SVE.L Regulatory News (SVE)

12 Jul 2007 07:00

Starvest PLC12 July 2007 Starvest plc Interim report - nine months ended 30 June 2007 Chairman's statement Investment report In view of the exceptional developments over the past months culminating in thesuccessful takeover of African Platinum plc, your board has decided to issue asecond interim report covering the nine months ended 30 June 2007. Therefore, Iam pleased to report continuing successful trading during which Starvest hasachieved the following: • Pre-tax profit of £4.972m on turnover of £5.494m. • Basic earnings of 9.45 pence per share; fully diluted earnings of 8.21 pence per share. • Increase in the value of trade investments of £7.1m since 30 September 2006 to £19.2m at 30 June 2007, an increase of 59%. • Fully diluted underlying net asset value per share of 47.4 pence at 30 June 2007 when the Company's share price discount to net asset value was 33%. All these values are based on mid-market closing prices on a fully diluted pretax basis. • Share price increase of 87% since 30 September 2006 from 17 pence to close at 31.75 pence. • 30 June 2007 cash balance of £4.172m • Closing market capitalisation £11.5m. • Unrealised profits as at 30 June 2007 of £13.5m before tax, up from £8.9m at 30 September 2006. In addition to matters mentioned in the half year report to 31 March 2007,during the quarter to 30 June 2007 the following are of note: • The Company has made further investments as follows: o Belmore Resources (Holdings) plc - additional investment; o Durango Gold plc - gold-silver in the Durango state, Mexico with exploration rights over 12,072 hectares; PLUS admission expected during 2007; o Goliath Resources Inc. - copper, gold and molybdenum exploration and mining company which has recently led a consortium to acquire the rights to 152 million tonnes of pre-1980 tailings dumps in Kitwe Zambia; other assets include two highly prospective gold, copper and bismuth properties one of which is jointly held with Phelps Dodge; o Lotus Resources plc - a rapidly developing portfolio of production properties, with some exploration, in China to include gold, silver and copper with a strategy reflecting Chinese government policy and enjoying a strong Chinese based team; PLUS admission is expected third quarter 2007 with AIM IPO in early 2008; o Oracle Coalfields plc - coal mining in Pakistan - additional investment; PLUS admission expected shortly. • As announced in the half year report, a significant development during the period concerns African Platinum plc ("Afplats") a company exploring for platinum group metals in Southern Africa in which the Company invested prior to Afplats being admitted to AIM in May 2002. On 16 February 2007, Impala Platinum Holdings Limited ("Implats") announced a recommended cash offer for the entire issued share capital of Afplats. Having sold a large part of its investment at various times in the past, on 30 May 2007 the Company received cash of £4,537,500 in respect of the remaining holding. • After a tax provision of approximately £1.5m, the Company has substantial cash resources for future investment including share buy-backs and dividends. • On 20 June 2007, the Company paid a maiden special dividend of one penny per share to shareholders on the register on 25 May 2007. • A further 450,000 shares were bought for treasury during the period at 30 pence per share; 950,000 shares are now held in treasury. • Starvest now holds investments in twenty-eight companies of which fifteen are traded on AIM, eight on PLUS Markets, one on the Toronto exchange and one on the US based Pink Sheets; the remainder are preparing for admission to PLUS. The companies are listed at the end of this announcement. The Board continues to be most satisfied with progress in its portfolio of investments. • Both resolutions before the Members in Extraordinary General Meeting held on 23 May 2007 were duly passed. Starvest will continue to closely evaluate new investment proposals receivedfrom businesses, mainly in the natural resources sector. We will seek to ensurethat they accord with the Company's medium to long term investment strategy. Further information 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. Previous reports, quarterly updatesand announcements are available from the site. Your Board continues to look to the future with optimism; unless there areexceptional developments the next net asset value announcement is expected onMonday 1 October. This will be followed by an announcement of the full year'sresults no later than 31 October with the 2007 annual general meeting onWednesday 12 December 2007. Thank you for your continued support. R Bruce Rowan Chairman & Chief Executive 12 July 2007 Profit & Loss Accountfor the nine month period ended 30 June 2007 9 months to Period 30 June 2007 1 August 2005 to 30 September 2006 Unaudited Audited £,000 £,000 Operating income 5,494 1,699Direct costs (264) (97)Gross profit 5,230 1,602Administrative expenses (220) (267)Operating profit on ordinary activities 5,010 1,335Interest receivable 22 7 Interest payable (60) (4) Profit before taxation 4,972 1,338Tax on profit on ordinary activities (1,487) (400)Profit on ordinary activities after 3,485 938taxationDividends paid (367) - Retained profit for the period 3,118 938 Earnings per share - basic 9.45 pence 2.5 pence Earnings per share - fully diluted 8.21 pence 2.2 pence There are no recognised gains or losses in either year period than the profitfor the period. All of the operations are considered to be continuing. Balance SheetAs at 30 June 2007 9 months to Period ended 30 June 2007 30 September 2006 Unaudited Audited £,000 £,000 Fixed assets 0 0 Current assets Debtors 16 108 Trading investments 3,919 3,083 Cash at bank and in hand 4,172 - 8,107 3,191 Creditors - amounts falling due within one year Other creditors (2,574) (554) Net current assets 5,533 2,637 Total assets less current liabilities 5,533 2,637 Capital and reserves Called up share capital 372 372 Share premium account 2,026 2,026 Shares held in treasury (222) 0 Profit and loss account 3,357 239 Equity shareholders' funds 5,533 2,637 Reconciliation of Movement in Shareholders' Funds 9 months to 30 June Period 1 August 2006 2007 to 30 September 2006 Unaudited Audited £,000 £,000 Total recognised profits relating to the period 3,485 938 Dividends paid (367) - Purchase of own shares for Treasury - see note 3 (222) Increase in shareholders' funds 2,896 938 Opening shareholders' funds 2,637 1,699 Closing shareholders' funds 5,533 2,637 Interim report notes 1. Interim report The information relating to the nine month period to 30 June 2007 is unaudited. The information relating to the period ended 30 September 2006 is extracted fromthe audited accounts of the Company which have been filed at Companies House andon which the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies that are consistent withthose adopted by the Company in the statutory accounts for the fourteen monthperiod ended 30 September 2006, although the information does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985. The Company will report again for the full year to 30 September 2007. The Company's investments are carried at the lower of cost or mid market valueat 30 June 2007. For the purpose of the net asset value calculation, with oneexception, the Company's investments at 30 June 2007 are valued at mid marketprice. The exception relates to Concorde Oil & Gas plc which, as a matter ofprudence, has been valued at 50% against the closing price on 24 November 2006,being the date on which trading in the shares was suspended at the request ofthe company. 3. Share buy back The company has bought its own shares to be held in Treasury as follows: • On 16 January 2007, 500,000 at a price of 17 pence. • On 29 May 2007, 250,000 at a price of 30 pence. • On 13 June 2007, 200,000 at a price of 30 pence. Consequently, shareholders' funds were reduced by £222,204. 4. Investment commitments At 30 June 2007, the Company had entered into commitments to make investments incompanies for amounts totalling £450,000. 5. Earnings per share 9 months to 30 Period 1 August June 2007 2006 to 30 September 2006 Unaudited Audited £,000 £,000 These have been calculated on a profit of: 3,485 938 The weighted average number of shares used was: 36,890,336 37,217,259 The weighted average number of shares andoutstanding options used was: 42,465,336 42,792,259 Basic profit per share: 9.45 pence 2.5 pence Fully diluted profit per share: 8.21 pence 2.2 pence Investment portfolio Starvest now holds trade investments in the following companies: • Addworth plc Active capital investment company www.addworth.co.uk • Agricola Resources plc Platinum and uranium exploration www.agricolaresources.com • Belmore Resources (Holdings) plc Zinc exploration in Eire and Northern Ireland 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 Limited Diamond exploration in Brazil www.braziliandiamonds.com • Carpathian Resources Limited Oil and gas exploration in Central Europe 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 www.thecorebusiness co.uk • DTT plc Driver training and recruitment services to the road haulage industry www.drivertransporttraining.co.uk • Durango Gold plc Gold & silver in Durango State Mexico • Franchise Investment Strategies plc Franchise consultancy and investment • Franconia Minerals Corporation North American minerals 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 • Goliath Resources Inc. Copper, gold & molybdenum in Canada; mining in Zambia www.goliathresources.com • Greatland Gold plc Gold exploration in Western Australia and Tasmania www.greatlandgold.com • Hidefield Gold plc Gold exploration in North and South America www.hidefield.co.uk • India Star Energy plc Oil and gas investments • Kefi Minerals plc Mineral exploration in Bulgaria and Turkey www.kefi-minerals.com • Lotus Resources plc Gold, silver and copper in China • Myhome International plc Domestic services franchiser www.myhomeplc.com • Oracle Coalfields plc Coal mining in Pakistan www.oraclecoalfields.com • Red Rock Resources plc Iron ore and manganese exploration in Australia and Zambia; uranium exploration in Malawi www.rrrplc.com • Regency Mines plc Copper & nickel exploration in Australia and Papua New Guinea www.regency-mines.com • Sheba Exploration (UK) plc Gold exploration in Ethiopia www.shebagold.com • St Helens Capital plc Corporate finance advisor www.sthelenscapital.com • Sunrise Diamonds plc Diamond exploration in Finland www.sunrisediamonds.com Copies of the interim report, which is being posted to shareholders, areavailable free of charge by application in writing to the Company Secretary atthe Company's registered office, 123 Goldsworth Road, Woking, GU21 6LR, byemail to email@starvest.co.uk or from the Company's website atwww.starvest.co.uk. Enquiries to: Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director 01483 771992; john@starvest.co.uk Gerry Beaney or Colin Aaronson, Grant Thornton Corporate Finance 020 7383 5100 12 July 2007 End This information is provided by RNS The company news service from the London Stock Exchange