TIDMHPAC

RNS Number : 1886P

Hermes Pacific Investments PLC

30 September 2013

HERMES PACIFIC INVESTMENTS PLC

(AIM: HPAC)

Final results for year ended 31 March 2013

Hermes Pacific Investments Plc today reports its financial results for the year ended 31 March 2013.

 
 Contacts 
 Hermes Pacific Investments Plc 
 Haresh Kanabar, Non-Executive Chairman   Tel: +44 (0) 207 290 3340 
 
 WH Ireland Limited (Nominated Adviser 
  & Broker) 
 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.

Chairman's Statement

I am pleased to report the results of Hermes Pacific Investments Plc ("HPAC" or the "Company") for the 12 month period ended 31 March 2013. During the year the Company had no revenues as it does not have any operating business and the company made a loss of GBP122,000 which has been significantly reduced from a recorded loss of GBP215,000 during the previous financial year. We continue to focus on keeping our cost base low particularly during this phase of our development. At the year end the Company had net assets of GBP241,000

Review of the Company's Operations

The Company has made some investments in line with its investing policy in companies involved in trade finance for emerging countries and also other financial activities operating from the Far East region. These investments have performed well and we are evaluating other suitable opportunities in emerging markets and expect to make further investments in the near future.

Subscription

Following the year-end the Company has raised GBP4,160,000 before expenses, through the placing of 416,000,000 New Ordinary Shares. The New Ordinary Shares were placed with three existing shareholders and one new investor. The New Ordinary Shares were allotted by the Company under authorities granted by shareholders at the last Annual General Meeting of the Company held on 25 October 2012. The proceeds of the placing will provide the Company with general working capital to enable it to further implement its investing policy.

Consolidation

The Board considered that the share consolidation would be beneficial as it will reduce the size of the issued ordinary share capital of the Company, thereby making it more manageable and improve the attractiveness of the Company's shares to new investors. Consolidation would also help the market in HPAC's shares generally if its share price was higher and it was no longer a "penny stock".

A shareholders meeting was held on 9 September 2013 and the proposed resolution to consolidate the shares was passed by shareholders of the company. Under the share consolidation, every 200 Existing Ordinary Shares will be consolidated into one New Ordinary Share. The Share Consolidation became effective immediately on 10 September 2013. Post consolidation the Company has 2,333,295 shares in issue.

I would like to thank our shareholders for their continued support.

Haresh Kanabar

Chairman

30 September 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2013

 
 
                                                            Year ended     Year ended 
                                                              31 March       31 March 
                                           Note                   2013           2012 
                                                               GBP'000        GBP'000 
 
 Continuing operations 
 Revenue                                                             -              - 
 Cost of sales                                                       -              - 
 
 gross profit                                                        -              - 
 
 Other operating income                                              -              - 
 Administrative expenses                      3                  (122)          (196) 
 
 Operating loss                                                  (122)          (196) 
 
 Finance income                                                      -              - 
 Finance costs                                                       -              - 
 
 Loss on ordinary activities before 
  tax                                                            (122)          (196) 
 
 Tax expense                                  7                      -              - 
 
 Loss for the year from continuing 
  activities                                                     (122)          (196) 
 Discontinued operations 
 Loss for the year from discontinued 
  operations                                  8                      -           (19) 
 
 Loss for the year                                               (122)          (215) 
 
   Other comprehensive income 
   Available-for-sale financial assets: 
   Gains/(losses) arising in the year 
                                                                    23              - 
   Total comprehensive loss for the 
   year                                                           (99)          (215) 
 Basic and diluted loss per share 
 From continuing operations                   9                 (0.2)p         (1.1)p 
 From discontinuing operations                9                      -         (0.1)p 
 
                                                                (0.2)p         (1.2)p 
 
 
 

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2013

 
 
                                                             As at                      As at 
                                                          31 March                   31 March 
                                                              2013                       2012 
                                  Notes                    GBP'000                    GBP'000 
 ASSETS 
 Non-current assets 
 Property, plant and equipment       10                       -                            - 
  Investments                        11                        196                          - 
 
                                                         196                              - 
 Current assets 
 Trade and other receivables         13                    13                           61 
 Cash and cash equivalents           12                    57                           39 
 
                                                          70                          100 
 LIABILITIES 
 Current liabilities 
 Trade and other payables            14                       (25)                       (58) 
 
                                                              (25)                       (58) 
 
 Net current assets                                        45                           42 
 
 NET ASSETS                                              241                            42 
 
 SHAREHOLDERS' EQUITY 
 Issued share capital                15               1,496                        1,336 
 Share premium account                                3,701                        3,563 
 Share based payments reserve                             139                          139 
  Revaluation reserve                                      23                           - 
 Retained earnings                                         (5,118)     (4,996) 
 
 TOTAL EQUITY                                            241                           42 
 
 
 

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2013

 
                                          Note                  Year ended                      Year ended 
                                                                  31 March                        31 March 
                                                                      2013                            2012 
                                                                   GBP'000                         GBP'000 
 
 Cash flows from operating activities       17                       (106)                           (309) 
 
 Cash flows from investing activities 
 Acquisition of investments                                          (173)                             - 
 Income from disposal of subsidiary 
  undertakings                                                           -                          260 
 
 Net cash (used in)/from investing 
  activities                                                         (173)                          260 
 
 Cash flows from financing activities 
 Proceeds of share issues                                              320                             - 
  Cost of share issue                                                 (23)                              - 
 
 Net cash from financing activities                                 297                                  - 
 
 
 Decrease in cash and cash equivalents                                 18                             (49) 
 Cash and cash equivalents at start 
  of period                                 12                         39                            88 
 
 
   Cash and cash equivalents at end 
   of period                                12                          57                              39 
 
 
 

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2013

 
                          Ordinary   Deferred   Share      Share       Retained    Revaluation   Total 
                           share      share      premium    based       earnings    reserve       GBP'000 
                           capital    capital    GBP'000    payments    GBP'000     GBP'000 
                           GBP'000    GBP'000               reserve 
                                                            GBP'000 
 At 1 April 2011                93      1,243      3,563         139     (4,781)             -        257 
 Share re-organisation           -          -          -           -           -             -          - 
 Share issue                     -          -          -           -           -             -          - 
 Total comprehensive 
  loss for the period            -          -          -           -       (215)             -      (215) 
                         ---------  ---------  ---------  ----------  ----------  ------------  --------- 
 
 At 1 April 2012                93      1,243      3,563         139     (4,996)             -         42 
 Share re-organisation           -          -          -           -           -             -          - 
 Share issue                   160          -        138           -           -             -        298 
 Total comprehensive 
  loss for the period            -          -          -           -       (122)            23       (99) 
                         ---------  ---------  ---------  ----------  ----------  ------------  --------- 
 
 At 31 March 2013              253      1,243      3,701         139     (5,118)            23        241 
                         =========  =========  =========  ==========  ==========  ============  ========= 
 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2013

   1.      General information 

This announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") but in itself does not contain sufficient information to comply with IFRS. Details of the accounting policies are set out in the annual report for the year ended 31 March 2013.

   2.      Accounting policies 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.

Going concern

The financial statements have been prepared on a going concern basis as, after making appropriate enquiries, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future at the time of approving the financial statements. In addition see note 20 regarding post year end transactions.

Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of the company's accounting policies with respect to the carrying amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting year. The judgements, estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, including current and expected economic conditions. Although these judgements, estimates and associated assumptions are based on management's best knowledge of current events and circumstances, the actual results may differ. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in any future years affected.

The judgements, estimates and assumptions which are of most significance to the company are detailed below:

Goodwill

The company tests goodwill for impairment on an annual basis or more frequently if there are indications that the amount may be impaired. The impairment analysis for such assets is principally based upon discounted estimated future cash flows based on value in use calculations. Such an analysis includes an estimation of the future anticipated results and cash flows, annual growth rates and the appropriate discount rates.

Valuation of share based payments

The charge for share based payments is calculated in accordance with the accounting policy as set out below. The model requires highly subjective assumptions to be made including the future volatility of the Company's share price, expected dividend yield and risk-free interest rates.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the company's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is included in intangible assets and is tested annually for impairment or when there is an indication of impairment. Any impairment is recognised immediately in the income statement and is not subsequently reversed.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses.

The charge for depreciation is calculated to write down the cost of tangible fixed assets to their estimated residual values over their expected useful lives, as follows:

            Fixtures and fittings                                                   15% reducing balance 

Impairment provisions are made where the carrying value of tangible fixed assets exceeds the recoverable amount.

Revenue recognition

Revenue represents the fair value of the consideration received or receivable, net of Value Added Tax, for goods sold and services provided to customers after deducting discounts. Revenue is recognised when the significant risks and rewards of ownership are transferred.

Deferred taxation

Deferred taxation is provided in full using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Leased assets

Expenditure on operating leases is charged to the income statement on a basis representative of the benefit derived from the asset, normally on a straight line basis over the lease period.

Where fixed assets are financed by financing arrangements which give rights approximating to ownership they are treated as if they had been purchased outright at their fair value and the corresponding commitments are shown in the balance sheet as obligations under finance leases and hire purchase contracts. Depreciation of fixed assets acquired under finance leases and hire purchase contracts is calculated to write off the attributed cost over the shorter of the lease or contract term and their estimated useful lives by equal annual instalments. The excess of the total rentals over the amount capitalised is treated as interest which is charged to the profit and loss account in proportion to the amounts outstanding under the lease and hire purchase contracts.

Share based payments

The Company operates an employee share scheme under which it makes equity-settled share based payments to certain employees. For share based payments to employees of the Company, the fair value is determined at the date of grant using a Black Scholes model, and is expensed on a straight line basis together with a corresponding increase in equity over the vesting period, based on the group's estimate of the number of shares that will vest.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid funds with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowing in current liabilities on the balance sheet.

Borrowing costs

All borrowing costs are recognised in the income statement for the period in which they are incurred.

Investments available for sale

Investments classified as available for sale are initially recorded at fair value including transaction costs. Quoted investments are held at fair value and measured either at bid price or latest traded price, depending on convention of the exchange on which the investment is quoted. Such instruments are subsequently measured at fair value with gains and losses being recognised directly in equity until the instrument is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is recycled to the income statement and recognised in profit or loss for the period. Impairment losses are recognised in the Income Statement when there is objective evidence of impairment.

Financial instruments

Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument.

Trade and other receivables

Trade receivables are measured at cost less any provision necessary when there is objective evidence that the company will not be able to collect all amounts due.

Trade and other payables

Trade and other payables are not interest bearing and are measured at original invoice amount.

   3.      Operating loss 
 
 
                                         Year ended     Year ended 
                                           31 March       31 March 
                                               2013           2012 
                                            GBP'000        GBP'000 
 The operating loss is stated after 
  charging the following, included 
  in administrative expenses: 
 Depreciation                                     -              2 
 Staff costs                                     68             75 
 Other admin costs                               54            119 
 
                                                122            196 
 
 
 
   4.     Auditors' remuneration 
 
                                        Year ended    Year ended 
                                          31 March      31 March 
                                              2013          2012 
                                           GBP'000       GBP'000 
 Audit fees: 
 - statutory audit of the accounts              12             9 
 - statutory audit of the company's 
  subsidiaries                                   -             3 
 
                                                12            12 
 
 
 
   5.     Directors' emoluments 
 
                                       Year ended   Year ended 
                                         31 March     31 March 
                                             2013         2012 
                                          GBP'000      GBP'000 
 
 Emoluments for qualifying services            68           65 
 Pension contributions                          -            5 
 
                                               68           70 
 
 
 The above includes amounts paid 
  to the highest paid director as 
  follows:- 
 Emoluments for qualifying services            25           40 
 Pension contributions                          -            - 
 
                                               25           40 
 
 

No directors exercised share options during the year (2012: nil)

   6.     Employees and staff costs 

The average number of employees was as follows:

 
               Year ended   Year ended 
                 31 March     31 March 
                     2013         2012 
                      No.          No. 
 
 Management             1            1 
 
                        1            1 
 
 

Staff costs for the above employees were as follows:

 
                          Year ended           Year ended 
                            31 March            31 March 
                                2013            2012 
                             GBP'000              GBP'000 
 
 Wages and salaries               68                   65 
 Social security costs             -                    5 
 Pension contributions             -                    5 
 
                                  68                   75 
 
 

The pension contributions were made to the personal pension scheme of a director of the company.

   7.     Taxation 
 
                                            Year ended                   Year ended 
                                              31 March                     31 March 
                                                  2013                         2012 
                                               GBP'000                      GBP'000 
 Continuing operations: 
 Current tax charge                                  -                            - 
 Adjustment in respect of prior 
  years                                              -                            - 
 
 Current tax credit                                  -                            - 
 
 
   Factors affecting the tax charge 
   for the period 
 Loss from continuing operations 
  before taxation                                (122)                        (196) 
 
 Loss from continuing operations 
  before taxation multiplied by standard 
  rate of corporation tax of 24% 
  (2012: 26%)                                     (29)                         (51) 
 
 Effects of: 
 Temporary timing differences                        -                            - 
 Non deductible expenses                             -                            - 
 Depreciation in excess of capital 
  allowances                                         -                            - 
 Unutilised tax losses                              29                           51 
 
 Current tax charge                                  -                            - 
 
 

The Group has approximately GBP3.2m (2012: GBP3.1m) of trading losses to carry forward and offset against future trading profits.

   8.      Discontinued operations 

Discontinued operations relate to Chandan Limited and Rice & Spice Limited which were sold on 1 September 2011.

 
                                         Year ended                Year ended 
                                           31 March                  31 March 
                                               2013                      2012 
                                            GBP'000                   GBP'000 
 Revenue                                          -                       869 
 Expenses                                         -                     (843) 
 
 Profit before taxation                           -                        26 
 
 Profit from discontinued operations 
  for the year                                    -                        26 
 
 Loss on disposal of investment                   -                      (45) 
 
 (Loss)/profit from discontinued 
  operations                                      -                      (19) 
 
 

Cash flows from discontinued operations included in the consolidated cash flow statements are as follows:

 
                                                   Year ended          Year ended 
                                                     31 March            31 March 
                                                         2013                2012 
                                                      GBP'000         GBP'000 
 
  Net cash flow from operating activities                    -            104 
      Net cash flow from investing activities               -             (9) 
   Net cash flow from financing activities                   -          (141) 
 
  Total cash flows                                           -           (46) 
 
 

The major classes of assets and liabilities comprising operations that were disposed of on 1 September 2011 were as follows:

 
                                           Year ended         Year ended 
                                             31 March           31 March 
                                                 2013               2012 
                                              GBP'000            GBP'000 
      Goodwill                                      -                475 
   Property, plant and equipment                     -               269 
  Inventories                                        -                19 
  Trade and other receivables                        -               219 
  Bank and cash                                      -                54 
                                              _______            _______ 
       Total assets classified as held 
        for sale                                    -              1,036 
 
        Trade and other payables                    -              (688) 
        Bank overdrafts and loans                   -               (53) 
                                              _______            _______ 
  Net assets of disposal group                       -               295 
 
   Consideration                                     -             (250) 
 
  Loss on disposal                                   -                45 
 
 
   9.     Loss per share 
 
                                               Year ended    Year ended 
                                                 31 March      31 March 
                                                     2013          2012 
 Basic 
 Loss from continuing activities 
  (GBP'000)                                         (122)         (196) 
 Loss from discontinued activities 
  (GBP'000)                                             -          (19) 
 
                                                    (122)         (215) 
 
 Number of shares                              50,658,844    16,806,004 
 
 Basic loss per share (p) 
 From continuing operations                        (0.2)p        (1.1)p 
 From discontinued operations                           -        (0.1)p 
 
                                                   (0.2)p        (1.2)p 
 
 
   There was no dilutive effect from the share options outstanding 
   during the year. 
 

10. Property, plant and equipment

 
                                Fixtures 
                              & Fittings 
                                 GBP'000 
 Cost 
 At 1 April 2011                      12 
 Additions                             - 
 
 At 31 March 2012                     12 
 Additions                             - 
  Disposals                         (12) 
 
 At 31 March 2013                      - 
 
 Accumulated depreciation 
 At 1 April 2011                      10 
 Charge for the year                   2 
 
 At 31 March 2012                     12 
 Charge for the period                 - 
  Elimination on disposal           (12) 
 
 At 31 March 2013                      - 
 
 
 Net book value 
 At 31 March 2013                      - 
 
 
 At 31 March 2012                      - 
 
 

11. Investments

 
                                         Investments 
                                             GBP'000 
      Cost 
      Additions                                  173 
   Revaluation                                    23 
 
  At 31 March 2013                               196 
 
 
   12.    Cash and cash equivalents 
 
 
                                2013      2012 
                             GBP'000   GBP'000 
 
 Cash at bank and in hand         57        39 
 
                                  57        39 
 
 
 

Cash, cash equivalents and bank overdrafts include the following for the purposes of the cash flow statement:

 
                                 2013      2012 
                              GBP'000   GBP'000 
 
 Cash and cash equivalents         57        39 
 Bank overdraft                     -         - 
 
                                   57        39 
 
 
 

13. Trade and other receivables

 
                         2013      2012 
                      GBP'000   GBP'000 
 
 Other receivables         12        61 
 
                           12        61 
 
 

Included in other receivables are amounts of GBPnil (2012: GBPnil) due after more than one year.

   14.    Trade and other payables 
 
                                    2013      2012 
                                 GBP'000   GBP'000 
 
 Trade payables                        1        53 
 Accruals and deferred income         24         5 
 
                                      25        58 
 
 
   15.    Share capital 
 
 Group and Company 
                                                2013      2012 
                                             GBP'000   GBP'000 
 Authorised 
 200,000,000 ordinary shares of 0.5p each      1,000     1,000 
 200,000,000 ordinary shares of 9.5p each     19,000    19,000 
 
                                              20,000    20,000 
 
 Issued and fully paid 
 50,658,844 ordinary shares of 0.5p each         253        93 
 13,079,850 deferred shares of 9.5p each       1,243     1,243 
 
                                               1,496     1,336 
 
 

All ordinary shares rank equally in respect of shareholders' rights.

16. Financial Instruments

Financial risk management

The company's activities expose the company to a number of risks including credit risk, interest rate risk and liquidity risk. The Board manages these risks through a risk management programme. The fair value of the company's assets and liabilities at 31 March 2013 are not materially different from their book value.

 
                                             2013      2012 
   Financial assets 
                                          GBP'000   GBP'000 
 Loan and receivables: 
  Trade and other receivables                  13        61 
  Cash and cash equivalents                    57        39 
 
 At fair value through profit and loss         70       100 
 
 
 
                                             2013      2012 
    Financial liabilities at amortised 
    cost 
                                          GBP'000   GBP'000 
 
          Trade and other payables             25        58 
 
                                               25        58 
 
 

Credit risk

The company monitors credit risk on an on-going basis and manages risk by concentrating on trading and placing bank deposits with reliable counterparties. The company has no significant concentration of credit risk associated with trading counterparties. Credit risk predominantly arises from cash and cash equivalents.

Interest rate risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances which earn interest at a variable rate. The financial liabilities in the current year are all non-interest bearing. The company has not entered into derivatives transactions and has not traded in financial instruments during the period under review. The entire company's debt is non-interest bearing there would be no effect on the company if interest rates changed.

Liquidity risk

The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. All cash and cash equivalents are immediately accessible. All of the company's financial assets are recoverable within the next six months.

The maturity dates of the company's financial liabilities are shown below and are based on the period outstanding at the balance sheet date up to the contractual maturity date.

 
                                            Between    Between 
                              Less than    6 months      1 and 
                               6 months       and 1    5 years     Total 
                                               year 
                                GBP'000     GBP'000    GBP'000   GBP'000 
 2013 
 Financial Assets 
 Variable interest rate 
  instruments                        57           -          -        57 
 Non-interest bearing                 -          13          -        13 
 
                                     57          13          -        70 
 
 Financial Liabilities 
 Non-interest bearing                25           -          -        25 
 
                                     25           -          -        25 
 
 
                                            Between    Between 
                              Less than    6 months      1 and 
                               6 months       and 1    5 years     Total 
                                               year 
                                GBP'000     GBP'000    GBP'000   GBP'000 
 2012 
 Financial Assets 
 Variable interest rate 
  instruments                        39           -          -        39 
 Non-interest bearing                 -          61          -        61 
 
                                     39          61          -       100 
 
 
   Financial Liabilities 
   Non-interest bearing              58           -          -        58 
 
                                     58           -          -        58 
 
 
   17.    Cash flows from operating activities 
 
                                                Year ended                   Year ended 
                                             31 March 2013                     31 March 
                                                                                   2012 
                                                   GBP'000                      GBP'000 
 
 Loss on ordinary activities before 
  tax                                                (122)                        (214) 
 Depreciation of property, plant and 
  equipment                                              -                            2 
 
 Operating cash flows before movements 
  in working capital                                 (122)                        (212) 
 Decrease in trade and other receivables                49                         (16) 
 Decrease in trade and other payables                 (33)                         (81) 
 
 Cash flows from operating activities                (106)                        (309) 
 
 
   18.    Related party transactions 

Short-term Employment Benefits

In addition to salaries of GBP14,140 (2012: GBP44,390), key management personnel received an additional one-off payment of GBP10,000 (2012: GBPnil) as compensation for contract of services not rendered as employment.

Termination Benefits

On resignation at the company's request, the directors who resigned in the year were entitled to termination benefits of GBP12,750 (2012: GBPnil).

Key Management Personnel and Director Transactions

A number of key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial and operating policies of these entities.

A number of these entities transacted with the company during the year. The terms and conditions of these transactions with key management personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an arm's length basis.

The aggregate value of transactions related to key management personnel and entities over which they have control or significant influence was GBP44,554.

During the year, the company used the services of Poonam & Roshni Limited totalling GBP12,000 (2012: GBPnil). H Kanabar is a director of both companies. No balance was outstanding at the year end.

During the year the company used the services of CMS Corporate Consultants Limited totalling GBP13,054 (2012: GBPnil). M Wood is a director of both companies. No balance was outstanding at the year end.

During the year the company used the services of John Berry Associates Limited totalling GBP12,000 (2012: GBPnil). J Berry is a director of both companies. No balance was outstanding at the year end.

During the year the company used the services of Thirty Acre Stables totalling GBP7,500 (2012: GBPnil). J Morton is a director of both companies. No balance was outstanding at the year end.

During the year four of the directors ("the Participating Directors") participated and acquired subscription shares.

 
       Name of Director         Number of Subscription         Percentage of Enlarged 
                                 Shares                         Share Capital 
       Haresh Kanabar           1,000,000                      1.97 
         Matthew Wood             1,000,000                      1.97 
         John Morton              1,000,000                      1.97 
         John Berry               1,000,000                      1.97 
 

An independent director of the Company, that is a director excluding the Participating Directors, having consulted with the Company's nominated adviser, WH Ireland Limited, considers that the terms of this transaction to be fair and reasonable insofar as the Company's Shareholders are concerned.

   19.    Post balance sheet events 

Subscription

Post the year-end the Company has raised GBP4,160,000 before expenses, through the placing of 416,000,000 New Ordinary Shares. The New Ordinary Shares were placed with three existing shareholders and one new investor. The New Ordinary Shares were allotted by the Company under authorities granted by shareholders at the last Annual General Meeting of the Company held on 25 October 2012. The proceeds of the Placing will provide the Company with general working capital to enable it to further implement its investing policy.

Consolidation

The Board considered that the Share Consolidation would be beneficial as it will reduce the size of the issued ordinary share capital of the Company, thereby making it more manageable and improve the attractiveness of the Company's shares to new investors. Consolidation would also help the market in HPAC's shares generally if its share price was higher and it was no longer a "penny stock".

A shareholders meeting was held on 9 September 2013 and the resolution proposed to consolidate the shares was passed by shareholders of the company. Under the Share Consolidation, every 200 Existing Ordinary Shares will be consolidated into one New Ordinary Share. The Share Consolidation became effective immediately on 10 September 2013. Post consolidation the Company has 2,333,295 shares in issue.

   20.   Publication of Non-Statutory Accounts 

The financial information set out in this announcement does not comprise the Group's statutory accounts for the year ended 31 March 2013.

The financial information has been extracted from the statutory accounts of the Company for the year ended 31 March 2013. The auditors' opinion on those accounts was unmodified and did not contain a statement under section 498 (2) or section 498 (3) Companies Act 2006 and did not include references to any matters to which the auditor drew attention by the way of emphasis.

   21.   Annual Report and Annual General Meeting 

The Annual Report will be available from the Company's website www.hermespacificinvestments.com from 30 September 2013 and will be posted to shareholders on 30 September 2013. The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 11 a.m. on 30 October 2013 at the offices of Gordons Partnership LLP, 22 Great James Street, London WC1N 3ES.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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