Last checked at 23 Apr 2008 14:48
23 April 2008 SILENTPOINT PLC ("Silentpoint" or "the Company") Final results for the year ended 31 October 2007
Chairman's statement
I am pleased to report Silentpoint's results for the year ended 31 October 2007.
Silentpoint made a profit before taxation for the period of ‚£48,743 (2006: ‚£27,470) after releasing a non-cash provision of ‚£55,600 for diminution in thevalue of certain trading shareholdings that was not required. Earnings pershare has increased from 0.12p to 0.25p. The pre-tax profit and earnings pershare takes into account gains from share disposals and interest receivable onthe Company's cash balance. We did not implement a share buy-back during theyear and net cash at the year end increased from ‚£607,771 to ‚£1,077,764.The significant turmoil in the global stockmarkets over the past few months haslimited our pre-tax profit and net asset growth during the past financial year.Whilst markets remain difficult in the first part of the current financialyear, we remain confident of the prospects for our business.The Company continued its strategy of making investments during the year and wecontinue to actively manage and review exposure to our business risks. In ourpast Chairman's Statements I cautioned that the market for natural resourcecompanies would polarise in favour of those companies that were at productionstage, away from those that were at the exploration stage. Reflecting thisviewpoint, which proved prescient, during the year we reduced our exposure tothis area, with the a sale of our residual holding in Cambrian Oil & Gas,completed during the first half of the year and with a partial sale of IndiaStar Energy, completed during the second half of the year. Elsewhere, wecontinue to deploy the remainder of our assets in a spread of quoted companiesacross a number of sectors that the Board feels have prospects for enhancingour returns.Among our portfolio of quoted shareholdings, we retain a holding of 15.5mshares in India Star Energy PLC, equivalent to a shareholding of 9.49 per cent.of its capital. India Star continues to develop a variety of interests,including a uranium property as well as interests in two Canadian companies,which provide exposure to platinum, palladium and copper exploration. Of keynote during the year was notification that two large shareholders had acquired29.9 per cent. of the issued ordinary share capital of India Star. Our view isthat these strategic shareholders will assist in accelerating the developmentof India Star.
Dividend and share buy-backs
No dividend is being proposed at this time as the Board believes it prudent tocontinue to deliver capital growth for shareholders. As part of this process,in line with our commitment at last year's AGM, we are renewing our authorityto buy back shares for cancellation. Following last year's repurchases therewas an average of 15,930,000 shares in issue during the year.
Outlook
As has been well publicised, conditions in stock markets have continued todeteriorate since the year end. In line with Silentpoint's previousconservative policy, holdings in shares are not revalued until disposal but theinvestments are "marked to market" and held on the balance sheet at the lowerof cost or net realisable value at the balance sheet date. Gains are onlyrecognised on disposal. We do not see any reprieve in the immediate future andit is likely that markets remain difficult and volatile in the near term. Asthis process continues we therefore expect to report a loss at the interimstage and notwithstanding this, our decision not to invest in haste inovervalued situations in the past two years remains vindicated at this point inthe cycle by the extent of the present downturn.Haresh KanabarChairman23 April 2008Further Enquiries:Silentpoint plc Smit Berry Tel: 020 8656 4648Haresh Kanabar Tel: 020 7297 0010
John East & Partners Limited David Worlidge/Simon Clements Tel: 020 7628 2200PROFIT AND LOSS ACCOUNTFor the year ended 31 October 2007 Notes 2007 2006 ‚£ ‚£ Turnover 68,973 245,910 Unrealised gain/(diminution) in value 55,600 (129,360)of stocks Other operating expenses (net) (106,962) (111,595) Operating profit 17,611 4,955 Other interest receivable and similar 31,132 22,515income Profit on ordinary activities before 48,743 27,470taxation Taxation (9,324) (6,661) Profit on ordinary activities after 39,419 20,809taxation Earnings per share-basic and diluted 7 0.25 p
0.12p
The operating profit for the year arises from the Company's continuing operations.
No separate statement of total recognised gains and losses has been presentedas all such gains and losses have been dealt with in the profit and lossaccount.BALANCE SHEETAs at 31 October 2007 Notes 2007 2006 ‚£ ‚£ Fixed Assets Fixed Asset Investment 1 1 Current assets Stocks 400,592 792,088 Debtors 6,875 6,497 Cash at bank and in hand 1,077,764 607,771 1,485,231 1,406,356 Creditors: amounts falling due within one (72,152) (32,696)year Net current assets 1,413,079 1,373,660 Total assets less current liabilities 1,413,080 1,373,661 Capital and reserves Share capital 318,600ll 318,600 Share premium 1,076,496 1,076,496 Capital redemption reserve 31,400 31,400 Profit and loss account (13,416) (52,835) Shareholders' funds - equity interests 3 1,413,080 1,373,661 CASH FLOW STATEMENTFor the year ended 31 October 2007 Notes 2007 2006 ‚£ ‚£ Net cash inflow from operating activities 4 445,229
88,845
Returns on investments and servicing of 5 31,132 22,515finance Taxation (6,368) (16,274) Management of liquid resources 5 (433,916) 180,282l Financing 5 - (121,029) Increase in cash in the period 6 36,077
154,339
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET FUNDS Increase in cash in the period 36,077
154,339
Cash outflow from decrease in liquid 6 (13,181) (25,748)resources Change in net funds resulting from cash 22,896 128,591flows Non-cash movement of funds 6 55,600 (129,360) Movement in net funds in the period 78,496 (769) Net Funds at 1 November 2006 1,399,860 1,400,629 Net Funds at 31 October 2007 6 1,478,356 1,399,860
Notes to the Preliminary Results
1 Publication of non-statutory accounts
The financial statements have been prepared under historical cost convention and in accordance with applicable accounting standards.
2 Taxation 2007 2006 ‚£ ‚£
Based on the profit for the year: UK corporation tax on profits of the year 9,617 6,661 Adjustments in respect of prior periods (293) -
-------- -------- 9,324 6,661 -------- --------
Factors affecting tax charge for the year: The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 30 per cent. The differences are explained below: Profit on ordinary activities before tax 48,743 27,470
-------- --------
Profit on ordinary activities multiplied by the 9,543 5,219 standard rate of UK corporation tax UK of 20 per
cent. (Apr 2007 to Oct 2007) and 19 per cent. (Nov 2006 to Mar 2007) (2005:19 per cent.) Effects of: Expenses not deductible for tax purposes 74 1,442
-------- -------- 9,617 6,661 -------- --------
3 Reconciliation of movements in shareholders' funds
2007 2006 ‚£ ‚£ Profit after taxation 39,419 20,809 Opening shareholders' funds 1,373,661 1,466,295 Purchase of own shares - (113,443) -------- -------- Closing shareholders' funds 1,413,080 1,373,661 -------- -------- 4 Reconciliation of operating profit to net cash inflow from operatingactivities 2007 2006 ‚£ ‚£ Operating profit 17,611 4,955 Irrecoverable debt - 7,586
Decrease in fixed asset investments - (1) Decrease/(increase) in stocks 391,496 (25,174) (Increase)/decrease in debtors (378) 89,743
Increase in creditors 36,500 11,736 -------- -------- 445,229 88,845 -------- --------
5 Analysis of cash flows for headings netted in the cash flow
2007 2006 ‚£ ‚£
Returns on investments and servicing of finance
Interest received 31,132 22,515 -------- --------
Management of liquid resources (Increase)/ reduction in treasury deposits (433,916) 180,282
-------- -------- Financing Purchase of own shares - (121,030) -------- --------6 Analysis of net funds At 1 Cash flow Other At 31 November Non-cash October 2007 2006 changes ‚£ ‚£ ‚£ ‚£ Cash at bank and in hand 188,054 36,077 224,131 -------- -------- -------- -------- Treasury reserve deposits 419,718 433,915 - 853,633not subject to immediate access Current asset investments 792,088 (447,096) 55,600 400,592 -------- -------- -------- -------- 1,211,806 (13,181) 55,600 1,254,225 -------- -------- -------- -------- Total 1,399,860 22,896 55,600 1,478,356 -------- -------- -------- --------7. Earnings per shareBasic earnings per ordinary share has been calculated using the weightedaverage number of shares in issue during the financial year. The weightedaverage number of equity shares in issue was 15,930,000 (2006: 16,797,083) andthe profit after tax was ‚£39,419 (2006: ‚£20,809). The diluted earnings has beencalculated using the weighted average number of shares in issue 15,930,000taking into effect the dilutive share options outstanding. As the resultingearnings per share equates to the basic earnings per share, a separate line hasnot been included on the profit and loss account.
8. Dividends
No dividend is proposed for the year ended 31 October 2007.
9. Copies of the annual accounts
Copies of the annual report and accounts are being sent to shareholders shortly and are available from the Company's registered office, 84 Addiscombe Road, Croydon, Surrey CR0 5PP and on the Company's website www.silentpoint.co.uk
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