SVE.L Regulatory News (SVE)

9 Feb 2005 10:00

Starvest PLC09 February 2005 STARVEST plc Interim report - six months ended 31 January 2005 Chairman's statement-------------------- I am pleased to report that Starvest has continued to make good progress duringthe past six months: • The results for the six months to 31 January 2005 record a gross profit of £598,000 on turnover of £615,000 and a profit on ordinary activities after overheads but before taxation of £466,000. • No dividend has been proposed for the period. • The net asset value based on mid-market closing prices on Monday 31 January 2005 was £8.696 million which equates to 22 pence per share calculated on a fully diluted pre tax basis. • This represents a 17% increase on the value of £7.429m at 31 July 2004, the date of our last annual report. • Unrealised profits were £7m before tax. • With the Starvest share price closing at 12.25 pence, the discount to net asset value was 45% at 31 January 2005. A summary of the current Starvest portfolio is shown below. The Directors aremost satisfied with progress so far and will continue to take profits asopportunities arise. During the past three years, Starvest has developed an investment spread. Thiswe will continue to expand by committing between £100,000 and £200,000 to eachinvestee as opportunities arise. Whilst we have no exclusive commitment to thenatural resource sector, we see this as having considerable growth potential forthe foreseeable future. In addition to the fifteen current holdings, I am pleased to report: • Starvest is committed to two further investments and is in discussion with otherpotential investees; each investee company expects to launch on to AIM or OFEXwithin the next three months. • Starvest continues to receive new investment proposals from businesses, mainlyin the natural resources sector, which are evaluated over a period of six totwelve months before a commitment is made. 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 2005. Capital requirements In view of the satisfactory investment progress, it is the opinion of theDirectors that the Group is adequately funded at this time. Conclusion The Directors are very pleased with the six month results and look forward toreporting continuing positive news following the Group's July year end. R Bruce RowanChairman & Chief Executive9 February 2005 Investment portfolio-------------------- Starvest now holds trade investments in the following companies: Agricola Resources plc Platinum exploration in the Shetlands www.agricolaresources.com Belmore Resources (Holdings) plc Zinc exploration in Eire and Northern Ireland Beowulf Gold plc Gold exploration in Sweden www.beowulf-gold.com Black Rock Oil & Gas plc Oil and gas in Southern England and Australia www.blackrockpertroleum.com.au Brazilian Diamonds Limited Diamond exploration in Brazil www.braziliandiamonds.com Franconia Minerals Corporation North American minerals www.franconiaminerals.com Gippsland Limited Tantulum exploration in Egypt www.gippslandltd.com.au Hidefield Gold plc Gold exploration in Brazil www.hidefield.com Matisse Holdings plc Cash shell Myhome International plc Domestic cleaning services www.myhomeplc.com Oranje River Diamonds plc Diamonds in South Africa Regency Mines plc Copper & nickel exploration in Australia Sheba Exploration (UK) plc Gold exploration in Ethiopia www.shebagold.com Southern African Resources plc High value minerals in South Africa and Botswana www.sar-plc.com St Helens Capital plc Corporate finance advisor www.sthelenscapital.co.uk Consolidated Profit & Loss Accounts----------------------------------- 6 months to 31 6 months to 31 Year ended January 2005 January 2004 31 July 2004 Unaudited Unaudited Audited £,000 £,000 £,000 Turnover 615 299 305Cost of sales (17) (25) (36) --------- --------- ---------Gross profit 598 274 269 Group administrativeexpenses (132) (115) (203) --------- --------- ---------Profit on ordinaryactivities before taxation 466 159 66 Tax on ordinaryactivities (140) (48) (10) --------- --------- ---------Profit on ordinaryactivities after taxation 326 111 56 Dividends onequity shares 0 0 0 --------- --------- ---------Retained profit for the period 326 111 56 --------- --------- --------- --------- --------- ---------Profit per share Basic Note 3 0.88 pence 0.38 pence 0.18 penceFully diluted 0.82 pence 0.35 pence 0.17 pence --------- --------- --------- Consolidated Balance Sheet-------------------------- 6 months to 31 6 months to 31 Year ended January 2005 January 2004 31 July 2004 Unaudited Unaudited Audited £,000 £,000 £,000 Fixed assets 0 0 0 -------- -------- ---------Current assets Debtors 36 3 22 Trading investments Note 2 1,134 543 794Cash at bank and in hand 744 397 606 -------- -------- --------- 1,914 943 1,422 -------- -------- ---------Creditors Amounts falling due within one year (193) (81) (28) -------- -------- ---------Net current assets 1,721 862 1,394 -------- -------- ---------Total assets less current liabilities 1,721 862 1,394 -------- -------- ---------Capital and reserves Called up share capital 372 314 372 Share premium account 2,026 1,498 2,026 Merger reserves 424 424 424 Profit and loss account (1,101) (1,374) (1,428) -------- -------- ---------Equity shareholders' funds 1,721 862 1,394 -------- -------- --------- Reconciliation of Movement in Shareholders' Funds------------------------------------------------- 6 months to 31 6 months to 31 Year ended January 2005 January 2004 31 July 2004 Unaudited Unaudited Audited £,000 £,000 £,000 -------- -------- ---------Total recognised profits/(losses) relating to the period 326 111 56 Net proceeds of share issues 0 183 770 -------- -------- ---------Increase/(decrease) inshareholders'funds 326 294 826 Opening shareholders'funds 1,395 568 568 -------- -------- ---------Closing shareholders' funds 1,721 862 1,394 -------- -------- --------- Interim report notes-------------------- 1. Interim report The information relating to the six month periods to 31 January 2005 and 31 January 2004 is unaudited. The information relating to the year ended 31 July 2004 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 in the statutory accounts for the year ended 31 July 2004 by the Group and its subsidiary undertaking, although the information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The consolidated financial statements have been prepared using merger accounting. Under merger accounting the results and cash flows are combined from the beginning of the financial period and all comparatives are stated on the combined basis. These interim financial statements consolidate the financial statements of the Company and its subsidiaries. The Company and Group will report again for the full year to 31 July 2005. The Group's investments at 31 January 2005 are valued at the lower of cost or mid market value. 3. Profit per share 6 months to 31 6 months to 31 Year ended January 2005 January 2004 31 July 2004 Unaudited Unaudited Audited £,000 £,000 £,000 These have been calculated onprofit of: 326 111 56 -------- -------- ---------The weighted average numberof shares used was: 37,217,259 29,317,245 30,941,061 The weighted average numberof shares and outstandingoptions used was: 39,817,259 31,621,050 33,391,746 -------- -------- ---------Basic profit per share: 0.88 pence 0.38 pence 0.18 pence Fully diluted profit per share: 0.82 pence 0.35 pence 0.17 pence -------- -------- --------- 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 info@starvest.co.uk or from theCompany's website at www.starvest.co.uk. Enquiries to Tony Scutt, telephone 01483 475909 or tony@starvest.co.uk. This information is provided by RNS The company news service from the London Stock Exchange