Hermes Pac. Regulatory News (HPAC)

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 £94,000, which is lower than the loss of £107,000 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 £3,609,000.

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 £3,506 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 £133,000 compared to a loss of £119,000 for the previous financial year. The deficit is higher this year compared to last year as there was a loss of £39,000 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

Statement of Comprehensive Income for the year ended 31 March 2020

Statement of Financial Position as at 31 March 2020

Cash Flow Statement for the year ended 31 March 2020

Statement of Changes in Equity for the year ended 31 March 2020

Notes to the financial statements for the year ended 31 March 2020

1. General information

Statement of compliance

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

4. Loss per share

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.