company
is an active investor, it may seek representation on the board of
investee companies.
I would like to thank shareholders for their continued
support.
Haresh Kanabar
Chairman
13 December 2021
Contacts:
Hermes Pacific Investments plc www.hermespacificinvestments.com
Haresh Kanabar, Chairman +44 (0) 7802858893
WH Ireland Limited www.wh-ireland.co.uk
Mike Coe, Sarah Mather +44 (0) 117 945 3470
Unaudited Income Statement for the six months ended 30 September
2021
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Continuing activities
Revenue - - -
Cost of sales - - -
Gross loss/profit - - -
Other operating income - - -
Administrative expenses (50) (54) (114)
Operating loss (50) (54) (114)
Finance income - 2 8
Finance costs - - -
Loss on ordinary activities before
taxation (50) (52) (106)
Tax expense - - -
Loss for the period from continuing
activities (50) (52) (106)
Other comprehensive income
Gain/(loss) Loss arising in the
year 11 10 (51)
Loss for the period (39) (42) (55)
Basic and diluted loss per share
From continuing operations 3 (2.1)p (2.2)p (4.5)p
Unaudited Balance Sheet as at 30 September 2021
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Investments 180 130 173
180 130 173
Current assets
Trade and other receivables 4 5 9
Cash and cash equivalents 3,358 3,455 3,395
Total current assets 3,362 3,460 3,404
Total assets 3,542 3,590 3,577
Liabilities
Current liabilities
Trade and other payables (27) (23) (23)
Net assets 3,515 3,567 3,554
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 12 (40) 1
Retained losses (5,993) (5,889) (5,943)
Equity attributable to equity holders
of the parent 3,515 3,567 3,554
Unaudited Statement of Changes in Equity
Share
Ordinary Deferred based
share share Share payments Revaluation Retained
capital capital premium reserves reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30
September 2020
At 31 March 2020 2,333 1,243 5,781 139 (50) (5,837) 3,609
Total comprehensive
loss for the period - - - - 10 (52) (42)
At 30 September 2020 2,333 1,243 5,781 139 (40) (5,889) 3,567
Period ended 31 March
2021
At 30 September 2020 2,333 1,243 5,781 139 (40) (5,889) 3,567
Total comprehensive
loss for the period - - - - 41 (54) (13)
At 31 March 2021 2,333 1,243 5,781 139 1 (5,943) 3,554
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
Unaudited Cash Flow Statement for the six months ended 30
September 2021
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Cash outflow from operating activities (42) (53) (119)
Net cash flow from operating activities (42) (53) (119)
Cash flows from financing activities
Other income 5 2 8
Net cash from financing activities 5 2 8
-------------- -------------- -----------
Decrease in cash and cash equivalents (37) (51) (111)
Cash and cash equivalents at start of the
period 3,395 3,506 3,506
Cash and cash equivalents at end of the
period 3,358 3,455 3,395
Notes to the unaudited consolidated interim statement for the
period ended 30 September 2021
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 2021. These are consistent with those
included in the previously published annual report and accounts for
the period ended 31 March 2021, 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 2021 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 Audited
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Basic
Loss from continuing activities (50) (52) (106)
Total loss (50) (52) (106)
Basic loss per share (pence)
From continuing operations (2.1)p (2.2)p (4.5)p
(2.1)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 .
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END
IR FLFERFALILIL
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