Final Results

23 April 2008 SILENTPOINT PLC ("Silentpoint" or "the Company") Final results for the year ended 31 October 2007 Chairman's statement I am pleased to report Silentpoint's results for the year ended 31 October 2007. Silentpoint made a profit before taxation for the period of £48,743 (2006: £ 27,470) after releasing a non-cash provision of £55,600 for diminution in the value of certain trading shareholdings that was not required. Earnings per share has increased from 0.12p to 0.25p. The pre-tax profit and earnings per share takes into account gains from share disposals and interest receivable on the Company's cash balance. We did not implement a share buy-back during the year and net cash at the year end increased from £607,771 to £1,077,764. The significant turmoil in the global stockmarkets over the past few months has limited our pre-tax profit and net asset growth during the past financial year. Whilst markets remain difficult in the first part of the current financial year, we remain confident of the prospects for our business. The Company continued its strategy of making investments during the year and we continue to actively manage and review exposure to our business risks. In our past Chairman's Statements I cautioned that the market for natural resource companies would polarise in favour of those companies that were at production stage, away from those that were at the exploration stage. Reflecting this viewpoint, which proved prescient, during the year we reduced our exposure to this area, with the a sale of our residual holding in Cambrian Oil & Gas, completed during the first half of the year and with a partial sale of India Star Energy, completed during the second half of the year. Elsewhere, we continue to deploy the remainder of our assets in a spread of quoted companies across a number of sectors that the Board feels have prospects for enhancing our returns. Among our portfolio of quoted shareholdings, we retain a holding of 15.5m shares in India Star Energy PLC, equivalent to a shareholding of 9.49 per cent. of its capital. India Star continues to develop a variety of interests, including a uranium property as well as interests in two Canadian companies, which provide exposure to platinum, palladium and copper exploration. Of key note during the year was notification that two large shareholders had acquired 29.9 per cent. of the issued ordinary share capital of India Star. Our view is that these strategic shareholders will assist in accelerating the development of India Star. Dividend and share buy-backs No dividend is being proposed at this time as the Board believes it prudent to continue to deliver capital growth for shareholders. As part of this process, in line with our commitment at last year's AGM, we are renewing our authority to buy back shares for cancellation. Following last year's repurchases there was an average of 15,930,000 shares in issue during the year. Outlook As has been well publicised, conditions in stock markets have continued to deteriorate since the year end. In line with Silentpoint's previous conservative policy, holdings in shares are not revalued until disposal but the investments are "marked to market" and held on the balance sheet at the lower of cost or net realisable value at the balance sheet date. Gains are only recognised on disposal. We do not see any reprieve in the immediate future and it is likely that markets remain difficult and volatile in the near term. As this process continues we therefore expect to report a loss at the interim stage and notwithstanding this, our decision not to invest in haste in overvalued situations in the past two years remains vindicated at this point in the cycle by the extent of the present downturn. Haresh Kanabar Chairman 23 April 2008 Further Enquiries: Silentpoint plc Smit Berry Tel: 020 8656 4648 Haresh Kanabar Tel: 020 7297 0010 John East & Partners Limited David Worlidge/Simon Clements Tel: 020 7628 2200 PROFIT AND LOSS ACCOUNT For the year ended 31 October 2007 Notes 2007 2006 £ £ Turnover 68,973 245,910 Unrealised gain/(diminution) in value 55,600 (129,360) of stocks Other operating expenses (net) (106,962) (111,595) Operating profit 17,611 4,955 Other interest receivable and similar 31,132 22,515 income Profit on ordinary activities before 48,743 27,470 taxation Taxation (9,324) (6,661) Profit on ordinary activities after 39,419 20,809 taxation Earnings per share-basic and diluted 7 0.25 p 0.12p The operating profit for the year arises from the Company's continuing operations. No separate statement of total recognised gains and losses has been presented as all such gains and losses have been dealt with in the profit and loss account. BALANCE SHEET As at 31 October 2007 Notes 2007 2006 £ £ Fixed Assets Fixed Asset Investment 1 1 Current assets Stocks 400,592 792,088 Debtors 6,875 6,497 Cash at bank and in hand 1,077,764 607,771 1,485,231 1,406,356 Creditors: amounts falling due within one (72,152) (32,696) year Net current assets 1,413,079 1,373,660 Total assets less current liabilities 1,413,080 1,373,661 Capital and reserves Share capital 318,600ll 318,600 Share premium 1,076,496 1,076,496 Capital redemption reserve 31,400 31,400 Profit and loss account (13,416) (52,835) Shareholders' funds - equity interests 3 1,413,080 1,373,661 CASH FLOW STATEMENT For the year ended 31 October 2007 Notes 2007 2006 £ £ Net cash inflow from operating activities 4 445,229 88,845 Returns on investments and servicing of 5 31,132 22,515 finance Taxation (6,368) (16,274) Management of liquid resources 5 (433,916) 180,282l Financing 5 - (121,029) Increase in cash in the period 6 36,077 154,339 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Increase in cash in the period 36,077 154,339 Cash outflow from decrease in liquid 6 (13,181) (25,748) resources Change in net funds resulting from cash 22,896 128,591 flows Non-cash movement of funds 6 55,600 (129,360) Movement in net funds in the period 78,496 (769) Net Funds at 1 November 2006 1,399,860 1,400,629 Net Funds at 31 October 2007 6 1,478,356 1,399,860 Notes to the Preliminary Results 1 Publication of non-statutory accounts The financial statements have been prepared under historical cost convention and in accordance with applicable accounting standards. 2 Taxation 2007 2006 £ £ Based on the profit for the year: UK corporation tax on profits of the year 9,617 6,661 Adjustments in respect of prior periods (293) - -------- -------- 9,324 6,661 -------- -------- Factors affecting tax charge for the year: The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 30 per cent. The differences are explained below: Profit on ordinary activities before tax 48,743 27,470 -------- -------- Profit on ordinary activities multiplied by the 9,543 5,219 standard rate of UK corporation tax UK of 20 per cent. (Apr 2007 to Oct 2007) and 19 per cent. (Nov 2006 to Mar 2007) (2005:19 per cent.) Effects of: Expenses not deductible for tax purposes 74 1,442 -------- -------- 9,617 6,661 -------- -------- 3 Reconciliation of movements in shareholders' funds 2007 2006 £ £ Profit after taxation 39,419 20,809 Opening shareholders' funds 1,373,661 1,466,295 Purchase of own shares - (113,443) -------- -------- Closing shareholders' funds 1,413,080 1,373,661 -------- -------- 4 Reconciliation of operating profit to net cash inflow from operating activities 2007 2006 £ £ Operating profit 17,611 4,955 Irrecoverable debt - 7,586 Decrease in fixed asset investments - (1) Decrease/(increase) in stocks 391,496 (25,174) (Increase)/decrease in debtors (378) 89,743 Increase in creditors 36,500 11,736 -------- -------- 445,229 88,845 -------- -------- 5 Analysis of cash flows for headings netted in the cash flow 2007 2006 £ £ Returns on investments and servicing of finance Interest received 31,132 22,515 -------- -------- Management of liquid resources (Increase)/ reduction in treasury deposits (433,916) 180,282 -------- -------- Financing Purchase of own shares - (121,030) -------- -------- 6 Analysis of net funds At 1 Cash flow Other At 31 November Non-cash October 2007 2006 changes £ £ £ £ Cash at bank and in hand 188,054 36,077 224,131 -------- -------- -------- -------- Treasury reserve deposits 419,718 433,915 - 853,633 not subject to immediate access Current asset investments 792,088 (447,096) 55,600 400,592 -------- -------- -------- -------- 1,211,806 (13,181) 55,600 1,254,225 -------- -------- -------- -------- Total 1,399,860 22,896 55,600 1,478,356 -------- -------- -------- -------- 7. Earnings per share Basic earnings per ordinary share has been calculated using the weighted average number of shares in issue during the financial year. The weighted average number of equity shares in issue was 15,930,000 (2006: 16,797,083) and the profit after tax was £39,419 (2006: £20,809). The diluted earnings has been calculated using the weighted average number of shares in issue 15,930,000 taking into effect the dilutive share options outstanding. As the resulting earnings per share equates to the basic earnings per share, a separate line has not been included on the profit and loss account. 8. Dividends No dividend is proposed for the year ended 31 October 2007. 9. Copies of the annual accounts Copies of the annual report and accounts are being sent to shareholders shortly and are available from the Company's registered office, 84 Addiscombe Road, Croydon, Surrey CR0 5PP and on the Company's website www.silentpoint.co.uk

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