TIDMSVE
RNS Number : 7525B
Starvest PLC
15 February 2022
15 February 2022
Starvest Plc ("Starvest" or "the Company")
Audited results for the year ended 30 September 2021
Chairman's Statement
I am pleased to present my annual statement to Shareholders for
the year ended 30 September 2021 and the twenty-first since the
Company was formed in 2000.
Results for the year
The continuing impact of the global pandemic and governmental
stimulus in response thereto dominated the financial news this year
for Starvest and its portfolio companies. Starvest's strategy to
steer its portfolio toward precious metal investments over recent
years has enabled the Company to position itself attractively for
the current environment. Although improved investor sentiment
boosted certain precious metal stocks and those of certain other
natural resource companies, gold prices declined 7% for the year
ended 30 September 2021. The post-pandemic global economic recovery
has remained elusive, but we continue to believe that expected
quantitative easing, which remains the favoured tool of major
economies, is likely to result in a solid foundation for precious
metals going forward.
Our investment portfolio decreased approximately 21% in the year
to 30 September 2021 to GBP14 million. However, our market
capitalisation declined by only 10% over this same period, and the
discount to net asset value narrowed by 8 percentage points, from
42% to 35% as at 31 December 2021, which is a significant
improvement for shareholders.
Greatland Gold plc (AIM:GGP), which is by far our largest
investment, remained one of our best-performing investments for a
fourth consecutive year due to its outstanding Havieron gold-copper
discovery in Australia. Havieron's initial inferred resource of
4.2Moz gold equivalent* was announced in December 2020 and the
project has continued to develop rapidly with its major partner
Newcrest Mining Ltd. The Havieron project benefited from the grant
of a mining licence over the 12 blocks, a loan facility that is
expected to fund Havieron operations through to the feasibility
stage and a pre-feasibility study that was released post-year
end**. While Greatland's share price has declined since last year,
we have significant unrealized gains and expect that continued
expansion will drive further growth at the Havieron project.
Ariana Resources completed a significant deal with Ozaltin
Holdings during the year for part of its Kizilpete project and made
the first of three dividend distributions to shareholders. Its
Cyprus assets, a joint venture with Venus Minerals, have made good
progress as well.
Cora Gold continued to de-risk its Sanankoro project as it
completed over 40,000m of drilling to convert existing inferred
resources to indicated category as well as to target resource
growth.
We believe that the long-term outlook for gold prices remains
favourable and we remain committed to our strategy.
* GGP RNS dated 10 December 2020 ** GGP RNS dated 12 October 2021
Investing policy
The Company's investing policy is set forth below and made
available on our website, www.starvest.co.uk .
Trading portfolio valuation
A brief review of the major portfolio companies follows below.
Other investee companies are listed on the websites from which
further information may be obtained.
Shareholder information
The Company's shares are traded on AIM.
Announcements made to the London Stock Exchange are available
from the Company's website, www.starvest.co.uk , where historical
reports and announcements are also available.
Callum N Baxter
Chairman and Chief Executive
15 February 2022
Investing policy statement
About us
The previous Board commenced to manage the Company as an
investment company in January 2002. Following the appointment of
Callum Baxter as Chairman in 2015, the Board has focused the
Company's investment strategy on the natural resources sector.
Collectively, the current Board has significant experience
investing in small-capitalisation new issues and pre-IPO
opportunities in the natural resources and mineral exploration
sectors.
Company objective
The Company was established as a source of early-stage finance
to fledgling businesses to maximise the capital value of the
Company and to generate benefits for Shareholders in the form of
capital growth and modest dividends.
Investing strategy
Natural resources: Whilst the Company's investment mandate is
not exclusively limited to natural resources, the Board sees this
sector as having considerable growth potential in the medium term.
Historically, investments were generally made immediately prior to
an initial public offering on AIM or Aquis (formerly NEX) as well
as in the aftermarket. As the nature of the public equity markets
has changed since 2008, it is more likely that the future
investment portfolio will include companies that have completed an
IPO but remain in the early stages of identifying or, with the
appropriate financial backing, developing a commercial
resource.
Direct Projects: The Company's strategy is to invest
predominantly through ownership of equity stakes in target
companies. However, the Company believes there may be opportunities
to take direct interests in mining projects and subsequently to
acquire equity positions in target companies on favourable terms in
exchange for these direct project interests. Those companies would
therefore become Starvest investee companies. The projects will be
operated by the investee company; Starvest does not intend to
manage any projects. The addition of the Direct Project strategy to
the Company's Investing Policy was approved by shareholders at the
Company's annual general meeting held 1 December 2017.
Investment size: Initial investments are usually not greater
than GBP100,000. Target companies invariably have an ongoing need
for additional funding to continue exploration and development.
Therefore, after appropriate due diligence, the Company may provide
further funding support and make later market purchases, so that
the total investment may exceed GBP100,000.
High risk: The business is inherently high risk and cyclical,
dependent upon fluctuations in world economic activity which
affects the demand for minerals. However, the Company affords
investors the opportunity to participate in diverse early-stage
ventures, which the Board believes will offer the potential for
significant returns for the foreseeable future.
Lack of liquidity: Shares of investee companies typically trade
in small volumes, even if they are quoted on AIM, Aquis (formerly
NEX), ASX, or TSX-V. Therefore, during the early phase following an
investment, it is rarely possible to liquidate a position at the
quoted market price so investors must remain patient until the
investee company develops and ultimately attracts greater market
interest. If and when an exploration company finds a large
exploitable resource, it typically presents greater liquidity to
patient investors as an acquisition target by a third party or as a
much larger and more actively traded independent entity.
Success rate: Of the multiple investments held at any one time,
it is expected that no more than five will prove to be 'winners';
from half of the remainder we may expect to see modest share price
improvements. Overall, we expect that over time portfolio returns
will be acceptable if not substantial. Accordingly, the Board is
unable to give any estimate of the magnitude or timing of
returns.
Profit distribution: When profits have been realised and
adequate cash is available, the Board intends to distribute up to
half the profits realised.
Other matters: The Company currently has an investment in Equity
Resources Limited, which itself is an investment company.
The Company takes no part in the active management of investee
companies, although directors of the Company have been directors on
the boards of such companies.
Review of trading portfolio
Introduction
During the year to 30 September 2021, the portfolio comprised
interests in the companies discussed below, as well as other active
companies that are not discussed herein.
The economic shock of the global pandemic continued in late 2020
and early 2021 and investors' desire for traditional safe-haven
assets boosted precious metals stocks and certain other natural
resources companies. At the same time, new alternatives such as
cryptocurrencies attracted investors seeking protection from
concerns over global instability, fiat currencies and expansive
monetary policies. In this environment, we believe our strategy to
focus on investments in gold producers will prove to be rewarding
on a risk-adjusted basis for our shareholders. However, during the
year to 30 September 2021, the value of our trading portfolio
decreased 21% due to lower market prices for major positions.
Including our cash position, our net asset value ("NAV") and NAV
per share decreased 21.4% and 21.7%, respectively, over the
12-month period to 30 September 2021. Given that Starvest's market
capitalisation decreased approximately 10%, the discount to NAV
narrowed to 34% compared to 42% a year ago.
Transactions
During the year the Company did not raise capital through
placing or subscription.
The Company disposed of its full holdings in Kincora Copper
during the year, along with a small portion of its position in
Greatland Gold.
Trading portfolio valuation
Although gold prices declined slightly (7%) year on year, this
change masked greater volatility during the 12-month period. The
Company's Net Asset Value decreased approximately 21% during the
year to 30 September 2021 to GBP14.1m and the Company made a loss
before tax of GBP3,861,014 compared with a profit of GBP15,749,105
in 2020.
However, we are pleased that the Company traded at a smaller
discount to its NAV, as the Company's market capitalisation
declined by only 10% over the year.
As part of routine operations, the Board regularly reviews its
portfolio positions and may make adjustments to its holdings to
take advantage of what it believes to be temporary weakness in
prices for precious metals. Alternatively, the Board may consider
strategic opportunities to better align the Company's stock price
with what it regards as the intrinsic value of the Company's
portfolio.
Given the availability of actual trading prices for many of our
portfolio assets, we value our holdings using closing market quotes
for the periods shown.
In addition, the Company believes it has a strong financial
position as it has no outstanding debt and is well-positioned to
benefit from further strength in the natural resources sector
through its exposure to early-stage precious metal producers. We
believe that worldwide economic growth and increasingly affluent
consumers will fuel demand for motor cars, air conditioning,
consumer goods, computers, together with materials required in
switching to 'greener' technologies and other items that require
the development and exploitation of natural resources in order both
to produce and power.
Company statistics
The Company considers the following statistics to be its Key
Performance Indicators (KPIs) and is satisfied with the results
achieved in the year given the uncertain market conditions.
30 September 30 September Change
2021 2020 %
at Closing at Closing
values values
GBP14.04 GBP17.83
* Trading portfolio value m m -21.3%
GBP14.10 GBP17.95
* Company net asset value m m -21.4%
* Net asset value per share 24.4 p 31.17 p -21.7%
* Closing share price 16.00 p 18.00 p -11.1%
8 percentage
* Share price discount to net asset value 34% 42% points
GBP10.36
* Market capitalisation GBP9.3 m m -10.2%
Since the fiscal year end, values have improved significantly.
As at the close of business on 31 December 2021 the Company's Net
Asset Value was GBP13.9m.
If a full provision for liabilities and deferred taxation at a
corporate rate of 25% effective from 6(th) April 2023 is taken into
consideration then the following is applicable;
GBP12.4
* Company net asset value m GBP15.9 m -22.0%
* Net asset value per share 21.4 p 27.6 p -22.5%
10 percentage
* Share price discount to net asset value 25% 35% points
Review of the current market
Global markets and gold prices fluctuated throughout late 2020
and 2021; with economies and governments rebalancing and adjusting
to continuing pandemic related uncertainties and changes.
The price of gold fluctuated throughout the year with a peak of
US$1,943 in January 2021 and a low of US$1,684 per troy ounce in
March 2021 but has remained at elevated prices relative to the last
decade; year on year the price is relatively flat. Copper, nickel,
lead and zinc all made gains over the year.
Overall, investors are demonstrating greater interest in the
natural resources sector, as the market looks forward to economic
growth, 'green' technology investments, and further government
stimulus via major infrastructure projects.
The current market conditions allow for measured, strategic
investment in undervalued, early-stage natural resource
projects.
Portfolio review
Our primary investments in companies include the following:
Greatland Gold plc ( www.greatlandgold.com )
Greatland Gold plc ("Greatland"), an AIM-listed exploration
company, which represents substantially the largest part of the
Company's portfolio, holds six exploration projects, four in
Western Australia and two in Tasmania. Greatland also has farm-in
and joint venture agreements in place with its major partner,
Newcrest Mining Ltd.
The company, in conjunction with Newcrest, has continued to
report excellent drilling results from the Havieron project and an
Initial Inferred Mineral Resource estimate of 52Mt @ 2.0g/t Au,
0.31% Cu or 2.5g/t AuEq for 3.4Moz Au, 160Kt Cu or 4.2Moz AuEq.
Mineralisation remains open outside of the resource shell with
potential to significantly grow the resource over time.
Greatland has also signed new agreements with Newcrest covering
a mining lease and a US$50M loan agreement to cover capital costs
of establishing early-stage development of the Havieron deposit
through to completion of the Feasibility Study. A new joint venture
agreement was also signed covering exploration of the Black Hills
and Paterson Range East licence, and the Juri JV further cemented a
strong working relationship between the two companies and provided
Greatland with funds to carry out extensive exploration campaigns
over the coming year.
Greatland also continued exploration work on its wholly owned
projects areas and added over 1,000km(2) of highly prospective
ground in the Paterson by acquiring tenements from Province
Resources.
While the company has a large market capitalisation, it does not
yet generate any cash. However, Greatland is well-funded from the
proceeds of exercised warrants and options and the availability of
the loan agreement with Newcrest.
Significant activities since year end: Greatland Gold has
released a Pre-Feasibility Study in conjunction with Newcrest
Mining on the Havieron deposit. The study forecasts low total
capex, estimated at US$397m, with Greatland's portion running to
US$73m, net of Greatland's $50m loan facility, and opex costs of
US$643/oz. The study also projects an IRR of 27%, or 16% after tax
and NPV of US$228m, with a 3-year pay back and an initial 9-year
life of mine; with only a small portion of the known mineralised
area used in the study, allowing for significant additional
information now available to be incorporated into future studies
and probable expansion of the resource and reserves. The company
has also advanced its Juri JV with Newcrest from stage 1 to stage 2
allowing up to AUD$20m to be invested in the exploration programme
across the ground. In mid-November 2021 Greatland raised GBP11.9m
in an oversubscribed placing. Greatland continues to update the
market with drill results from Havieron, showing extensive and
expanding gold- copper mineralisation and JV partner Newcrest
Mining have issued their intention to acquire an additional 5%
stake in the Havieron project.
Ariana Resources plc ( www.arianaresources.com )
Ariana Resources PLC ("Ariana") is a United Kingdom-based
company engaged in the exploration, development and mining of
epithermal gold-silver and porphyry copper-gold deposits in Turkey
and exploration in Cyprus.
During the year Ariana sold part of its interests in Zenit and
other assets in Turkey to Ozaltin Holding A.S. and Proccea
Construction Co. for US$70.75 million. While this deal reduced
Ariana's share to 23.5% it has allowed for dividend payments to
shareholders, the first of which was made on 24 September 2021,
following a lengthy capital reorganisation. A second dividend is
due in March 2022, followed by a third and final dividend currently
expected in late 2022.
Ariana's share of profits from the Kiziltepe Mine, part of Zenit
Madencilik San. ve Tic. A.S. ("Zenit"), in the six months to June
2021 amounted to GBP1.3m, compared to GBP3.0m in the first half of
calendar year 2020, due in part to the reduction in its holding
from 50% to 23.5%. Kiziltepe Mine production for the first half of
2021
totalled 7,941 ounces of gold (H1 2020: 9,808 oz Au). Ariana
expects to meet guidance for 2021 by year end following increased
mill throughput after completing an expansion of the processing
plant.
An exploration and resource drilling campaign has completed
approximately 14,000m of diamond drilling across the Kiziltepe
Sector, with excellent results received across various vein
systems.
The company expanded exploration into Eastern Europe via a 75%
holding in Western Tethyan Resources Ltd. and also began drilling
in Cyprus through the Company's interest in Venus Minerals Ltd.
Ariana's earn-in on Venus Minerals is currently 37.5%, with 50%
expected to be achieved in early Q4 2021.
The company's last available (unaudited) interim accounts show
profit before tax of GBP7.1m for the year ended 30 June 2021 (H1
2020 : GBP2.2m) and profit for the period of GBP5.0m (H1 2020 :
GBP1.9m) reflecting the profit realised on restructuring of group
activities.
Significant activities since year end include Ariana's
announcement of the final Zenit working capital loan repayment of
US$0.8m to Turkiye Finans Katilim Bankasi A.S due to be completed
in October 2021. The Tavsan gold-silver project received
Environmental Impact Assessment approval for development of the
mine and Ariana's JV partner, Zenit, can now progress with its
development programme with construction scheduled to begin
following receipt of final permits.
Ariana released drill results from its Kokkinoyia project in
Cyprus reporting gold mineralisation in all holes and identifying a
copper-gold-zinc mineral system. A JORC 2021 Maiden Resource
Estimate reports circa 12.3 Mt at 0.31 to 2.25% Cu and 0.27 to
0.57g/t Au.
Ariana completed its earn-in to 50% of Venus Minerals, announced
in November 2021. Venus have completed a binding Heads of Terms
agreement to develop the Apliki Copper Mine in Cyprus with a
leading mining company on a 50:50 basis. Venus also released a
Mineral Resource Estimate for the project with total indicated and
inferred resources of c. 11Mt Cu at a grade of 0.25 to 0.69%; with
a processing plant currently undergoing due diligence and
pre-installation checks.
Panther Metals listed on ASX in December 2021, with a market
capitalisation of A$10.9m. Ariana hold 3.2% through their Asgard
Metals Fund.
Alba Mineral Resources plc ( www.albamineralresources.com )
Alba Mineral Resource is a diversified mineral exploration
company focused on oil and gas, gold and base metals with holdings
in UK (oil and gas, gold) and Ireland (base metals).
The Company focused activities at the UK gold projects during
the year, completing drilling programmes at Clogau which have
potentially extended the length of the Main Lode target and the
depth of a vein system in the Llechfraith mine area. At Clogau
St-David's, the company sampled rock waste dumps and purchased and
installed a pilot gold processing plant. They have also extended
the mineral rights over the Dolgellau Gold Belt for a further
four-years.
The Company's UK oil and gas investments at Horse Hill remains
ongoing with works completed during the year to prepare the
operations for 24-hour production.
Base metal mineral exploration rights in Ireland were renewed
for another year with another three main target areas set for
follow-up drilling.
The Company decided during the year to spin-out its Greenland
assets, the Thule Black Sands Ilmenite Project, the Amitsoq
Graphite Project, the Melville Bay Iron Project and the Inglefield
Multi-Element Project to a separate vehicle and list it for trading
on AIM. GreenRoc Mining Plc was admitted for trading on 28
September and raised GBP5.12m at 9.9p, with a market cap on listing
of GBP11.1m. Alba is a majority shareholder with 54% of
GreenRoc.
Significant activities since year end: Alba have advised that
they were refused permits for water discharge from the Llechfraith
shaft into watercourses in the area, citing potential adverse
effects. The company are working with external consultants on
potential grounds for appeal.
Cora Gold Limited ( www.coragold.com )
The Company's exploration activities have continued in 2021 with
a +40,000m drill programme at its flagship Sanankoro project. These
activities focused on infill drilling to convert existing inferred
resources to indicated category as well as targeting resource
growth. Results to date have been consistent with generally
high-grade, good width and shallow oxide ore.
The company have also engaged consultants to update the Mineral
Resource Estimate during H2 2021 and undertake a Definitive
Feasibility Study with completion targeted for H1 2022.
Cora have continued to de-risk this project showing shallow
oxide material with potential for lower cost open pit mining,
together with positive metallurgical test work results.
In September the company also announced that it has signed a
US$25m term sheet with Lionhead Capital to finance the development
of Sanankoro on completion of a positive DFS with US$12.5m Equity
Financing and US$12.5m Convertible Financing . The term sheet
requires Cora to deliver a DFS before the end of H1 2022 with
minimum key objectives (together the 'Project Milestone')
including; 35% Internal rate of Return ('IRR') based on a US$1,500/
oz gold price; and 8 years mine life and production of 40,000
ozs/year, or equivalent production over a different time period and
delivering the minimum IRR threshold, in a US$1,700/oz gold price
pit shell. Lionhead are prepared to syndicate +30% of the Term
Sheet on the same terms with other investors.
The company raised GBP3.13m in June 2021 and reported US$5.7m in
cash in its unaudited interim report at the end of June.
Significant activities since year end: Cora released final
results from it +40,000m drill programme which confirmed a 3.4km
long mineralised ore zone in mostly shallow oxides and which
remains open in all directions. An updated mineral resource
estimate (MRE) resulted in a 200% increase in total ounces from the
2019 calculations with a pit constrained MRE of 21.9 million tonnes
at 1.15g/t Au for 809.3k oz Au and the deposit remaining open in
all directions. Cora completed a fund raise for GBP4.25m in
December 2021, with use of the funds going towards the ongoing
definitive feasibility study at Sanakoro which saw field work for
the study completed in February 2022 and full completion scheduled
for H1 2022.
Oracle Power plc ( http://www.oraclepower.co.uk )
Oracle are progressing slowly on the Thar coal mining and power
projects . The Pakistan Government stated in late 2020 that it
would not approve new coal power plants and the Chinese Government
followed suit in early September 2021 by stating it will not fund
new overseas coal projects.
Given the change in policy by both states for coal projects it
is encouraging to see that the project is still in development and
the Pakistan authorities are continuing to work with the Chinese
Government through the China-Pakistan Economic Corridor to provide
support for the project. An encouraging development is the approval
granted to expand electricity generation capacity at the site from
34,776MW to 61,112MW by 2030.
In the meantime, Oracle has changed its focus to early stage
exploration gold projects in Western Australia. The gold
exploration projects in Western Australia have been the company's
primary focus during the year, with geophysics and geochemistry
surveys carried out prior to a drilling programme beginning in
September 2021.
Significant activities since year end:In October 2021 the
company singed a non-exclusive co-operation agreement with
PowerChina International Group to jointly develop a green hydrogen
production facility in Pakistan, targeting a 400MW capacity plant.
An update in December stated that a preliminary technical study
was completed by PowerChina, establishing key technical and
commercial aspects, targeting a 400MW capacity hydrogen plant with
planned hydrogen production of 150,000kg per day. Technology
suppliers are being sought and negotiations are underway with
provincial governments regarding infrastructure.
Kefi Gold and Copper plc ( www.kefi-minerals.com )
Kefi Minerals is an exploration and development company focused
on gold and copper deposits in the Arabian-Nubian Shield. Its main
projects are Tulu Kapi in Ethiopia and the Jibal Qutmanand Hawiah
projects in Saudi Arabia.
The company completed an equity placing for GBP3m in November
2020 with proceeds slated to be used for drilling and exploration
on the Hawiah copper-gold project and general working capital.
Operation on the Tula Kapi Mine in Ethiopia were delayed in
September 2021 due to security concerns, just ahead of the
company's planned launch of the development phase of the project.
The company still remain optimistic that the security issue will be
resolved, and the project will be back on track before the end of
2021 with production beginning in 2023.
The company have made progress on the Hawiah copper-gold and
Jibal Qutman gold projects in Saudi Arabia, and have fast-tracked
to produce an upgraded and expanded Mineral Resource Estimate and
Preliminary Feasibilty Study for development at Hawiah; Maiden
Mineral Resources currently JORC 2012 1.9M oz gold equivalent;
Jibal Qutman 733koz gold.
Significant activities since year end: A security issue arose
where several employees were taken hostage for a brief time but
thankfully safely released. While the security of the project was
re-assessed and re-organised the schedule of the project has been
pushed back by approximately three months.
Kefi announced the issuance of two additional exploration
licences in Saudi Arabia in December 2021. The licences are 12km
south-west of the Company's Hawiah project and issued to the
Kefi-operated joint venture Gold and Minerals Limited. In January
2022 Kefi completed a placing for GBP6.2m, its first in two years,
with funds being used for the development of the Tulap Kapi mine
and to clear accrued debts and directors fees.
Sunrise Resources plc ( www.sunriseresourcesplc.com )
Sunrise Resources hold ground in Nevada (USA) and Australia with
commodities ranging from precious and base metals as well as
industrial minerals. Its main focus is developing pozzolan-perlite
deposits while looking to JV or sell its other tenements.
The company has maintained its focus on the development of the
100% owned CS Pozzolan-Perlite project in Nevada USA. During the
year Sunrise completed assembly of a commercial-scale plant for
trial processing. A 500-ton pozzolan sample was extracted and in
collaboration with a large cement and ready-mix company (CRMC)
underwent test grinding. A further 200-ton perlite sample has been
mined and awaits processing. The company is still focused on
commercial production in 2021 with mine permitting approvals
completed for mine plans, reclamation, air quality control and
water use.
Exploration on the company's precious metal claims has also
continued with soil sampling outlining an gold-in-soil anomaly on
its Sundance project in the Walker Lane Mineral Belt and diamond
drilling at the Clayton Silver-Gold project showing 303g/t Ag and
0.2g/t Ag over 7.92m. Completion of an aboriginal heritage survey
at the Baker's Gold Project in Western Australia, allowed an RC
drill programme to be completed; best results show 2m @11.5g/t
Au from 64m on 50g fire assay; which was upgraded to 14.4g/t
after bulk cyanide leaching and leach tail fire assay was carried
out.
In line with its announced strategy, during the year Sunrise
also entered into joint-ventures in connection with several of its
gold and copper-gold Nevada claims while retaining potential future
royalty rights.
Significant activities since year end: The company has announced
an agreement with Kinross for its Jackson Wash mining claims in
Nevada. Under the terms of the Agreement Kinross has been granted a
9-year mining lease over the claims and an option to purchase the
Claims at any time during the term of the Lease for US$500,000 and
the grant to Sunrise of a 2.5% Net Smelter Royalty, while Sunrise
retain the rights to mine perlite on the claims so long as this
does not hinder any Kinross exploration or future mining
operations.
Other investments
The remaining non-core investments are available for sale when
the conditions are deemed to be right. These include Minera Irl Ltd
( www.minera-irl.com ) and Block Energy plc ( www.blockenergy.co.uk
). In addition, there are a number of failed or almost failed
ventures to which we attribute no value, although we always hope
and seek to crystallise value where possible.
Strategic report extract
Principal activities and business review
While Bruce Rowan was Chief Executive beginning 31 January 2002,
the Company's principal trading activity was the use of his
expertise to identify and, where appropriate, support small company
new issues, pre-IPO and on-going fundraising opportunities with a
view to realising profit from disposals as the businesses mature in
the medium term. The current directors have continued this strategy
under the leadership of Callum Baxter, appointed Chief Executive in
September 2015.
The Company's investing policy is stated above.
The Company's key performance indicators and developments during
the year are given in the Chairman's statement and in the trading
portfolio review, all of which form part of the Directors' &
Strategic reports
Finance Review
Over the 12 months to 30 September 2021 the Company recorded a
loss before tax of GBP3,861,014, equating to a loss of 6.69 pence
per share with net cash outflow for the year of GBP42,089. This
compares to a profit before tax of GBP15,749,105 in the previous
year that equated to a profit of 24.22 pence per share. The
Company's cash deposits stood at GBP78,276 at the period end.
Key risks and uncertainties
This business carries a high level of risk and uncertainty with
commensurately high potential returns. The risk arises from the
very nature of early-stage mineral exploration where there can be
no certainty of outcome. In addition, often there is a lack of
liquidity in the Company's trading portfolio, even for securities
quoted on AIM or Aquis (formerly NEX), such that the Company may
have difficulty in realising the full value in an immediate or
forced sale. Accordingly, a commitment is only made after thorough
research into both the management and the business of the target,
both of which are closely monitored thereafter. Furthermore, the
Company limits the total size of any single commitment, both as to
the absolute amount and percentage ownership of the target
company.
Statement of directors' responsibilities
Directors' responsibilities for the financial statements
The Directors are responsible for preparing the Directors'
report, the Strategic report and the financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). Under company law
the Directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of
affairs and profit or loss of the company for that period. In
preparing those financial statements, the Directors are required
to:
-- select suitable accounting policies and then apply them consistently;
-- make judgments and estimates that are reasonable and prudent;
-- state whether applicable UK accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
The Company is compliant with AIM Rule 26 regarding the
Company's website.
Corporate governance statement
The board of Starvest plc are committed to the principles of
good corporate governance and believe in the importance and value
of robust corporate governance and in our accountability to our
shareholders and stakeholders.
The AIM Rules for companies require AIM companies to apply a
recognised corporate governance code. Starvest has chosen to adhere
to the Quoted Company Alliance's Corporate Governance Code for
Small and Mid-Size Quoted Companies (the "QCA Code").
The Chairman's Statement on Corporate Governance, which is
included in the Annual Report and which is also available on the
website, provides more details on how the board itself operates as
well as the steps taken to ensure that its staff adhere to
principles such as compliance with the UK anti-bribery
legislation.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 SEPTEMBER 2021
Year ended 30 September Year ended 30
Note 2021 September 2020
GBP GBP
Administrative expenses (290,993) (303,259)
Gain on disposal of financial assets 11 19,339 59,146
-
Movement in fair value of financial
assets
through profit or loss 11 (3,645,360) 15,993,180
Investment income 56,000 -
------------------------- -----------------
Operating (loss)/profit 5 (3,861,014) 15,749,067
Interest receivable 6 - 38
(Loss)/Profit on ordinary activities
before tax (3,861,014) 15,749,105
Tax on (loss)/profit on ordinary activities 8 332,532 (2,003,618)
(Loss)/Profit for the financial year
attributable to
Equity holders of the Company (3,528,482) 13,745,487
========================= =================
Earnings per share
Basic 9 (6.11 pence) 24.22 pence
Diluted 9 (6.11 pence) 24.22 pence
There are no other recognised gains and losses in either year
other than the result for the year.
All operations are continuing.
The accompanying accounting policies and notes form an integral
part of these financial statements.
STATEMENT OF FINANCIAL POSITION
30 SEPTEMBER 2021
Year ended 30 Year ended 30
Note September 2021 September 2020
GBP GBP
Non-current assets
Financial assets at fair value through
profit or loss 11 14,038,887 17,825,053
--------------- -----------------
Total fixed assets 14,038,887 17,825,053
--------------- -----------------
Current assets
Trade and other receivables 10 63,539 31,047
Cash and cash equivalents 78,276 120,365
--------------- -----------------
Total current assets 141,815 151,412
--------------- -----------------
Current liabilities
Trade and other payables 12 (85,627) (93,215)
Total current liabilities (85,627) (93,215)
--------------- -----------------
Non-current liabilities
Provision for deferred tax 8 (1,671,086) (2,003,618)
--------------- -----------------
Total non-current liabilities (1,671,086) (2,003,618)
--------------- -----------------
Net assets 12,423,989 15,879,632
=============== =================
Capital and reserves
Called up share capital 13 579,820 575,740
Share premium account 1,848,173 1,779,414
Retained earnings 9,995,996 13,524,478
--------------- -----------------
Total equity shareholders' funds 12,423,989 15,879,632
=============== =================
These financial statements were approved and authorised for
issue by the Board of Directors on 15 February 2022.
Signed on behalf of the Board of Directors
Callum N Baxter Gemma M Cryan
Chairman and Chief Executive Executive Director
Company No. 03981468
The accompanying accounting policies and notes form an integral
part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2021
Total Equity
attributable
Share capital Share premium Retained earnings to shareholders
GBP GBP GBP GBP
At 1 October 2019 559,279 1,686,829 (221,009) 2,025,099
============= ============= ================= ================
Profit for the period - - 13,745,487 13,745,487
Total comprehensive income - - 13,745,487 13,745,487
------------- ------------- ----------------- ----------------
Shares issued 16,461 92,585 - 109,046
Total contributions by and
distributions to owners 16,461 92,585 - 109,046
At 30 September 2020 575,740 1,779,414 13,524,478 15,879,632
============= ============= ================= ================
Loss for the period - - (3,528,482) (3,528,482)
Total comprehensive income - - (3,528,482) (3,528,482)
------------- ------------- ----------------- ----------------
Shares issued 4,080 68,759 - 72,839
Total contributions by and
distributions to owners 4,080 68,759 - 72,839
At 30 September 2021 579,820 1,848,173 9,995,996 12,423,989
============= ============= ================= ================
STATEMENT OF CASH FLOWS
FOR THE YEARED 30 SEPTEMBER 2021
Note 30 September 30 September
2021 2020
GBP GBP
Cash flows from operating activities
Operating (loss)/profit (3,861,014) 15,749,066
Net interest receivable - 38
Shares issued in settlement of salary
and fees 72,839 109,046
Movement in fair value of investments 3,645,360 (15,993,180)
Profit on sale of current asset investments (19,339) (59,290)
(Increase)/decrease in debtors (32,493) 83,491
(Decrease)/increase in creditors (7,587) 27,212
Net cash used in operating activities (202,234) (83,617)
------------ ------------
Cash flows from investing activities
Sale of current asset investments 160,145 143,815
Net cash generated from investing
activities 160,145 143,815
------------ ------------
Net (decrease)/increase in cash and
cash equivalents (42,089) 60,198
Cash and cash equivalents at beginning
of period 120,365 60,167
Cash and cash equivalents at end of
year 15 78,276 120,365
============ ============
The accompanying notes and accounting policies form an integral
part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 30 SEPTEMBER 2021
1. Company Information
Starvest plc is a Public Limited Company incorporated in England
& Wales. The registered office is Salisbury House, London Wall,
London, EC2M 5PS. The Company's shares are listed on the AIM market
of the London Stock Exchange. These Financial Statements (the
"Financial Statements") have been prepared and approved by the
Directors on 15 February 2022 and signed on their behalf by Callum
Baxter and Gemma Cryan.
2. Basis of Preparation
These financial statements have been prepared in accordance with
applicable United Kingdom accounting standards, including Financial
Reporting Standard 102 - 'The Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland'
('FRS102'), and with the Companies Act 2006. The financial
statements have been prepared on the historical cost basis. There
are no fair value adjustments other than to the carrying value of
the Company's trade investments. The financial statements are
presented in pounds sterling, which is also the functional currency
of the company.
Going concern
The Company's day to day financing is from its available cash
resources or via a bank overdraft and, on occasion, by the part
disposal of investments and use of short-term loans. The
continuation of the Company's formal overdraft facility may be
reviewed going forward.
The Directors are confident that adequate funding can be raised
as required to meet the Company's current and future liabilities
without resorting to the overdraft facility, which has been
confirmed within the cash flow forecast prepared by the Board for
the 12 months ending 28 February 2023. In the unlikely event that
such finance could not be raised, the Directors could raise
sufficient funds by disposal of certain of its current asset trade
investments.
As at the date of this report, the Company has no
borrowings.
For the reasons outlined above, the Directors are satisfied that
the Company will be able to meet its current and future
liabilities, and continue trading, for the foreseeable future and,
in any event, for a period of not less than twelve months from the
date of approving the financial statements. The preparation of the
financial statements on a going concern basis is therefore
considered to remain appropriate.
3. Principal Accounting Policies
Administrative expenses
All administrative expenses are stated inclusive of VAT, where
applicable, as the company is not eligible to reclaim VAT incurred
on its costs.
Taxation
Corporation tax payable is provided on taxable profits at the
current rates enacted or substantially enacted at the balance sheet
date.
Under FRS102, investments are valued on a mark-to-market basis
using publicly quoted trading prices at year end irrespective of
whether they are classified as fixed or current assets. However,
pursuant to Part 3, Chapter 3, Corporation Tax Act 2009, any
increase in the value of a current asset is recognised as a trading
profit and immediately subject to Corporation Tax when a company is
classified as a trading company under HMRC rules and regulations,
whereas an increase in the value of a fixed asset is not subject to
taxation until the asset is disposed of when a company is
classified as an investment company. Reported profit under UK GAAP
is unaffected.
Historically, the Company's previous board had filed as a
trading company and described its investment portfolio as a current
asset. Following a comprehensive review of various factors related
to the Company's investment portfolio and strategy, including,
among others, the frequency, timing, liquidity, trading activities,
development stage and investment horizon of such investments
individually and the portfolio as a whole, the Company's current
board have determined the Company is appropriately classified as an
investment company, and the investment portfolio is properly
accounted for among the Company's fixed assets. The Board do not
consider this to be a change in accounting policy; rather, it is a
correction in presentation to reflect more accurately the factual
position.
Deferred tax
Deferred tax is provided on an undiscounted full provision basis
on all timing differences which have arisen but not reversed at the
balance sheet date using rates of tax enacted or substantively
enacted at the balance sheet date.
Deferred tax assets are only recognised to the extent that it is
probable that they will be recovered against the reversal of
deferred tax liabilities or other future taxable profits and are
recognised within debtors. The deferred tax assets and liabilities
all relate to the same legal entity and being due to or from the
same tax authority are offset on the balance sheet.
FRS 102 requires that investments are valued each year on the
mark-to-market basis and the revaluation differences are reflected
in the profit and loss account. However, the tax on any unrealised
profit is calculated and shown in the accounts as if the profit had
been realised, but there is then an adjustment in the deferred tax
to move the tax that relates to the unrealised profit to the
balance sheet.
Foreign Currencies
Transactions in foreign currencies are recorded at the rate of
exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in a foreign currency are translated into
the functional currency at the exchange rate ruling at the
reporting date, unless specifically covered by foreign exchange
contracts whereupon the contract rate is used.
Investments
Current investments are stated at mid-market publicly quoted
prices.
Investments in unlisted company shares are remeasured to
available market values, or Directors' valuations at each balance
sheet date. Gains and losses on remeasurement are recognised in the
statement of comprehensive income for the period. As at 30
September 2021 unlisted shares were valued at GBPnil (2020:
GBPnil).
Investments in listed company shares are remeasured to market
value at each balance sheet date. Gains and losses on remeasurement
are recognised in the statement of comprehensive income for the
period.
Investments have been reclassified from current assets to
non-current assets in these financial statements to reflect the
principal activity of the company and the long term nature of these
assets.
Dividend income is recognised in the income statement when the
right to receive payment is established from investee
companies.
Financial instruments:
Trade and other receivables
Trade and other receivables are not interest bearing and are
recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method less provision
for impairment.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits held
at call with banks.
Trade and other payables
Trade and other payables are not interest bearing and are
recognised initially at fair value and subsequently measured at
amortised cost.
Financial liabilities
All financial liabilities are recognised initially at fair value
and are subsequently measured at amortised cost. There are no
financial liabilities classified as being at fair value through the
statement of comprehensive income.
Share capital
The Company's ordinary shares are classified as equity.
Share premium
Represents premiums received on the initial issuing of the share
capital. Any transaction costs associated with the issuing of
shares are deducted from share premium, net of any related income
tax benefits.
Retained Earnings
Retained earnings is the cumulative profit or loss that is held
or retained and saved for future use as recognised in the statement
of comprehensive income.
4. Segmental Analysis
Segmental information
An operating segment is a distinguishable component of the
Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly
reviewed by the Company's chief operating decision maker to make
decisions about the allocation of resources and assessment of
performance and about which discrete financial information is
available.
The Company is to continue to operate as a single UK based
segment with a single primary activity to invest in businesses so
as to generate a return for the shareholders. No segmental analysis
has been disclosed as the Company has no other operating segments.
The Directors will review the segmental analysis on a regular basis
and update accordingly.
The Company has not generated any revenues from external
customers during the period.
5. Operating Profit
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
This is stated after charging:
Auditor's remuneration:
- audit services 18,600 18,000
- other services - -
Director's emoluments - note 7 141,317 141,058
============= =============
There are no employees, other than the Directors of the company
(2020: Nil)
6. Interest receivable
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
------------------------- ------------- --------------------
Bank interest receivable - 38
- 38
------------------------- ------------- --------------------
7. Directors' Emoluments
There were no employees during the period apart from the
directors. No directors had benefits accruing under money purchase
pension schemes.
Shares
issued
Amounts in settlement
paid to of fees
Salary and Pension third parties - see
Year ended 30 September Fees GBP - see note note Total
2021 GBP GBP GBP GBP
------------------------ ---------- ---------- --------------- -------------- -------
C Baxter 15,000 - - 45,000 60,000
G Cryan 25,161 1,317 - 27,839 54,317
M Badros 27,000 - - - 27,000
------------------------ ---------- ---------- --------------- -------------- -------
67,161 1,317 - 72,839 141,317
------------------------ ---------- ---------- --------------- -------------- -------
Shares
issued
Amounts in settlement
Pension paid to of fees
Salary and GBP third parties - see
Year ended 30 September Fees - see note note Total
2020 GBP GBP GBP GBP
------------------------ ---------- ---------- --------------- -------------- -------
C Baxter 17,000 - - 53,000 70,000
G Cryan 28,454 1,058 - 18,046 47,558
M Badros 18,500 - 5,000 - 23,500
------------------------ ---------- ---------- --------------- -------------- -------
63,954 1,058 5,000 71,046 141,058
------------------------ ---------- ---------- --------------- -------------- -------
Amounts paid to third parties and shares issued in settlement of
fees
Included in the above are the following amounts paid to third
parties:
-- In respect of the management services of Callum Baxter,
GBPnil (2020: GBP38,000) was payable to Baxter Geological, a
company of which he is a director and shareholder. Of his total
remuneration, GBP45,000 (2020: GBP53,000) was settled in shares in
the Company and at 30 September 2021 GBP15,000 (2020: GBP15,000) of
his net salary remained outstanding.
-- In respect of Gemma Cryan's total remuneration GBP27,839
(2020: GBP18,046) was settled in shares in the Company and at 30
September 2021 GBP6,847 (2020: GBP10,380) of her net salary
remained outstanding.
-- In respect of the professional services of Mark Badros,
GBPnil (2020: GBP5,000) was payable to Timberlake Capital
Management, a company of which he is a director and shareholder. At
30 September 2021 GBP6,750 (2020: GBP6,750) of his net salary
remained outstanding.
8. Corporation Tax
a) Analysis of (credit)/charge in the period
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
United Kingdom corporation tax at 19% (2020:
19%) - -
Deferred taxation at 25% (2020: 19%) (332,532) 2,003,618
(332,532) 2,003,618
============== ==============
b) Factors affecting tax charge for the period
The tax assessed on the profit on ordinary activities for the
year differs from the standard rate of corporation tax in the UK of
19% (2020: 19%). The differences are explained below:
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
(Loss)/profit on ordinary activities before
tax (3,861,014) 15,749,105
============= =============
(Loss)/profit multiplied by standard rate of
tax at 19% (2020: 19%) (733,593) 2,992,330
Effects of:
Utilised against carried forward losses - (2,992,330)
Losses carried forward not recognised as deferred
tax assets 733,593 -
Deferred tax (credit)/charge (332,532) 2,003,618
------------- -------------
(332,532) 2,003,618
------------- -------------
c) Deferred tax
Deferred tax liability b/fwd at 30 September 2,003,618 -
2020 and 2019
Charge/(credit) for the year (332,532) 2,003,618
---------- ----------
Deferred tax liability c/fwd at 30 September
2021 and 2020 1,671,086 2,003,618
========== ==========
Capital losses b/fwd at 30 September 2020 and
2019 (3,548,493) (3,505,488)
Current year capital gains (losses) 33,469 (43,005)
----------- -----------
Capital losses c/fwd at 30 September 2021 and
2020 (3,515,024) (3,548,493)
----------- -----------
Excess management expenses b/fwd at 30 September (1,655,253) (1,655,253)
Current year excess management expenses (290,993) -
Adjustments in respect of prior periods (303,221) -
----------- -----------
Excess management expenses c/fwd at 30 September (2,249,467) (1,655,253)
----------- -----------
Total losses (5,764,491) (5,203,746)
----------- -----------
Profits b/fwd 10,545,359
Current year pre-tax (loss)/profit (3,861,014) 15,749,105
Profits attributable to deferred tax 6,684,345 10,545,359
Deferred tax at 25% (2020:19%) 1,671,086 2.003,618
----------- -----------
A deferred tax liability provision of GBP332,532 has been
released during the year (2020 provision: GBP2,003,618) on the
future tax payable on profits, on disposal of investments.
9. Earnings Per Share
The basic earnings per share is derived by dividing the profit
for the year attributable to ordinary shareholders by the weighted
average number of shares in issue.
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
---------------------------------------------- ------------- -------------
(Loss)/profit for the year (3,528,482) 13,745,487
---------------------------------------------- ------------- -------------
Weighted average number of Ordinary shares of
GBP0.01 in issue 57,755,713 56,742,071
(Loss)/profit per share - basic and diluted (6.11 pence) 24.22 pence
---------------------------------------------- ------------- -------------
There are no potential dilutive shares in issue.
10. Trade and Other Receivables
Year ended Year ended
30 September 30 September
2021 2020
GBP GBP
---------------------- ------------- --------------------
Prepayments 61,548 28,895
Funds held on account 1,991 2,152
63,539 31,047
---------------------- ------------- --------------------
Short term loans to related parties
-- At 30 September 2021 loans to Equity Resources Ltd ("EQR")
totalling GBP20,000 (2020: GBP20,000) remain unpaid. The purpose of
the loans was to assist EQR meet its necessary operational costs
during a period when it seemed inappropriate that EQR should
realise cash from its investments. The advances were made prior to
appointment of the current board and approved by former directors
at 0% interest with no formal agreement as to repayment date. The
Company holds 28.41% of the equity in EQR. The Company has made a
full provision for these loans, totalling GBP20,000.
11. Financial assets at fair value through profit or loss
30 September 30 September
2021 2020
Listed equity securities GBP GBP
--------------------------------------------------- ------------ ------------
Fair value of investments at 1 October 17,825,053 1,916,398
Additions - -
Disposals (140,806) (84,525)
Fair value (loss)/gain on investments (3,645,360) 15,993,180
Fair value at 30 September 14,038,887 17,825,053
--------------------------------------------------- ------------ ------------
The fair value carrying values of the investments
above were as follows:
Quoted on AIM 14,029,001 17,805,782
Quoted on foreign stock exchanges 9,886 19,271
14,038,887 17,825,053
--------------------------------------------------- ------------ ------------
The Company has holdings in the companies described in the
review of portfolio above. Of these, the Company has holdings
amounting to 20% or more of the issued share capital of the
following companies:
Capital
and reserves
Profit at last
Class Percentage for the balance
Country of shares of issued last financial sheet Accounting
Name of incorporation held capital year date year end
Equity Resources
Limited - see England 31 May
note [1] & Wales Ordinary 28.41% GBP1,677 (GBP37,737) 2021
Note [1]: Equity Resources Limited is considered to be an
associated undertaking. Equity accounting has not been used as
Equity Resources Limited has a written down value of GBPnil.
The Company's share of the net liabilities of its Associates at
30 September 2021 is GBP10,721. The share of gross assets has been
derived from the latest available financial information in respect
of the Associates. The company's share of the items making up the
profit and loss account and cash flow statements of its Associates
has not been disclosed as the numbers are not considered
material.
12. Trade and Other Payables: Amounts falling due within one year
30 September 30 September
2021 2020
GBP GBP
----------------- ------------ ------------
Trade creditors 33,143 39,926
Accruals 21,633 19,855
Employment costs 30,841 33,434
Other payables 10 -
85,627 93,215
----------------- ------------ ------------
13. Share Capital
The called up share capital of the Company was as follows:
Called up, allotted, issued and fully paid
Number of Shares GBP
--------------------------------------------- ---------------- --------
As at 30 September 2019 55,927,832 559,279
--------------------------------------------- ---------------- --------
Issued 6 April 2020 in lieu of fees at 4.25p 1,107,057 11,070
Issued 14 July 2020 in lieu of fees at 11.5p 539,097 5,391
--------------------------------------------- ---------------- --------
As at 30 September 2020 57,573,986 575,740
--------------------------------------------- ---------------- --------
Issued 2 June 2021 in lieu of fees at 18.5p 275,635 50,992
Issued 27 July 2021 in lieu of fees at 16.5p 132,410 21,847
--------------------------------------------- ---------------- --------
As at 30 September 2021 57,982,031 648,579
--------------------------------------------- ---------------- --------
Share Warrants
The Company currently has no unexercised warrants in issue.
14. Share options
During the year ended 30 September 2021 no new options were
granted and the Company currently has no unexercised options in
issue.
15. Cash and Cash Equivalents
Year ended Year ended
30 September Cash flow 30 September
2020 GBP 2021
GBP GBP
------------------------------ ------------- ---------- -------------
Cash at bank 120,365 (42,089) 78,276
------------------------------ ------------- ---------- -------------
Net cash and cash equivalents 120,365 (42,089) 78,276
------------------------------ ------------- ---------- -------------
16. Capital Commitments
As at 30 September 2021 and 30 September 2020, the Company had
no commitments other than for expenses incurred in the normal
course of business.
17. Contingent Liabilities
There were no contingent liabilities at 30 September 2021 (2020:
GBPnil).
18. Related Party Transactions
During the year Greatland Gold plc, a company which Callum
Baxter was formerly a director of, provided shared office space to
the Company. At the year end there was GBP1,908 payable to
Greatland Gold plc for October and
November 2021 rent (2020: GBP1,217). These amounts were settled
in full on 1 October and 29 October 2021 respectively.
There were no other related party transactions during the year
other than those disclosed in notes 7 and 10.
The key management of the Company are considered to be the
Directors, the compensation for whom was GBP141,317 (2020:
GBP141,058). Refer to note 7 for more information.
19. Financial Instruments
The Company's financial instruments comprise investments, cash
at bank and various items such as other debtors, loans and
creditors. The Company has not entered into derivative transactions
nor does it trade financial instruments as a matter of policy.
Credit Risk
The Company's credit risk arises primarily from short term loans
to related parties and the risk the counterparty fails to discharge
its obligations. At 30 September 2021 there were no loans
outstanding (2020: GBPnil).
Liquidity Risk
Liquidity risk arises from the management of cash funds and
working capital. The risk is that the Company will fail to meet its
financial obligations as they fall due. The Company operates within
the constraints of available funds and cash flow projections are
produced and regularly reviewed by management.
Interest rate risk profile of financial assets
The only financial assets (other than short term debtors) are
cash at bank and in hand, which comprises money at call. The
interest earned in the year was negligible. The Directors believe
the fair value of the financial instruments is not materially
different to the book value.
Foreign currency risk
The Company has no material exposure to foreign currency
fluctuations.
Market risk
The Company is exposed to market risk in that the value of its
investments would be expected to vary depending on trading activity
of its shares.
Categories of financial instruments
Year ended Year ended 30
30 September September
2021 2020
GBP GBP
Financial assets
Trade investments at fair value through profit
and loss 14,038,887 17,825,053
Cash and cash equivalents at amortised cost 78,276 120,365
Investment funds held on account at amortised
cost 1,991 2,152
14,119,154 17,947,570
============= =============
Financial liabilities at amortised cost
Accruals and payables 83,640 92,167
83,640 92,167
============= =============
20. Capital Management
The Company's objective when managing capital is to safeguard
the entity's ability to continue as a going concern and develop its
investment activities to provide returns for shareholders. The
Company's funding comprises equity and debt. The directors consider
the Company's capital and reserves to be adequate. When considering
the future capital requirements of the Company and the potential to
fund specific investment activities, the directors consider the
risk characteristics of all of the underlying assets in assessing
the optimal capital structure.
21. Events After the End of the Reporting Period
There are no events after the end of the reporting period to
disclose.
22. Ultimate controlling party
There is no ultimate controlling party.
Copies of the annual report and financial statements are being
posted to Shareholders shortly and will be available for a period
of one month thereafter from the Company's registered office:
Salisbury House, London Wall, London EC2M 5PS or by email at
info@starvest.co.uk
Alternatively, from 16 February 2022 the report may be
downloaded from the Company's website at www.starvest.co.uk
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
Enquiries to:
Starvest PLC
Callum Baxter or Gemma Cryan 02077 696 876
info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson, Harrison Clarke or Ciara Donnelly 02073 835
100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn 01483 413 500
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END
FR BKPBNDBKDQBD
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February 15, 2022 06:48 ET (11:48 GMT)
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