RNS Number:3159C
Starvest PLC
25 August 2004
STARVEST plc
Results for the year ended 31 July 2004
CHAIRMAN'S STATEMENT
*Highlights
The Board continues 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 2004 which record:
* a gross profit of #268,982, and
* an operating profit of #65,810 after all expenses.
As at 31 July 2004, the Group had
* #606,000 cash in the bank;
* net current assets and net assets of #1,394,000, an increase of 245%;
* trading investments with a mid market valuation of #6,889,000, an
increase of 512%;
* an unrealised investment trading profit of #6,095,000.
The underlying net asset value per share based on the mid market quotations as
at 31 July 2004 was 19 pence, an increase of 372% since 31 July 2003 when it was
5.1 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
The Group's current trading investments are either quoted on AIM or OFEX.
The Group will continue 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. At the year end, the Group had a
firm commitment to one new investee and was in an advanced stage of negotiation
with two others; all are expected to be quoted on OFEX.
There are a number of other opportunities in the early stages of negotiation so
that during the next twelve months we expect to exceed our broad strategy to
make six trade investments per year; in all instances, we seek a 100% return
within a year. Whilst opportunities for profitable trading are available,
resources during much of the past year have been a limiting factor.
Now that the current business model is proven, your Directors have devoted
increasing efforts to publicise the Group's achievements and future prospects,
to increase market awareness and to attract new investors.
*Funding requirement
Last year the Chairman stated that in order to finance the Group's proposed
activities, the Directors were seeking to raise additional capital through a
placing at a discount to net asset value. In the event 3,758,000 new Ordinary
shares were placed during November 2003 at a price of 5 pence per share to raise
#182,900 net of expenses; this issue represented 11.97% of the enlarged equity,
slightly more than the 10% forecast in my statement.
Given the suitable investment opportunities which the Board continue to find and
the proposals received, the Directors accepted further offers and concluded
further placings during June 2004 of 5,826,829 new Ordinary shares at a price of
10.25 pence per share to raise #587,763 net of expenses; this issue represented
15.66% of the enlarged equity. The Company welcomed in excess of 200 new
shareholders who have invested.
Under more conventional conditions, the Directors would invite existing
Shareholders to participate in fundraising by way of a rights issue or open
offer. However, to date the Directors have not done so purely on the grounds of
cost and given that those who wish to increase their holdings may do so in the
market at a price which often stands at a 50% discount to the net asset value.
It is likely that a further fundraising will be pursued before the end of 2004.
*Group changes
At the close of business on 31 July 2004 the Group's trade was transferred from
The Web Shareshop Limited to Starvest plc through which future activities will
be conducted.
The Board was pleased to welcome Tony Scutt who was appointed as a non-executive
director on 1 December 2003.
*Outlook
The Directors continue to be well satisfied with the overall achievements to
date and look forward to reporting improved results in the years ahead. The
Directors will recommend a first dividend as soon as circumstances permit. In
the meantime, they will continue the established pattern of prompt quarterly
updates throughout the coming year.
R Bruce Rowan, Chairman & Chief Executive
REVIEW OF PORTFOLIO
Starvest's trade investment portfolio at 31 July 2004 comprised:
*Agricola Resources plc (OFEX)
The worldwide shortage of platinum has led Agricola to pursue platinum
properties. On 24 February 2004 Agricola signed an option agreement with Beowulf
Gold plc to acquire its interest to explore for platinum on the Isle of Unst,
one of the Shetland Islands. Platinum was first discovered on the Island in
1920, and in 1985 the British Geological Society's exploration programme found
high and medium levels of platinum deposits in several areas. The company also
has a platinum exploration permit covering 22.5 square kilometres in Northern
Sweden. Website: www.agricolaresources.com.
*Beowulf Gold plc (OFEX)
Drawing its name from the oldest surviving epic poem of Anglo-Saxon England,
Ofex listed Beowulf Gold is primarily focussed on the exploration and
development of gold, copper, and platinum minerals in Europe. Amongst the
projects in the Beowulf portfolio are the four copper-gold prospecting and
exploration permits which cover around 100 square kilometres of the Jokkmokk
municipality region of Northern Sweden. Beowulf is considering a move to AIM,
which should occur at some point in 2004. Website: www.beowulf-gold.com.
*Black Rock Oil & Gas plc (AIM)
During early 2004, Black Rock acquired Wildlook Enterprises Pty Limited and with
it a database of oil and gas exploration projects and the services of Ivan
Burgess as managing director. 60 million new Ordinary shares were placed during
July 2004 to raise #630,000 before expenses so as to fund the current
exploration and drilling programme. The company now has a number of onshore
interests in Southern England operated by Northern Petroleum plc as well as both
offshore and onshore interests in Australia operated by third parties. Website:
www.blackrockpetroleum.com.au.
*Brazilian Diamonds Limited (AIM)
'Brazilian Diamonds holds over 185,000 hectares of prospective diamond
properties throughout the State of Minas Gerais, Brazil. The Company's portfolio
consists of numerous kimberlite targets within areas of known alluvial diamond
production. Brazilian Diamond's main objective is to explore for the source of
the alluvial diamonds in the kimberlite targets while continuing to process
prospective gravel resources for alluvial diamonds. Diamonds found in the
alluvial deposits can provide cash flow as well as useful information in the
search for the source of the diamonds in bedrock.' Taken from the company's
website at www.braziliandiamonds.com.
*Franconia Minerals Corporation (OFEX)
Alberta based Franconia Minerals has two areas of exploration acreage in
America. The first is the Birch Lake project in north-eastern Minnesota, where
an option agreement with Beaver Bay has been signed to explore for
copper-nickel, platinum group metals and zinc. Franconia's second project is a
high grade zinc target in San Francisco; this project is subject to a 60%
earn-in joint venture with Teck Cominco. Website: www.franconiaminerals.com.
*Gippsland Limited (AIM)
Gippsland is a natural resources developer that listed on AIM on 9 March 2004
using the "fast track" route, thus becoming the first Australian company to be
dual-listed on both the London and Australian Stock Exchanges. Gippsland's
latest venture is a 50% interest with the Egyptian government in two projects
there, concentrating on finding tantalum, tin and feldspar. Studies by
Gippsland's geologists have indicated that the two deposits at Abu Dabbab and
Nuweibi have a combined resource potential of 138 million tonnes of tantalum
pentoxide. Further studies undertaken show that the project at Abu Dabbab should
produce 1,000 t.p.a. of tin and 800,000 t.p.a. of feldspar. Production is
expected to commence at Abu Dabbab in 2005. Website: www.gippslandltd.com.au.
*Hidefield Gold plc (AIM)
AIM listed Hidefield (HIF) concentrates on exploring for gold in the Americas.
Hidefield's central gold exploration project is in Brazil at Cata Preta, Minas
Gerais. Hidefield has a joint venture in place with Brazilian Diamonds (see
above), who will carry much of the expenditure at Cata Preta, enabling them to
earn an 80% interest in the project, with Hidefield sharing 20%. There are
several other smaller projects in North America, where Hidefield is also
exploring for gold. Website: www.hidefield.co.uk.
*Matisse Holdings plc (AIM) Formerly Prestige Publishing
Matisse Holdings is currently a cash shell.
*Myhome International plc (OFEX)
Formerly known as Chores plc, Myhome was formed by Unilever in the late 1990's
to provide home services across the UK. Myhome has chosen to target those
households categorised as 'Cash Rich, Time Poor', being able to afford household
services whilst not worrying about the cost. There are currently 2.7 million
houses that spend around #11 billion every year on domestic help; this figure is
predicted to double over the next three years, the market for Myhome is large
and growing. The roll-out of its franchise programme is progressing
successfully. Website: www.myhomeplc.com.
*Southern African Resources plc (AIM)
Southern African Resources plans to become a substantial player in the platinum
group metal (PGM) arena in Southern Africa. The primary asset is Biz Africa 1673
(PTY) Ltd, which holds the exclusive prospecting rights on the 4600 Hectare
Leeuwkop property on the western limb of the Bushveld complex in South Africa.
Mining industry consultants, Snowden Group, have confirmed that the project has
the potential to produce over 300,000 oz of PGM per annum. The company also
holds a 52% stake in Australian exploration company Tau Mining, who own The
Molopo Farms PGM project in southern Botswana.
*St Helen's Capital plc (OFEX)
St Helen's Capital plc is an FSA regulated, corporate advisory firm. The company
specialises in advising both small and medium sized businesses on pre-IPO
fundraisings and OFEX introductions which are often accompanied by equity
raising through a private placing and/or an offer for subscription of new
shares. St Helen's is corporate advisor to Myhome International plc, recently
assisting the company with its move to OFEX. Website: www.sthelenscapital.co.uk.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 July 2004
Year ended Year ended
31 July 2004 31 July 2003
# #
Turnover 305,232 160,649
Cost of sales (36,250) -
-------- ---------
Gross profit 268,982 160,649
Administrative expenses (203,172) (119,178)
-------- ---------
Operating profit 65,810 41,471
Interest payable - (47)
-------- ---------
Profit on ordinary activities before
taxation 65,810 41,424
Tax on profit on ordinary activities 9,500 -
-------- ---------
Profit on ordinary activities after
taxation 56,310 41,424
-------- ---------
Retained profit for the year 56,310 41,424
-------- ---------
Earnings per share - basic 0.18 pence 0.15 pence
Earnings per share - diluted 0.17 pence 0.14 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.
CONSOLIDATED BALANCE SHEET
As at 31 July 2004
Year ended Year ended
31 July 2004 31 July 2003
# #
Fixed assets - 250
Tangible assets
-------- --------
Current assets 22,727 12,050
Debtors 793,857 422,500
Trade investments 606,417 176,460
Cash at bank
-------- --------
1,423,001 611,010
-------- --------
Less: (28,277) (42,510)
Creditors - amounts due within
one year -------- --------
Net current assets 1,394,724 568,500
-------- --------
Total assets less current 1,394,724 568,750
liabilities -------- --------
Share capital and reserves 372,173 276,324
Called-up share capital 2,026,396 1,352,581
Share premium account
-------- --------
Profit and loss account (1,428,255) (1,484,565)
Merger reserve 424,410 424,410
-------- --------
-------- --------
Shareholders funds - equity 1,394,724 568,750
interest -------- --------
COMPANY BALANCE SHEET
As at 31 July 2004
Year ended Year ended
31 July 2004 31 July 2003
# #
Fixed assets 435,794 1,427,573
Investments
-------- --------
Current assets 22,727 203,116
Debtors 793,857 -
Trade investments 606,417 -
Cash at bank
-------- --------
1,423,001 203,116
-------- --------
Less:Creditors - amounts due (464,071) -
within one year
-------- --------
Net current assets 958,930 203,116
-------- --------
Total assets less current 1,394,724 1,630,689
liabilities -------- --------
Share capital and reserves 372,173 276,324
Called-up share capital 2,026,396 1,352,581
Share premium account
Profit and loss account (1,003,845) 1,784
-------- --------
-------- --------
Shareholders funds - equity 1,394,724 1,630,689
interest -------- --------
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2004
Year ended Year ended
31 July 2004 31 July 2003
# #
Net cash (outflow)/inflow from operating
activities (339,707) 9,342
Servicing of finance - (47)
--------- --------
Cash (outflow)/inflow before management of
liquid resources and financing (339,707) 9,295
Management of liquid resources (559,502) 115,000
Financing - issue of Ordinary share capital 769,664 42,099
--------- --------
(Decrease)/increase in cash in the year (129,545) 166,394
--------- --------
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 2004, 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 available from the Company
Secretary at the registered office from Monday 20 September 2004:
123 Goldsworth Road, Woking, Surrey, GU21 6LR
email: mail@starvest.co.uk
END
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