Last checked at 24 Sep 2019 10:15
24 September 2019
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Final results for the year ended 31 March 2019
Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2019.
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 2019. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of £107,000, which is marginally higher than the loss of £100,000 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 £3,742,000.
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 2019 stands at £3.596 million. We have continued to evaluate possible suitable opportunities to deploy our cash resources but have not found any deal that we thought fit that we could put to the shareholders to approve. Our total comprehensive loss for the year was £119,000 compared to a loss of £61,000 for the previous financial year. The deficit is higher this financial year as in the previous corresponding year there was a gain of £39,000 on investments held by the company.
Global economic growth slowed down in the latter months of 2018 and also in the first half of this year. Economic uncertainty remains high due to various factors affecting trade. The system of global trade remains subject to political pressure, and differences between China and the US will likely continue to inform sentiment in the near term. However, the conclusion of major trade agreements - including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU's bilateral agreements with Japan and Singapore provide important counterweights that could give impetus to international trade in the years ahead.
The slower global growth coupled with the uncertainty of Brexit has undoubtedly dented business confidence in the UK. The continued uncertainty over Brexit has made it harder for companies to make calls on investment. At the same time, disruption from emerging technology, climate change and fragile geopolitical and trade conditions have created one of the most complex backdrops to operate against in recent times. In view of all the uncertainties currently present we are very cautious with regard to deployment of our cash resources.
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
24 September 2019
Contacts |
|
Hermes Pacific Investments Plc | www.hermespacificinvestments.com |
Haresh Kanabar, Non-Executive Chairman | Tel: +44 (0) 207 290 3340 |
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WH Ireland Limited (Nominated Adviser & Broker) | www.whirelandcb.com |
Mike Coe/ Chris Savidge | Tel: +44 (0) 117 945 3470 |
Statement of Comprehensive Income for the year ended 31 March 2019
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|
Year ended 31 March |
Year ended 31 March |
| Note | 2019 | 2018 |
|
| £'000 | £'000 |
|
|
|
|
Continuing operations |
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|
|
Revenue |
| - | - |
Cost of sales |
| - | - |
|
|
|
|
gross profit |
| - | - |
|
|
|
|
Other operating income |
| - | - |
Administrative expenses |
| (124) | (107) |
|
|
|
|
Operating loss | 2 | (124) | (107) |
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|
Finance income |
| 17 | 7 |
Finance costs |
| - | - |
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|
|
Loss on ordinary activities before tax |
| (107) | (100) |
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|
|
|
Tax expense |
| - | - |
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|
|
|
Loss for the year from continuing activities |
| (107)
| (100)
|
Discontinued operations |
|
| |
Loss for the year from discontinued operations |
| - | - |
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|
|
|
Loss for the year |
| (107) | (100) |
Other comprehensive income Gains/(losses) arising in the year on investments
Total comprehensive loss for the year
|
|
(12)
(119)
|
39
(61)
|
Basic and diluted loss per share |
|
|
|
From continuing operations | 3 | (4.6)p | (4.3)p |
Statement of Financial Position as at 31 March 2019
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As at 31 March |
As at 31 March |
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| 2019 | 2018 |
| Notes | £'000 | £'000 |
ASSETS |
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Non-current assets |
|
|
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Investments |
| 162 | 174 |
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|
|
|
| 162 | 174 |
Current assets |
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|
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Trade and other receivables |
| 1 | 1 |
Cash and cash equivalents |
| 3,596 | 3,725 |
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|
|
|
|
| 3,597 | 3,726 |
LIABILITIES |
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Current liabilities |
|
|
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Trade and other payables |
| (17) | (39) |
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|
|
| (17) | (39) |
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Net current assets |
| 3,580 | 3,687 |
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NET ASSETS |
| 3,742 | 3,861 |
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SHAREHOLDERS' EQUITY |
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Issued share capital |
| 3,576 | 3,576 |
Share premium account |
| 5,781 | 5,781 |
Share based payments reserve Fair value reserve |
| 139 (11) | 139 1 |
Retained earnings |
| (5,743) | (5,636) |
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|
|
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TOTAL EQUITY |
| 3,742 | 3,861 |
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Cash Flow Statement for the year ended 31 March 2019
| Note | Year ended 31 March 2019 | Year ended 31 March 2018 |
|
| £'000 | £'000 |
|
|
|
|
Cash flows from operating activities |
| (146) | (95) |
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|
|
|
Cash flows from investing activities |
|
|
|
Acquisition of investments |
| - | - |
Income from disposal of subsidiary undertakings |
| - | - |
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|
|
|
Net cash (used in)/from investing activities |
| - | - |
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|
|
|
Cash flows from financing activities |
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|
|
Proceeds of share issues Other operating activities Cost of share issue |
| - 17 - | - 6 - |
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|
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Net cash from financing activities |
| 17 | 6 |
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|
|
|
|
|
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(Decrease)/increase in cash and cash equivalents |
| (129) | (89) |
Cash and cash equivalents at start of period |
| 3,725 | 3,814 |
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|
|
|
Cash and cash equivalents at end of period |
|
3,596 |
3,725 |
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|
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Statement of Changes in Equity for the year ended 31 March 2019
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Ordinary share capital |
Deferred share capital |
Share premium | Share based payments reserve |
Retained earnings |
Revaluation reserve |
Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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|
|
|
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At 1 April 2017 | 2,333 | 1,243 | 5,781 - | 139 | (5,536) | (38) | 3,922 |
Total comprehensive loss/profit for the period | - | - | - | - | (100) | 39 | (61) |
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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) |
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At 31 March 2019 | 2,333 | 1,243 | 5,781 | 139 | (5,743) | (11) | 3,742 |
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Notes to the financial statements for the year ended 31 March 2019
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. Operating loss
|
|
Year ended 31 March 2019 |
|
Year ended 31 March 2018 |
|
| £'000 |
| £'000 |
| The operating loss is stated after charging the following, included in administrative expenses: |
|
|
|
| Staff costs | 44 |
| 44 |
| Other admin costs | 80 |
| 63 |
|
|
|
|
|
|
| 124 |
| 107 |
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|
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3. Loss per share
|
| Year ended 31 March 2019 |
| Year ended 31 March 2018 |
| Basic |
|
|
|
| Loss from continuing activities (£'000) | (107) |
| (100) |
|
|
|
|
|
|
| (107) |
| (100) |
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| Number of shares | 2,333,295 |
| 2,333,295 |
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| Basic loss per share (p) |
|
|
|
| From continuing operations | (4.6)p |
| (4.3)p |
|
|
|
|
|
|
| (4.6))p |
| (4.3)p |
|
|
|
|
|
4. Publication of non-statutory accounts
The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 31 March 2019 or 31 March 2018. The financial information has been extracted from the statutory accounts of the Company for the years ended 31 March 2019 and 31 March 2018.
The auditors' opinion on those accounts was unmodified and did not contain a statement under 498 (2) or section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by the way of emphasis.
The statutory accounts for the year ended 31 March 2018 have been delivered to the Registrar of Companies, whereas those for the year ended 31 March 2019 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
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.