Starvest PLC
09 February 2005
STARVEST plc
Interim report - six months ended 31 January 2005
Chairman's statement
--------------------
I am pleased to report that Starvest has continued to make good progress during
the past six months:
The results for the six months to 31 January 2005 record a gross profit of
£598,000 on turnover of £615,000 and a profit on ordinary activities after
overheads but before taxation of £466,000.
No dividend has been proposed for the period.
The net asset value based on mid-market closing prices on Monday 31 January 2005
was £8.696 million which equates to 22 pence per share calculated on a fully
diluted pre tax basis.
This represents a 17% increase on the value of £7.429m at 31 July 2004, the date
of our last annual report.
Unrealised profits were £7m before tax.
With the Starvest share price closing at 12.25 pence, the discount to net asset
value was 45% at 31 January 2005.
A summary of the current Starvest portfolio is shown below. The Directors are
most satisfied with progress so far and will continue to take profits as
opportunities arise.
During the past three years, Starvest has developed an investment spread. This
we will continue to expand by committing between £100,000 and £200,000 to each
investee as opportunities arise. Whilst we have no exclusive commitment to the
natural resource sector, we see this as having considerable growth potential for
the foreseeable future.
In addition to the fifteen current holdings, I am pleased to report:
Starvest is committed to two further investments and is in discussion with other
potential investees; each investee company expects to launch on to AIM or OFEX
within the next three months.
Starvest continues to receive new investment proposals from businesses, mainly
in the natural resources sector, which are evaluated over a period of six to
twelve months before a commitment is made.
Those Shareholders who wish to receive electronic copies of regulatory
announcements are invited to register their email address on the home page of
the Company website: www.starvest.co.uk.
Your Board continues to look to the future with optimism; we expect further
progress in the next quarter and plan to issue the Chairman's next update during
May 2005.
Capital requirements
In view of the satisfactory investment progress, it is the opinion of the
Directors that the Group is adequately funded at this time.
Conclusion
The Directors are very pleased with the six month results and look forward to
reporting continuing positive news following the Group's July year end.
R Bruce Rowan
Chairman & Chief Executive
9 February 2005
Investment portfolio
--------------------
Starvest now holds trade investments in the following companies:
Agricola Resources plc Platinum exploration in the Shetlands
www.agricolaresources.com
Belmore Resources (Holdings) plc Zinc exploration in Eire and Northern Ireland
Beowulf Gold plc Gold exploration in Sweden
www.beowulf-gold.com
Black Rock Oil & Gas plc Oil and gas in Southern England and Australia
www.blackrockpertroleum.com.au
Brazilian Diamonds Limited Diamond exploration in Brazil
www.braziliandiamonds.com
Franconia Minerals Corporation North American minerals
www.franconiaminerals.com
Gippsland Limited Tantulum exploration in Egypt
www.gippslandltd.com.au
Hidefield Gold plc Gold exploration in Brazil
www.hidefield.com
Matisse Holdings plc Cash shell
Myhome International plc Domestic cleaning services
www.myhomeplc.com
Oranje River Diamonds plc Diamonds in South Africa
Regency Mines plc Copper & nickel exploration in Australia
Sheba Exploration (UK) plc Gold exploration in Ethiopia
www.shebagold.com
Southern African Resources plc High value minerals in South Africa and Botswana
www.sar-plc.com
St Helens Capital plc Corporate finance advisor
www.sthelenscapital.co.uk
Consolidated Profit & Loss Accounts
-----------------------------------
6 months to 31 6 months to 31 Year ended
January 2005 January 2004 31 July 2004
Unaudited Unaudited Audited
£,000 £,000 £,000
Turnover 615 299 305
Cost of sales (17) (25) (36)
--------- --------- ---------
Gross profit 598 274 269
Group administrative
expenses (132) (115) (203)
--------- --------- ---------
Profit on ordinary
activities before taxation 466 159 66
Tax on ordinary
activities (140) (48) (10)
--------- --------- ---------
Profit on ordinary
activities after taxation 326 111 56
Dividends on
equity shares 0 0 0
--------- --------- ---------
Retained profit
for the period 326 111 56
--------- --------- ---------
--------- --------- ---------
Profit per share
Basic Note 3 0.88 pence 0.38 pence 0.18 pence
Fully diluted 0.82 pence 0.35 pence 0.17 pence
--------- --------- ---------
Consolidated Balance Sheet
--------------------------
6 months to 31 6 months to 31 Year ended
January 2005 January 2004 31 July 2004
Unaudited Unaudited Audited
£,000 £,000 £,000
Fixed assets 0 0 0
-------- -------- ---------
Current assets
Debtors 36 3 22
Trading investments Note 2 1,134 543 794
Cash at bank and in hand 744 397 606
-------- -------- ---------
1,914 943 1,422
-------- -------- ---------
Creditors
Amounts falling due within one year (193) (81) (28)
-------- -------- ---------
Net current assets 1,721 862 1,394
-------- -------- ---------
Total assets less current liabilities 1,721 862 1,394
-------- -------- ---------
Capital and reserves
Called up share capital 372 314 372
Share premium account 2,026 1,498 2,026
Merger reserves 424 424 424
Profit and loss account (1,101) (1,374) (1,428)
-------- -------- ---------
Equity shareholders' funds 1,721 862 1,394
-------- -------- ---------
Reconciliation of Movement in Shareholders' Funds
-------------------------------------------------
6 months to 31 6 months to 31 Year ended
January 2005 January 2004 31 July 2004
Unaudited Unaudited Audited
£,000 £,000 £,000
-------- -------- ---------
Total recognised profits/(losses)
relating to the period 326 111 56
Net proceeds of share issues 0 183 770
-------- -------- ---------
Increase/(decrease) in
shareholders'funds 326 294 826
Opening shareholders'funds 1,395 568 568
-------- -------- ---------
Closing shareholders' funds 1,721 862 1,394
-------- -------- ---------
Interim report notes
--------------------
1. Interim report
The information relating to the six month periods to 31 January 2005 and 31
January 2004 is unaudited.
The information relating to the year ended 31 July 2004 is extracted from the
audited accounts of the Company which have been filed at Companies House and on
which the auditors issued an unqualified audit report.
2. Basis of accounting
The report has been prepared using accounting policies that are consistent with
those adopted in the statutory accounts for the year ended 31 July 2004 by the
Group and its subsidiary undertaking, although the information does not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985.
The consolidated financial statements have been prepared using merger
accounting. Under merger accounting the results and cash flows are combined from
the beginning of the financial period and all comparatives are stated on the
combined basis. These interim financial statements consolidate the financial
statements of the Company and its subsidiaries.
The Company and Group will report again for the full year to 31 July 2005.
The Group's investments at 31 January 2005 are valued at the lower of cost or
mid market value.
3. Profit per share
6 months to 31 6 months to 31 Year ended
January 2005 January 2004 31 July 2004
Unaudited Unaudited Audited
£,000 £,000 £,000
These have been calculated on
profit of: 326 111 56
-------- -------- ---------
The weighted average number
of shares used was: 37,217,259 29,317,245 30,941,061
The weighted average number
of shares and outstanding
options used was: 39,817,259 31,621,050 33,391,746
-------- -------- ---------
Basic profit per share: 0.88 pence 0.38 pence 0.18 pence
Fully diluted profit per share: 0.82 pence 0.35 pence 0.17 pence
-------- -------- ---------
Copies of this interim report are available free of charge by application in
writing to the Company Secretary at the Company's registered office, 123
Goldsworth Road, Woking, GU21 6LR, by email to info@starvest.co.uk or from the
Company's website at www.starvest.co.uk.
Enquiries to Tony Scutt, telephone 01483 475909 or tony@starvest.co.uk.
This information is provided by RNS
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