TIDMSVE
25 April 2013
Starvest Plc
Half-year report - six months ended 31 March 2013
Chairman's statement
I am pleased to provide a half year update, although I am more than a
little disappointed with the result.
On 2 April we announced that the steady decline in the Company's net
asset value since early 2011 culminating in a fall of 18% between 30
September and 31 December 2012 had been reversed in the quarter to 31
March 2013 when the value closed at GBP3.05m, a modest improvement of 2%
during the quarter. Not only was the scale of the improvement very
disappointing, but the decline has resumed so that as at the close of
business on 19 April, the value had fallen further to GBP2.53m a total
of 16% since 31 December 2012.
Why, you may ask should this be against the background of recent major
stock market rises? It is clear to us that private investors, the
traditional supporters and providers of capital to small mineral
exploration companies, have taken fright and are no longer supporting
the industry as they once did. As a result a number of the companies we
have supported and many others are running short of funds and as a
consequence have no option but to raise necessary new funds at ever
lower prices. In short, there is a general lack of liquidity in spite
of good progress having been made by many companies in their search for
commercially viable commodities and development towards being able to
generate cash from their often not inconsiderable achievements.
In summary, during the half year:
-- Company net asset value has fallen to GBP3.05m;
-- Starvest's mid share price has fallen to 5.0 pence;
-- Closing net asset value of 8.23 pence per share;
-- Mid share price on 31 March 2013 had a discount to net asset value of
39%;
-- There were no investment sales during the period; and
-- There was one acquisition only, namely a small addition to the investment
in Rare Earths and Metals plc.
All valuations are based on the closing market bid prices or lower
directors' valuation as described in the 2012 annual report.
What of the future? We remain of the view that the hunger of the
developing world for commodities shows no sign of abating. On the
contrary, although there may be periods such as at present when there is
a slowing of demand for some commodities, the increasing urbanisation of
populations can have only a positive impact on world demand for and the
prices of these raw materials. With patience, we will see a recovery,
although it may take a while yet.
The Company is adequately funded at present with an adequate spread of
investments, Therefore, now or in the near future may present to
investors a useful opportunity for further investment in the Company.
It remains our intention to reward the patience of Shareholders with
modest dividends when circumstances permit.
The Company will next update the market immediately following 30 June
2013, or in the event of a significant change in valuation during the
quarter.
R Bruce Rowan
Chairman & Chief Executive
25 April 2013
Profit & loss account
6 months to 6 months to
31 March 31 March Year ended
2013 2012 30 September 2012
Unaudited Unaudited Audited
GBP GBP GBP
Operating income - - -
Direct costs - - -
Gross profit - - -
Administrative expenses (108,727) (113,040) (199,791)
Amounts written off trade
investments - net (563,352) (237,274) (842,703)
Operating (loss) on ordinary
activities (672,079) (350,314) (1,042,494)
Interest receivable 1,214 7,663 10,932
Interest payable - - -
(Loss) on ordinary activities
before taxation (670,864) (342,651) (1,031,562)
Tax on profit on ordinary
activities 127 89,000 284,044
(Loss) on ordinary activities
after taxation (670,737) (253,631) (747,518)
(Loss) per share - see note 3 (1.8) pence (0.6) pence (2.0) pence
Basic - - -
Fully diluted
Balance sheet
6 months 6 months
ended 31 ended 31
March March Year ended
2013 2012 30 September 2012
Unaudited Unaudited Audited
GBP GBP GBP
Current assets
Debtors 24,079 102,614 310,042
Trading investments 2,495,704 3,231,485 3,051,056
Cash at bank and in hand 347,486 1,488,275 199,036
2,867,269 4,822,374 3,560,134
Creditors - amounts falling due within one year
Other creditors (24,113) 814,614) (46,241)
Net current assets 2,843,156 4,007,760 3,513,893
Share capital and reserves
Called up share capital 394,173 394,173 394,173
Share premium account 2,118,396 2,118,396 2118,396
Profit and loss account 330,587 1,495,191 1,001,324
Equity shareholders' funds 2,843,156 4,007,760 3,513,893
Cash flow statement
6 months 6 months
ended 31 ended 31
March March Year ended
2012 2012 30 September 2012
Unaudited Unaudited Audited
GBP GBP GBP
Net cash (outflow) from operating
activities (137,064) (251,338) (781,300)
Returns on investment and servicing of
finance:
Interest receivable 1,214 7,663 10,932
Taxation recovered/(paid) 284,300 - (762,546)
Dividend paid - (183,586) (183,586)
Financing:
Issue of new shares - 22,000 22,000
Increase/(decrease) in cash in the
period 148,450 (405,261) (1,694,500)
Opening cash balance brought forward
Net debt brought forward 199,036 1,893,536 1,893,536
Closing cash balance 347,486 1,488,275 199,036
Movement on equity shareholders' funds
6 months 6 months
ended 31 ended 31
March March Year ended
2013 2012 30 September 2012
Unaudited Unaudited Audited
GBP GBP GBP
(670,737) (253,651) (747,518)
Total recognised (loss) relating to the period - 22,000 22,000
Shares issued Dividends paid - (183,586) (183,586)
(Decrease) in shareholders' funds (670,737) (415,237) (909,104)
Opening shareholders' funds 3,513,893 4,422,997 4,422,997
Closing shareholders' funds 2,843,156 4,007,760 3,513,893
Interim report notes
1. Interim report
The information relating to the six month periods to 31 March 2013 and
31 March 2012 is unaudited.
The information relating to the year ended 30 September 2012 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 2012,
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 2013.
The Company's investments at 31 March 2013 are valued at the lower of
cost or the valuation adopted at 30 September 2012 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 2013.
3. Earnings per share
6 months 6 months
ended 31 ended 31
March March Year ended
2013 2012 30 September 2012
Unaudited Unaudited Audited
GBP GBP GBP
These have been calculated on a (loss) of: (670,737) (253,651) (747,518)
The weighted average number of shares used was: 37,117,259 36,818,358 36,967,532
(1.8) (0.69)
Basic (loss) per share: pence pence (2.0) pence
The weighted average number of shares and outstanding
options used was: 40,092,259 40,492,259 37,383,926
Fully diluted (loss) per share is not calculated - - -
Investment portfolio
Starvest now holds trade investments in the companies listed below; of
these the following nine companies comprised 85% of the portfolio value
as at 31 March 2013:
Gold exploration in Turkey
-- Ariana Resources plc www.arianaresources.com
Iron ore, gold, copper and uranium exploration in
-- Beowulf Mining plc Sweden
www.beowulfmining.com
Gold exploration and mining in Egypt and Ethiopia
-- Centamin plc www.centamin.com
Gold exploration in Western Australia and Tasmania
-- Greatland Gold plc www.greatlandgold.com
Gold and copper exploration in Turkey and Saudi Arabia
-- Kefi Minerals plc www.kefi-minerals.com
Oil and gas exploration in the North Sea
-- Nordic Energy plc www.nordicenergyplc.com
Coal mining in Pakistan
-- Oracle Coalfields plc www.oraclecoalfields.com
-- Red Rock Resources plc Iron ore and manganese exploration in Greenland; gold
exploration in Kenya and Columbia with investments
in other companies
www.rrrplc.com
Copper & nickel exploration in Australia and Papua
-- Regency Mines plc New Guinea and investments in Red Rock Resources plc
, Oracle Coalfields plc and Direct Nickel Limited
www.regency-mines.com
Mineral exploration in Finland, Australia and Ireland
-- Sunrise Resources plc www.sunriseresourcesplc.com
Other direct and indirect mineral exploration companies:
Nickel, uranium & gold in Scotland, Mauritania, Sweden
-- Alba Mineral Resources plc and Ireland
www.albamineralresources.com
Investment holding company with interests in Regency
-- Equity Resources plc Mines plc and Red Rock Resources plc
Tantulum exploration in Egypt
-- Gippsland Limited www.gippslandltd.com.au
-- International Mining & Infrastructure Corporation plc Investment holding company
www.imicplc.com
Gold exploration in South America
-- Minera IRL Limited www.minera-irl.com
Other investee companies are listed in the Company's 2012 annual report
available on request as below.
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, due to be re-launched
shortly.
Copies of this interim report are available free of charge by
application in writing to the Company Secretary at the Company's
registered office, 55 Gower Street, London WC1E 6HQ, by email to
email@starvest.co.uk or from the Company's website at
www.starvest.co.uk.
Enquiries to:
-- Bruce Rowan, telephone 020 7486 3997
-- John Watkins, telephone 01483 771992, or to john@starvest.co.uk
-- Colin Aaronson or David Hignell, Grant Thornton Corporate Finance,
telephone 020 7383 5100
End
This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Starvest plc via Thomson Reuters ONE
HUG#1696294
http://www.webshareshop.com
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