Half Yearly Report

RNS Number : 0848U

Hermes Pacific Investments PLC

21 December 2012

 



HERMES PACIFIC INVESTMENTS PLC

(AIM: HPAC)

Unaudited interim results for the six months ended 30 September 2012

Chairman's Statement

I am pleased to report the results of Hermes Pacific Investments Plc ("HPAC" or the "Company"), formerly Indian Restaurants Group Plc ("IRG"), following a change of name on 20 August 2012, for the six month period ended 30 September 2012.

Review of the Company's Operations

Following the sale of the trading business in September 2011 the Company has attempted to maintain a low cost base whilst its directors endeavoured to raise further funds and began considering suitable investment opportunities and alternative sources of income for the Company.

Under the AIM Rules, the Company was required to make an acquisition or acquisitions which constitute a reverse takeover or otherwise to implement its investing policy to the satisfaction of the London Stock Exchange before 1 September 2012, being the anniversary of the Sale. On 27 July 2012, the Company was pleased to announce that it had raised new equity finance via a subscription, appointed three new members to the board of the Company and adopted a new investing policy focussing on investments in South East Asia. On 23 August 2012, the Company made its first investments under its new investment policy and made further investments on 31 August 2012, all in the financial services sector ("the Investments"). Following the Investments, the Company received confirmation that its investing policy had been implemented.

Financial Review

We have kept a tight reign over costs and the loss for the period stood at £68,000 compared to a loss of £231,000 in the previous corresponding six-month period. As at 30 September we had a cash balance of £141,000.

Subscription

On 27 July 2012, the Company announced that it completed a share subscription raising £320,000 (approximately £300,000 net of expenses) through the issue of 32,000,000 new ordinary shares of 0.5p each ("Ordinary Shares"), at a subscription price of 1p per new Ordinary Share ("Subscription Shares"). The net proceeds of the Subscription enabled the Company to implement its new Investing Policy approved by the Shareholders at the General Meeting held on 20 August 2012 (the "2012 General Meeting"), satisfy existing creditors and provide the Company with general working capital.

Investing Policy

At the Annual General Meeting held on 25 October 2012, the authority for the Company's investing policy was renewed:

The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition of an equity interest; may be in companies, partnerships, joint ventures; or direct interests in projects in South East Asia  including, but not limited to, investments in the financial sector. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent. ownership.

The Company will identify and assess potential investment targets and where it believes further investigation is required and subject to assessment of potential risk, intends to appoint appropriately qualified advisers to assist.

The Company proposes to carry out a project review process in which all material aspects of any potential investment will be subject to due diligence, as considered appropriate by the Board. It is likely that  the Company's financial resources will be invested in a small number of projects or potentially in just one investment which may be deemed to be a reverse takeover under the AIM Rules.

Where this is the case, it is intended to mitigate risk by undertaking an appropriate due diligence process. Any transaction constituting a reverse takeover under the AIM Rules will require Shareholder approval. The possibility of building a broader portfolio of investment assets has not, however, been excluded.

The Company intends to deliver shareholder returns principally through capital growth rather than capital distribution via dividends. Given the nature of the Company's Investment Policy, the Company does not intend to make regular periodic disclosures or calculations of net asset value.

Appointment of Directors

During the period, on 27 July 2012, the board was strengthened by the appointment of two new non-executive directors, John Berry and John Morton, both of whom took part in the Subscription. On 17 September 2012 it was announced that Alfredo Villa and Matt Wood resigned as non-executive directors.

Change of Name

At the 2012 General Meeting, the Shareholders approved the Company's change of name from Indian Restaurants Company plc to Hermes Pacific Investments plc to reflect the South East Asian focus of the Company's revised Investing Policy.  

Investments

During August 2012, the Company took minority equity stakes in three quoted companies with exposure to South East Asia. £71,952 was invested in Deutsche Forfait AG, which is listed on the Deutsche Börse and is involved in trade finance with a focus on emerging markets, including South East Asia, £49,023 was invested in DBS Bank Limited ("DBS") and £49,853 in Overseas Chinese Banking Corporation Limited ("OCBC"). Both DBS and OCBC are listed on the Singapore Stock Exchange and involved in the banking industry in South East Asia. All investments were made at market price.

Haresh Kanabar

Chairman

20 December 2012

Contacts:
Hermes Pacific Investments plc	www.hermespacificinvestments.com
Haresh Kanabar, Chairman	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
Mike Coe / Marc Davies	[phone]

Unaudited Income Statement for the six months ended 30 September 2012

		Note	Unaudited 6 Months ended 30 September 2012  £'000	Unaudited 6 Months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Continuing activities
Revenue			-	-	-
Cost of sales			-	-	-
Gross loss/profit			-	-	-
Other operating income			-	-	-
Administrative expenses			(68)	(231)	(196)
Operating loss			(68)	(231)	(196)
Finance income			-	-	-
Finance costs			-	-	-
Loss on ordinary activities before taxation			(68)	(231)	(196)
Tax expense			-	-	-
Loss for the period from continuing activities			(68)	(231)	(196)
Discontinued operations
Loss for the period from discontinued operations			-	(9)	(19)
Loss for the period			(68)	(240)	(215)
Basic and diluted loss per share
From continuing operations		3	(0.13)p	(1.2)p	(1.1)p
From discontinuing operations			-	(0.1)p	(0.1)p
			(0.13)p	(1.3)p	(1.2)p

Unaudited Balance Sheet as at 30 September 2012   

	Note	Unaudited 6 Months ended 30 September 2012  £'000	Unaudited 6 Months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Assets
Non-current assets
Investments		173	-	-
Property, plant & equipment		-	1	-
		173	1
Current assets
Trade and other receivables		46	99	61
Cash and cash equivalents		141	112	39
Total current assets		187	211	100
Total assets		360	212	100
Liabilities
Current liabilities
Trade and other payables		(89)	(195)	(58)
		(89)	(195)	(58)
Net assets		271	17	42
Equity
Share Capital		253	93	93
Deferred Share capital		1,243	1243	1,243
Share premium account		3,700	3563	3,563
Share Based payments reserves		139	139	139
Retained losses		(5,064)	(5,021)	(4,996)
Equity attributable to equity holders of the parent		271	17	42

Unaudited Statement of Changes in Equity

	Share capital - equity	Deferred share capital	Share premium	Share Based Payments Reserves	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Six months ended 30 September 2011
At 31 March 2011	93	1243	3563	139	(4781)	257
Total comprehensive loss for the period	-	-	-	-	(240)	(240)
At 30 September 2011	93	1243	3,563	139	(5021)	17
Period ended 31 March 2012
At 30 September 2011	93	1243	3563	139	(5021)	17
Total comprehensive profit for the period	-	-	-	-	25	25
At 31 March 2012	93	1,243	3,563	139	(4,996)	42
Six months ended 30 September 2012
At 31 March 2012	93	1,243	3,563	139	(4,996)	42
Share issue	160	-	137	-	-	297
Total comprehensive loss for the period	-	-	-	-	(68)	(68)
At 30 September 2012	253	1,243	3,700	139	(5,064)	271

 

Unaudited Cash Flow Statement for the six months ended 30 September 2012

	Note	Unaudited 6 Months ended 30 September 2012  £'000	Unaudited 6 Months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Cash outflow from operating activities		(23)	(85)	(151)
Net cash flow from operating activities		(23)	(85)	(151)
Cash flows from investing activities
Acquisition of Investments		(173)	-	-
Cost of share issue		(22)	-	-
Disposal/acquisition of subsidiaries, including overdraft		-	196	250
Net cash from/(used in) investing activities - continuing operations Net cash used in investing activities - discontinued operations		(195) -	196 -	250 (53)
Net cash used in investing activities		(195)	196	197
Cash flows from financing activities
Proceeds of share issues		320	-	-
Repayment of bank loans and finance leases			(141)	-
Net cash used in financing activities-continuing operations		320	(141)	-
Net cash used in investing activities - discontinued operations		-	-	(141)
Net cash from/(used in) financing activities		320	(141)	(141)
Decrease in cash and cash equivalents		102	(30)	(95)
Cash and cash equivalents at start of the period		39	142	134
Cash and cash equivalents at end of the period		141	112	39

Notes to the unaudited interim statement

for the six months ended 30 September 2012

 

1.    Basis of preparation

Hermes Pacific Investments Plc is a public limited company incorporated and domiciled in 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 2013. These are consistent with those included in the previously published annual report and accounts for the period ended 31 March 2012, 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 period ended 31 March 2012 have been extracted from the audited annual report and accounts that have been delivered to the Registar of Companies. Welbeck Associates, the group's auditors, reported on those accounts under section 495 of the Companies Act 2006. Their report was unqualified and did not contain a statement under section 498 of that Act.

2.                Loss per ordinary share

		Unaudited 6 Months ended 30 September 2012  £'000	Unaudited 6 Months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Basic
Loss from continuing operations		(68)	(231)	(196)
Loss from discontinued operations		-	(9)	(19)
Total loss		(68)	(240)	(215)
Weighted average number of shares		50,659	18,659	16,806
Basic loss per share (pence)
From continuing operations		(0.13)p	(1.2)p	(1.1)p
From discontinued operations		-	(0.1)p	(0.1)p
		(0.13)p	(1.3)p	(1.2)p
There was no dilutive effect from the share options outstanding during the period.

3.    Copies of this statement will be available on the Company's website www.hermespacificinvestments.com 

 

END

 

 

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