REG - Starvest PLC - Results for the year ended 30 September 2017 <Origin Href="QuoteRef">SVE.L</Origin> - Part 2
06/11/2017 13:20
- Part 2: For the preceding part double click ID:nRSF6728Va
30 September 2017 £2,500
(2016: £nil) remained outstanding.
8. Income Taxes
a) Analysis of charge in the period
Year ended 30 September Year ended 30 September
2017 2016
£ £
United Kingdom corporation tax at 19/20% (2016: 20.00%) - -
Deferred taxation - -
- -
b) Factors affecting tax charge for the period
The tax assessed on the loss on ordinary activities for the year differs from
the standard rate of corporation tax in the UK of 19/20% (2016: 20.00%). The
differences are explained below:
Year ended 30 September Year ended 30 September
2017 2016
£ £
Profit on ordinary activities before tax 302,329 81,113
Profit multiplied by standard rate of tax 59,710 16,223
Effects of:
Utilised against carried forward losses (59,710) (16,223)
Losses carried forward not recognised as deferred tax assets - -
- -
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 2017 £ 30 September 2016 £
Profit for the year 302,329 81,113
Weighted average number of Ordinary shares of £0.01 in issue 47,287,952 38,876,323
Earnings per share - basic 0.64 pence 0.21 pence
Warrants in issue 8,500,000 -
Weighted average number of Diluted Ordinary shares of £0.01 in issue 55,787,952 38,876,323
Earnings per share - diluted 0.54 pence 0.21 pence
10. Trade and Other Receivables
Year ended Year ended
30 September 2017 £ 30 September 2016 £
Prepayments 29,589 28,014
Short term loans to related parties - 43,653
29,589 71,667
Short term loans to related parties
· At 30 September 2017 loans to Equity Resources ltd ("EQR") totalling
£20,000 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 approved at 0%
interest with no formal agreement as to repayment date. The Company holds
28.41% of the equity in EQR. However, the Company has made a full provision
for these loans, totalling £20,000.
· At 30 September 2017, loans totalling £27,500 advanced to Block Energy
plc ("BEP") (formerly Goldcrest Resources plc ("GCRP")) at 20% pa interest in
order to assist BEP in funding its necessary operational costs prior to an
expected AIM listing remain unpaid. Interest totalling £11,653 has been
accrued on these loans at the year end. However, the Company has made a full
provision for these loans, totalling £39,153.
· In 2014 a loan of £20,000 was advanced to Kryptonite 1 plc, formerly
Guild Acquisitions plc ("Guild") at 12% pa interest to assist Guild in funding
its necessary operational costs. In June 2016, Guild issued 25,000,000 new
Ordinary shares in part settlement of the loan; the remaining balance of
£10,000 was repaid in March 2017. In September 2016, the company was renamed
'Kryptonite 1 plc' to reflect its change of business to investing in
blockchain technology.
11. Current Trade Investments
30 September 2017 30 September 2016
£ £
Cost
At 30 September 2016 5,686,328 5,607,775
Additions at cost 100,000 150,390
Disposals (263,754) (71,837)
At 30 September 2017 5,522,574 5,686,328
Market value movement & provisions
At 30 September 2016 4,313,712 4,574,679
Released during the year (588,398) (643,561)
Provided during the year 277,277 382,594
At 30 September 2017 4,002,591 4,313,712
Fair value amount
At 30 September 2017 & 2016 1,519,983 1,372,616
The fair value carrying values of the investments above were as follows:
Quoted on AIM 1,370,565 1,257,985
Quoted on NEX 10,692 44,424
Quoted on foreign stock exchanges 1,782 1,735
Unquoted at Directors' valuation 136,944 68,472
1,519,983 1,372,616
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:
Name Country of incorporation Class of shares held Percentage of issued capital (Loss) for the last financial year Capital and reserves at last balance sheet date Accounting year end
Equity Resources Limited - see note 1 England & Wales Ordinary 28.41% £(8,860) £(34,648) 31 May 2016
Treslow Limited - see note 2 England & Wales Ordinary 30.1% - - 30 April 2017
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 £nil.
Note 2 : During 2008, the Company agreed to support Treslow Limited through
its pre-IPO processes. The Company has no representation on the Board of
Directors so it does not exert significant influence over Treslow Limited and
so it is not considered to be an associated undertaking despite the holding
being in excess of 20% of the issued share capital. The carrying value is
£nil.
The Company's share of the gross liabilities of its Associates at 30 September
2017 is £9,127. 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 2017 £ 30 September 2016 £
Trade creditors 33,243 20,242
Accruals 20,870 16,985
Loans 47,500 95,000
101,613 132,227
A bank overdraft facility is secured by a charge over certain of the Company's
investments having a market value at the balance sheet date of £237,141.
In September 2015, the Company received a loan of £100,000 from a shareholder
repayable in 12 months with an interest rate of 0% and with a conversion
option at 3 pence per share. On 5 January 2017, £50,000 of the loan was
satisfied by the issue of 2,500,000 new Ordinary shares at a price of 2 pence
per share. In September 2017 the Company agreed with Mr Rowan to extend the
existing loan term to 1 November 2018.
13. Share Capital
The Called up share capital of the Company was as follows:
Called up, allotted, issued and fully paid
Number of Shares £
As at 30 September 2015 39,417,259 394,173
Issued 7 January 2016 in lieu of fees 825,000 8,250
Treasury shares cancelled 15 March 2016 (2,300,000) (23,000)
Issued 12 May 2016 in lieu of fees 733,332 7,333
Issued 8 July 2016 in lieu of fees 942,855 9,429
As at 30 September 2016 39,618,446 396,185
Issued 17 October 2016 in lieu of fees 725,000 7,250
Issued 5 January 2017 on conversion of loan 2,500,000 25,000
Issued 5 January 2017 in lieu of fees 800,000 8,000
Issued 11 May 2017 for cash placing 8,500,000 85,000
Issued 17 May 2017 in lieu of fees 754,717 7,547
As at 30 September 2017 52,898,163 528,982
Shares held in treasury
On 15 March 2016, the Company cancelled the 2.3 million treasury shares held
since 2007/8. The balance of the treasury shares was accounted for via a
reserve transfer as shown on the statement of changes in equity.
Share Warrants
On 11 May 2017, as part of the Placing, the Company issued 8,500,000 warrants
to subscribe for new Ordinary Shares in Starvest at an exercise price of 4.0p
per warrant, within a 24 month exercise period. As at 30 September 2017,
8,500,000 warrants remain outstanding (2016: nil).
14. Share options
The Company's share option scheme, established on 14 February 2005, expired on
31 January 2015. During the year ended 30 September 2017 no new options were
granted.
15. Cash and Cash Equivalents
Year ended 30 September 2016 Cash flow Year ended 30 September 2017
£ £ £
Cash at bank 9,856 422,926 432,782
Net cash and cash equivalents 9,856 422,926 432,782
16. Capital Commitments
As at 30 September 2017 and 30 September 2016, 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 2017 (2016: £nil).
18. Related Party Transactions
There were no 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 £128,500 (2016: £135,000).
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 2017, these loans included £59,153 (2016: £30,000) which have
been provided for in full.
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 30 September Year ended 30 September
2017 2016
£ £
Financial assets
Trade investments 1,519,983 1,372,616
Loans and receivables 29,589 71,667
1,549,572 1,444,283
Financial liabilities
Loans and payables 101,613 132,227
101,613 132,227
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
capital. 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
On 16 October 2017, the Company took part in the IPO of Cora Gold Limited, an
exploration company focused on West Africa. 303,030 new ordinary shares were
purchased at a cost of 16.5p equivalent to £50,000.
22. Ultimate controlling party
There is no ultimate controlling party.
Copies of the annual report and financial statements will be posted to
Shareholders on 8 November 2017 and will be available for a period of one
month thereafter from the Company's registered office: 55 Gower Street,
London, WC1E 6HQ or by email at info@starvest.co.uk
Alternatively, from 8 November 2017 the report may be downloaded from the
Company's website at www.starvest.co.uk
Enquiries to:
Starvest PLC
Callum Baxter Chairman/CEO +44 7922 255 933 cbaxter@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke +44 2073 835 100
SI Capital Ltd (Appointed Broker)
Nick Emerson +44 1483 413 500
This information is provided by RNS
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