SVE.L Regulatory News (SVE)

24 Aug 2005 16:32

Starvest PLC24 August 2005 RNS announcement for release Wednesday 24 August 2005 Results for the year ended 31 July 2005Chairman's Statement to Shareholders I am pleased to present my fourth annual statement to Shareholders for the yearended 31 July 2005. Highlights Your Directors continue to pursue the chosen investment policy which shows everysign of generating exciting results in the future as it has in the past twelvemonths to 31 July 2005 which record: • a gross profit of £594,219, • a profit before tax of £389,181, and • a profit after tax of £304,181. As at 31 July 2005, the Group had: • £193,693 cash in the bank; • net current assets and net assets of £1,698,905, an increase of 22% during the year; • trading investments with a mid market valuation of £6,500,000, a fall of 5.65%; • unrealised investment profits of £4,891,000. The underlying net asset value per share based on the mid market quotations asat 31 July 2005 was 16.9 pence, a reduction since 31 July 2004 when it was 19pence. However, by the close of business on 19 August 2005, this had recoveredto 18.69 pence. These values are stated on a fully diluted basis but before taxon unrealised profits. No dividend is proposed for the year. Review of business and current activities Your Company has 90% 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, it is not surprising tofind that the net asset value has fallen since the high point at the end ofJanuary 2005. 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 in India, leading to increased economicgrowth, will significantly increase its demands too. The fact that your Company was able to take profits at a high point and so hold£744,000 of cash at 31 January 2005 has enabled us to acquire three newinvestments at attractive prices as well as add to two others during the pastsix months. Your company now holds a spread of eighteen investments of which eleven arequoted on AIM, six are quoted on OFEX and one which joined OFEX during August.In addition, we are committed to a further opportunity which is expected to bequoted on OFEX during September 2005. Your Company now has board representation on four investee companies: TonyScutt is a non executive director of Agricola Resources plc and of BeowulfMining plc; John Watkins is a non executive director of Red Rock Resources plcand of Regency Mines 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 bythe end of 2004. In the event, we were able to raise cash to finance newinvestment opportunities by taking a very acceptable profit on investments, thusavoiding the necessity of raising new money at a substantial discount to the netasset value. Future funding requirements will be met from investment sales andother opportunities which may arise. Outlook Given the increased spread of investments, the Directors look forward withoptimism to reporting increased asset values in the year ahead given theexciting opportunities which continue to be open to us. We have made anencouraging start with a 10% increase in net asset value by the close ofbusiness on 19 August 2005. We look forward to reporting further progress in mid November when we plan toissue the next Chairman's update. We will recommend a first dividend as soon as circumstances permit. We plan to hold our annual general meeting on Tuesday 11 October when we lookforward to meeting those able to attend. R Bruce RowanChairman & Chief Executive 24 August 2005 Telephone: 020 7486 3997 Review of portfolio Starvest's trade investment portfolio at 31 July 2005 comprised: African Platinum plc ("Afplats") - (AIM: APP), formerly, Southern AfricanResources plc Website: www.afplats.com The progress of Afplats towards establishing itself as a major platinum groupmetal (PGM) resource company in Southern Africa has continued, with asignificant broadening of its international institutional investor base. Asuccessful £15.5m North American placement at 30p in late 2004 will finance thebankable feasibility study on its PGM +Gold (4E) mine project on the flagshipLeeuwkop prospect on the Bushveld complex in South Africa. A three-dimensional survey on the Leeuwkop prospect was completed in April withfinal data interpretation due for completion by end 2005; initial results havingconfirmed the company's geological model. Updated resource numbers show 50mounces of 4E, with 8m ounces indicated and 42m inferred. Further prospectingrights granted could result in a resource base of over 100m ounces of 4E in itsgreater Leeuwkop development plan. A secondary listing is expected this year on the American Stock Exchange. Agricola Resources plc - (OFEX: AGC) Website: www.agricolaresources.com Agricola has broadened its base by acquiring two uranium exploration areas over153 sq km of Finland. The first consists of ten claims in Eastern Finland,including the only previously operated uranium mine in Finland which produced 30tonnes of uranium in yellowcake (solid uranium oxide) during a test miningoperation in 1960-61; the second comprises seven claims in northern Finland. Agricola has been encouraged by advice received from the Geological Survey ofFinland and radon survey results; further radon testing is planned beforedrilling later in 2005. The Finnish Government plans to build a fifth nuclearpower plant so demand is expected to grow; until now all its uraniumrequirements have been imported. Agricola's interests in platinum exploration and development are confined to theisland of Unst in the Shetland and to the Klappsjo area of Central Sweden. Belmore Resources (Holdings) plc - (OFEX: BEL) Belmore was successfully admitted to OFEX in March 2005, enjoying a 30%over-subscription. A net 320,000 Euros was raised at 5p per share to financeits programme of exploration drilling in County Clare, as well as desk studiesand fieldwork on its other licences in the Republic of Ireland and NorthernIreland. A further placing was made in June at 5.75p for working capitalpurposes. Belmore's principal County Clare project targets zinc where it has a50% interest in eight prospecting licences covering 330 sq. km. Beowulf Mining plc - (AIM: BEM) Website: www.beowulfmining.com Beowulf graduated from OFEX to AIM in May 2005 and remains focused onexploration for world-class copper, gold and uranium deposits in Northern Swedenencouraged by the county's favourable fiscal climate for incoming mining andexploration companies. Beowulf's interests include Jokkmokk where a world-classdrill intersection was obtained on the Majves 1 exploration permit. Most of theinitial exploration was undertaken by Phelps Dodge Exploration Sweden; they haverecently withdrawn for undisclosed reasons, but Beowulf will continue alone orseek another partner. In addition, Beowulf has: Grundtrask, with mineral rightsover 43 sq. km; Ballek with two exploration permits over 78 sq km issued in May2005 where uranium rich boulders have been discovered and Gold FieldsExploration has a right of first refusal which it is hoped will lead to a jointventure; Ussalahti with three exploration permits seen as prospective formassive sulphide copper and gold deposits. Review of portfolio, continued Black Rock Oil & Gas plc - (AIM: BLR) Website: www.blackrockpetroleum.com.au This oil and gas exploration company has a broad range of exploration interestsincluding four licences in Southern England, one in Jordan and minor interestsin Western Australia. In addition, it has a licence in Colombia where it hasfarm-in terms with Kappa Energy, a privately-owned company with bases in Bogotaand Calgary, from which it has taken 50% of the Las Quinchas licence in theMiddle Magdalena Basin, a province with a prolific production history. Black Rock has indicated that it is seeking further deals to expand itsinterests outside the UK and Ireland, with the emphasis on near-term productionand low-risk exploration. In May it raised £880,000 at 1.4p per share for suchfuture deals. Black Rock will come to attention if the Sandhills project on theIsle of Wight, in which it holds a 5% interest, meets with drilling successearly in 2006. Before then drilling results on its 40% interest gas well in theSouthern North Sea are expected. Brazilian Diamonds Limited - (AIM: BDY) Website: www.braziliandiamonds.com Brazilian Diamonds is starting to benefit from the diamond exploration databases acquired in cash and shares from De Beers, which is now a 3% shareholder.This deal was funded by an earlier £1.8 million placing of shares and by thedisposal of a 16% interest it held in Hidefield. As a result, BrazilianDiamonds expects to start mining diamonds in 2006 from its 200,000 hectares inMinas Gerias, a province south of Brasilia. Other projects may also soon beproductive: its Canastra licences await clearance from the Federal EnvironmentAgency; drilling on its Tuscano 1 project has successfully interceptedkimberlite; two further projects on the Santo Antonio de Bonito River north ofCanastra could yet yield a large-scale alluvial diamond mine, the kimberlitesource of which Brazilian Diamonds may have located separately. BrazilianDiamonds seems to have a realistic chance of becoming Brazil's first kimberlitediamond producer. Carpathian Resources Limited - (AIM: CPNR and Sydney ASX) Carpathian Resources, based in Perth, Western Australia, is an oil and gasexploration and production company focusing on Central Europe, currently on theCzech Republic and Slovakia. It has recently carried out a re-mapping andre-evaluation of its Ja11 prospect (Unigeo operator) following re-processing ofits related seismic data and announced the results as "extremely encouraging".The well, in which Carpathian holds 60%, is now targeting a gas prospect withthe potential to hold up to 6.5 BCF of gas. Drilling of Ja11 should becompleted by mid-September and with the well only 1.5 km from the 2004 Ja3a gasdiscovery, the results will be important for the Company. Franconia Minerals Corporation - (OFEX: FRA and Toronto TSV-V) Website: www.franconiaminerals.com Alberta based Franconia Minerals has three areas of exploration acreage in theUSA: the first is the Birch Lake property in the Duluth Complex of Minnesotawith an inferred platinum-group metal, copper, nickel resource of an estimated51 million tones; the second is the San Francisco property, a high-grade zincexploration target covered by a joint venture agreement with Teck Cominco, andwith a successful limited previous drilling history; and the third is theMahoney property, a high-grade zinc target in New Mexico, withplatinum-palladium targets in the Duluth Complex of Minnesota. Franconia recently reported positive pressure leaching results undertaken on theBirch Lake property, which Franconia's President described as strengtheningtheir belief in the potential economic viability of the project. Review of portfolio, continued Gippsland Limited - (AIM: GIP and Sydney ASX) Website: www.gippslandltd.com.au Gippsland is a natural resources developer of world-scale mining projects inEgypt and Tasmania. These consist of the Abu Dabbab and Nuweibi tantalum, tin,feldspar projects and the Wadi Allaqi gold, copper, nickel projects, both inEgypt; and the Zeehan tin project in Tasmania. The Abu Dabbab deposit is covered by exploration leases in which Gippsland hasan equal interest with the Egyptian Government. The project has an end capitalrequirement of some $65 million which is expected to be funded by a combinationof debt and equity. The project could be the world's second largest tantalumproducer from which the anticipated 650,000 lbs production has been pre-sold forthe first 5 years. Gippsland has 50% interests in both the Nuweibi and the Wadi Allaqi projects,and a 40% joint venture interest in the Zeehan project with the insolvent publiccompany Western Metals Ltd presently in administration. With the price of tinhaving recently improved, Gippsland is considering various commercial andtechnical options resolving the present impasse. Hidefield Gold plc - (AIM: HIF) Website: www.hidefield.co.uk Hidefield acquires and develops gold projects of merit in North and SouthAmerica where it has a large portfolio. Hidefield's management seeks tomaximize opportunity while reducing the considerable risks associated withmineral exploration by identifying and acquiring projects at the lowest costpossible and having them independently funded and managed by associate companiesin which Hidefield has a substantial interest and board representation. ItsNorth American assets are managed in this manner, whereas its projects in Braziland Argentina are directly owned, its principal operational activities being theCata Preta gold project in the "Iron Quadrangle" of Minas Gerais, Brazil. Hidefield has been active in securing new interests in the past year; a recenttransaction was its agreement with Minera Sud Argentina SA whereby it obtainedthe option to acquire a 50% participating interest in sixteen gold explorationlicences in the Santa Cruz, Chubut and Rio Negro provinces of Argentina. India Star Energy plc - (AIM: INDY) India Star Energy, an investment company seeking to invest in the oil, gas andmetals sectors was introduced to AIM following a placement of shares in February2005. It has recently acquired a 50% share in a joint venture with East WestResources Corporation to develop uranium properties, the first being a NorthWest Ontario property called Maggotte where surface geophysical studies are tobe undertaken. Matisse Holdings plc - (AIM: MAT) Matisse is a cash shell, with the objective of investing in publishingbusinesses. It is pursuing a number of opportunities which, if completed, arelikely to be classified under AIM rules as a reverse take-over. Myhome International plc - (OFEX: MYH) Website: www.myhomeplc.com Myhome, established originally by Unilever which remains a shareholder, is aleading home services franchise business currently enjoying an impressiveexpansion rate across the UK. By careful selection and training policies,Myhome management has ensured that its franchise partners have developed a soundreputation for providing premium house cleaning services to the residentialmarket. Currently these are limited to cleaning and carpet care, but could beextended to gardening services, lawn and pool care, home security etc. Thirtynew franchises a year has been set as an internal target. Myhome's franchiseprogramme has been accredited by the British Franchise Association. Review of portfolio, continued The valuable experience gained in converting its localized direct services intofranchise operations UK wide has led Myhome to promote Franchise InvestmentStrategies plc - (OFEX: FIN), a consultancy venture aimed at applying itsfranchising model to other lines of business. Myhome and Starvest both holdinterests in this new venture which joined OFEX on 18 August 2005. Red Rock Resources plc - (AIM: RRR) Website: www.rrrplc.com Red Rock Resources was admitted to AIM at the end of July 2005 following aplacing to raise £476,000 net of expenses. It has been established as a mineralexploration and development company focused on iron ore and manganese projectsin Western Australia and in Tasmania where it has acquired a total of ninetenements of which it will be a 100% beneficiary. Mapping, geophysics anddrilling will be carried out for further evaluation purposes. Regency Mines plcholds a controlling interest. Regency Mines plc - (AIM: RGM) Website: www.regency-mines.com Regency Mines was admitted to AIM in February 2005 following a successful offerthat was over-subscribed at a time when the market was enjoying a minor boom inresource stock valuations. Its objective of investing in established projectsin the mining and minerals sector, more especially in producing assets, andprimarily Australian-based, was soon evidenced with a flurry of acquisitions ofiron ore and gold projects in Western Australia and two iron ore projects inTasmania. Regency has since spun off 28% of its subsidiary Red Rock Resourcesbut retains direct ownership of its Bundarra copper-gold project in Queenslandand of various nickel assets. Sheba Exploration (UK) plc - (OFEX: SHE) Website: www.shebagold.com This UK registered company was incorporated in July 2004 to acquire the whole ofthe capital of the Sheba Exploration Ltd, a gold explorer in Ethiopia with theAmora Hill gold mineralization discovery in the Mereto concession to its credit. During September 2004 it was admitted to OFEX. A detailed trench survey at Amora Hill has been completed with encouragingresults. Wider regional grassroots exploration work and the acquisition offurther new licences, not just within Ethiopia, are being considered bymanagement as an appropriate near-term work-plan. St Helen's Capital plc - (OFEX: STH) Website: www.sthelenscapital.co.uk St Helen's Capital is a dynamic and innovative integrated corporate financehouse that has rapidly established itself as a conduit for the introduction offledgling companies to the junior London markets. As an FSA regulated financialadvisor and arranger of funding and financial services, St Helen's is a valuablecontributor to the surge of interest shown in the OFEX market in which itspecialises, arranging regular introductions and acting as corporate adviser toa growing list of OFEX companies. St Helen's saw its client Oakdene Homes plcwin the OFEX Company of the Year award, and was itself nominated for the BestCorporate Adviser of the Year award. Consolidated profit and loss accountfor the year ended 31 July 2005 Year ended Year ended 31 July 2005 31 July 2004 £ £ Operating income 628,019 305,232Direct costs (33,800) (36,250)Gross profit 594,219 268,982Administrative expenses (205,038) (203,172)Profit on ordinary activities before taxation 389,181 65,810Tax on profit on ordinary activities 85,000 9,500Profit on ordinary activities after taxation 304,181 56,310Retained profit for the year 304,181 56,310 Earnings per share - basic 0.82 pence 0.18 pence Earnings per share - diluted 0.74 pence 0.17 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. The accompanying accounting policies and notes form an integral part of these financial statements. Consolidated balance sheetAs at 31 July 2005 31 July 2005 31 July 2004 £ £ Fixed assetsTangible assets - - Current assetsDebtors 50,538 22,727Trade investments 1,578,456 793,857Cash at bank 193,693 606,417 1,822,687 1,423,001 Creditors - amounts due within one (123,782) (28,277)year Net current assets 1,698,905 1,394,724 Total assets less current 1,698,905 1,394,724liabilities Share capital and reservesCalled-up share capital 372,173 372,173Share premium account 2,026,396 2,026,396Profit and loss account (1,124,074) (1,428,255)Merger reserve 424,410 424,410 Equity shareholders' funds 1,698,905 1,394,724 Company balance sheetAs at 31 July 2005 31 July 2005 31 July 2004 £ £ Fixed assetsInvestments 435,794 435,794 Current assetsDebtors 50,538 22,727 Trade investments 1,578,456 793,857Cash at bank 193,693 606,417 1,822,687 1,423,001 Creditors - amounts due within one (559,576) (464,071)year Net current assets 1,263,111 958,930 Total assets less current 1,698,905 1,394,724liabilities Share capital and reservesCalled-up share capital 372,173 372,173Share premium account 2,026,396 2,026,396Profit and loss account (699,664) (1,003,845) Equity shareholders' funds 1,698,905 1,394,724 Consolidated cash flow statementfor the year ended 31 July 2005 Year ended Year ended 31 July 2005 31 July 2004 £ £ Net cash outflow from operating activities (404,865) (339,707)Taxation paid (7,859) Cash outflow before management of liquid resources (412,724) (339,707)and financingManagement of liquid resources - (559,502)Financing - issue of Ordinary share capital - 769,664 Decrease in cash in the year (412,724) (129,545) The financial information set out above does not constitute statutory accountsas defined in section 240 of the Companies Act 1985. The balance sheets at 31 July 2005, the consolidated profit and loss account,and the consolidated cash flow statement for the year then ended have beenextracted from the Group's statutory financial statements upon which theauditors' opinion is unqualified and does not include any statement underSection 237 of the Companies Act 1985. Copies of the report and financial statements will be posted to Shareholders on12 September and be available for one month from the Company Secretary at theregistered office from Tuesday 20 September 2005. 123 Goldsworth Road, Woking, Surrey, GU21 6LRemail: 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