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

 

 

 

 

 

 

 



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 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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