Last checked at 30 Sep 2014 07:00
30 September 2014
HERMES PACIFIC INVESTMENTS PLC
(AIM: HPAC)
Final results for year ended 31 March 2014
Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2014.
Contacts | |
Hermes Pacific Investments Plc | |
Haresh Kanabar, Non-Executive Chairman | Tel: +44 (0) 207 290 3340 |
WH Ireland Limited (Nominated Adviser & Broker) | |
Mike Coe | Tel: +44 (0) 117 945 3470 |
Chairman's Statement
I am pleased to report the results of Hermes Pacific Investments Plc ("HPAC" or the "Company") for the 12 month period ended 31 March 2014. During the year the Company had no revenues as it does not have any operating business and the Company made a loss of £117,000, which has been reduced from a recorded loss of £122,000 during the previous financial year. We are focussed on our cost base and aim to keep it low particularly whilst we are in the process of deploying our cash. At the year end the Company had net assets of £4,128,000.
Review of the Company's Operations
The Company is an investing company and has made some investments in line with its investing policy in companies involved in financial activities within the emerging market sector. Our principal focus is in the Far East as we believe that there are good growth opportunities in that part of the world. These investments have had a mixed performance with two performing in line with our expectations and one rather poorly. We are in a strong position from a Balance Sheet perspective and our cash balance as at 31 March 2014 stands at £4.127 million. We continue to evaluate other suitable opportunities in emerging markets and with our strong Balance Sheet expect to make further investments in the near future. Our total comprehensive loss for the year was £183,000 compared to a loss of £99,000 for the previous financial year. The increase in loss is largely due to the large impairment of one of our investments.
The attractions of investing in emerging markets are that in these markets the trend is to urbanise fairly rapidly. These countries have young populations who aspire to the consumer products in the same way as the more developed western economies. These regions also tend to generally run sound public finances and do not have the disadvantage of bloated welfare state or a culture of state dependency. All of these factors create a sound platform for increasing profits and dividends emanating from investments in these emerging market companies.
Outlook
We are well positioned and look forward to the future with confidence.
Haresh Kanabar
Chairman
statement OF COMPREHENSIVE INCOME
for the YEAR ended 31 march 2014
Year ended 31 March |
Year ended 31 March | ||
Note | 2014 | 2013 | |
£'000 | £'000 | ||
Continuing operations | |||
Revenue | - | - | |
Cost of sales | - | - | |
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gross profit | - | - | |
Other operating income | - | - | |
Administrative expenses | (131) | (122) | |
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Operating loss | (131) | (122) | |
Finance income | 14 | - | |
Finance costs | - | - | |
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Loss on ordinary activities before tax | 2 | (117) | (122) |
Tax expense | - | - | |
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Loss for the year from continuing activities | (117)
| (122) | |
Discontinued operations |
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Loss for the year from discontinued operations | - | - | |
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Loss for the year | (117) | (122) | |
Other comprehensive income Available-for-sale financial assets: Gains/(losses) arising in the year
Total comprehensive loss for the year
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(67)
(183)
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23
(99)
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Basic and diluted loss per share | 3 | ||
From continuing operations | (5)p | (0.2)p | |
From discontinuing operations | - | - | |
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(5)p | (0.2)p | ||
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As at 31 March |
As at 31 March |
2014 | 2013 | ||
£'000 | £'000 | ||
ASSETS | |||
Non-current assets | |||
Property, plant and equipment Investments | - 129 | - 196 | |
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129 | 196 | ||
Current assets | |||
Trade and other receivables | 1 | 13 | |
Cash and cash equivalents | 4,127 | 57 | |
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4,128 | 70 | ||
LIABILITIES | |||
Current liabilities | |||
Trade and other payables | (40) | (25) | |
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(40) | (25) | ||
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Net current assets | 4,088 | 45 | |
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NET ASSETS | 4,218 | 241 | |
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SHAREHOLDERS' EQUITY | |||
Issued share capital | 3,576 | 1,496 | |
Share premium account | 5,781 | 3,701 | |
Share based payments reserve Revaluation reserve | 139 (43) | 139 23 | |
Retained earnings | (5,235) | (5,118) | |
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TOTAL EQUITY | 4,218 | 241 | |
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CASH FLOW STATEMENT
for the YEAR ended 31 March 2014
Year ended 31 March 2014 | Year ended 31 March 2013 | ||
£'000 | £'000 | ||
Cash flows from operating activities | (104) | (106) | |
Cash flows from investing activities | |||
Acquisition of investments | - | (173) | |
Income from disposal of subsidiary undertakings | - | - | |
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Net cash (used in)/from investing activities | - | (173) | |
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Cash flows from financing activities | |||
Proceeds of share issues Other income Cost of share issue | 4,160 14 - | 320
(23) | |
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Net cash from financing activities | 4,174 | 297 | |
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Decrease in cash and cash equivalents | 4,070 | 18 | |
Cash and cash equivalents at start of period | 57 | 39 | |
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Cash and cash equivalents at end of period | 4,127 | 57 | |
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STATEMENT OF CHANGES IN EQUITY
for the YEAR ended 31 march 2014
Ordinary share capital |
Deferred share capital | Share premium | Share based payments reserve |
Retained earnings |
Revaluation reserve |
Total |
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£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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At 1 April 2012 Share re-organisation | 93 - | 1,243 - | 3,563 - | 139 - | (4,996) - | - - | 42 - | |
Share issue | 160 | - | 138- | - | - | - | 298 | |
Total comprehensive loss for the period | - | - | - | - | (122) | 23 | (99) | |
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At 1 April 2013 | 253 | 1,243 | 3,701 | 139 | (5,118) | 23 | 241 |
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Share re-organisation | - | - | - | - | - | - | - |
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Share issue | 2,080 | - | 2,080 | - | - | - | 4,160 |
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Total comprehensive loss for the period | - | - | - | - | (117) | (66) | (183) |
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At 31 March 2014 | 2,333 | 1,243 | 5,781 | 139 | (5,235) | (43) | 4,218 |
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1. Statement of compliance
The financial statements comply with International Financial Reporting Standards as adopted by the European Union.
2. Operating loss
Year ended 31 March 2014 |
Year ended 31 March 2013 | |||
£'000 | £'000 | |||
The operating loss is stated after charging the following, included in administrative expenses: | ||||
Depreciation | - | - | ||
Staff costs | 59 | 68 | ||
Other admin costs | 72 | 54 | ||
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131 | 122 | |||
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3. Loss per share
Year ended 31 March 2014 | Year ended 31 March 2013 | |||
Basic | ||||
Loss from continuing activities (£'000) | (117) | (122) | ||
Loss from discontinued activities (£'000) | - | - | ||
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(117) | (122) | |||
Number of shares | 2,333,295 | 50,658,844 | ||
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Basic loss per share (p) | ||||
From continuing operations | (5)p | (0.2)p | ||
From discontinued operations | - | - | ||
_ |
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(5)p | (0.2)p | |||
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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 2014 or 31 March 2013. The financial information has been extracted from the statutory accounts of the Company for the years ended 31 March 2014 and 31 March 2013.
The auditors' opinion on those accounts was unmodified and did not contain a statement under section 498 (2) or section 498 (3) 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 2014 have been delivered to the Registrar of Companies, whereas those for the year ended 31 March 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
5. Annual report
The Annual Report will be available from the Company's website www.hermespacificinvestments.com from 30 September 2014 and will be posted to shareholders on or before 30 September 2014.