TIDMSVE
RNS Number : 1946P
Starvest PLC
07 February 2023
07 February 2023
Starvest Plc ("Starvest" or "the Company")
Audited results for the year ended 30 September 2022
Chairman's Statement
I am pleased to present my annual statement to Shareholders for
the year ended 30 September 2022 and the twenty-second since the
Company was formed in 2000.
Results for the year
The continuing impact of the global pandemic and the ongoing war
in Eastern Europe and its effect on energy supplies have dominated
the financial news this year for Starvest and its portfolio
companies. Starvest's strategy to steer its portfolio toward
precious metal investments in 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 5.5% for the year ended 30 September 2022. The
post-pandemic global economy and interest rate hikes, particularly
in the US, have kept prices flat recently but we continue to
believe that there is a solid foundation for precious metals going
forward.
Our investment portfolio decreased approximately 56% in the year
to 30 September 2022 to GBP6 million. However, the discount to net
asset value narrowed by 5 percentage points, from 34% to 29% as at
30 September 2022, which is a significant improvement for
shareholders.
Greatland Gold plc (AIM:GGP) remains our primary investment,
with its Havieron gold-copper discovery in Australia. Havieron's
initial inferred resource increased from 4.2M oz gold equivalent*
to 6.5M oz gold equivalent** during the year. The company secured
funding through to production, expanded its board, and delivered
operational and financial improvements. While the share price has
decreased over the last year, this is not uncommon for a company in
pre-production and we continue to see potential gains here.
Ariana Resources continues to expand its exploration and
development footprint in Europe. As the Kiziltepe mine has
continued to meet production expectations, Ariana has focused on
other projects in Turkey, such as Tavsan, which is scheduled for
first production in H2 2023. The alliance with Newmont, via its
West Tethyan holding, allows considerable scope to explore
southeastern Europe over the next five years, and the recently
acquired Kosovo licence shows an interesting start to this US$2.5m
agreement. Together with the Asgard Metals Fund, Ariana's
exploration and development projects have expanded considerably
since the company's founding twenty years ago.
Cora Gold continued to de-risk its Sanankoro project as it
completed further drilling and increased its mineral resource
estimate by 14% while completing a feasibility study. After
year-end the company announced that it had received the
Environmental Permit required for the project, a significant step
forward.
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 3 March 2022
Investing policy
The Company's investing policy is set forth on 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
07 February 2023
Investing policy statement
About us
The previous Board commenced to manage the Company as an
investment company in January 2002, largely investing in the
natural resources sector. Following the appointment of Callum
Baxter as Chairman in 2015, the Board continued to focus 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 AQSE 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, AQSE, 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 served as
directors on the boards of such companies.
Review of trading portfolio
Introduction
During the year to 30 September 2022, 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 throughout
2022 and investors' desire for traditional safe-haven assets
boosted precious metals stocks at times. However, supply chain
issues and European conflict led to rising energy prices,
broader-based inflation and a shift in economic policies which
caused market reactions and precious metal price fluctuations as
well as an overall decline year on year in metal prices when
forecasts for growth were downgraded. 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 2022, the
value of our trading portfolio decreased 56% due to lower market
prices for major positions. Including our cash position, our net
asset value ("NAV") and NAV per share decreased 53.4% and 53.7%,
respectively, over the 12-month period to 30 September 2022. Given
that Starvest's market capitalisation decreased approximately 49%,
the discount to NAV narrowed to 29% compared to 34% 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 Minera IRL during
the year, along with a small portion of its positions in Greatland
Gold (3.8m shares at an average price of 12.83p per share) and
Ariana Resources (2.2m shares at an average price of 4.25p per
share).
Trading portfolio valuation
Although gold prices declined slightly (5%) year on year, this
change masked greater volatility during the 12-month period. The
Company's Net Asset Value decreased approximately 53% during the
year to 30 September 2022 to GBP6.6m and the Company made a loss
before tax of GBP7,540,842 compared with a loss before tax of
GBP3,861,014 in 2021.
However, we are pleased that the Company traded at an improved
discount to its NAV of 29% compared to 34% the previous 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
2022 2021 %
at Closing at Closing
values values
* Trading portfolio value GBP6.2 m GBP14.0 m -55.7%
* Company net asset value GBP6.6 m GBP14.1 m -53.2%
* Net asset value per share 11.3 p 24.4 p -53.7%
* Closing share price 8.0 p 16.0 p -50%
5 percentage
* Share price discount to net asset value 29% 34% points
* Market capitalisation GBP4.7 m GBP9.3 m -49.5%
Since the fiscal year end, values have improved. As at the close
of business on 31 December 2022 the Company's Net Asset Value was
GBP7.1m.
Review of the current market
Global markets and gold prices fluctuated throughout the year;
with economies and governments trying to rebalance and adjust to
continuing post-pandemic and energy related uncertainties.
The price of gold fluctuated throughout the year with a peak of
US$1,998 per troy ounce in March 2022 and a low of US$1,629 in
September 2022 but has remained at elevated prices relative to the
last decade. Copper, nickel, lead and zinc are all down year on
year based on inflation and forecasted recessions.
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; long-term natural
resources are still vital commodities and demand is forecast to
increase.
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, represents by far the largest part of the Company's
portfolio and 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
increased its Initial Inferred Mineral Resource estimate,
independently of Newcrest, from 4.2Moz AuEq to 6.5Moz AuEq in March
2022. The increased estimate was ratified in August 2022 when
Newcrest released its own resource upgrade. Neither resource takes
into account drilling carried out after February 2022, which could
yield a significant increase in resource if included. Drilling to
date has not yet closed off the deposit, with Havieron remaining
open at depth and in multiple directions, allowing for significant
resource growth in the future.
In addition, Greatland took several corporate and financial
actions this year. Newcrest boosted its stake in Havieron to 70%
but declined to exercise an option to acquire an additional 5% of
the project. Greatland subsequently raised US$35m in an
over-subscribed placing and is well-funded to continue exploration
and funding its part of the Havieron development. In September
2022, the company announced that two former Fortescue Metals Group
executives would join the board in January 2023 and also added a
former BHP executive, all of whom add a new dynamic to Greatland's
leadership team and are able to take the company forward as a
significant mid-tier developer in the near term. Around the same
time, the company entered into a significant finance agreement,
with a bank debt facility of A$200m committed through a syndicate
of leading international banks and secured a strategic equity
investment of up to A$120m from Wyloo Metals, which will fund
Greatland fully through to production.
Significant activities since year end: Greatland announced that
drilling permits have been granted on the Ernest Giles licence.
Havieron drilling updates continue to confirm the potential to
greatly expand the size of this deposit with high-grade extensions
to mineralisation in the Eastern Breccia, South East Crescent Zone
and Northern Breccia. The mine decline is at over 900m development
length and now in more competent rock. The feasibility study is due
during 2023 and will likely include more up to date drilling data
once completed thus further de-risking the project.
Greatland entered into an option agreement to sell its two
Tasmania exploration licences to Flynn Gold for an initial purchase
price of A$200,000 with deferred consideration and a royalty equal
to 1% net smelter returns from any future production.
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 and south-east Europe along with
investments in other projects through its metals development fund,
Asgard Metals.
During the year Ariana reported revenue of US$177m at Zenit
Madencilik, its investee company, from continued successful
production at the Kilitepe mine. Through the first half of 2022,
with production of 13,378 oz Au, it was on track to exceed the
company's annual guidance of 25,000 oz for the fifth year running.
The company reported that this will allow them to sustain its
business, enable growth and maintain its dividend rate. For the six
months to June 2022 (the latest published but unaudited accounts),
Ariana earned GBP2.5m in profits before tax.
Elsewhere in Turkey Ariana received a positive Environmental
Impact Assessment at its Tavsan project which they are working to
develop as its second gold mine, with a targeted annual production
rate of approximately 30,000 oz Au. Construction of the mine is
underway and scheduled for completion in H2 2023.
The Salinbas project has an inferred resource of 1.5Moz Au and
the company is drilling at the Artvin gold project to develop an
understanding of that area.
In Cyprus, Ariana holds a 50% stake in Venus Minerals and the
associated joint venture development of the permitted Apliki
coper-gold mine. Venus Minerals are planning a London listing on
AIM. Ariana has a 75% stake in West Tethyan Resources (WTR), who
have a focus on southeastern Europe and are developing licences
primarily in Kosovo. During the year a strategic agreement was
signed with Newmont who will invest US$2.5m to develop an
Exploration Alliance Agreement via WTR focusing on copper and gold
in Bosnia and Herzegovina, Bulgaria, Greece, Kosovo, North
Macedonia and Serbia running for an initial five-year term.
Ariana's Asgard Metals fund has made investments in
Australia-focused Panther Metals, Kazakhstan-focused Pallas
Resources and Indochina-focused Annamite Resources.
Significant activities since year end: Ariana Resources reported
that gold production at the Kiziltepe mine was in line with
guidance and drilling was completed which was testing extensions of
the vein system near mine.
Geophysical programmes are also underway to further aid near
mine exploration. Construction of a second mine at Tavsan is
underway and the company has released an increase in JORC compliant
resource for the Tavsan project of 6.6Mt at 1.44g/t Au and 5.6g/t
Ag for 307,000oz Au and 1.1M oz Ag, a 22% increase on the previous
resource.
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 on its UK gold projects during
the year, acquiring 100% of the Clogau property, continuing with
drill programmes at the historical mine site and also testing
material from a waste tip on site at Clogau in a pilot plant. The
company's application to dewater the Llechfraith Shaft was rejected
by Natural Resources Wales but Alba have submitted additional
supporting data and analysis and have extended the programme of
ecological and species surveys. Regional exploration, with a view
to near-mine resource expansion, is also continuing, with an
application for an unmanned aeromagnetic survey following up on
geochemical surveys carried out in 2019.
The Company's UK oil and gas investments at Horse Hill, where
they hold a 11.8% stake, remains ongoing with production licences
moving through legal channels and a Production Permit granted by
the Environment Agency in May 2022.
The Company's Irish base metal licences have been extended
through to May 2024, where they have three principal target areas
for follow-up drilling.
Alba holds a 54% majority interest in AIM-listed GreenRoc Mining
plc, which the company spun out in September 2021. GreenRoc hold
licences for graphite, black sands iron and multi-elements in
Greenland and announced a maiden JORC resource at its Amitsoq
graphite deposit in March 2022 of 8.28Mt at 19.8% graphitic carbon.
A revised resource at the Thule Black Sands now stands at 19Mt at
8.9% in-situ ilmenite.
With a reported GBP2 million in cash at its interim report at
the end of May 2022 the company is well-funded to move forward this
year.
Significant activities since year end: The company spun out
GreenRoc to advance its Greenland graphite project. Metallurgical
test work showed that the material could potentially be used in the
electric vehicle battery market. In addition, the company appointed
an adviser to assist in processing, sales and marketing going
forward. On its own projects, primarily the Clogau gold project in
Wales, the company has appointed a gold supply chain expert and
completed a GBP0.5m placing in November.
Cora Gold Limited ( www.coragold.com )
The company's exploration and development activities have
continued in Mali on its flagship Sanankoro project. The company
completed a drill programme converting additional ounces from the
inferred to indicated category, increasing the total Mineral
Resource Estimate by 14% and the oxide Indicated Minerals Resource
by 22% in July 2022. Sanankoro comprises 24.9Mt of material grading
at 1.15g/t Au of which 16.1Mt are indicated and 8.7Mt are inferred
for a total 920koz Au.
Drilling also identified two new mineralised areas in close
proximity to the existing resource at Sanankoro and the company
carried out field work on a number of its other permits in southern
Mali. The ongoing feasibility study for Sanankoro is due to be
completed by Q4 2022.
With $2m in cash reported at the end of June 2022 in its
unaudited interim report and funding agreements in place, the
company is a good position to move forward with mine development
over the next year.
Significant activities since year end: Cora announced in
mid-October 2022 that it had been granted the Environmental Permit
for mining at its flagship Sanankoro project. The project's JORC
Exploration Target was released in late November and contain
between 26 and 35.2Mt Au with grades between 0.58 and 1.21g/t Au
for potentially 490-1,370k oz Au. This is in addition to the
indicated and inferred mineral resource of 24.9Mt at 1.15g/t Au for
920koz. The Exploration Target consists of 90% oxide and
transitional material.
The company released a maiden reserve and definitive feasibility
study in late November. Figures were based on a gold price of
$1,650/oz Au providing 10.1Mt at 1.3g/t Au for 422koz Au, with 90%
recovery rate. Optimised DFS economics were based on $1,750/oz Au
giving a 6.8 year mine life, 1.2 year payback period, 52.3% IRR,
$997/oz AISC, 56,000oz pa average production. $234m free cash flow
over life of mine.
Regional exploration has also continued with over 9km of gold
structures identified from three separate zones. Grab samples of up
to 6g/t Au have been reported and future reconnaissance drilling is
planned.
Oracle Power plc ( www.oraclepower.co.uk )
Oracle Power was originally focused on developing and operating
a coal mine and a power plant in Pakistan and while those are still
progressing it has recently diversified into green energy
technology and gold projects.
In January 2022, Oracle signed a MoU with Aui Southern Gas
Company Ltd, a company listed on the Pakistan Stock Exchange,
relating to the buyback and joint development of a synthetic
natural gas project using Thar Block VI coal.
In October 2021 the company signed a non-exclusive cooperation
agreement with PowerChina International Group to jointly develop a
green hydrogen production facility in Pakistan, targeting a 400MW
capacity plant. An update in December 2021 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 were being sought and
negotiations were underway with provincial governments regarding
infrastructure. In March 2022 the company entered a joint venture
agreement with His Highness Sheikh Ahmed Dalmook Al Maktoum
(represented through Kaheel Energy) on the project and established
(a joint venture company), Oracle Energy. Oracle raised GBP800,000
in April 2022 and a further GBP500,000 in August 2022 toward the
project and an MoU was signed with Nuvera Fuel Cells LLC in June
2022 to jointly oversee a pilot hydrogen bus project. Oracle has
also entered into an MoU with a hydrogen storage company in China
to jointly explore storage and infrastructure development.
In addition to its Pakistan projects, Oracle continued to
develop its Australia gold projects with drilling and metallurgical
test work on samples from its Western Australia ground.
Significant activities since year end: Oracle has continued to
focus on the green hydrogen project in Pakistan. It appointed
Thyssenkruoo Uhde to lead a technical and commercial feasibility
study for the project and signed a Memorandum of Understanding with
Blue Carbon to collaborate on a decarbonisation roadmap.
In addition, it signed a Letter of Intent with TUV SUD to
explore green hydrogen and green ammonia certification and leased a
land package of 7,000 acres for 30 years in the Thatta district to
locate its flagship green hydrogen project.
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.
Operation on the Tula Kapi Mine in Ethiopia continued throughout
the year. The Ministry of Mines completed an audit and endorsed
historical project costs incurred through 2020 of circa US$80m
which will now be reported to the Ethiopian central bank and allow
for development banks to provide funds once the Ethiopian
government ratifies this report.
While awaiting regulatory permissions to re-activate exploration
for near-mine expansion in Ethiopia, the company has switched its
main exploration efforts to Saudi Arabia. The Hawiah VMS
Copper-Gold project has a JORC resource of 24.9Mt at 0.9% Cu and
0.62g/t Au. A preliminary feasibility study is due for completion
by the end of 2022. Jibal Qutman was enlarged this year with a
+500,000oz production plan over ten years with an open
pit/carbon-in-leach process. A mining licence and financing is
being sought for the project. The company received additional
exploration licences to bring its total to nine licences covering
over 630km(2) .
Significant activities since year end: The Jibal Qutman licence
has been renewed for a five-year term. The company intends to
construct a pioneers camp and carry out environmental baseline
studies and geotechnical and metallurgical diamond drilling going
forward. The feasibility study remains on target for completion in
early Q1 2023 with environmental permits targeted for Q1 2023 also.
In January 2023 the company announced an increase in resources at
the Hawiah project by 16% to 29mt as well as an expanded open pit
domain to the project.
Sunrise Resources plc ( www.sunriseresourcesplc.com )
Sunrise Resources hold ground in Nevada (USA) and Australia with
commodities including precious and base metals as well as
industrial minerals. Its main focus is developing pozzolan-perlite
deposits while looking to enter into a JV or sell its other
tenements.
Sunrise continued with development of its pozzolan-perlite
project with discussions with companies in the cement and concrete
industries. As natural pozzolan has a key role in cement
decarbonisation strategies towards net-zero CO2 emissions, it may
benefit from California state legislation and Implementation
Priorities under the Biden administration's $1.2 trillion
infrastructure bill.
The company also extended its pozzolan footprint to a new
project site at Hazen with due diligence field visits carried out
by interested parties and sample testing underway. A permit was
obtained during the year to extract 500 tons of sample material for
commercial trials.
A new Mining Lease application was submitted on the company's
Bakers Gold project in Western Australia to cover high-grade gold
mineralisation intersected in a 2021 drill programme, with a
highlight of 2m at 14.36g/t Au from 64m downhole. The project is
available for sale or JV according to the company's website.
Significant activities since year end: Sunrise announced it has
entered into a collaborative arrangement with an existing pozzolan
processor for mining and test grinding. It also announced funding
of GBP480,000 through issue of equity with an investment from
Towards Net Zero a US based institutional investor focused on the
green economy.
The company's Pioche sepiolite project is advancing under its
agreement with Tolsa USA Inc with new approvals for trenching on
the licence received.
Other investments
The remaining non-core investments are available for sale when
the conditions are deemed to be right. These include Block Energy
plc ( www.blockenergy.co.uk ) and Kendrick Resources plc (
www.kendrickresources.com ). 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
Since the company's inception in 2002, its principal trading
activity has been to identify and, where appropriate, support small
company new issues, pre-IPO and ongoing fundraising opportunities
with a view to realising profit from disposals as the businesses
mature in the medium term. The current directors have maintained
this strategy of seeking out investment opportunities in small-cap
and pre-IPO mining and metals companies.
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 2022 the Company recorded a
loss before tax of GBP7,540,842, equating to a loss of 12.96 pence
per share with net cash inflow for the year of GBP327,830. This
compares to a loss before tax of GBP3,861,014 in the previous year
that equated to a loss of 6.69 pence per share. The Company's cash
deposits stood at GBP406,106 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 AQSE, 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 2022
Year ended 30 Year ended 30
Note September 2022 September 2021
GBP GBP
Administrative expenses (305,944) (290,993)
(Loss)/gain on disposal of financial
assets (53,398) 19,339
Movement in fair value of financial
assets
through profit or loss 10 (7,234,928) (3,645,360)
Investment income 53,428 56,000
----------------- -----------------
Operating loss 5 (7,540,842) (3,861,014)
Loss on ordinary activities before
tax (7,540,842) (3,861,014)
Tax on ordinary activities 7 1,671,086 332,532
Loss for the financial year attributable
to
Equity holders of the Company (5,869,756) (3,528,482)
================= =================
Earnings per share
Basic 8 (10.09 pence) (6.11 pence)
Diluted 8 (10.09 pence) (6.11 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 2022
Year ended
30 September Year ended 30
Note 2022 September 2021
GBP GBP
Non-current assets
Financial assets at fair value through
profit or loss 10 6,156,173 14,038,887
------------- -----------------
Total non-current assets 6,156,173 14,038,887
------------- -----------------
Current assets
Trade and other receivables 9 77,424 63,539
Cash and cash equivalents 406,106 78,276
------------- -----------------
Total current assets 483,530 141,815
------------- -----------------
Current liabilities
Trade and other payables 11 (41,776) (85,627)
Total current liabilities (41,776) (85,627)
------------- -----------------
Non-current liabilities
Provision for deferred tax 7 - (1,671,086)
------------- -----------------
Total non-current liabilities - (1,671,086)
------------- -----------------
Net assets 6,597,927 12,423,989
============= =================
Capital and reserves
Called up share capital 12 582,824 579,820
Share premium account 1,888,863 1,848,173
Retained earnings 4,126,240 9,995,996
------------- -----------------
Total equity shareholders' funds 6,597,927 12,423,989
============= =================
These financial statements were approved and authorised for
issue by the Board of Directors on 7 February 2023.
Signed on behalf of the Board of Directors
Mark Badros Gemma M Cryan
Chief Executive Officer 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 2022
Total Equity
attributable
Share capital Share premium Retained earnings to shareholders
GBP GBP GBP GBP
At 1 October 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
============== ================ ================= ==================
Loss for the period - - (5,869,756) (5,869,756)
-------------- ---------------- ----------------- ------------------
Total comprehensive income - - (5,869,756) (5,869,756)
-------------- ---------------- ----------------- ------------------
Shares issued 3,004 40,690 - 43,694
-------------- ---------------- ----------------- ------------------
Total contributions by and
distributions to owners 3,004 40,690 - 43,694
At 30 September 2022 582,824 1,888,863 4,126,240 6,597,927
============== ================ ================= ==================
STATEMENT OF CASH FLOWS
FOR THE YEARED 30 SEPTEMBER 2022
30 September 30 September
Note 2022 2021
GBP GBP
Cash flows from operating activities
Loss before tax (7,540,842) (3,861,014)
Shares issued in settlement of salary
and fees 43,694 72,839
Movement in fair value of financial
assets through profit or loss 7,234,928 3,645,360
Loss/(profit) on sale of financial
assets through profit or loss 53,398 (19,339)
Increase in debtors (13,885) (32,493)
Decrease in creditors (43,851) (7,587)
Net cash used in operating activities (266,558) (202,234)
------------ ------------
Cash flows from investing activities
Proceeds from sale of financial assets
through profit of loss 594,388 160,145
Net cash generated from investing
activities 594,388 160,145
------------ ------------
Net increase/(decrease) in cash
and cash equivalents 327,830 (42,089)
Cash and cash equivalents at beginning
of period 78,276 120,365
Cash and cash equivalents at end
of year 14 406,106 78,276
============ ============
The accompanying notes and accounting policies form an integral
part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 30 SEPTEMBER 2022
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 07 February 2023 and signed on their behalf by Mark
Badros 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 and, on occasion, by the part disposal of investments and
use of short-term loans.
The Directors are confident that adequate funding can be raised
as required to meet the Company's current and future liabilities,
which has been confirmed within the cash flow forecast prepared by
the Board for the 12 months ending 29 February 2024. 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 2022 unlisted shares were valued at GBPnil (2021:
GBPnil).
Investments in listed company shares are remeasured to market
value at each balance sheet date under level 1 of the fair value
hierachy. Gains and losses on remeasurement are recognised in the
statement of comprehensive income for the period.
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/(Loss)
Year ended Year ended
30 September 30 September
2022 2021
GBP GBP
This is stated after charging:
Auditor's remuneration:
- audit services 19,200 18,600
Director's emoluments - note 6 141,321 141,317
============= =============
There are no employees, other than the Directors of the company
(2021: Nil)
6. 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
in settlement
Salary of fees
and Fees Pension - see note Total
Year ended 30 September 2022 GBP GBP GBP GBP
----------------------------- ---------- ---------- -------------- -------
C Baxter 42,250 - 15,000 57,250
G Cryan 46,153 1,321 6,847 57,321
M Badros 29,750 - - 29,750
----------------------------- ---------- ---------- -------------- -------
118,153 1,321 21,847 141,321
----------------------------- ---------- ---------- -------------- -------
Shares
issued
in settlement
Salary and Pension of fees
Fees GBP - see note Total
Year ended 30 September 2021 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
----------------------------- ---------- ---------- -------------- -------
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 Callum Baxter's total remuneration, GBP15,000
(2021: GBP45,000) was settled in shares in the Company and at 30
September 2022 GBPnil (2021: GBP15,000) of his net salary remained
outstanding.
-- In respect of Gemma Cryan's total remuneration GBP6,847
(2021: GBP27,839) was settled in shares in the Company and at 30
September 2022 GBPnil (2021: GBP6,847) of her net salary remained
outstanding.
-- In respect of Mark Badros's total remuneration, at 30
September 2022 GBPnil (2021: GBP6,750) of his net salary remained
outstanding.
7. Corporation Tax
a) Analysis of credit in the period
Year ended Year ended
30 September 30 September
2022 2021
GBP GBP
United Kingdom corporation tax at 19% (2021:
19%) - -
Deferred taxation at 25% (2021: 25%) (1,671,086) (332,532)
(1,671,086) (332,532)
============== ==============
b) Factors affecting tax charge for the period
The tax assessed on the profit/(loss) 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
2022 2021
GBP GBP
Loss on ordinary activities before tax (7,540,842) (3,861,014)
============= =============
Loss multiplied by standard rate of tax at
19% (2021: 19%) (1,432,760) (733,593)
Effects of:
Utilised against carried forward losses - -
Losses carried forward not recognised as deferred
tax assets 1,432,760 733,593
Deferred tax credit (1,671,086) (332,532)
------------- -------------
(1,671,086) (332,532)
------------- -------------
c) Deferred tax
Deferred tax liability b/fwd at 30 September
2021 and 2020 1,671,086 2,003,618
Credit for the year (1,671,086) (332,532)
------------ ------------
Deferred tax liability c/fwd at 30 September
2022 and 2021 - 1,671,086
============ ============
Capital losses b/fwd at 30 September 2021
and 2020 (3,515,024) (3,548,493)
Current year capital losses 191,959 33,469
---------------- -------------
Capital losses c/fwd at 30 September 2022
and 2021 (3,323,065) (3,515,024)
---------------- -------------
Excess management expenses b/fwd at 30 September (2,249,467) (1,655,253)
Current year excess management expenses (305,944) (290,993)
Adjustments in respect of prior periods - (303,221)
---------------- -------------
Excess management expenses c/fwd at 30 September (2,555,411) (2,249,467)
Total losses (5,878,476) (5,764,491)
================ =============
Profits b/fwd 6,684,345 10,545,359
Current year pre-tax loss (7,540,842) (3,861,014)
Profit attributable to deferred tax - 6,684,345
Deferred tax at 25% (2021:25%) - 1,671,086
================ =============
A deferred tax liability provision of GBP1,671,086 has been
released during the year (2021: GBP332,532) on the future tax
payable on profits, on disposal of investments.
The Company has not recognised a deferred tax asset due to the
inherent uncertainty that future investment gains will offset such
a tax asset.
In May 2021, the UK Government enacted a budget that increased
the corporation tax rate to 25% from the current rate of 19%. The
deferred tax liabilities in these accounts have been adjusted to
reflect these enacted tax rates.
8. 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
2022 2021
GBP GBP
---------------------------------------------- ------------- -------------
(Loss) for the year (5,869,756) (3,528,482)
---------------------------------------------- ------------- -------------
Weighted average number of Ordinary shares of
GBP0.01 in issue 58,181,646 57,755,713
(Loss) per share - basic and diluted (10.09 pence) (6.11 pence)
---------------------------------------------- ------------- -------------
There are no potential dilutive shares in issue.
9. Trade and Other Receivables
Year ended Year ended
30 September 30 September
2022 2021
GBP GBP
---------------------- ------------- --------------------
Prepayments 49,904 61,548
Funds held on account 3,720 1,991
Dividends receivable 23,800 -
77,424 63,539
---------------------- ------------- --------------------
Short term loans to related parties
-- At 30 September 2022 loans to Equity Resources Ltd ("EQR"),
an associate of the company, totalling GBP20,000 (2021: 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.
10. Financial assets at fair value through profit or loss
30 September 30 September
2022 2021
Listed equity securities GBP GBP
--------------------------------------------------- ------------ ------------
Fair value of investments at 1 October 14,038,887 17,825,053
Additions - -
Disposals (647,786) (140,806)
Fair value (loss) on financial assets through
profit or loss (7,234,928) (3,645,360)
Fair value at 30 September 6,156,173 14,038,887
--------------------------------------------------- ------------ ------------
The fair value carrying values of the investments
above were as follows:
Quoted on AIM 6,156,173 14,029,001
Quoted on foreign stock exchanges - 9,886
6,156,173 14,038,887
--------------------------------------------------- ------------ ------------
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
(Loss) 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% (GBP2,181) (GBP39,918) 2022
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 2022 is GBP11,341. 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.
11. Trade and Other Payables: Amounts falling due within one year
30 September 30 September
2022 2021
GBP GBP
------------------------------------- ------------ ------------
Trade creditors 19,792 33,143
Accruals 21,470 21,633
Employment and social security costs 514 30,841
Other payables - 10
41,776 85,627
------------------------------------- ------------ ------------
12. 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 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
--------------------------------------------- ---------------- --------
Issued 16 November 2021 in lieu of fees at
16.5p 132,407 21,847
Issued 7 April 2022 in lieu of fees at 13p 168,055 21,847
--------------------------------------------- ---------------- --------
As at 30 September 2022 58,282,493 692,273
--------------------------------------------- ---------------- --------
Share Warrants
The Company currently has no unexercised warrants in issue.
13. Share options
During the year ended 30 September 2022 no new options were
granted and the Company currently has no unexercised options in
issue.
14. Cash and Cash Equivalents
Year ended Year ended
30 September Cash flow 30 September
2021 GBP 2022
GBP GBP
------------------------------ ------------- ---------- -------------
Cash at bank 78,276 327,830 406,106
------------------------------ ------------- ---------- -------------
Net cash and cash equivalents 78,276 327,830 406,106
------------------------------ ------------- ---------- -------------
15. Capital Commitments
As at 30 September 2022 and 30 September 2021, the Company had
no commitments other than for expenses incurred in the normal
course of business.
16. Contingent Liabilities
There were no contingent liabilities at 30 September 2022 (2021:
GBPnil).
17. 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 GBP950 payable to Greatland
Gold plc for October 2022 rent (2021: GBP1,908). This amount was
settled in full on 27 October 2022.
There were no other related party transactions during the year
other than those disclosed in notes 6 and 9.
The key management of the Company are considered to be the
Directors, the compensation for whom was GBP141,321 (2021:
GBP141,317). Refer to note 6 for more information.
18. 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 2022 there were no loans
outstanding (2021: 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 September 30 September
2022 2021
GBP GBP
Financial assets
Trade investments at fair value through profit
and loss 6,156,173 14,038,887
Dividends receivable at amortised cost 23,800
Cash and cash equivalents at amortised cost 406,106 78,276
Investment funds held on account at amortised
cost 3,720 1,991
6,589,799 14,119,154
============= =============
Financial liabilities at amortised cost
Accruals and payables 41,776 83,640
41,776 83,640
============= =============
19. 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.
20. Events After the End of the Reporting Period
There are no events after the end of the reporting period to
disclose.
21. 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 8 February 2023 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
Mark Badros 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 Sam Lomanto 01483 413 500
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END
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