Starvest PLC
02 May 2006
Starvest plc
Chairman's update for shareholders - May 2006
Investment performance
I am pleased to report that the significant progress achieved during the six
months to the interim reporting date of 31 January 2006 has been maintained. The
achievements of the past three months have been:
Raised £1.7m cash and made a gross profit of £1.64m by reducing the
holding in African Platinum plc; the Company continues to have a substantial
holding of 10.25m ordinary shares in African Platinum plc.
Based on mid-market closing prices on Friday 28 April the position was:
+ Company net asset value pre tax: £17.7m
+ Net asset value per share pre tax: 42.8 per share, fully diluted
+ Starvest share price: 26 pence
+ Share price discount to NAV: 39.27%
+ NAV increase since 31 January 2006: £1.2m
This valuation is arrived at after deducting a full tax provision on the
realised investment profits.
Since the Interim report issued as at 31 January 2006, Starvest has made
new investments in Sunrise Diamonds plc, and added to its investment in
Fundy Minerals Limited and St Helen's Capital plc. In addition, it has
acquired an interest in Greatland Gold Limited, a company with advanced gold
resources in Western Australia and Tasmania. Starvest has committed to
further support the company on its admission to AIM which is expected during
June 2006.
The Core Business plc has successfully raised funds and been admitted to
AIM.
Concorde Oil & Gas plc has announced that, subject to raising the
necessary funds during May, it expects to conclude an acquisition of
operational oil and gas assets in the Russian Federation, this to be
followed by a transfer from Ofex to AIM.
Myhome International plc declared a first profit with accelerating
expansion and a share price to match.
The Board continues to be very pleased with the 24 investments held; we expect
continued growth during the next two years during which we will take a cautious
view in changing markets.
Extraordinary general meeting
The resolutions before Members at the extraordinary general meeting held on 14
March 2006 were duly passed. The Company is in the process of submitting a
petition to the High Court to have the deficit on the profit and loss account
cancelled, thus bringing forward the time when a dividend may be paid or the
Company may purchase its own shares. An update will be provided in the annual
report due during September 2006.
Taxation
A number of Shareholders have enquired as to the status of the Company's shares
for the purposes of capital gains tax and inheritance tax. The Company's
advisers, Grant Thornton, have opined that the tax position of Shareholders
should be as follows:
Taper relief: The Company should be regarded as a qualifying company for
business asset taper relief applicable for capital gains tax purposes.
Business property relief: Although the Company's shares are listed on
AIM, business property relief from inheritance tax is not available where
the business of the company consists of dealing in securities, stocks or
shares; this is Starvest's business.
Shareholders should always seek their own professional advice on personal
taxation matters.
The Company now holds trade investments in the following companies:
Addworth plc Active capital investment company
www.addworth.co.uk
African Platinum plc Platinum group metals in Southern Africa
www.afplats.com
Agricola Resources plc Platinum and uranium exploration
www.agricolaresources.com
Belmore Resources (Holdings) plc Zinc exploration in Ireland
www.belmoreresources.com
Beowulf Mining plc Gold and copper exploration in Sweden
www.beowulfmining.com
Black Rock Oil & Gas plc Oil and gas in Southern England,Columbia
and Australia
www.blackrockpertroleum.com.au
Brazilian Diamonds Limited Diamond exploration in Brazil
www.braziliandiamonds.com
Carpathian Resources Limited Oil and gas in the Czech and Slovak
Republics
www.carpathian.com.au
Concorde Oil & Gas plc Operational oil & gas projects in the
Russian Federation
The Core Business plc Personal care and beauty products
Franchise Investment Strategies plc Franchise consultancy and
investment
www.fisplc.com
Franconia Minerals Corporation North American minerals
www.franconiaminerals.com
Fundy Minerals Limited Gold and base metal exploration in
Canada and West Africa
www.fundyminerals.com
Gippsland Limited Tantalum exploration in Egypt
www.gippslandltd.com.au
Greatland Gold Limited Gold exploration in Western
Australia and Tasmania
Hidefield Gold plc Gold exploration in North and South
America
www.hidefield.co.uk
India Star Energy plc Oil & gas investments
Matisse Holdings plc Cash shell
Myhome International plc Domestic cleaning services
www.myhomeplc.com
Red Rock Resources plc Iron ore and manganese exploration in
Australia;
uranium exploration in Malawi.
www.rrrplc.com
Regency Mines plc Copper & nickel exploration in Australia
www.regency-mines.com
Sheba Exploration (UK) plc Gold exploration in Ethiopia
www.shebagold.com
St Helen's Capital plc Corporate finance advisor
www.sthelenscapital.co.uk
Sunrise Diamonds plc Diamond exploration in Finland
www.sunrisediamonds.com
Shareholders who wish to receive electronic copies of announcements are invited
to register their email address on the home page of the Company website:
www.starvest.co.uk.
Your Board plans to announce the full year results to 31 July 2006 during late
August and to hold the Company's Annual General Meeting during October 2006.
R Bruce Rowan 2 May 2006
Chairman & Chief Executive
Enquiries to:
Bruce Rowan, telephone 020 7486 3997 or to
Tony Scutt, telephone 01483 475909 or to tony@starvest.co.uk
END
This information is provided by RNS
The company news service from the London Stock Exchange