Interim Results

Starvest PLC 13 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 has achieved: •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, mainly in the natural resources sector. Before a commitment is made, these are closely evaluated to ensure that they accord with the Company's medium to long term investment strategy. Extraordinary general meeting As Shareholders will be aware from previous statements, the Board has declared an 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, either for cancellation or to be held in treasury. Neither of these intentions can be fulfilled so long as the Company's profit and loss account is in deficit as it was at 31 July 2005 in the amount of £699,664; this deficit arose in the Company's original business prior to becoming an investment company in January 2002. By application to the High Court, it is possible to have the share premium account which stands at £2,026,396 reduced thus creating a situation where the deficit on the profit and loss account can be eliminated. This will enable the Board to consider the payment of a dividend rather sooner than would otherwise be the case. We expect that our Shareholders will welcome this development. To this end, the Board has called an Extraordinary General Meeting of Members to be held on Tuesday 14 March 2006. Quarterly update Those Shareholders who wish to receive electronic copies of regulatory announcements are invited to register their email address on the home page of the Company website: www.starvest.co.uk. Your Board continues to look to the future with optimism; we expect further progress in the next quarter and plan to issue the Chairman's next update during May 2006. R Bruce Rowan Chairman & Chief Executive 13 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 £,000 Operating income 203 615 628 Direct costs (5) (17) (34) -------- -------- --------- Gross profit 198 598 594 Administrative expenses (146) (132) (205) -------- -------- --------- Operating profit on ordinary activities 52 466 389 Interest payable (2) - - -------- -------- --------- Profit on ordinary activities before taxation 50 466 389 Tax on profit on ordinary activities (10) (140) (85) -------- -------- --------- Profit on ordinary activities after taxation 40 326 304 -------- -------- --------- Retained profit for the period 40 326 304 -------- -------- --------- --------- -------- -------- --------- Profit per share - see note 3 0.11 pence 0.88 pence 0.82 pence Basic 0.09 pence 0.82 pence 0.74 pence Fully 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 51 Debtors 2,289 1,134 1,578 Trading investments - see note 2 - 744 194 Cash at bank and in hand -------- -------- --------- 2,516 1,914 1,823 -------- -------- --------- Creditors - amounts falling due within one year (604) - - Bank overdraft (173) (193) (124) Other creditors -------- -------- --------- Net current assets 1,739 1,721 1,699 -------- -------- --------- Total assets less current liabilities 1,739 1,721 1,699 -------- -------- --------- Capital and reserves 372 372 372 Called up share capital 2,027 2,027 2,027 Share premium account 424 424 424 Merger reserves (1,084) (1,102) (1,124) Profit and loss account -------- -------- --------- Equity shareholders' 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 Total recognised profits relating to the period 40 326 304 -------- -------- --------- Increase in shareholders' funds 40 326 304 Opening shareholders' funds 1,699 1,395 1,395 -------- -------- --------- Closing shareholders' 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 31 January 2005 is unaudited. The information relating to the year ended 31 July 2005 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 2005 by the Group and its subsidiary undertakings, 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 2006. The Group's investments at 31 January 2006 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 2006 January 2005 31 July 2005 Unaudited Unaudited Audited £,000 £,000 £,000 These have been calculated on a profit of: 40 326 304 -------- -------- --------- The weighted average number of shares used was: 37,217,259 37,217,259 37,217,259 The weighted average number of shares and outstanding options used was: 42,792,259 39,817,259 41,178,423 -------- -------- --------- Basic profit per share: 0.11 pence 0.88 pence 0.82 pence Fully 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 in writing to the Company Secretary at the Company's registered office, 123 Goldsworth Road, Woking, GU21 6LR, by email to email@starvest.co.uk or from the Company'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

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