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Starvest PLC (SVE)

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Monday 13 February, 2006

Starvest PLC

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.




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