Annual Report 2017
HERMES PACIFIC INVESTMENTS PLC
Final results for the year ended 31 March 2017
Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2017.
I am pleased to report the results of Hermes Pacific Investments Plc (“HPAC” or the “Company”) for the year ended 31 March 2017. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of £95,000, which is marginally higher than the loss of £91,000 reported for the previous financial year. Our focus as in previous years has been on managing our costs during this period whilst we look to deploy our cash resources and until we do our objective is to keep costs at a minimum level. At the year end the Company had net assets of £3,922,000.
Review of the Company’s Activities
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. These investments have performed in line with our expectations. We are in a strong position from a balance sheet perspective and our cash balance as at 31 March 2017 stands at £3.814 million. We continue to evaluate other suitable opportunities in emerging markets and with our strong balance sheet intend to make further investments in the near future. Our total comprehensive loss for the year was £66,000 compared to a loss of £129,000 for the previous financial year.
Hermes is looking for exposure in the emerging markets through investment in well established companies with proven business models, with strong management teams with a good track record. In addition, we are looking to invest in businesses that have long term favourable economic prospects. The growth rate in emerging markets is very attractive as opposed to the growth rate in advanced economies. Despite the waning commodity prices together with a prospect of an interest rate hike in USA interest in emerging markets remain strong.
Britain’s decision to leave the European Union (“Brexit”) has created a period of increased uncertainly and is a significant issue for most businesses in most sectors. Most UK providers of financial services and investment companies like Hermes cannot say with certainty to their shareholders what impact Brexit will have on them. The main impact of Brexit so far has been a significant fall in the value of the pound. The fall in the pound against the US dollar, a preferred currency for overseas transactions, has had a significant impact on the Company’s investment decision making process. It has tightened Company’s evaluation criteria.
The Company continues to seek attractive investment opportunities that will enhance the shareholder value while minimising the downside risks.
We have a strong balance sheet and cash resources that place us in a strong position to exploit investment opportunities as they arise.
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For further information please contact:
Hermes Pacific Investments Plc www.hermespacificinvestments.com
Haresh Kanabar, Chairman Tel: +44 (0) 207 290 3340
WH Ireland Limited (Nominated Adviser & Broker) www.wh-ireland.co.uk
Mike Coe/Ed Allsopp Tel: +44 (0) 117 945 3470