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

To view the full report, please click here

For further information please contact:

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

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

Note to Editors:

The Company’s investment policy was approved by shareholders at a general meeting of the Company held on 20 August 2012.   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.