HERMES PACIFIC INVESTMENTS PLC
Unaudited interim results for the six months ended 30 September 2018
I am pleased to report the results for Hermes Pacific Investments plc (“HPAC” or the “Company”) for the six months ended 30 September 2018. During the period under review the Company made a loss of £40,000 which is marginally less than the loss reported for the corresponding period in the previous year. HPAC had no revenues owing to a lack of any operating business and it continues to manage its costs effectively whilst bringing its spending to a minimum. The Company is also considering possible investment opportunities which would be compatible with its investment strategy. As at 30 September 2018 the Company had net assets of £3,814,000 of which cash was £3,678,000.
Review of the Company’s activities
Hermes Pacific Investments plc is an investing company with a focus on investing in the emerging markets of the Far East including South East Asia. An investment can be via an acquisition of an equity interest or direct interests in projects. Investments in these parts of the world can be volatile and higher risk but for long term investors the outlook can be promising. Underpinned by favourable demographics, rising domestic consumption and an increasingly wealthy middle class, this part of the world is packed with potential.
Southeast Asia is seeing a boom in foreign direct investment as the intensifying trade war between the U.S. and China prompts companies to shift production to the region. The U.S.-China trade war may be attracting more firms to set up in Southeast Asian countries to circumvent the tariffs. Southeast Asia is finding there’s some upside to the trade war, as it becomes an alternative base for
firms relocating production away from China to avoid levies. The region offers dynamic business environments, with increasing entrepreneurial and investment activity focused on ensuring inclusive and sustainable economic development.
The deadline for coming out of the European Union is getting closer but there still remains uncertainty. Whilst the United Kingdom Government has negotiated a draft deal with the European Union it will need to be ratified by the Parliament and the current thinking is that the draft deal is unlikely to get the support of parliament and therefore may fail. This creates uncertainty and against this back drop we will wait until we get clarity on Brexit before we deploy our cash resources in any Investments.
I would like to thank shareholders for their continued support.
20 December 2018
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For further information please contact:
Hermes Pacific Investments Plc www.hermespacificinvestments.com
Haresh Kanabar, Chairman Tel: +44 (0) 780 285 8893
WH Ireland Limited (Nominated Adviser & Broker) www.wh-ireland.co.uk
Mike Coe/Ed Allsopp Tel: +44 (0) 117 945 3470