Half-year report - six months ended 31 March 2009
Chairman's statement
As reported in the Chairman's update on 2 April 2009, Starvest
enjoyed a modest recovery in its net asset value during the half year
to 31 March 2009 when the closing portfolio net asset value was
£4.25m, a 9% increase in the half year since 30 September 2008.
The prudent valuation basis adopted when preparing the Starvest
annual financial statements at 30 September 2008 has proved to be
fully justified. Whereas previously Starvest used the closing mid
market values or the Directors' lower valuation if deemed
appropriate, it now uses closing bid prices or the Directors' lower
valuation. The Directors believe that this better reflects true
values against the backdrop of an uncertain but deteriorating world
economy.
Company statistics
31 March Change since 30 September
2009 30 September 2008
2008
Portfolio value £4.25m +9 % £3.9m
Company net asset value £3.6m +5.9% £3.4m
Net asset value - fully diluted 10.01p +10.4% 9.06p
per share
Closing share price 6.25p 12.25p
Share price premium/(discount) to (37%) 35%
fully diluted net asset value
Market capitalisation £2.18m £4.28m
Comment
During the half year, Starvest made modest additions to its
investments in Greatland Gold plc, Red Rock Resources plc and Regency
Mines plc.
Although there has been some further improvement in market prices
since 31 March 2009, conditions remain fragile, so I can do no better
than repeat the comments I made when issuing an update as at 31
December 2008:
"The speculation of which I wrote in July that the crises impacting
the financial markets would lead to world-wide recession with a
consequential reduction in demand for natural resources and services
has proven to be well founded and as a result many of the companies
in which Starvest is invested have seen their share prices fall
during the past year.
"It remains the view of the Starvest board that demand for raw
materials will return as current stocks are exhausted and that
commodity prices must return to levels at which it again becomes
economic to mine newly discovered deposits.
"Conclusion:
"Whilst disappointed that our fears have been realised, the Board
continues to believe that it has within its portfolio investments
with considerable potential and is looking forward to an upturn
during 2010, possibly earlier for some."
Against this background, the Board is satisfied with the investments
currently held.
Other points of note during the half year:
* The loss on ordinary activities before taxation for the
period amounted to £147,841 (2008: loss of £672,206). The loss
includes administrative expenses amounting to £97,862. There was
no investment impairment charge (2008: £547,088).
* Basic loss of 0.42 pence per share (2008: loss of 1.9
pence per share); fully diluted loss of 0.36 pence per share (2008:
loss of 1.7 pence per share)
R Bruce Rowan
Chairman & Chief Executive
14 May 2009
Profit & loss account
6 months to 31 6 months to 31 Year ended
March 2009 March 2008 30 September
2008
Unaudited Unaudited Audited
£ £ £
Operating income - 16,716 16,700
Direct costs - (15,430) (15,430)
Gross profit - 1,286 1,270
Administrative expenses (97,862) (153,380) (271,640)
Amounts written off - (547,088) (3,461,919)
trade investments
Operating (loss) on (97,862) (699,182) (3,732,289)
ordinary activities
Interest receivable 15,274 72,728 105,054
Interest payable (65,253) (45,752) (98,430)
(Loss) on ordinary (147,841) (672,206) (3,725,665)
activities before
taxation
Tax on profit on - - 1,118,201
ordinary activities
(Loss) on ordinary (147,841) (672,206) (2,607,464)
activities after
taxation
(Loss) per share - see
note 4 (0.42) pence (1.9) pence (7.5) pence
Basic (0.36) pence (1.7) pence (7.5) pence
Fully diluted
Balance sheet
+-------------------------------------------------------------------+
| | | 6 months to | 6 months to | Year ended |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
|---------------------+---+-------------+-------------+-------------|
| | | Unaudited | Unaudited | Audited |
| | | £ | £ | £ |
|---------------------+---+-------------+-------------+-------------|
| Fixed assets | | - | - | - |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Current assets | | | | |
| Debtors | | 1,147,178 | 31,980 | 1,126,908 |
| Trading investments | | 2,809,786 | 5,499,136 | 2,855,237 |
| - see note 2 | | - | 1,341,142 | - |
| Cash at bank | | | | |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| | | 3,956,964 | 6,872,258 | 3,982,145 |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Creditors - amounts | | | | |
| falling due within | | | | |
| one year | | (1,742,276) | (2,574,467) | (1,619,615) |
| Other creditors | | | | |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Net current assets | | 2,214,688 | 4,297,791 | 2,362,530 |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Total assets less | | 2,214,688 | 4,297,791 | 2,362,530 |
| current liabilities | | | | |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Capital and | | | | |
| reserves | | 372,173 | 372,173 | 372,173 |
| Called up share | | 2,026,396 | 2,026,396 | 2,026,396 |
| capital | | (183,881) | 1,899,222 | (36,039) |
| Share premium | | | | |
| account | | | | |
| Profit and loss | | | | |
| account | | | | |
| | | | | |
|---------------------+---+-------------+-------------+-------------|
| Equity | | 2,214,688 | 4,297,791 | 2,362,530 |
| shareholders' funds | | | | |
| | | | | |
+-------------------------------------------------------------------+
Cash flow statement
+-------------------------------------------------------------------+
| | | 6 months to 31 | 6 months to | Year ended |
| | | March 2009 | 31 March | 30 |
| | | | 2008 | September |
| | | | | 2008 |
|---------------------+-----------------+-------------+-------------|
| | | Unaudited | Unaudited | Audited |
| | | £ | £ | £ |
|-----------------+---+-----------------+-------------+-------------|
| | | | | |
|-----------------+---+-----------------+-------------+-------------|
| Net cash | | (58,482) | (1,443,358) | (1,815,809) |
| (outflow) from | | | | |
| operating | | | | |
| activities | | | | |
|-----------------+---+-----------------+-------------+-------------|
| Returns on | | | | |
| investment and | | | | |
| servicing of | | | | |
| finance: | | | | |
|-----------------+---+-----------------+-------------+-------------|
| Interest | | 15,274 | 72,728 | 105,054 |
| receivable | | (65,253) | (45,752) | (98,430) |
| Interest | | | | |
| payable | | | | |
| | | | | |
|-----------------+---+-----------------+-------------+-------------|
| | | (49,979) | 26,976 | 6,624 |
|-----------------+---+-----------------+-------------+-------------|
| | | | | |
| Taxation paid | | - | - | (1,509,413) |
| Equity | | - | (175,586) | (174,587) |
| dividends paid | | | | |
|-----------------+---+-----------------+-------------+-------------|
| | | - | (175,586) | 1,684,000 |
|-----------------+---+-----------------+-------------+-------------|
| | | | | |
| Financing: | | | | |
| Company shares | | - | (73,478) | (73,478) |
| repurchased | | | | |
| | | | | |
|-----------------+---+-----------------+-------------+-------------|
| | | - | (73,478) | (73,478) |
|-----------------+---+-----------------+-------------+-------------|
| | | | | |
| (Decrease) in | | (108,461) | (1,665,446) | (3,566,665) |
| cash in the | | | | |
| period | | | | |
|-----------------+---+-----------------+-------------+-------------|
| | | | | |
| Opening cash | | - | 3,006,588 | 3,006,588 |
| balance brought | | (1,560,077) | - | - |
| forward | | | | |
| Net debt | | | | |
| brought forward | | | | |
| | | | | |
|-----------------+---+-----------------+-------------+-------------|
| (Net debt) | | (1,668,538) | 1,341,142 | (1,560,077) |
| | | | | |
+-------------------------------------------------------------------+
Movement on equity shareholders' funds
+-------------------------------------------------------------------+
| | | 6 months to | 6 months to | Year ended |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
|------------------------+--------------+-------------+-------------|
| | | Unaudited | Unaudited | Audited |
| | | £ | £ | £ |
|--------------------+---+--------------+-------------+-------------|
| | | | | |
|--------------------+---+--------------+-------------+-------------|
| Total recognised | | (147,841) | (672,206) | (2,607,464) |
| (loss) relating to | | | | |
| the period | | - | (175,586) | (174,587) |
| Dividend paid | | - | (73,478) | (73,480) |
| Purchase of own | | | | |
| shares for | | | | |
| Treasury - see | | | | |
| note 3 | | | | |
| | | | | |
|--------------------+---+--------------+-------------+-------------|
| (Decrease) in | | (147,841) | (921,270) | (2,855,531) |
| shareholders' | | | | |
| funds | | 2,362,530 | 5,218,061 | 5,218,061 |
| Opening | | | | |
| shareholders' | | | | |
| funds | | | | |
| | | | | |
|--------------------+---+--------------+-------------+-------------|
| Closing | | 2,214,689 | 4,296,791 | 2,362,530 |
| shareholders' | | | | |
| funds | | | | |
| | | | | |
+-------------------------------------------------------------------+
Interim report notes
1. Interim report
The information relating to the six month periods to 31 March 2009
and 31 March 2008 is unaudited.
The information relating to the year ended 30 September 2008 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 by the Company in accordance with UK
GAAP for the statutory accounts for the year ended 30 September 2008,
although the information does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985.
The Company will report again for the full year to 30 September 2009.
The Company's investments at 31 March 2009 are valued at the lower of
cost or the valuation adopted at 30 September 2008. At that date
unrealised losses totalling £3,592,014 were recognised and the charge
to the profit and loss account for the year ended on that date was
£3,461,919. Although there has been some improvement in the market,
the Directors consider that the anticipated economic recovery is some
way off and therefore it is too soon to revalue the investment
portfolio for the purpose of this statement. The Chairman's
statement includes a valuation based on bid prices at 31 March 2009.
3. Earnings per share
+-------------------------------------------------------------------+
| | | 6 months to | 6 months to | Year ended |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
|-------------------------+-------------+-------------+-------------|
| | | | Unaudited | Unaudited | Audited |
| | | | £ | £ | £ |
|---+---------+-----------+-------------+-------------+-------------|
| | | | | | |
|---+---------------------+-------------+-------------+-------------|
| | These have been | (147,841) | (672,206) | (2,607,464) |
| | calculated on a | | | |
| | (loss) of: | | | |
|---+---------------------+-------------+-------------+-------------|
| | | | | |
| | The weighted | 34,917,259 | 34,997,860 | 34,958,243 |
| | average number of | | | |
| | shares used, | | | |
| | excluding shares | | | |
| | held in treasury, | | | |
| | was: | | | |
|---+---------------------+-------------+-------------+-------------|
| | | | | |
| | Basic (loss) per | (0.42) | (1.9) pence | (7.5) pence |
| | share: | | | |
| | | | | |
|---+---------------------+-------------+-------------+-------------|
| | | | | |
| | The weighted | 40,492,259 | 40,572,860 | 40,533,243 |
| | average number of | | | |
| | shares and | | | |
| | outstanding options | | | |
| | used, excluding | | | |
| | shares held in | | | |
| | treasury, was: | | | |
|---+---------------------+-------------+-------------+-------------|
| | | | | |
| | Fully diluted | (0.36) | (1.7) pence | (7.5) pence |
| | (loss) per share: | | | |
| | | | | |
+-------------------------------------------------------------------+
Investment portfolio
Starvest now holds trade investments in the following companies:
* Addworth plc Active capital investment company
www.addworth.co.uk
* Alba Mineral Nickel, uranium & gold in Scotland,
Resources plc Mauritania, Sweden and Ireland
www.albamineralresources.com
* Agricola Platinum and uranium exploration
Resources plc www.agricolaresources.com
* Ariana Gold exploration in Turkey
Resources plc www.arianaresources.com
* Belmore Zinc exploration in Ireland
Resources (Holdings) plc www.belmoreresources.com
* Beowulf Mining Gold and copper exploration in Sweden
plc www.beowulfmining.com
* Brazilian Diamond exploration in Brazil
Diamonds Limited www.braziliandiamonds.com
* CAP Energy plc Oil & gas production in North America
www.capenergy.co.uk
* Carpathian Oil and gas exploration in Central Europe
Resources Limited www.carpathian.com.au
* Concorde Oil & Operational oil and gas projects in the
Gas plc Russian Federation
* The Core Personal care and beauty products
Business plc www.thecorebusiness co.uk
* Equity Investment holding company
Resources plc
* Franconia North American minerals
Minerals Corporation www.franconiaminerals.com
* Fundy Minerals Gold and base metal exploration in Canada
Limited and West Africa
www.fundyminerals.com
* Gippsland Tantulum exploration in Egypt
Limited www.gippslandltd.com.au
* Goliath Copper, gold & molybdenum in Canada and
Resources Inc. Zambia
www.goliathresources.com
* Greatland Gold Gold exploration in Western Australia and
plc Tasmania
www.greatlandgold.com
* Guild Investment holding company
Acquisitions plc
* Hidefield Gold Gold exploration in North and South
plc America
www.hidefield.co.uk
* India Star Oil and gas investments
Energy plc
* Kefi Minerals Mineral exploration in Turkey
plc www.kefi-minerals.com
* Lisungwe plc Nickel, uranium & gold in Malawi
www.lisungwe.com
* Lotus Resources Mineral exploration in China
plc www.lotus-resources.com
* Oracle Coal mining in Pakistan
Coalfields plc www.oraclecoalfields.com
* Red Rock Iron ore and manganese exploration in
Resources plc Australia and Zambia; uranium exploration
in Malawi
www.rrrplc.com
* Regency Mines Copper & nickel exploration in Australia
plc and Papua New Guinea
www.regency-mines.com
* Sheba Gold exploration in Ethiopia
Exploration (UK) plc www.shebagold.com
* St Helens Corporate finance advisor
Capital plc www.sthelenscapital.com
* Sunrise Diamond exploration in Finland
Diamonds plc www.sunrisediamonds.com
* Treslow Limited Copper & nickel in Ontario, Canada
* Woburn Energy Oil & gas in the North Sea and Columbia
plc - formerly Black www.woburnenergy.com
Rock Oil & Gas plc
Shareholders and others 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.
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 email@starvest.co.uk or from the Company's website at
www.starvest.co.uk.
Enquiries to:
* Bruce Rowan, telephone 020 7486 3997
* John Watkins, telephone 01483 771992, or to john@starvest.co.uk
* Gerry Beaney or Colin Aaronson, Grant Thornton UK LLP, telephone
020 7383 5100
End
---END OF MESSAGE---
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Copyright Hugin AS 2009. All rights reserved.