TIDMHPAC
RNS Number : 5183A
Hermes Pacific Investments PLC
26 September 2022
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
26 September 2022
HERMES PACIFIC INVESTMENTS PLC
(the "Company")
Final results for the year ended 31 March 2022
Hermes Pacific Investments Plc (AIM: HPAC) today reports its
financial results for the year ended 31 March 2022 ("Period" or
"Year")
Chairman's statement
I am pleased to report the results of Hermes Pacific Investments
Plc for the year ended 31 March 2022. During the Year, the Company
had no revenues as it does not have any operating business and the
Company made a loss of GBP105,000, which is marginally lower than
the loss of GBP106,000 reported for the previous financial year. We
continued our focus to minimise our costs whilst we looked for
opportunities to deploy our cash. At the financial year end the
Company had net assets of GBP3,486,000 (FY21: GBP3,554,000). During
the Period we adopted a new investment policy focused principally,
but not exclusively in the property sector and we are pleased that
post the Period end we identified a suitable opportunity and
purchased a two-bedroom leasehold flat and a single garage in
Westcliff-on-sea, Southend-on-Sea.
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 management's expectations.
We are in a good position from a balance sheet perspective and our
cash balance as at 31 March 2022 stood at GBP3.284 million (FY21:
GBP3.395 million) . During the Year we have continued to evaluate
possible suitable opportunities to deploy our cash resources but
did not identify any transaction that met our criteria. However, as
mentioned above, we are delighted to have completed on the purchase
of a two-bedroom leasehold flat and a single garage in
Westcliff-on-sea, Southend-on-Sea post the Period end. Our total
comprehensive loss for the year was GBP68,000 compared to a loss of
GBP55,000 for the previous financial year. There was a gain of
GBP37,000 on investments held by the Company.
During the Period no further investments were made. A new
investment policy, focused principally, but not exclusively in the
property sector, was adopted by the Company following shareholder
approval on 14 December 2021. Further details of the new investment
policy adopted during the Period are set out below. .
New investing policy
The Company's new investing policy is to invest principally, but
not exclusively in the property sector within Europe and the Middle
East ("New Investment Policy"). Accordingly, the New Investing
Policy is as follows:-
The 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.
Post Period end highlights
The Company has purchased a two-bedroom leasehold flat and a
single garage in Westcliff-on-sea, Southend-on-Sea as announced on
19 May 2022. The purchase price of GBP594,907 has been funded from
the Company's existing cash resources. This flat has been now been
rented out on assured shorthold tenancy agreement.
Haresh Kanabar
Chairman
26 September 2022
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/ Sarah Mather Tel: +44 (0) 207 220
1666
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31 MARCH
2022
Year ended Year ended
31 March 31 March
Note 2022 2021
GBP'000 GBP '000
Continuing operations
Revenue - -
Cost of sales - -
g ross profit - -
Other operating income - -
Administrative expenses 3 (111) (114)
Operating loss (111) (114)
Finance income 6 8
Finance costs - -
Loss on ordinary activities
before tax (105) (106)
Tax expense 7 - -
L oss for the year from continuing
activities (105) (106)
Discontinued operations
Loss for the year from discontinued - -
operations
L oss for the year (105) (106)
Other comprehensive income
Gain/(losses) arising in the
year on investments
37 51
Total comprehensive loss for
the year (68) (55)
Basic and diluted loss per share
From continuing operations 8 (4.5)p (4.5)p
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2022
As at As at
31 March 31 March
2022 2021
Notes GBP'000 GBP'000
ASSETS
Non-current assets
Investments 9 211 173
211 173
Current assets
Trade and other receivables 11 10 9
Cash and cash equivalents 10 3,284 3,395
3,294 3,404
LIABILITIES
Current liabilities
Trade and other payables 12 (19) (23)
(19) (23)
Net current assets 3,275 3,381
NET ASSETS 3,486 3,554
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 38 1
Retained earnings (6,048) (5,943)
TOTAL EQUITY 3,486 3,554
The financial statements were approved and authorised for issue
by the board of directors on 26 September 2022 and signed on its
behalf by:
Haresh Kanabar
Director
Company number: 05239281
CASH FLOW STATEMENT for the YEAR ended 31 March 2022
Note Year ended Year ended
31 March 31 March
2022 2021
GBP'000 GBP'000
Cash flows from operating activities 15 (117) (119)
Cash flows from investing activities
Acquisition of investments - -
Income from disposal of subsidiary - -
undertakings
Investment income 6 8
Net cash (used in)/from investing
activities 6 8
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) (111)
Cash and cash equivalents at start
of period 10 3,395 3,506
Cash and cash equivalents at end
of period 10 3,284 3,395
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 MARCH 2022
Share Share Retained Revaluation Total
Ordinary Deferred premium based earnings reserve
share share payments
capital capital reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2020 2,333 1,243 5,781 139 (5,837) (50) 3,609
Total comprehensive
loss/profit for the
period - - - - (106) 51 (55)
At 1 April 2021 2,333 1,243 5,781 139 (5,943) 1 3,554
Total comprehensive
loss for the
period - - - - (105) 37 (68)
At 31 March 2022 2,333 1,243 5,781 139 (6,048) 38 3,486
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 MARCH
2022
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
UK adopted international accounting standards and 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. 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.
Critical accounting estimates and judgments
The preparation of financial statements in conformity with UK
adopted international accounting standards 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 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
2022 2021
GBP'000 GBP'000
The operating loss is stated after
charging the following, included
in administrative expenses:
Staff costs 34 43
Other admin costs 77 71
111 114
4. Auditors' remuneration
Year ended Year ended
31 March 31 March
2022 2021
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
2022 2021
GBP'000 GBP'000
Emoluments for qualifying services:
H Kanabar 22 22
J Berry (resigned) 0 9
J Morton 12 12
34 43
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
2022 2021
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 (105) (106)
Loss from continuing operations
before taxation multiplied by standard
rate of corporation tax of 19%
(2021: 19%) (20) (20)
Effects of:
Temporary timing differences - -
Non deductible expenses - -
Depreciation in excess of capital
allowances - -
Unutilised tax losses 20 20
Current tax charge - -
The company has approximately GBP4.1m (2021: GBP4m) of trading
losses to carry forward and offset against future trading
profits
8. Loss per share
Year ended Year ended
31 March 31 March
2022 2021
Basic
Loss from continuing activities
(GBP'000) (105) (106)
(105) (106)
Number of shares 2,333,295 2,333,295
Basic loss per share (p)
From continuing operations (4.5)p (4.5)p
(4.5)p (4.5)p
9. Investments
Investments
GBP'000
Cost or valuation
Brought forward 173
Fair value movement 38
At 31 March 2022 211
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
2022 2021
GBP'000 GBP'000
Cash at bank and in hand 3,284 3,395
3,284 3,395
11. Trade and other receivables
2022 2021
GBP'000 GBP'000
Other receivables 10 9
10 9
12. Trade and other payables
2022 2021
GBP'000 GBP'000
Trade payables 3 8
Accruals and deferred income 16 15
19 23
13. Share capital
2022 2021
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 2022 and 31 March 2021 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 2022
are not materially different from their book value.
2022 2021
GBP'000 GBP'000
Financial assets at fair value
through other comprehensive income 211 173
211 173
The fair value measured is categorised within level 1 of the
fair value hierarchy.
Financial assets at amortised cost 2022 2021
GBP'000 GBP'000
Loan and receivables:
Trade and other receivables 10 9
Cash and cash equivalents 3,284 3,395
3,294 3,404
Financial liabilities at amortised
cost 2022 2021
GBP'000 GBP'000
Trade and other payables 19 23
19 23
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 6 months 1 and
than and 1 5 years Total
6 months year
GBP'000 GBP'000 GBP'000 GBP'000
2022
Financial Assets
Variable interest rate
instruments 3,284 - - 3,284
Non-interest bearing - 10 - 10
3,284 10 - 3,294
Financial Liabilities
Non-interest bearing 19 - - 19
19 - - 19
Between Between
Less 6 months 1 and
than and 1 5 years Total
6 months 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
15. Cash flows from operating activities
Year ended Year ended
31 March 31 March
2022 2021
GBP'000 GBP'000
Operating loss (111) (114)
Depreciation of property, plant and - -
equipment
Operating cash flows before movements
in working capital (111) (114)
(Increase)/Decrease in trade and (1) -
other receivables
(Decrease)/Increase in trade and
other payables (5) (5)
Cash flows from operating activities (117) (119)
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 GBP33,600 (2021: GBP42,800).
During the year, the company used the services of Poonam &
Roshni Limited totalling GBP21,600 (2021: GBP21,600). H Kanabar is
a director of both companies. No balance was outstanding at the
year end (2021: Nil).
During the year the company used the services of Thirty Acre
Stables totalling GBP12,000 (2021: GBP12,000). J Morton is the
owner of that business. No balance was outstanding at the year end
(2021: Nil).
The compensation of key management is as disclosed in the
directors' emoluments note.
17. Events after the end of the reporting period
Subsequent to the reporting date, the company purchased an
investment property for GBP594,907.
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END
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