Annual Report 2018

News - 12/09/2018


Final results for the year ended 31 March 2018

Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2018.

Chairman’s statement

I am pleased to report the results of Hermes Pacific Investments Plc (“HPAC” or the “Company”) for the year ended 31 March 2018. During the year, the Company had no revenues as it does not have any operating business and the Company made a loss of £100,000, which is marginally higher than the loss of £95,000 reported for the previous financial year. Our focus very much remains to minimise our costs whilst we are looking for opportunities to deploy or cash. At the financial year end the Company had net assets of £3,861,000.

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 good position from a Balance Sheet perspective and our cash balance as at 31 March 2018 stands at £3.725 million. We continue to evaluate other suitable opportunities in emerging markets and with our strong balance sheet hope to make further investments in the future. Our total comprehensive loss for the year was £61,000 compared to a loss of £66,000 for the previous financial year.

Rising trade tensions, particularly between the United States and China, have prompted a cautious investor outlook, affecting emerging markets over the short term. What has been hurting sentiment is not trade policy itself, but the uncertainty caused by escalating trade tensions. Dollar strength is one of the big challenges faced by emerging markets. The dollar’s strength has taken many investors by surprise, raising concerns about how much further it can run. A slight upward move in the US interest rate trajectory has no doubt contributed to its strength. In this uncertain environment we have to be cautious about making significant investments in the emerging markets.

Business optimism in the UK is hitting low levels the decline in optimism comes as key questions on the UK’s trading relationship with the EU after Brexit remain unanswered and the government ramps up preparations for no deal. The short‐term market impact is likely to be significant if Britain leaves the European Union without a deal. Should the UK choose to remain in the single market after Brexit, the economic risks are likely to be minimised, although they may still affect the financial services sector. However, if the UK chooses to leave the single market it is likely to suffer significant negative impacts to the economy based on trade with the EU. At the same time, these negative impacts of Brexit may be outweighed by new trade deals and opportunities with emerging economies and countries outside the EU.

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.
We have a strong balance sheet and cash resources that place us in a strong position to exploit investment opportunities as they arise.

Haresh Kanabar


To view the full report, please click


For further information please contact:

Hermes Pacific Investments Plc                                       
Haresh Kanabar, Chairman                                                                       Tel:  +44 (0)  207 290 3340

WH Ireland Limited (Nominated Adviser & Broker)                            
Mike Coe/Ed Allsopp                                                                                Tel:  +44 (0) 117 945 3470