SVE.L Regulatory News (SVE)

13 Feb 2006 08:00

Starvest PLC13 February 2006 Starvest plc Interim report - six months ended 31 January 2006 Chairman's statement Investment report I am pleased to report a successful six months trading during which Starvest hasachieved: •An increase in the net asset value to£16.5m at 31 January 2006. The previous declared values were: £8.69m at 31 January 2005; £6.5m at 31 July 2005; £8.4m at 31 October 2005. •An increase in the fully diluted net asset value per share to 39.9 pence at 31 January 2006. The previous declared values per share were: 22 pence at 31 January 2005; 16.9 pence at 31 July 2005; 21.5 pence at 31 October 2005. In percentage terms, these increases are 136% since 31 July 2005 and 86% since 31 October 2005. The Company's share price discount to net asset value was 62% at 31 January 2006. All these values are based on mid-market closing prices on a fully diluted pre tax basis. •A gross profit of £198,000 on turnover of £203,000 and a profit on ordinary activities after overheads but before taxation of £50,000. •Unrealised profits as at 31 January 2006 of £14.4m before tax, up from £7m at 31 January 2005, a 106% increase and up from £4.8m at 31 July 2005, a 200% increase. Other matters of interest are: •Following the net asset value announcement made to the London Stock Exchange on 1 February, on Friday 3 February 2006 the Starvest share price closed at 21.25 pence per share representing a discount to net asset value of 44.5%. •No dividend is proposed for the period, although the matter will be kept under review for the future. •A new credit facility has enabled the Company to commit to three new investments since the last quarterly update in November, making a total of four during the half year as follows. + •Concorde Oil & Gas plc joined OFEX in September 2005 having raised £190,000 net of expenses to acquire operational oil and gas assets in the Russian Federation. The IPO price was 0.75 pence per share; the 31 January 2006 closing price was 11 pence per share. + •Fundy Minerals Limited, a Canadian company with an OFEX quote, exploring for gold and base metals in Canada and West Africa. + •Addworth plc, an AIM quoted 'active capital' investment company. It has interests in Myhome International plc, Franchise Investment Strategies plc and The Core Business plc, three companies in which Starvest has interests, as well as other non-mineral exploration businesses and thus represents a further diversification from the natural resources sector in which Starvest has been primarily involved. + •The Core Business plc is being sponsored by Addworth plc and plans to raise funds for its personal care and beauty product business. It intends to apply to join AIM in the near future. •In addition, Starvest has added to its investments in Regency Mines plc, India Star Energy plc and Franchise Investment Strategies plc. •Starvest now holds investments in twenty-two companies of which twelve are traded on AIM and nine on OFEX. The companies are listed on the back coverpage of this report. The Board continues to be most satisfied with progress. Starvest continues to receive new investment proposals from businesses, mainlyin the natural resources sector. Before a commitment is made, these are closelyevaluated to ensure that they accord with the Company's medium to long terminvestment strategy. Extraordinary general meeting As Shareholders will be aware from previous statements, the Board has declaredan intention to pay a dividend as soon as adequate profits are available. Also,the Board has taken authority to make purchases of the Company's shares, eitherfor cancellation or to be held in treasury. Neither of these intentions can befulfilled so long as the Company's profit and loss account is in deficit as itwas at 31 July 2005 in the amount of £699,664; this deficit arose in theCompany's original business prior to becoming an investment company in January2002. By application to the High Court, it is possible to have the share premiumaccount which stands at £2,026,396 reduced thus creating a situation where thedeficit on the profit and loss account can be eliminated. This will enable theBoard to consider the payment of a dividend rather sooner than would otherwisebe the case. We expect that our Shareholders will welcome this development. To this end, the Board has called an Extraordinary General Meeting of Members tobe held on Tuesday 14 March 2006. Quarterly update Those Shareholders who wish to receive electronic copies of regulatoryannouncements are invited to register their email address on the home page ofthe Company website: www.starvest.co.uk. Your Board continues to look to the future with optimism; we expect furtherprogress in the next quarter and plan to issue the Chairman's next update duringMay 2006. R Bruce RowanChairman & Chief Executive13 February 2006 Consolidated Profit & Loss Accounts 6 months to 31 6 months to 31 Year ended January 2006 January 2005 31 July 2005 Unaudited Unaudited Audited £,000 £,000 £,000Operating income 203 615 628Direct costs (5) (17) (34) -------- -------- ---------Gross profit 198 598 594Administrativeexpenses (146) (132) (205) -------- -------- ---------Operatingprofit onordinaryactivities 52 466 389Interestpayable (2) - - -------- -------- ---------Profit onordinaryactivitiesbeforetaxation 50 466 389Tax on profiton ordinaryactivities (10) (140) (85) -------- -------- ---------Profit onordinaryactivitiesafter taxation 40 326 304 -------- -------- ---------Retainedprofit for theperiod 40 326 304 -------- -------- --------- --------- -------- -------- ---------Profit per share - see note 3 0.11 pence 0.88 pence 0.82 penceBasic 0.09 pence 0.82 pence 0.74 penceFully diluted -------- -------- --------- Consolidated Balance Sheet 6 months to 31 6 months to 31 Year ended January 2006 January 2005 31 July 2005 Unaudited Unaudited Audited £,000 £,000 £,000 Fixed assets 0 0 0 -------- -------- ---------Current assets 227 36 51Debtors 2,289 1,134 1,578Tradinginvestments -see note 2 - 744 194Cash at bank and in hand -------- -------- --------- 2,516 1,914 1,823 -------- -------- ---------Creditors -amountsfalling duewithin oneyear (604) - -Bank overdraft (173) (193) (124)Other creditors -------- -------- ---------Net currentassets 1,739 1,721 1,699 -------- -------- ---------Total assetsless currentliabilities 1,739 1,721 1,699 -------- -------- ---------Capital andreserves 372 372 372Called upshare capital 2,027 2,027 2,027Share premiumaccount 424 424 424Mergerreserves (1,084) (1,102) (1,124)Profit and loss account -------- -------- ---------Equityshareholders'funds 1,739 1,721 1,699 -------- -------- --------- Reconciliation of Movement in Shareholders' Funds 6 months to 31 6 months to 31 Year ended January 2006 January 2005 31 July 2005 Unaudited Unaudited Audited £,000 £,000 £,000 Totalrecognisedprofitsrelating tothe period 40 326 304 -------- -------- ---------Increase inshareholders'funds 40 326 304Openingshareholders'funds 1,699 1,395 1,395 -------- -------- ---------Closingshareholders'funds 1,739 1,721 1,699 -------- -------- --------- Interim report notes 1. Interim report The information relating to the six month periods to 31 January 2006 and 31January 2005 is unaudited. The information relating to the year ended 31 July 2005 is extracted from theaudited accounts of the Company which have been filed at Companies House and onwhich the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies that are consistent withthose adopted in the statutory accounts for the year ended 31 July 2005 by theGroup and its subsidiary undertakings, although the information does notconstitute statutory accounts within the meaning of section 240 of the CompaniesAct 1985. The consolidated financial statements have been prepared using mergeraccounting. Under merger accounting the results and cash flows are combined fromthe beginning of the financial period and all comparatives are stated on thecombined basis. These interim financial statements consolidate the financialstatements of the Company and its subsidiaries. The Company and Group will report again for the full year to 31 July 2006. The Group's investments at 31 January 2006 are valued at the lower of cost ormid market value. 3. Profit per share 6 months to 31 6 months to 31 Year ended January 2006 January 2005 31 July 2005 Unaudited Unaudited Audited £,000 £,000 £,000 These have beencalculated ona profit of: 40 326 304 -------- -------- ---------The weightedaverage numberof shares usedwas: 37,217,259 37,217,259 37,217,259 The weightedaverage numberof shares andoutstandingoptions usedwas: 42,792,259 39,817,259 41,178,423 -------- -------- ---------Basic profit per share: 0.11 pence 0.88 pence 0.82 penceFully diluted profit per share: 0.09 pence 0.82 pence 0.74 pence -------- -------- --------- Investment portfolio Starvest 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 Zinc exploration in Eire and Northern Ireland (Holdings) plc • 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, Colombia and Australia • www.blackrockoil.com • Brazilian Diamonds Diamond exploration in Brazil Limited • www.braziliandiamonds.com • Carpathian Resources Oil and gas exploration in Central Europe Limited • www.carpathian.com.au • Concorde Oil & Gas plc Operational oil and gas projects in the Russian Federation • The Core Business plc Personal care and beauty products • Franchise Investment Franchise consultancy and investment Strategies plc • www.fisplc.com • Franconia Minerals North American minerals Corporation • www.franconiaminerals.com • Fundy Minerals Limited Gold and base metal exploration in Canada and West Africa • www.fundyminerals.com • Gippsland Limited Tantulum exploration in Egypt • www.gippslandltd.com.au • Hidefield Gold plc Gold exploration in North and South America • www.hidefield.co.uk • India Star Energy plc Oil and 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 • www.rrrplc.com • Regency Mines plc Copper & nickel exploration in Australia • www.regency-mines.com • Sheba Exploration (UK) Gold exploration in Ethiopia plc • www.shebagold.com • St Helens Capital plc Corporate finance advisor • www.sthelenscapital.com Copies of this interim report are available free of charge by application inwriting to the Company Secretary at the Company's registered office, 123Goldsworth Road, Woking, GU21 6LR, by email to email@starvest.co.uk or from theCompany's website at www.starvest.co.uk. Enquiries to Bruce Rowan: 020 7486 3997 or John Watkins: 01483 771992. This information is provided by RNS The company news service from the London Stock Exchange