SVE.L Regulatory News (SVE)

31 Oct 2006 09:10

Starvest PLC31 October 2006 Tuesday 31 October 2006 Results for the fourteen month period ended 30 September 2006 Chairman's Statement to Shareholders I am pleased to present my fifth annual statement to Shareholders for thefourteen month period ended 30 September 2006. Highlights Your Directors' chosen investment policy has generated exciting results duringthe fourteen months to 30 September 2006 which record: • a gross profit of £1.6m, • a profit before tax of £1.335m, and • a profit after tax of £938,528. As at 30 September, the Company had: • net current assets and net assets of £2,637,433, an increase of 55% during the period; • trade investments with a mid market valuation of £12.1m; although this is lower than the peak valuation earlier in the period, this represents an increase of 86% since July 2005; • unrealised investment profits of £8.9m. The underlying net asset value per share based on the mid market quotations asat 30 September 2006 was 28.29 pence, an increase of 67% since 31 July 2005.These values are stated on a fully diluted basis but before tax on unrealisedprofits. The month-end values since July 2004 are as follows: Review of business and current activities Your Company has 78% by value of its current investments in the natural resourcesector where declining sentiment has been a feature of the market and thereforeof share prices during the past few months. Therefore, as occurred during theprevious year, it is not surprising to find that the net asset value has fallensince the high points during the period January to May 2006. This situation presents both challenges and opportunities. Notwithstanding themarket conditions, your Board remains of the opinion that the natural resourcessector holds considerable promise for exciting growth in the medium term. Muchis written about the insatiable demand of China for access to natural resources;we believe that the population explosion leading to increased economic growth inIndia will significantly increase its demands too. The fact that your Company was able to take profits early in 2006 has enabled usto acquire several new investments at attractive prices as well as add toexisting holdings. Your company now holds a spread of twenty-five investments of which fifteen arequoted on AIM, nine are quoted on PLUS (formerly Ofex) and one which expects tobe admitted to AIM by the end of the calendar year. Your Company has board representation on seven investee companies: Tony Scuttis a non executive director of Addworth plc, Agricola Resources plc and ofBeowulf Mining plc; John Watkins is a non executive director of Greatland Goldplc, Franchise Investment Strategies plc, Red Rock Resources plc and of RegencyMines plc. The Company continues to seek opportunities to invest in small company newissues and support pre-IPO opportunities so as to enhance shareholder value andto make disposals as market conditions permit. Funding requirement In my 2004 Annual Report, I indicated that a further fundraising was possible.In the event, we were able to take acceptable profits and so raise cash tofinance new investment opportunities; this has been repeated during the2005-2006 period. Consequently, we have avoided the need to dilute the existingshareholdings. In addition, during the past trading period we have made good use of a bankborrowing facility. Dividends In the past we indicated an intention to pay a first dividend when circumstancespermit and to accelerate this process we called an Extraordinary General Meetingwith the intention to lodge a petition to the High Court to have the deficit onthe profit and loss account eliminated by offset against the share premiumaccount. In the event, this process was rendered obsolete by the profits wewere able to take earlier in the year. Whilst the payment of a dividend is nowtechnically possible, we do not propose it until greater liquid resources areavailable; we will keep the matter under review. Shareholder information We expect to make a net asset value statement immediately prior to the annualgeneral meeting. Thereafter, we expect to issue an interim statement during midApril and quarterly updates by mid January and mid July. Announcements made to the London Stock Exchange are sent to those who registerat the Company website, www.starvest.co.uk where historic reports andannouncements are also available. Outlook Given the increased spread of investments, the Directors look forward withoptimism to reporting increased asset values in the year ahead. Annual general meeting We plan to hold our annual general meeting on Tuesday 12 December when we lookforward to meeting those Shareholders able to attend. R Bruce Rowan Chairman & Chief Executive 30 October 2006 Telephone: 020 7486 3997 Review of portfolio The Starvest portfolio value has increased dramatically over the past fouryears: At 30 September 2006, the portfolio comprised investments in the followingcompanies: Addworth plc - (AIM ticker: ADW) Website: www.addworth.co.uk Addworth is an active capital investment company specialising in the financing,promotion and launching of early-stage entrepreneurially-managed companies,seeking eventual admission to the AIM or PLUS markets. Addworth providesstrategic consultancy services for their further development while retaining keyequity interests and thereby establishing its own investment portfolio.Successful introductions notably include EBTM plc (formerly known as e-retailplc), Myhome International plc, The Core Business plc, Cheerful Scout plc, andYellowcake plc. Addworth recently recorded its first interim profit, and ispresently working on promoting a number of new flotations in a range of marketsectors. African Platinum plc ("Afplats") - (AIM ticker:APP), formerly, Southern African Resources plc Website: www.afplats.com Afplats is a mineral exploration and investment business focused on platinumgroup metals (PGM) in Southern Africa. The company's flagship project isLeeuwkop on the western limb of South Africa's Bushveld Complex, the world'smajor platinum region. Afplats' definitive feasibility study estimates aLeeuwkop resource of 53 million ounces, making this project one of the mostattractive development opportunities on the Bushveld Complex. A resource update on the adjacent Imbasa and Inkosi properties further increasedthe 4E mineral resource to 92 million ounces, making Afplats and its blackeconomic empowerment partners one of the top four PGM resource bases in SouthernAfrica. A low-cost mine producing some 300,000 ounces of 4E per year for over 20 yearsby 2011 is planned as the first phase of the Leeuwkop development. Marketdemand for PGMs continues to be robust, and with platinum in supply deficit andprices strongly supported, the outlook is attractive. Furthermore Afplats hasexploration rights over potential PGM targets in Botswana, Zimbabwe, andMozambique. Although US investors now hold an important part of the Afplats equity, thecompany has abandoned plans for a secondary listing on the American StockExchange. Afplats remains a key element in the Starvest portfolio. Agricola Resources plc - (PLUS ticker: AGRI) Website: www.agricolaresources.com Agricola's focus is directed towards finding and developing uranium deposits inFinland where the planned expansion of that country's nuclear energy capabilitymakes any future supply of indigenous uranium in place of present imports, aproject of national significance. Agricola has two separate claim licenceareas, Kauhee and Hautajaervi, covering a total of 153 sq km. Following its ownexploration programme in 2005 which had yielded promising results, Agricola hasentered into a formal option agreement with Cooper Minerals Inc., aToronto-quoted mining company, for the acquisition of an undivided 50% interestin certain reconnaissance licences held by Agricola and located in thePaukkajanvaara Kauhee concession area, where test mining in 1960/61 produced 30tonnes of yellowcake. Meanwhile radon surveys to define further drillingtargets in both licence areas have been undertaken and results will be announcedin due course. Belmore Resources (Holdings) plc - (PLUS ticker: BEL) Website: www.belmoreresources.com Belmore is a minerals exploration company focused entirely on the Republic ofIreland and Northern Ireland, with the objective of discovering and delineatingworld-class mineral deposits. Its exploration drilling activities have so farbeen confined to zinc exploration properties in County Clare, where it holds a50% interest in eight prospecting licences covering 330 sq.km. Previousexploration work had identified a high-grade resource of zinc and lead-richmassive sulphides, assessed at some 400,000 tonnes at 12% zinc plus lead.Further drilling is envisaged this year on three newly-awarded licences in theCounty Clare area. Beowulf Mining plc - (AIM ticker: BEM) Website: www.beowulfmining.com Beowulf's activities remain focused on the exploration and development ofmineral deposits in Northern Sweden, where it has six project areas consideredto have commercial potential: Ruoutevare (iron titanium), Kallak (iron), Ballek(copper gold), Jokkmokk (copper gold), Grundtrask (gold) and Ussalahti (coppergold). The Ruoutevare project is closest to development under current plans, a scopingstudy of the deposit having been carried out by the Swedish Raw Materials Groupto assess and confirm the initial viability of the project, albeit subject tofurther review of transport means and costs for the product evacuation and ofoperating factors in the achievement of projected production levels. Aproduction target of 10 million tonnes per year, with start-up in 2008 iscurrently assumed. Latest drilling results on the Grundtrask project show higher gold grades thanhad been recorded from previous intersections, leading to the belief thatfurther gold-bearing bedrock structures remain to be discovered. Black Rock Oil & Gas plc - (AIM ticker: BLR) Website: www.blackrockoilandgasplc.co.uk Black Rock is an oil and gas exploration company which aims to identify newprojects with a real chance of leading to production. It has recently confinedits efforts to building a portfolio of interests in the North Sea, the CelticSea, and Colombia. In the latter, it has acquired a 50% non-operated equityinterest in the 249,000 acre Las Quinchas Association Contract located in theprolific Middle Magdalena Valley. This has provided Black Rock with access tosignificant oil from the three known fields of Arce, Baul, and Bukhara. Arcealone is estimated to contain gross recoverable oil reserves of 5 millionbarrels, and is expected to commence commercial production during 2007. BlackRock also has a 50% holding in the Alhucema Association Contract where seismicacquisition will be undertaken this year. Black Rock has recently succeeded in obtaining a $US4.27 million funding of its15% share of appraisal drilling and testing costs of the 49/8c-4 well in theWintershall-operated Monterey Gas Field in the Southern Gas Basin of the UKNorth Sea. Brazilian Diamonds Limited - (AIM ticker: BDY) Website: www.braziliandiamonds.com Brazilian Diamonds is a leading Brazil-based exploration company focused on thediscovery of kimberlites on its extensive portfolio of properties in the Stateof Minas Gerais, south of Brasilia, with a view to becoming a significantproducer of diamonds from the 140 kimberlites it currently holds. Its diamondexploration data bases have been acquired largely from De Beers for cash andshares. Brazilian Diamonds await final approval of the development of the Canastra 1kimberlite body with the mine ready and able to commence production on receiptof the requisite clearance from the Federal Environment Agency. The companyalso forms joint ventures for non-core activities on its properties. Thus arecent feasibility study was undertaken to assess a proposed joint ventureoperation with two major Brazilian companies to mine alluvial diamonds on itsproperties in the Santo Antonio do Bonito river drainage area, and with somesuccess, as among the 31 diamonds weighing a total of over 19 carats, there wasa 5.9 carat light pink stone worth an estimated US$ 45,000! With the intensifying world shortage of natural rough diamonds and demandexpected to be almost double available supply by 2015, the outlook for diamondprices remains especially strong. Carpathian Resources Limited - (AIM ticker: CPNR and Sydney ASX) Website: www.carpathian.com.au Carpathian Resources, based in Perth, Western Australia, is an oil and gasexploration and production company focusing on the Czech Republic and Slovakia.Its production assets are located in Northern Moravia of the Czech Republic,where it holds a 60% interest in the Janovice gas field, with a recentlyup-graded estimate of 4 billion cubic feet of gas-in-place, from which 34million cubic feet are produced per day; this gives Carpathian £0.8 million perannum cash flow, net of operating costs, with an ultimate target 80% recoveryover the field's life. Other projects include the Morava project (90% interest) situated in thenorthern part of the Vienna Basin, a prolific oil and gas producing region,which offers interesting potential, enhanced by the OMV discovery of anestimated 140 billion cubic feet gas field only 20 km north of Vienna and 75 kmsouth west of Morava. One or more Morava and Roznov project (90% interest)locations are likely to be selected for drilling in the coming months. Carpathian is operating cash-flow positive before exploration expenditure. Concorde Oil and Gas plc - (PLUS ticker: CDEP) Concorde was established by a team of managers knowledgeable andwell-experienced in operating in the Russian Federation oil and gas sector, withthe intention to invest or acquire operational oil and gas assets in theFederation. With Russian production developing rapidly to meet increasingdemand from both the domestic and export markets, smaller foreign operators aremeeting considerably less interference from central officialdom than thatexperienced by major oil companies attractive opportunities. Concorde was admitted to OFEX in September 2005 and as the market warmed tomanagement's acquisitive intentions, the price of the company's shares soared tolevels far beyond those at which management could reasonably expect to attractsubstantial new equity from City institutions to finance acquisition targets.By early summer Concorde had found its ideal first target, Pechora Oil, only todiscover that the flow of available City funds had dried up so that insufficientcapital was raised to complete the deal. As a consequence, Concorde's shareprice has been subjected to considerable uncertainty and volatility, as themarket awaits news of success in its search for investment targets. The Core Business plc - (AIM ticker: CORE) Website: thecorebusiness.co.uk The Core Business was founded with the long-term strategy of generating capitalgrowth through creating, launching, and distributing personal care products andbeauty brands from make-up and skincare to men's grooming and haircare; it wasadmitted to AIM in March 2006. It has won five new consultancy projects,including a contract with a major blue chip retailer, and launched a newsun-care brand in its first three months after flotation. It is experiencingconsiderable retailer interest as a result of its dynamic work in presenting itsbrands and consultancy services. As one of Starvest's early diversification investments outside the naturalresource sectors, its promising start has been encouraging. Franchise Investment Strategies plc: - (PLUS ticker: FIN) Franchise Investment Strategies (FIS) was introduced to OFEX in August 2005 as aspin-off from the highly successful Myhome International, which had developed afranchise model applied to the home servicing sector with rapid adoptioncountry-wide. This led to an assumption that the same franchise model should beadapted to other sectors, thus warranting the creation of a diversifiedinvestment holding company with equity stakes being taken in a number ofparticularly strong franchise businesses that might develop into marketablequoted companies. An early success saw, DTT (Driver Transport Training) broughtto OFEX. But with the rapid expansion of Myhome and consequential demands on managementtime, it became necessary to find new management with requisite experience; thishas proved difficult. A liquidation of FIS has been considered, but notpursued. For the present the original FIS strategy remains, and viablesolutions are under review. It holds equity stakes in both DTT and MyhomeInterational. Franconia Minerals Corporation - (PLUS ticker: FRA andToronto TSV-V) Website: www.franconiaminerals.com Alberta-based Franconia Minerals now has four active exploration properties inthe continental USA. The most advanced is the Birch Lake property in the DuluthComplex of Minnesota, with an inferred 39 million tonnes PGM, and an inferred 51million tonnes PGM at the nearby Maturi Resource. In the former a two-partdrilling programme of in-fill and delineation drilling is underway to betterquantify the resource and enable pre-feasibility level mine planning, so as toprogress the project towards early feasibility determination and to assist withthe State's environmental and permitting process. Both resources are consideredviable at present metal prices, and are likely to be finally mined concurrentlywith processing at a central Franconia-owned plant. The San Francisco property in Beaver County, south-west Utah is 100%Franconia-controlled, lying in a region of extensive past and present mining;this is a high-grade zinc target where a four hole, 6000 foot diamond-drillingprogramme was completed in July 2006. The Red Knoll copper project in Arizona is a promising target. UnderFranconia's exploration agreement this will become a 100% Franconia interest onthe company spending $2 million on a four year exploration programme. Fundy Minerals Limited - (PLUS ticker: FUND) Website: www.fundyminerals.com New Brunswick-based Fundy is actively involved in the exploration of gold,diamonds and base metals in Canada and West Africa, and in the development oftechnology in mineral and metal extraction. The Company has a 100% interest ineight mineral exploration and development properties and a high-grade limestonedeposit, all in the Province of New Brunswick. In Liberia where a significantquantity of alluvial diamonds have been extracted by artisans from its localproperty, Fundy is searching for their kimberlitic source. Fundy listed on OFEX in April 2005 and has announced its intention to move toAIM in the near future. The past year saw it expanding its interests on allfronts: increasing its claim interests in Canada with strategic staking;purchasing the limestone interest; acquiring its 2000 sq km reconnaissancepermit in Liberia, which it now plans to convert into an exploration permit; andagreeing to acquire from a private US company the 100 sq km Grand Bassa goldproject, subject to Liberian Government approval. Gippsland Limited - (AIM ticker: GIP and Sydney ASX) Website: www.gippslandltd.com.au Gippsland is an Australian-based international resource company, dually listedin Sydney and on AIM that focuses on world-scale projects that have often beenoverlooked by major resource groups. It prides itself on its proven ability toenter into equitable joint ventures with overseas nationals. This has resulted in its prime assets becoming the 40 million tonne Abu Dabbaband the 98 million tonne Nuweibi tantalum-tin-feldspar projects in the CentralEastern Desert of Egypt, adjacent to the Red Sea. These projects alreadysuggest one of the World's largest future tantalum suppliers. The closeEgyptian relationship is further evidenced by the Wadi Allaqi project, locatedto the south-east of Aswan, which has yielded highly encouraging results fromrecent gold exploration work, with further drilling targets now being prepared. The Abu Dabbab project alone has a capital requirement of $65 million which isto be funded by a combination of debt and equity. The anticipated 650,000 lbstantalum production has been pre-sold by Gippsland for at least the first 5years. Greatland Gold plc - (AIM ticker: GGP) Website: www.greatlandgold.com Greatland Gold, a mineral exploration and development company focused on threegold projects covering a total area of some 300 sq km in Tasmania and WesternAustralia, was admitted to trading on AIM in early July 2006. The company'sinitial focus is on the Firetower project in Northern Tasmania, with an initialinferred resource of 90,000 ounces of gold with mining envisaged by open pitwith a low stripping ratio. With a £300,000 budget allocated for Firetowerexploration work to end November, Greatland plans to carry out immediate infilldiamond drilling to delineate high grade zones. Hidefield Gold plc - (AIM ticker: HIF) Website: www.hidefieldgold.com Hidefield acquires and develops highly prospective mineral projects in North andSouth America. It has built a diverse portfolio of projects, some of which aredirectly held, as in South America and in Alaska, while others are held inindependent self-funded associate companies situated in Canada, Nevada, andArizona, the principal investments being the 31% owned Alto Ventures involvedin Canadian projects and the 22% owned Columbus Gold involved in Statesideprojects. Its principal direct gold project interests are in Argentina where it isactively exploring the advanced stage East Santa Cruz projects. Assay resultshave led to a follow-up drilling programme on these properties and should enablesufficient resources to be outlined to lead to a pre-feasibility study for thedevelopment of its first gold mine. Hidefield also operates in joint venturewith Minera Sud Argentina SA in exploring a number of gold licences inPatagonia. In Brazil its operations are located in the "Iron Triangle" area ofthe Minas Gerais province where it is evaluating the advance stage Cata Pretagold project. Elsewhere it has a 60% interest in the Alaskan Golden Zone and South Estellemineral project which, subject to its future expenditures, could become 100%owned. The Golden Zone has a measured and indicated resource of 250 k ounces ofgold, 1.2 m ounces of silver and 6.1m ounces of copper. India Star Energy plc - (AIM ticker: INDY) India Star Energy is an investment company focused on gold, platinum groupmetals and uranium interests in Canada. It has made three investments to date:a 15% stake in Canadian Golden Dragon with interests in two high grade platinumand palladium properties in Ontario, the Norton Project and the SeagullProperty; an interest in East West Resources, a Canadian exploration companywith a portfolio of early-stage properties for platinum, palladium, gold andbase metals, and a significant discovery of the "Lucy" copper-molybdenum depositin Thunder Bay; and a 50% interest in a joint venture with East West to find anddevelop uranium properties, the first being a NW Ontario property calledMagotte. KEFI Minerals plc Kefi Minerals plc is being formed to raise funds for mineral exploration inTurkey and Bulgaria. The tenements in these countries are being transferredfrom EMED plc (AIM - EMED), a mineral exploration company based in Cyprus. AIMadmission is planned during December 2006. Matisse Holdings plc - (AIM ticker: MAT) Matisse was originally set up for investment in publishing businesses. Itpresently has its shares suspended through the application of AIM regulationsgoverning inactive cash shells. Myhome International plc - (PLUS ticker: MYH) Website: www.myhomeplc.com Myhome is a leading residential homecare services franchise business enjoying animpressive rate of expansion throughout the UK, while continuing to extend therange of services offered to its clients. These have been complemented by theacquisition of garden servicing providers, nicenstripey, ovenclean, surfacedoctor and autosheen which have brought to Myhome many new franchisees andfurther important cross-selling opportunities. The 300th franchise was recentlysigned. Myhome has set up a Brisbane platform for rolling out its franchise businessesthroughout Australia and later New Zealand, having also awarded a masterfranchise in Ireland, and has thus rapidly become a multi-branded, multi-productinternational residential franchise operation. Red Rock Resources plc - (AIM ticker: RRR) Website: www.rrrplc.com Red Rock, in which Regency Mines hold a 61% equity interest, is a mineralexploration and development company focused on iron ore and manganese projectsin Western Australia, Tasmania and Zambia. In Western Australia, the company isin joint venture partnership with Jupiter Mines, who have been undertakingexploration work on its Mt Ida and Mt Hope prospects, which has led to animportant high grade iron discovery raising hopes for the prospects of the MtAlfred property, 10 km to the north of Mt Ida. The Chiwefwe licence in Zambia has yielded an identified 2.3 mt manganeseresource, which after the completion of a sampling and trenching programme, hasthe potential to become a world class deposit with an indicated 21 mt resource.This is being followed up with 1,000 metres of diamond drilling; a fast trackcheap production plan using bulldozers could then follow. In addition, Red Rock has acquired the Clintheche and Machinga properties inMalawi, where the exploration target is uranium which, with various uraniumlicenses in the Northern Territory of Australia, has raised market comment of apossible later spinning-off of Red Rock's uranium interests. Regency Mines plc - (AIM ticker: RGM) Website: www.regency-mines.com Regency Mines is a mineral exploration and investment company. In addition toits controlling interest in Red Rock Resources plc, it has interests in copperand nickel properties in Western Australia, Queensland, and Papua New Guinea(PNG). Preliminary exploration work has recently established a nickel andcobalt discovery at its 75% owned PNG project on the Mambare Plateau. Exploration effort has been concentrated on its Bundarra copper-gold property inQueensland, and encouraging results obtained will lead to further explorationwork being undertaken, including drilling. A new subsidiary, Range Mines Ltdhas been established to hold acquired interests in zinc properties. Sheba Exploration (UK) plc - (PLUS ticker: SHE) Website: www.shebagold.com Sheba is a mineral exploration company operating solely in the Tigray State ofEthiopia, within the Northern Ethiopia Goldfields area, which was specificallychosen for its numerous gold occurrences, most of which have not been explored.Sheba holds a 100% interest in two mineral concessions for gold and base metalscovering 118 sq km. In the Mereto concession, the company is drilling bedrockgold occurrences, while at Bhiza it has discovered gold and copper anomalies insoil and bedrock, which it is exploring in detail. Gold in soil anomalies ofsignificant area and concentration have been discovered and are being followedup by rock sampling in trenches and pits. Sheba has declared its medium-term strategy aims as being to build up itsoverall gold exploration portfolio, beginning with exploration at Bhiza over thenext three years, while joint venturing mature properties to raise capital forresource estimation and new property acquisitions, and to initiate feasibilitystudies of small-scale mining of gold. St Helen's Capital plc - (PLUS ticker: SHCP) Website: www.sthelenscapital.co.uk St Helen's Capital is a fully-integrated corporate financial services firm witha fast-growing list of clients formed by start-up, early-stage and fast growingcompanies. Its services on offer include fund-raising, financial services recommendations,leasing, mergers and acquisitions, and business services advice. It sees itselfas a one-stop shop for growth companies - a reliable experienced corporateadviser. It has thus rapidly established itself as a major conduit forfledgling companies seeking to access the PLUS (formerly OFEX) market, and morerecently to an increasing extent, to the AIM market. Sunrise Diamonds plc: (AIM ticker: SDS) Website: www.sunrisediamonds.com Sunrise Diamonds is focused on the identification, acquisition,exploration and development of diamond projects on its presentFinland operations in the Karelian Craton, a prospective blockwhich, over the border in Russia, hosts world-class diamonddeposits. Formed in February 2005 to acquire the diamond exploration interests of TertiaryMinerals plc, and admitted to trading on AIM in June 2005, Sunrise met withearly success, with the discovery of two new kimberlites in the Kuusamo clusterand the recovery of micro-diamonds from one of these kimberlites. By mid 2006 atotal of seven kimberlites had been found. Sunrise had acquired from BHP Billiton its diamond exploration database for thewhole of Finland, which it has since analysed in detail to determine anextensive field programme to follow up twenty diamond targets in its areas,while identifying other possible acquisition opportunities elsewhere in Finland. Sunrise has signed a joint venture agreement with Canada's Nordic DiamondsLtd, and is also evaluating other diamond exploration opportunities world-wide. Profit and loss account for the fourteen month period ended 30 September 2006 Period ended Year ended 30 September 31 July 2005 2006 £ £ Operating income 1,699,430 602,871Direct costs (97,613) (33,800)Gross profit 1,601,817 569,071Administrative expenses (266,683) (205,038)Profit on ordinary activities before taxation 1,335,134 364,033Interest receivable 7,728 25,148 Interest payable (4,334) -Profit before taxation 1,338,528 389,181Tax on profit on ordinary activities (400,000) (85,000)Profit on ordinary activities after taxation 938,528 304,181Retained profit for the year 938,528 304,181 Earnings per share - basic 2.5 pence 0.8 pence Earnings per share - fully diluted 2.2 pence 0.7 pence There are no recognised gains or losses in either year other than the profit for the year. All of the operations are considered to be continuing. Balance sheet As at 30 September 2006 30 September 2006 31 July 2005 £ £ £ £Fixed assets Investments 2 435,794Current assets Debtors 107,902 50,538 Trade investments 3,082,898 1,578,456 Cash at bank - 193,693 3,190,800 1,822,687Creditors - amounts due within one (553,369) (559,576)yearNet current assets 2,637,431 1,263,111Total assets less current 2,637,433 1,698,905liabilities Share capital and reserves Called-up share capital 372,173 372,173 Share premium account 2,026,396 2,026,396Profit and loss account 238,864 (699,664) Equity shareholders' funds 2,637,433 1,698,905 Cash flow statement for the period ended 30 September 2006 Period ended 30 September Year ended 2006 31 July 2005 £ £ Net cash outflow from operating (234,249) (430,013)activitiesReturns on investment and servicingof finance:Interest receivable 7,728 25,148Interest payable (4,334) - 3,394 25,148Taxation paid (86,472) (7,859)Decrease in cash in the year (317,327) (412,724) The financial information set out above does not constitute statutory accountsas defined in section 240 of the Companies Act 1985. The balance sheet at 30 September 2006, the profit and loss account, and thecash flow statement for the period then ended have been extracted from theCompany's statutory financial statements upon which the auditors' opinion isunqualified and does not include any statement under Section 237 of theCompanies Act 1985. Copies of the report and financial statements will be posted to Shareholders nolater than 14 November and be available for a period of one month thereafterfrom the Company Secretary at the registered office. 123 Goldsworth Road, Woking, Surrey, GU21 6LR email: email@starvest.co.uk Alternatively, the report may be downloaded from the Company's website,www.starvest.co.uk. END This information is provided by RNS The company news service from the London Stock Exchange