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Starvest plc (SVE)

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Wednesday 28 April, 2010

Starvest plc

Half-yearly report








Starvest plc

Half-year report - six months ended 31 March 2010

Chairman's statement

I  am pleased to provide  a portfolio valuation update  as at 31 March 2010, the
interim  financial statements  for the  six months  ended on 31 March 2010 and a
commentary on the progress made during the period.

Investment performance

The   Starvest   investment   performance   since   30 September  2009 has  been
disappointing.  The key facts are as follows:
  * The Company net asset value has declined by 21% during the six months to 31
    March 2010.
  * The  closing share  price at  5.75 pence indicates  a discount  to net asset
    value of 35%.


Against this disappointment, the positives are that:
  * investment  sales have  realised £630,605  with a  gross profit of £402,330;
    and
  * the   bank   overdraft  has  been  reduced  substantially  to  approximately
    £240,000.


Given  the challenging market conditions, especially during the first quarter of
2010, this represents encouraging progress.

Starvest  uses closing  bid prices  or the  Directors' lower valuation if deemed
appropriate.

Company statistics
                         31 March 31 December 2009 30 September 2009    31 March
                             2010                                           2009

Trading portfolio          £3.53m           £4.17m            £4.72m      £4.25m
value

Company asset value        £3.19m           £3.84m            £4.02m      £3.62m
net of debt

Net asset value -      8.85 pence      10.59 pence       10.72 pence 10.01 pence
fully diluted per
share

Share price - mid      5.75 pence        7.0 pence       11.75 pence  6.25 pence

Share price discount          35%              34%        9% premium         37%
to fully diluted net
asset value

Market capitalisation      £2.01m           £2.44m             £4.1m      £2.18m


Portfolio comment

During the half year, Starvest made a modest addition to its investment in Fundy
Minerals  Limited.  The small holding  in Beowulf Mines plc  was sold at profit,
although  the convertible loan  stock has been  retained; the holdings in Ariana
Resources plc and in Franconia Minerals Corporation were both reduced.

A  number  of  our  mineral  exploration  investee  companies  have  experienced
difficulty in raising new cash for exploration; where they have been successful,
they  have been forced to accept a  valuation well below the then current market
price   leading   to  a  fall.   Although  some  are  showing  signs  of  modest
improvements,  it is  likely to  be a  while before  the full recovery we expect
manifests itself.  We live in challenging times!

It  is understandable that  UK investors are  cautious against the background of
world  economic challenges  and political  uncertainty.  However,  there is much
evidence  to show  that the  demand for  minerals such  as iron  ore, manganese,
nickel,  platinum, gold, and uranium is as buoyant  as ever.  It is not too much
of  an exaggeration to assert that the  demands of China, India, Brazil and many
smaller   developing  countries  for  raw  materials  are  growing  rather  than
contracting,  hence upward movements in raw  material prices.  Therefore it must
only be a matter of time before this demand flows through to the share prices of
our  portfolio companies.  Starvest  and most of  its investee companies are not
dependent  on the UK  economy, rather they  stand to benefit  from the generally
surging economies of developing nations.

Within  the investment portfolio,  we have eight  investments, each of which has
the potential to transform the Starvest portfolio.  We must be patient!

Other points of note during the half year:

  * The  loss on ordinary activities before  taxation for the period amounted to
    £100,276  (2009:  loss  of  £147,841).   The  loss  includes  administrative
    expenses amounting to £90,162.  There was an investment impairment charge of
    £468,743 and amounts written back of £62,470 making a net charge of £406,273
    (2009: £NIL).
  * Basic  loss of  0.29 pence per  share (2009:  loss of  4.2 pence per share);
    fully  diluted loss  of 0.25 pence  per share  (2009: loss  of 3.6 pence per
    share)


R Bruce Rowan
Chairman & Chief Executive
28 April 2010

Profit & loss account

                             6 months to 31    6 months to 31        Year  ended
                                  March 2010        March 2009      30 September
                                                                            2009

                                   Unaudited         Unaudited           Audited
                                           £                 £                 £


Operating income                     630,605                 -                 -


Direct costs                       (228,275)                 -                 -

                         -------------------------------------------------------
Gross profit                         402,330                 -                 -


Administrative expenses             (90,162)          (97,863)         (189,398)


Impairment of trade                (468,743)                 -                 -
investments                           62,470                 -           295,884
Amounts written back to
trade investments

                         -------------------------------------------------------
Operating (loss)/profit             (94,105)          (97,863)           106,486
on ordinary activities


Interest receivable                    3,682            15,274            29,933
Interest payable                     (9,853)          (65,253)          (91,727)

                         -------------------------------------------------------
(Loss)/profit on ordinary          (100,276)         (147,842)            44,692
activities before
taxation


Tax on profit on ordinary                  -                 -           (8,600)
activities

                         -------------------------------------------------------
(Loss)/profit on ordinary          (100,276)         (147,842)            36,092
activities after taxation
                         -------------------------------------------------------


(Loss)/earnings per share
- see note 3                    (0.29) pence        (0.42) pence       0.1 pence
Basic                           (0.25) pence        (0.36) pence       0.1 pence
Fully diluted

                         -------------------------------------------------------

Balance sheet
                            6 months ended  6 months ended 31        Year  ended
                             31 March 2010          March 2009      30 September
                                                                            2009

                                 Unaudited           Unaudited           Audited
                                         £                   £                 £

Current assets
Debtors                             19,081           1,147,178            34,720
Trading  investments -           2,619,453           2,809,786         3,215,671
see note 2                               -                   -                 -
Cash  at  bank  and in
hand

                        --------------------------------------------------------
                                 2,638,534           3,956,964         3,250,391


Creditors - amounts
falling due within one
year                             (340,188)         (1,742,276)         (851,769)
Other creditors

                        --------------------------------------------------------
Net current assets               2,298,346           2,214,688         2,398,622

                        --------------------------------------------------------
Total assets less                2,298,346           2,214,688         2,398,622
current liabilities

                        --------------------------------------------------------
Capital and reserves
Called     up    share             372,173             372,173           372,173
capital                          2,026,396           2,026,396         2,026,396
Share premium account            (100,223)           (183,881)                53
Profit     and    loss
account

                        --------------------------------------------------------
Equity   shareholders'           2,298,346           2,214,688         2,398,622
funds

                        --------------------------------------------------------

Cash flow statement

                               6 months ended    6 months ended       Year ended
                                31 March 2010     31 March 2009     30 September
                                                                            2009

                                    Unaudited         Unaudited          Audited
                                            £                 £                £



Net cash inflow/(outflow)             513,713          (58,482)        (244,420)
from operating activities

Returns on investment and
servicing of finance:

Interest receivable                     3,682            15,274           29,933
Interest payable                      (9,853)          (65,253)         (91,727)

                             ---------------------------------------------------
                                      (6,171)          (49,979)         (61,794)
                             ---------------------------------------------------

Taxation recovered                          -                 -        1,118,401

                             ---------------------------------------------------
                                            -                 -        1,118,401
                             ---------------------------------------------------

Increase/(decrease) in cash           507,542         (108,461)          812,187
in the period


Opening cash balance                        -                 -                -
brought forward                     (747,890)       (1,560,077)       (1,560,077
Net debt brought forward

                             ---------------------------------------------------
Closing net debt                    (240,348)       (1,668,538)        (747,890)

                             ---------------------------------------------------

Movement on equity shareholders' funds

                                6 months ended   6 months ended      Year  ended
                                 31 March 2010    31 March 2009     30 September
                                                                            2009

                                     Unaudited        Unaudited          Audited
                                             £                £                £



Total recognised                     (100,276)        (147,842)           36,092
(loss)/profits relating to
the period

                             ---------------------------------------------------
(Decrease)/increase in               (100,276)        (147,842)           36,092
shareholders' funds
Opening shareholders'                2,398,622        2,362,530        2,362,530
 funds

                             ---------------------------------------------------
Closing shareholders' funds          2,298,346        2,214,688        2,398,622

                             ---------------------------------------------------

Interim report notes

 1. Interim report

The  information relating to the six month periods to 31 March 2009 and 31 March
2010 is unaudited.

The  information relating to the year  ended 30 September 2009 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  by  the  Company  in  accordance  with UK GAAP for the statutory
accounts for the year ended 30 September 2009, although the information does not
constitute statutory accounts within the meaning of section 435 of the Companies
Act 2006.

The Company will report again for the full year to 30 September 2010.

The  Company's investments at 31 March  2010 are valued at the  lower of cost or
the  valuation adopted at 30 September 2009 or the current market value based on
bid  prices  at  the  close  of  business.   The Chairman's statement includes a
valuation based on bid prices at 31 March 2010.

 3. Earnings per share

                        6 months ended 31  6 months ended 31         Year  ended
                                March 2010         March 2009  30 September 2009

                                 Unaudited          Unaudited            Audited
                                         £                  £                  £



  These have been                (100,276)          (147,842)             36,092
  calculated on a
  (loss)/profit of:
                       ---------------------------------------------------------

  The weighted average          34,917,259         34,917,259         34,917,259
  number of shares used
  was:
                       ---------------------------------------------------------

  Basic (loss)/profit         (0.29) pence        (4.2) pence          0.1 pence
  per share:

                       ---------------------------------------------------------

  The weighted average          40,492,259         40,492,259         40,492,259
  number of shares and
  outstanding options
  used was:
                       ---------------------------------------------------------

  Fully diluted               (0.25) pence       (0.36) pence          0.1 pence
  (loss)/profit per
  share:

                       ---------------------------------------------------------


Investment portfolio

Starvest now holds trade investments in the following companies:

  * Alba Mineral Resources plc             Nickel, uranium & gold in Scotland,
                                           Mauritania, Sweden and Ireland

                                           www.albamineralresources.com
                                           <

http://www.albamineralresources.com/
                                           >

  * Agricola Resources plc                 Gold exploration in Morocca

                                           www.agricolaresources.com
                                           <

http://www.agricolaresources.com/>

  * Ariana Resources plc                   Gold exploration in Turkey

                                           www.arianaresources.com
                                           <

http://www.arianaresources.com/>

  * Belmore Resources (Holdings) plc       Zinc exploration in Ireland

                                           www.belmoreresources.com
                                           <

http://www.belmoreresources.com/>

  * Beowulf Mining plc                     Iron ore, gold, copper and uranium
                                           exploration in Sweden

                                           www.beowulfmining.com
                                           <

http://www.beowulfmining.com/>

  * Brazilian Diamonds Limited             Diamond exploration in Brazil

                                           www.braziliandiamonds.com
                                           <

http://www.braziliandiamonds.com/>

  * CAP Energy plc                         Oil & gas production in North America

                                           www.capenergy.co.uk
                                           <

http://www.capenergy.co.uk/>

  * Carpathian Resources Limited           Oil and gas exploration in Central
                                           Europe

                                           www.carpathian.com.au
                                           <

http://www.carpathian.com.au/>

  * Concorde Oil & Gas plc                 Operational oil and gas projects in
                                           the Russian Federation

  * Chalkwell Investments plc, formerly    Investment holding company
    The Core Business plc
                                           www.chalkwellinvestmentsplc.co.uk
                                           <

http://www.chalkwellinvestmentsplc.c
                                           o.uk/>

  * Equity Resources plc                   Investment holding company

  * Franconia Minerals Corporation         North American minerals

                                           www.franconiaminerals.com
                                           <

http://www.franconiaminerals.com/>

  * Fundy Minerals Limited                 Base metal exploration in Canada

                                           www.fundyminerals.com
                                           <

http://www.fundyminerals.com/>

  * Gippsland Limited                      Tantulum exploration in Egypt

                                           www.gippslandltd.com.au
                                           <

http://www.gippslandltd.com.au/>

  * Goliath Resources Inc.                 Copper, gold & molybdenum in Canada
                                           and Zambia

                                           www.goliathresources.com
                                           <

http://www.goliathresources.com/>

  * Greatland Gold plc                     Gold exploration in Western Australia
                                           and Tasmania

                                           www.greatlandgold.com
                                           <

http://www.greatlandgold.com/>

  * Guild Acquisitions plc                 Investment holding company

  * India Star Energy plc                  Investment holding company

                                           www.indiastarenergy.co.uk
                                           <

http://www.indiastarenergy.co.uk/>

  * Kefi Minerals plc                      Mineral exploration in Turkey

                                           www.kefi-minerals.com
                                           <

http://www.kefi-minerals.com/>

  * Lisungwe plc                           Pyrite and other minerals in Malawi

                                           www.lisungwe.com
                                           <

http://www.lisungwe.com/>

  * Lotus Resources plc                    Fluorspar and other mineral
                                           exploration in Mongolia

                                           www.lotus-resources.com
                                           <

http://www.lotus-resources.com/>

  * Marechale Capital plc, formerly St     Investment banking
    Helen's Capital plc
                                           www.marechalecapital.com
                                           <

http://www.marechalecapital.com/>

  * Minera IRL Limited, formerly Hidefield Gold exploration in North and South
    Gold plc                               America

                                           www.hidefield.co.uk
                                           <

http://www.hidefield.co.uk/>

  * Oracle Coalfields plc                  Coal mining in Pakistan

                                           www.oraclecoalfields.com
                                           <

http://www.oraclecoalfields.com/>

  * Red Rock Resources plc                 Iron ore and manganese exploration in
                                           Australia and Zambia; uranium
                                           exploration in Malawi

                                           www.rrrplc.com
                                           <

http://www.rrrplc.com/>

  * Regency Mines plc                      Copper & nickel exploration in
                                           Australia and Papua New Guinea

                                           www.regency-mines.com
                                           <

http://www.regency-mines.com/>

  * Sheba Exploration (UK) plc             Gold exploration in Ethiopia

                                           www.shebagold.com
                                           <

http://www.shebagold.com/>

  * Sunrise Diamonds plc                   Diamond exploration in Finland

                                           www.sunrisediamonds.com
                                           <

http://www.sunrisediamonds.com/>

  * Treslow Limited                        Copper & nickel in Ontario, Canada

  * Woburn Energy plc, formerly Black Rock Oil & gas in the North Sea and
    Oil & Gas plc                          Columbia

                                           www.woburnenergy.com
                                           <

http://www.woburnenergy.com/>




Shareholders  and others who wish to  receive electronic copies of announcements
are  invited to  register their  email address  on the  home page of the Company
website: www.starvest.co.uk <

http://www.starvest.co.uk/>.

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
<mailto:email@starvest.co.uk>    or    from    the    Company's    website    at
www.starvest.co.uk <

http://www.starvest.co.uk/>.

Enquiries to:
  * Bruce Rowan, telephone 020 7486 3997
  * John Watkins, telephone 01483 771992, or to john@starvest.co.uk
    <mailto:john@starvest.co.uk>
  * Gerry Beaney or Colin Aaronson, Grant Thornton Corporate Finance, telephone
    020 7383 5100

End


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