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Starvest PLC (SVE)

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Wednesday 24 August, 2005

Starvest PLC

Final Results

Starvest PLC
24 August 2005


RNS announcement for release Wednesday 24 August 2005


Results for the year ended 31 July 2005
Chairman's Statement to Shareholders


I am pleased to present my fourth annual statement to Shareholders for the year
ended 31 July 2005.

Highlights

Your Directors continue 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 2005 which record:
     
•    a gross profit of £594,219,

•    a profit before tax of £389,181, and

•    a profit after tax of £304,181.

As at 31 July 2005, the Group had:

•    £193,693 cash in the bank;

•    net current assets and net assets of £1,698,905, an increase of 22%
     during the year;

•    trading investments with a mid market valuation of £6,500,000, a fall
     of 5.65%;

•    unrealised investment profits of £4,891,000.

The underlying net asset value per share based on the mid market quotations as
at 31 July 2005 was 16.9 pence, a reduction since 31 July 2004 when it was 19
pence.  However, by the close of business on 19 August 2005, this had recovered
to 18.69 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

Your Company has 90% by value of its current investments in the natural resource
sector where declining sentiment has been a feature of the market and therefore
of share prices during the past few months.   Therefore, it is not surprising to
find that the net asset value has fallen since the high point at the end of
January 2005.

This situation presents both challenges and opportunities.  Notwithstanding the
market conditions, your Board remains of the opinion that the natural resources
sector holds considerable promise for exciting growth in the medium term.  Much
is written about the insatiable demand of China for access to natural resources;
we believe that the population explosion in India, leading to increased economic
growth, will significantly increase its demands too.

The fact that your Company was able to take profits at a high point and so hold
£744,000 of cash at 31 January 2005 has enabled us to acquire three new
investments at attractive prices as well as add to two others during the past
six months.

Your company now holds a spread of eighteen investments of which eleven are
quoted on AIM, six are quoted on OFEX and one which joined OFEX during August.
In addition, we are committed to a further opportunity which is expected to be
quoted on OFEX during September 2005.

Your Company now has board representation on four investee companies:  Tony
Scutt is a non executive director of Agricola Resources plc and of Beowulf
Mining plc; John Watkins is a non executive director of Red Rock Resources plc
and of Regency Mines plc.

The Company continues 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.

Funding requirement

In my 2004 Annual Report, I indicated that a further fundraising was possible by
the end of 2004.  In the event, we were able to raise cash to finance new
investment opportunities by taking a very acceptable profit on investments, thus
avoiding the necessity of raising new money at a substantial discount to the net
asset value.  Future funding requirements will be met from investment sales and
other opportunities which may arise.

Outlook

Given the increased spread of investments, the Directors look forward with
optimism to reporting increased asset values in the year ahead given the
exciting opportunities which continue to be open to us.  We have made an
encouraging start with a 10% increase in net asset value by the close of
business on 19 August 2005.

We look forward to reporting further progress in mid November when we plan to
issue the next Chairman's update.

We will recommend a first dividend as soon as circumstances permit.

We plan to hold our annual general meeting on Tuesday 11 October when we look
forward to meeting those able to attend.



R Bruce Rowan
Chairman & Chief Executive

24 August 2005

Telephone:  020 7486 3997



Review of portfolio

Starvest's trade investment portfolio at 31 July 2005 comprised:



African Platinum plc ('Afplats') - (AIM: APP), formerly, Southern African
Resources plc

Website:  www.afplats.com

The progress of Afplats towards establishing itself as a major platinum group
metal (PGM) resource company in Southern Africa has continued, with a
significant broadening of its international institutional investor base.  A
successful £15.5m North American placement at 30p in late 2004 will finance the
bankable feasibility study on its PGM +Gold (4E) mine project on the flagship
Leeuwkop prospect on the Bushveld complex in South Africa.

A three-dimensional survey on the Leeuwkop prospect was completed in April with
final data interpretation due for completion by end 2005; initial results having
confirmed the company's geological model.  Updated resource numbers show 50m
ounces of 4E, with 8m ounces indicated and 42m inferred.  Further prospecting
rights granted could result in a resource base of over 100m ounces of 4E in its
greater Leeuwkop development plan.

A secondary listing is expected this year on the American Stock Exchange.



Agricola Resources plc - (OFEX: AGC)

Website: www.agricolaresources.com

Agricola has broadened its base by acquiring two uranium exploration areas over
153 sq km of Finland.  The first consists of ten claims in Eastern Finland,
including the only previously operated uranium mine in Finland which produced 30
tonnes of uranium in yellowcake (solid uranium oxide) during a test mining
operation in 1960-61; the second comprises seven claims in northern Finland.

Agricola has been encouraged by advice received from the Geological Survey of
Finland and radon survey results; further radon testing is planned before
drilling later in 2005.  The Finnish Government plans to build a fifth nuclear
power plant so demand is expected to grow; until now all its uranium
requirements have been imported.

Agricola's interests in platinum exploration and development are confined to the
island of Unst in the Shetland and to the Klappsjo area of Central Sweden.



Belmore Resources (Holdings) plc - (OFEX: BEL)

Belmore was successfully admitted to OFEX in March 2005, enjoying a 30%
over-subscription.  A net 320,000 Euros was raised at 5p per share to finance
its programme of exploration drilling in County Clare, as well as desk studies
and fieldwork on its other licences in the Republic of Ireland and Northern
Ireland.  A further placing was made in June at 5.75p for working capital
purposes.  Belmore's principal County Clare project targets zinc where it has a
50% interest in eight prospecting licences covering 330 sq. km.



Beowulf Mining plc - (AIM: BEM)

Website: www.beowulfmining.com

Beowulf graduated from OFEX to AIM in May 2005 and remains focused on
exploration for world-class copper, gold and uranium deposits in Northern Sweden
encouraged by the county's favourable fiscal climate for incoming mining and
exploration companies.  Beowulf's interests include Jokkmokk where a world-class
drill intersection was obtained on the Majves 1 exploration permit.  Most of the
initial exploration was undertaken by Phelps Dodge Exploration Sweden; they have
recently withdrawn for undisclosed reasons, but Beowulf will continue alone or
seek another partner.  In addition, Beowulf has: Grundtrask, with mineral rights
over 43 sq. km; Ballek with two exploration permits over 78 sq km issued in May
2005 where uranium rich boulders have been discovered and Gold Fields
Exploration has a right of first refusal which it is hoped will lead to a joint
venture; Ussalahti with three exploration permits seen as prospective for
massive sulphide copper and gold deposits.


Review of portfolio, continued

Black Rock Oil & Gas plc - (AIM: BLR)

Website: www.blackrockpetroleum.com.au

This oil and gas exploration company has a broad range of exploration interests
including four licences in Southern England, one in Jordan and minor interests
in Western Australia.  In addition, it has a licence in Colombia where it has
farm-in terms with Kappa Energy, a privately-owned company with bases in Bogota
and Calgary, from which it has taken 50% of the Las Quinchas licence in the
Middle Magdalena Basin, a province with a prolific production history.

Black Rock has indicated that it is seeking further deals to expand its
interests outside the UK and Ireland, with the emphasis on near-term production
and low-risk exploration.  In May it raised £880,000 at 1.4p per share for such
future deals.  Black Rock will come to attention if the Sandhills project on the
Isle of Wight, in which it holds a 5% interest, meets with drilling success
early in 2006.  Before then drilling results on its 40% interest gas well in the
Southern North Sea are expected.



Brazilian Diamonds Limited - (AIM: BDY)

Website: www.braziliandiamonds.com

Brazilian Diamonds is starting to benefit from the diamond exploration data
bases acquired in cash and shares from De Beers, which is now a 3% shareholder.
This deal was funded by an earlier £1.8 million placing of shares and by the
disposal of a 16% interest it held in Hidefield.  As a result, Brazilian
Diamonds expects to start mining diamonds in 2006 from its 200,000 hectares in
Minas Gerias, a province south of Brasilia.  Other projects may also soon be
productive: its Canastra licences await clearance from the Federal Environment
Agency; drilling on its Tuscano 1 project has successfully intercepted
kimberlite; two further projects on the Santo Antonio de Bonito River north of
Canastra could yet yield a large-scale alluvial diamond mine, the kimberlite
source of which Brazilian Diamonds may have located separately.  Brazilian
Diamonds seems to have a realistic chance of becoming Brazil's first kimberlite
diamond producer.



Carpathian Resources Limited - (AIM: CPNR and Sydney ASX)

Carpathian Resources, based in Perth, Western Australia, is an oil and gas
exploration and production company focusing on Central Europe, currently on the
Czech Republic and Slovakia.  It has recently carried out a re-mapping and
re-evaluation of its Ja11 prospect (Unigeo operator) following re-processing of
its related seismic data and announced the results as 'extremely encouraging'.
The well, in which Carpathian holds 60%, is now targeting a gas prospect with
the potential to hold up to 6.5 BCF of gas.  Drilling of Ja11 should be
completed by mid-September and with the well only 1.5 km from the 2004 Ja3a gas
discovery, the results will be important for the Company.



Franconia Minerals Corporation - (OFEX: FRA and Toronto TSV-V)

Website: www.franconiaminerals.com

Alberta based Franconia Minerals has three areas of exploration acreage in the
USA: the first is the Birch Lake property in the Duluth Complex of Minnesota
with an inferred platinum-group metal, copper, nickel resource of an estimated
51 million tones; the second is the San Francisco property, a high-grade zinc
exploration target covered by a joint venture agreement with Teck Cominco, and
with a successful limited previous drilling history; and the third is the
Mahoney property, a high-grade zinc target in New Mexico, with
platinum-palladium targets in the Duluth Complex of  Minnesota.

Franconia recently reported positive pressure leaching results undertaken on the
Birch Lake property, which Franconia's President described as strengthening
their belief in the potential economic viability of the project.




Review of portfolio, continued

Gippsland Limited - (AIM: GIP and Sydney ASX)

Website: www.gippslandltd.com.au

Gippsland is a natural resources developer of world-scale mining projects in
Egypt and Tasmania.  These consist of the Abu Dabbab and Nuweibi tantalum, tin,
feldspar projects and the Wadi Allaqi gold, copper, nickel projects, both in
Egypt; and the Zeehan tin project in Tasmania.

The Abu Dabbab deposit is covered by exploration leases in which Gippsland has
an equal interest with the Egyptian Government.  The project has an end capital
requirement of some $65 million which is expected to be funded by a combination
of debt and equity.  The project could be the world's second largest tantalum
producer from which the anticipated 650,000 lbs production has been pre-sold for
the first 5 years.

Gippsland has 50% interests in both the Nuweibi and the Wadi Allaqi projects,
and a 40% joint venture interest in the Zeehan project with the insolvent public
company Western Metals Ltd presently in administration.  With the price of tin
having recently improved, Gippsland is considering various commercial and
technical options resolving the present impasse.



Hidefield Gold plc - (AIM: HIF)

Website: www.hidefield.co.uk

Hidefield acquires and develops gold projects of merit in North and South
America where it has a large portfolio.  Hidefield's management seeks to
maximize opportunity while reducing the considerable risks associated with
mineral exploration by identifying and acquiring projects at the lowest cost
possible and having them independently funded and managed by associate companies
in which Hidefield has a substantial interest and board representation.  Its
North American assets are managed in this manner, whereas its projects in Brazil
and Argentina are directly owned, its principal operational activities being the
Cata Preta gold project in the 'Iron Quadrangle' of Minas Gerais, Brazil.

Hidefield has been active in securing new interests in the past year; a recent
transaction was its agreement with Minera Sud Argentina SA whereby it obtained
the option to acquire a 50% participating interest in sixteen gold exploration
licences in the Santa Cruz, Chubut and Rio Negro provinces of Argentina.



India Star Energy plc - (AIM: INDY)

India Star Energy, an investment company seeking to invest in the oil, gas and
metals sectors was introduced to AIM following a placement of shares in February
2005.  It has recently acquired a 50% share in a joint venture with East West
Resources Corporation to develop uranium properties, the first being a North
West Ontario property called Maggotte where surface geophysical studies are to
be undertaken.



Matisse Holdings plc - (AIM: MAT)

Matisse is a cash shell, with the objective of investing in publishing
businesses.  It is pursuing a number of opportunities which, if completed, are
likely to be classified under AIM rules as a reverse take-over.



Myhome International plc - (OFEX: MYH)

Website: www.myhomeplc.com

Myhome, established originally by Unilever which remains a shareholder, is a
leading home services franchise business currently enjoying an impressive
expansion rate across the UK.  By careful selection and training policies,
Myhome management has ensured that its franchise partners have developed a sound
reputation for providing premium house cleaning services to the residential
market.  Currently these are limited to cleaning and carpet care, but could be
extended to gardening services, lawn and pool care, home security etc.  Thirty
new franchises a year has been set as an internal target.  Myhome's franchise
programme has been accredited by the British Franchise Association.




Review of portfolio, continued

The valuable experience gained in converting its localized direct services into
franchise operations UK wide has led Myhome to promote Franchise Investment
Strategies plc - (OFEX: FIN), a consultancy venture aimed at applying its
franchising model to other lines of business.  Myhome and Starvest both hold
interests in this new venture which joined OFEX on 18 August 2005.



Red Rock Resources plc - (AIM: RRR)

Website: www.rrrplc.com

Red Rock Resources was admitted to AIM at the end of July 2005 following a
placing to raise £476,000 net of expenses.  It has been established as a mineral
exploration and development company focused on iron ore and manganese projects
in Western Australia and in Tasmania where it has acquired a total of nine
tenements of which it will be a 100% beneficiary.  Mapping, geophysics and
drilling will be carried out for further evaluation purposes.  Regency Mines plc
holds a controlling interest.



Regency Mines plc - (AIM: RGM)

Website: www.regency-mines.com

Regency Mines was admitted to AIM in February 2005 following a successful offer
that was over-subscribed at a time when the market was enjoying a minor boom in
resource stock valuations.  Its objective of investing in established projects
in the mining and minerals sector, more especially in producing assets, and
primarily Australian-based, was soon evidenced with a flurry of acquisitions of
iron ore and gold projects in Western Australia and two iron ore projects in
Tasmania.  Regency has since spun off 28% of its subsidiary Red Rock Resources
but retains direct ownership of its Bundarra copper-gold project in Queensland
and of various nickel assets.



Sheba Exploration (UK) plc - (OFEX: SHE)

Website: www.shebagold.com

This UK registered company was incorporated in July 2004 to acquire the whole of
the capital of the Sheba Exploration Ltd, a gold explorer in Ethiopia with the
Amora Hill gold mineralization discovery in the Mereto concession to its credit.
  During September 2004 it was admitted to OFEX.

A detailed trench survey at Amora Hill has been completed with encouraging
results.  Wider regional grassroots exploration work and the acquisition of
further new licences, not just within Ethiopia, are being considered by
management as an appropriate near-term work-plan.



St Helen's Capital plc - (OFEX: STH)

Website: www.sthelenscapital.co.uk

St Helen's Capital is a dynamic and innovative integrated corporate finance
house that has rapidly established itself as a conduit for the introduction of
fledgling companies to the junior London markets.  As an FSA regulated financial
advisor and arranger of funding and financial services, St Helen's is a valuable
contributor to the surge of interest shown in the OFEX market in which it
specialises, arranging regular introductions and acting as corporate adviser to
a growing list of OFEX companies.  St Helen's saw its client Oakdene Homes plc
win the OFEX Company of the Year award, and was itself nominated for the Best
Corporate Adviser of the Year award.



Consolidated profit and loss account
for the year ended 31 July 2005
                                                                        Year ended           Year ended
                                                                      31 July 2005         31 July 2004
                                                                                 £                    £

Operating income                                                           628,019              305,232
Direct costs                                                              (33,800)             (36,250)
Gross profit                                                               594,219              268,982
Administrative expenses                                                  (205,038)            (203,172)
Profit on ordinary activities before taxation                              389,181               65,810
Tax on profit on ordinary activities                                        85,000                9,500
Profit on ordinary activities after taxation                               304,181               56,310
Retained profit for the year                                               304,181               56,310

Earnings per share - basic                                              0.82 pence           0.18 pence

Earnings per share - diluted                                            0.74 pence           0.17 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.

The accompanying accounting policies and notes form an integral part of these 
financial statements.



Consolidated balance sheet
As at 31 July 2005

                                                             31 July 2005                31 July 2004
                                                                        £                           £

Fixed assets
Tangible assets                                                         -                           -

Current assets
Debtors                                              50,538                       22,727
Trade investments                                 1,578,456                      793,857
Cash at bank                                        193,693                      606,417

                                                  1,822,687                    1,423,001

Creditors - amounts due within one                (123,782)                     (28,277)
year

Net current assets                                              1,698,905                   1,394,724

Total assets less current                                       1,698,905                   1,394,724
liabilities

Share capital and reserves
Called-up share capital                             372,173                      372,173
Share premium account                             2,026,396                    2,026,396
Profit and loss account                         (1,124,074)                  (1,428,255)
Merger reserve                                      424,410                      424,410

Equity shareholders' funds                                      1,698,905                   1,394,724


Company balance sheet
As at 31 July 2005
                                                             31 July 2005                31 July 2004
                                                                        £                           £

Fixed assets
Investments                                                       435,794                     435,794

Current assets
Debtors                                              50,538                       22,727

Trade investments                                 1,578,456                      793,857
Cash at bank                                        193,693                      606,417

                                                  1,822,687                    1,423,001

Creditors - amounts due within one                (559,576)                    (464,071)
year

Net current assets                                              1,263,111                     958,930

Total assets less current                                       1,698,905                   1,394,724
liabilities

Share capital and reserves
Called-up share capital                             372,173                      372,173
Share premium account                             2,026,396                    2,026,396
Profit and loss account                           (699,664)                  (1,003,845)

Equity shareholders' funds                                      1,698,905                   1,394,724



Consolidated cash flow statement
for the year ended 31 July 2005

                                                                     Year ended        Year ended
                                                                   31 July 2005      31 July 2004
                                                                              £                 £

Net cash outflow from operating activities                            (404,865)         (339,707)
Taxation paid                                                           (7,859)

Cash outflow before management of liquid resources                    (412,724)         (339,707)
and financing
Management of liquid resources                                                -         (559,502)
Financing - issue of Ordinary share capital                                   -           769,664

Decrease in cash in the year                                          (412,724)         (129,545)



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 2005, 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 posted to Shareholders on
12 September and be available for one month from the Company Secretary at the
registered office from Tuesday 20 September 2005.

123 Goldsworth Road, Woking, Surrey, GU21 6LR
email:  email@starvest.co.uk

Alternatively, the report may be downloaded from the Company's website,
www.starvest.co.uk.


END



                      This information is provided by RNS
            The company news service from the London Stock Exchange