Final Results

Starvest PLC 25 August 2004 STARVEST plc Results for the year ended 31 July 2004 CHAIRMAN'S STATEMENT •Highlights The Board continues to pursue the chosen investment policy which shows every sign of generating exciting results in the future as it has in the past twelve months to 31 July 2004 which record: • a gross profit of £268,982, and • an operating profit of £65,810 after all expenses. As at 31 July 2004, the Group had • £606,000 cash in the bank; • net current assets and net assets of £1,394,000, an increase of 245%; • trading investments with a mid market valuation of £6,889,000, an increase of 512%; • an unrealised investment trading profit of £6,095,000. The underlying net asset value per share based on the mid market quotations as at 31 July 2004 was 19 pence, an increase of 372% since 31 July 2003 when it was 5.1 pence. These values are stated on a fully diluted basis but before tax on unrealised profits. No dividend is proposed for the year. •Review of business and current activities The Group's current trading investments are either quoted on AIM or OFEX. The Group will continue to seek opportunities to invest in small company new issues and support pre-IPO opportunities so as to enhance Shareholder value and to make disposals as market conditions permit. At the year end, the Group had a firm commitment to one new investee and was in an advanced stage of negotiation with two others; all are expected to be quoted on OFEX. There are a number of other opportunities in the early stages of negotiation so that during the next twelve months we expect to exceed our broad strategy to make six trade investments per year; in all instances, we seek a 100% return within a year. Whilst opportunities for profitable trading are available, resources during much of the past year have been a limiting factor. Now that the current business model is proven, your Directors have devoted increasing efforts to publicise the Group's achievements and future prospects, to increase market awareness and to attract new investors. •Funding requirement Last year the Chairman stated that in order to finance the Group's proposed activities, the Directors were seeking to raise additional capital through a placing at a discount to net asset value. In the event 3,758,000 new Ordinary shares were placed during November 2003 at a price of 5 pence per share to raise £182,900 net of expenses; this issue represented 11.97% of the enlarged equity, slightly more than the 10% forecast in my statement. Given the suitable investment opportunities which the Board continue to find and the proposals received, the Directors accepted further offers and concluded further placings during June 2004 of 5,826,829 new Ordinary shares at a price of 10.25 pence per share to raise £587,763 net of expenses; this issue represented 15.66% of the enlarged equity. The Company welcomed in excess of 200 new shareholders who have invested. Under more conventional conditions, the Directors would invite existing Shareholders to participate in fundraising by way of a rights issue or open offer. However, to date the Directors have not done so purely on the grounds of cost and given that those who wish to increase their holdings may do so in the market at a price which often stands at a 50% discount to the net asset value. It is likely that a further fundraising will be pursued before the end of 2004. •Group changes At the close of business on 31 July 2004 the Group's trade was transferred from The Web Shareshop Limited to Starvest plc through which future activities will be conducted. The Board was pleased to welcome Tony Scutt who was appointed as a non-executive director on 1 December 2003. •Outlook The Directors continue to be well satisfied with the overall achievements to date and look forward to reporting improved results in the years ahead. The Directors will recommend a first dividend as soon as circumstances permit. In the meantime, they will continue the established pattern of prompt quarterly updates throughout the coming year. R Bruce Rowan, Chairman & Chief Executive REVIEW OF PORTFOLIO Starvest's trade investment portfolio at 31 July 2004 comprised: •Agricola Resources plc (OFEX) The worldwide shortage of platinum has led Agricola to pursue platinum properties. On 24 February 2004 Agricola signed an option agreement with Beowulf Gold plc to acquire its interest to explore for platinum on the Isle of Unst, one of the Shetland Islands. Platinum was first discovered on the Island in 1920, and in 1985 the British Geological Society's exploration programme found high and medium levels of platinum deposits in several areas. The company also has a platinum exploration permit covering 22.5 square kilometres in Northern Sweden. Website: www.agricolaresources.com. •Beowulf Gold plc (OFEX) Drawing its name from the oldest surviving epic poem of Anglo-Saxon England, Ofex listed Beowulf Gold is primarily focussed on the exploration and development of gold, copper, and platinum minerals in Europe. Amongst the projects in the Beowulf portfolio are the four copper-gold prospecting and exploration permits which cover around 100 square kilometres of the Jokkmokk municipality region of Northern Sweden. Beowulf is considering a move to AIM, which should occur at some point in 2004. Website: www.beowulf-gold.com. •Black Rock Oil & Gas plc (AIM) During early 2004, Black Rock acquired Wildlook Enterprises Pty Limited and with it a database of oil and gas exploration projects and the services of Ivan Burgess as managing director. 60 million new Ordinary shares were placed during July 2004 to raise £630,000 before expenses so as to fund the current exploration and drilling programme. The company now has a number of onshore interests in Southern England operated by Northern Petroleum plc as well as both offshore and onshore interests in Australia operated by third parties. Website: www.blackrockpetroleum.com.au. •Brazilian Diamonds Limited (AIM) 'Brazilian Diamonds holds over 185,000 hectares of prospective diamond properties throughout the State of Minas Gerais, Brazil. The Company's portfolio consists of numerous kimberlite targets within areas of known alluvial diamond production. Brazilian Diamond's main objective is to explore for the source of the alluvial diamonds in the kimberlite targets while continuing to process prospective gravel resources for alluvial diamonds. Diamonds found in the alluvial deposits can provide cash flow as well as useful information in the search for the source of the diamonds in bedrock.' Taken from the company's website at www.braziliandiamonds.com. •Franconia Minerals Corporation (OFEX) Alberta based Franconia Minerals has two areas of exploration acreage in America. The first is the Birch Lake project in north-eastern Minnesota, where an option agreement with Beaver Bay has been signed to explore for copper-nickel, platinum group metals and zinc. Franconia's second project is a high grade zinc target in San Francisco; this project is subject to a 60% earn-in joint venture with Teck Cominco. Website: www.franconiaminerals.com. •Gippsland Limited (AIM) Gippsland is a natural resources developer that listed on AIM on 9 March 2004 using the 'fast track' route, thus becoming the first Australian company to be dual-listed on both the London and Australian Stock Exchanges. Gippsland's latest venture is a 50% interest with the Egyptian government in two projects there, concentrating on finding tantalum, tin and feldspar. Studies by Gippsland's geologists have indicated that the two deposits at Abu Dabbab and Nuweibi have a combined resource potential of 138 million tonnes of tantalum pentoxide. Further studies undertaken show that the project at Abu Dabbab should produce 1,000 t.p.a. of tin and 800,000 t.p.a. of feldspar. Production is expected to commence at Abu Dabbab in 2005. Website: www.gippslandltd.com.au. •Hidefield Gold plc (AIM) AIM listed Hidefield (HIF) concentrates on exploring for gold in the Americas. Hidefield's central gold exploration project is in Brazil at Cata Preta, Minas Gerais. Hidefield has a joint venture in place with Brazilian Diamonds (see above), who will carry much of the expenditure at Cata Preta, enabling them to earn an 80% interest in the project, with Hidefield sharing 20%. There are several other smaller projects in North America, where Hidefield is also exploring for gold. Website: www.hidefield.co.uk. •Matisse Holdings plc (AIM) Formerly Prestige Publishing Matisse Holdings is currently a cash shell. •Myhome International plc (OFEX) Formerly known as Chores plc, Myhome was formed by Unilever in the late 1990's to provide home services across the UK. Myhome has chosen to target those households categorised as 'Cash Rich, Time Poor', being able to afford household services whilst not worrying about the cost. There are currently 2.7 million houses that spend around £11 billion every year on domestic help; this figure is predicted to double over the next three years, the market for Myhome is large and growing. The roll-out of its franchise programme is progressing successfully. Website: www.myhomeplc.com. •Southern African Resources plc (AIM) Southern African Resources plans to become a substantial player in the platinum group metal (PGM) arena in Southern Africa. The primary asset is Biz Africa 1673 (PTY) Ltd, which holds the exclusive prospecting rights on the 4600 Hectare Leeuwkop property on the western limb of the Bushveld complex in South Africa. Mining industry consultants, Snowden Group, have confirmed that the project has the potential to produce over 300,000 oz of PGM per annum. The company also holds a 52% stake in Australian exploration company Tau Mining, who own The Molopo Farms PGM project in southern Botswana. •St Helen's Capital plc (OFEX) St Helen's Capital plc is an FSA regulated, corporate advisory firm. The company specialises in advising both small and medium sized businesses on pre-IPO fundraisings and OFEX introductions which are often accompanied by equity raising through a private placing and/or an offer for subscription of new shares. St Helen's is corporate advisor to Myhome International plc, recently assisting the company with its move to OFEX. Website: www.sthelenscapital.co.uk. CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 31 July 2004 Year ended Year ended 31 July 2004 31 July 2003 £ £ Turnover 305,232 160,649 Cost of sales (36,250) - -------- --------- Gross profit 268,982 160,649 Administrative expenses (203,172) (119,178) -------- --------- Operating profit 65,810 41,471 Interest payable - (47) -------- --------- Profit on ordinary activities before taxation 65,810 41,424 Tax on profit on ordinary activities 9,500 - -------- --------- Profit on ordinary activities after taxation 56,310 41,424 -------- --------- Retained profit for the year 56,310 41,424 -------- --------- Earnings per share - basic 0.18 pence 0.15 pence Earnings per share - diluted 0.17 pence 0.14 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. CONSOLIDATED BALANCE SHEET As at 31 July 2004 Year ended Year ended 31 July 2004 31 July 2003 £ £ Fixed assets - 250 Tangible assets -------- -------- Current assets 22,727 12,050 Debtors 793,857 422,500 Trade investments 606,417 176,460 Cash at bank -------- -------- 1,423,001 611,010 -------- -------- Less: (28,277) (42,510) Creditors - amounts due within one year -------- -------- Net current assets 1,394,724 568,500 -------- -------- Total assets less current 1,394,724 568,750 liabilities -------- -------- Share capital and reserves 372,173 276,324 Called-up share capital 2,026,396 1,352,581 Share premium account -------- -------- Profit and loss account (1,428,255) (1,484,565) Merger reserve 424,410 424,410 -------- -------- -------- -------- Shareholders funds - equity 1,394,724 568,750 interest -------- -------- COMPANY BALANCE SHEET As at 31 July 2004 Year ended Year ended 31 July 2004 31 July 2003 £ £ Fixed assets 435,794 1,427,573 Investments -------- -------- Current assets 22,727 203,116 Debtors 793,857 - Trade investments 606,417 - Cash at bank -------- -------- 1,423,001 203,116 -------- -------- Less:Creditors - amounts due (464,071) - within one year -------- -------- Net current assets 958,930 203,116 -------- -------- Total assets less current 1,394,724 1,630,689 liabilities -------- -------- Share capital and reserves 372,173 276,324 Called-up share capital 2,026,396 1,352,581 Share premium account Profit and loss account (1,003,845) 1,784 -------- -------- -------- -------- Shareholders funds - equity 1,394,724 1,630,689 interest -------- -------- CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 July 2004 Year ended Year ended 31 July 2004 31 July 2003 £ £ Net cash (outflow)/inflow from operating activities (339,707) 9,342 Servicing of finance - (47) --------- -------- Cash (outflow)/inflow before management of liquid resources and financing (339,707) 9,295 Management of liquid resources (559,502) 115,000 Financing - issue of Ordinary share capital 769,664 42,099 --------- -------- (Decrease)/increase in cash in the year (129,545) 166,394 --------- -------- The financial information set out above does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The balance sheets at 31 July 2004, the consolidated profit and loss account, and the consolidated cash flow statement for the year then ended have been extracted from the Group's statutory financial statements upon which the auditors' opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985. Copies of the report and financial statements will be available from the Company Secretary at the registered office from Monday 20 September 2004: 123 Goldsworth Road, Woking, Surrey, GU21 6LR email: mail@starvest.co.uk END This information is provided by RNS The company news service from the London Stock Exchange

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