Half-yearly report - six months ended 31 March ...

Half-year report - six months ended 31 March 2009

Chairman's statement
As reported  in  the Chairman's  update  on 2  April  2009,  Starvest
enjoyed a modest recovery in its net asset value during the half year
to 31  March 2009  when the  closing portfolio  net asset  value  was
£4.25m, a 9% increase in the half year since 30 September 2008.
The prudent  valuation  basis  adopted when  preparing  the  Starvest
annual financial statements  at 30  September 2008 has  proved to  be
fully justified.  Whereas  previously Starvest used  the closing  mid
market  values   or  the   Directors'  lower   valuation  if   deemed
appropriate, it now uses closing  bid prices or the Directors'  lower
valuation.  The  Directors believe  that  this better  reflects  true
values against the backdrop of  an uncertain but deteriorating  world
economy.
Company statistics

                                   31 March Change since 30 September
                                       2009 30 September         2008
                                                    2008
Portfolio value                      £4.25m         +9 %        £3.9m
Company net asset value               £3.6m        +5.9%        £3.4m
Net asset value - fully diluted      10.01p       +10.4%        9.06p
per share
Closing share price                   6.25p                    12.25p
Share price premium/(discount) to     (37%)                       35%
fully diluted net asset value
Market capitalisation                £2.18m                    £4.28m


Comment
During  the  half  year,  Starvest  made  modest  additions  to   its
investments in Greatland Gold plc, Red Rock Resources plc and Regency
Mines plc.
Although there has  been some  further improvement  in market  prices
since 31 March 2009, conditions remain fragile, so I can do no better
than repeat  the comments  I made  when issuing  an update  as at  31
December 2008:
"The speculation of which I wrote  in July that the crises  impacting
the financial  markets  would lead  to  world-wide recession  with  a
consequential reduction in demand for natural resources and  services
has proven to be well founded and  as a result many of the  companies
in which  Starvest is  invested  have seen  their share  prices  fall
during the past year.
"It remains  the view  of  the Starvest  board  that demand  for  raw
materials will  return  as  current stocks  are  exhausted  and  that
commodity prices  must return  to levels  at which  it again  becomes
economic to mine newly discovered deposits.
"Conclusion:
"Whilst disappointed that  our fears  have been  realised, the  Board
continues to believe  that it  has within  its portfolio  investments
with considerable  potential  and is  looking  forward to  an  upturn
during 2010, possibly earlier for some."
Against this background, the Board is satisfied with the  investments
currently held.
Other points of note during the half year:
*          The loss on ordinary activities before taxation for the
  period amounted to £147,841 (2008: loss of £672,206).  The loss
  includes administrative expenses amounting to £97,862.  There was
  no investment impairment charge (2008: £547,088).
*          Basic loss of 0.42 pence per share (2008: loss of 1.9
  pence per share); fully diluted loss of 0.36 pence per share (2008:
  loss of 1.7 pence per share)
R Bruce Rowan
Chairman & Chief Executive
14 May 2009


Profit & loss account


                          6 months to 31 6 months to 31   Year  ended
                              March 2009     March 2008  30 September
                                                                 2008
                               Unaudited      Unaudited       Audited
                                       £              £             £

Operating income                       -         16,716        16,700

Direct costs                           -       (15,430)      (15,430)

Gross profit                           -          1,286         1,270

Administrative expenses         (97,862)      (153,380)     (271,640)

Amounts written off                    -      (547,088)   (3,461,919)
trade investments

Operating (loss) on             (97,862)      (699,182)   (3,732,289)
ordinary activities

Interest receivable               15,274         72,728       105,054
Interest payable                (65,253)       (45,752)      (98,430)

(Loss) on ordinary             (147,841)      (672,206)   (3,725,665)
activities before
taxation

Tax on profit on                       -              -     1,118,201
ordinary activities

(Loss) on ordinary             (147,841)      (672,206)   (2,607,464)
activities after
taxation

(Loss) per share -  see
note 4                      (0.42) pence    (1.9) pence   (7.5) pence
Basic                       (0.36) pence    (1.7) pence   (7.5) pence
Fully diluted



Balance sheet

+-------------------------------------------------------------------+
|                     |   | 6 months to | 6 months to | Year  ended |
|                     |   |    31 March |    31 March |          30 |
|                     |   |        2009 |        2008 |   September |
|                     |   |             |             |        2008 |
|---------------------+---+-------------+-------------+-------------|
|                     |   |   Unaudited |   Unaudited |     Audited |
|                     |   |           £ |           £ |           £ |
|---------------------+---+-------------+-------------+-------------|
| Fixed assets        |   |           - |           - |           - |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Current assets      |   |             |             |             |
| Debtors             |   |   1,147,178 |      31,980 |   1,126,908 |
| Trading investments |   |   2,809,786 |   5,499,136 |   2,855,237 |
| - see note 2        |   |           - |   1,341,142 |           - |
| Cash at bank        |   |             |             |             |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
|                     |   |   3,956,964 |   6,872,258 |   3,982,145 |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Creditors - amounts |   |             |             |             |
| falling due  within |   |             |             |             |
| one year            |   | (1,742,276) | (2,574,467) | (1,619,615) |
| Other creditors     |   |             |             |             |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Net current assets  |   |   2,214,688 |   4,297,791 |   2,362,530 |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Total assets less   |   |   2,214,688 |   4,297,791 |   2,362,530 |
| current liabilities |   |             |             |             |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Capital         and |   |             |             |             |
| reserves            |   |     372,173 |     372,173 |     372,173 |
| Called   up   share |   |   2,026,396 |   2,026,396 |   2,026,396 |
| capital             |   |   (183,881) |   1,899,222 |    (36,039) |
| Share       premium |   |             |             |             |
| account             |   |             |             |             |
| Profit   and   loss |   |             |             |             |
| account             |   |             |             |             |
|                     |   |             |             |             |
|---------------------+---+-------------+-------------+-------------|
| Equity              |   |   2,214,688 |   4,297,791 |   2,362,530 |
| shareholders' funds |   |             |             |             |
|                     |   |             |             |             |
+-------------------------------------------------------------------+


Cash flow statement


+-------------------------------------------------------------------+
|          |          |  6 months to 31 | 6 months to |  Year ended |
|          |          |      March 2009 |    31 March |          30 |
|          |          |                 |        2008 |   September |
|          |          |                 |             |        2008 |
|---------------------+-----------------+-------------+-------------|
|                 |   |       Unaudited |   Unaudited |     Audited |
|                 |   |               £ |           £ |           £ |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
| Net cash        |   |        (58,482) | (1,443,358) | (1,815,809) |
| (outflow) from  |   |                 |             |             |
| operating       |   |                 |             |             |
| activities      |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
| Returns on      |   |                 |             |             |
| investment and  |   |                 |             |             |
| servicing of    |   |                 |             |             |
| finance:        |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
| Interest        |   |          15,274 |      72,728 |     105,054 |
| receivable      |   |        (65,253) |    (45,752) |    (98,430) |
| Interest        |   |                 |             |             |
| payable         |   |                 |             |             |
|                 |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |        (49,979) |      26,976 |       6,624 |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |                 |             |             |
| Taxation paid   |   |               - |           - | (1,509,413) |
| Equity          |   |               - |   (175,586) |   (174,587) |
| dividends paid  |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |               - |   (175,586) |   1,684,000 |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |                 |             |             |
| Financing:      |   |                 |             |             |
| Company  shares |   |               - |    (73,478) |    (73,478) |
| repurchased     |   |                 |             |             |
|                 |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |               - |    (73,478) |    (73,478) |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |                 |             |             |
| (Decrease) in   |   |       (108,461) | (1,665,446) | (3,566,665) |
| cash in the     |   |                 |             |             |
| period          |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
|                 |   |                 |             |             |
| Opening cash    |   |               - |   3,006,588 |   3,006,588 |
| balance brought |   |     (1,560,077) |           - |           - |
| forward         |   |                 |             |             |
| Net debt        |   |                 |             |             |
| brought forward |   |                 |             |             |
|                 |   |                 |             |             |
|-----------------+---+-----------------+-------------+-------------|
| (Net debt)      |   |     (1,668,538) |   1,341,142 | (1,560,077) |
|                 |   |                 |             |             |
+-------------------------------------------------------------------+


Movement on equity shareholders' funds


+-------------------------------------------------------------------+
|           |            |  6 months to | 6 months to | Year  ended |
|           |            |     31 March |    31 March |          30 |
|           |            |         2009 |        2008 |   September |
|           |            |              |             |        2008 |
|------------------------+--------------+-------------+-------------|
|                    |   |    Unaudited |   Unaudited |     Audited |
|                    |   |            £ |           £ |           £ |
|--------------------+---+--------------+-------------+-------------|
|                    |   |              |             |             |
|--------------------+---+--------------+-------------+-------------|
| Total recognised   |   |    (147,841) |   (672,206) | (2,607,464) |
| (loss) relating to |   |              |             |             |
| the period         |   |            - |   (175,586) |   (174,587) |
| Dividend paid      |   |            - |    (73,478) |    (73,480) |
| Purchase of own    |   |              |             |             |
| shares for         |   |              |             |             |
| Treasury - see     |   |              |             |             |
| note 3             |   |              |             |             |
|                    |   |              |             |             |
|--------------------+---+--------------+-------------+-------------|
| (Decrease) in      |   |    (147,841) |   (921,270) | (2,855,531) |
| shareholders'      |   |              |             |             |
| funds              |   |    2,362,530 |   5,218,061 |   5,218,061 |
| Opening            |   |              |             |             |
| shareholders'      |   |              |             |             |
| funds              |   |              |             |             |
|                    |   |              |             |             |
|--------------------+---+--------------+-------------+-------------|
| Closing            |   |    2,214,689 |   4,296,791 |   2,362,530 |
| shareholders'      |   |              |             |             |
| funds              |   |              |             |             |
|                    |   |              |             |             |
+-------------------------------------------------------------------+


Interim report notes

1.       Interim report
The information relating to  the six month periods  to 31 March  2009
and 31 March 2008 is unaudited.
The information  relating to  the  year ended  30 September  2008  is
extracted from the audited  accounts of the  Company which have  been
filed at  Companies  House  and  on  which  the  auditors  issued  an
unqualified audit report.
2.      Basis of accounting
The report  has  been prepared  using  accounting policies  that  are
consistent with those adopted  by the Company  in accordance with  UK
GAAP for the statutory accounts for the year ended 30 September 2008,
although the  information  does  not  constitute  statutory  accounts
within the meaning of section 240 of the Companies Act 1985.
The Company will report again for the full year to 30 September 2009.
The Company's investments at 31 March 2009 are valued at the lower of
cost or the  valuation adopted at  30 September 2008.   At that  date
unrealised losses totalling £3,592,014 were recognised and the charge
to the profit and loss  account for the year  ended on that date  was
£3,461,919.  Although there has been some improvement in the  market,
the Directors consider that the anticipated economic recovery is some
way off  and therefore  it  is too  soon  to revalue  the  investment
portfolio  for  the  purpose  of  this  statement.   The   Chairman's
statement includes a valuation based on bid prices at 31 March 2009.
3.      Earnings per share

+-------------------------------------------------------------------+
|                  |      | 6 months to | 6 months to | Year  ended |
|                  |      |    31 March |    31 March |          30 |
|                  |      |        2009 |        2008 |   September |
|                  |      |             |             |        2008 |
|-------------------------+-------------+-------------+-------------|
|   |         |           |   Unaudited |   Unaudited |     Audited |
|   |         |           |           £ |           £ |           £ |
|---+---------+-----------+-------------+-------------+-------------|
|   |         |           |             |             |             |
|---+---------------------+-------------+-------------+-------------|
|   | These have been     |   (147,841) |   (672,206) | (2,607,464) |
|   | calculated on a     |             |             |             |
|   | (loss) of:          |             |             |             |
|---+---------------------+-------------+-------------+-------------|
|   |                     |             |             |             |
|   | The weighted        |  34,917,259 |  34,997,860 |  34,958,243 |
|   | average number of   |             |             |             |
|   | shares used,        |             |             |             |
|   | excluding shares    |             |             |             |
|   | held in treasury,   |             |             |             |
|   | was:                |             |             |             |
|---+---------------------+-------------+-------------+-------------|
|   |                     |             |             |             |
|   | Basic (loss) per    |      (0.42) | (1.9) pence | (7.5) pence |
|   | share:              |             |             |             |
|   |                     |             |             |             |
|---+---------------------+-------------+-------------+-------------|
|   |                     |             |             |             |
|   | The weighted        |  40,492,259 |  40,572,860 |  40,533,243 |
|   | average number of   |             |             |             |
|   | shares and          |             |             |             |
|   | outstanding options |             |             |             |
|   | used, excluding     |             |             |             |
|   | shares held in      |             |             |             |
|   | treasury, was:      |             |             |             |
|---+---------------------+-------------+-------------+-------------|
|   |                     |             |             |             |
|   | Fully diluted       |      (0.36) | (1.7) pence | (7.5) pence |
|   | (loss) per share:   |             |             |             |
|   |                     |             |             |             |
+-------------------------------------------------------------------+



Investment portfolio
Starvest now holds trade investments in the following companies:

*          Addworth plc    Active capital investment company
                           www.addworth.co.uk
*          Alba Mineral    Nickel, uranium & gold in Scotland,
  Resources plc            Mauritania, Sweden and Ireland
                           www.albamineralresources.com
*          Agricola        Platinum and uranium exploration
  Resources plc            www.agricolaresources.com
*          Ariana          Gold exploration in Turkey
  Resources plc            www.arianaresources.com
*          Belmore         Zinc exploration in Ireland
  Resources (Holdings) plc www.belmoreresources.com
*          Beowulf Mining  Gold and copper exploration in Sweden
  plc                      www.beowulfmining.com
*          Brazilian       Diamond exploration in Brazil
  Diamonds Limited         www.braziliandiamonds.com
*          CAP Energy plc  Oil & gas production in North America
                           www.capenergy.co.uk
*          Carpathian      Oil and gas exploration in Central Europe
  Resources Limited        www.carpathian.com.au
*          Concorde Oil &  Operational oil and gas projects in the
  Gas plc                  Russian Federation
*          The Core        Personal care and beauty products
  Business plc             www.thecorebusiness co.uk
*          Equity          Investment holding company
  Resources plc
*          Franconia       North American minerals
  Minerals Corporation     www.franconiaminerals.com
*          Fundy Minerals  Gold and base metal exploration in Canada
  Limited                  and West Africa
                           www.fundyminerals.com
*          Gippsland       Tantulum exploration in Egypt
  Limited                  www.gippslandltd.com.au
*          Goliath         Copper, gold & molybdenum in Canada and
  Resources Inc.           Zambia
                           www.goliathresources.com
*          Greatland Gold  Gold exploration in Western Australia and
  plc                      Tasmania
                           www.greatlandgold.com
*          Guild           Investment holding company
  Acquisitions plc
*          Hidefield Gold  Gold exploration in North and South
  plc                      America
                           www.hidefield.co.uk
*          India Star      Oil and gas investments
  Energy plc
*          Kefi Minerals   Mineral exploration in Turkey
  plc                      www.kefi-minerals.com
*          Lisungwe plc    Nickel, uranium & gold in Malawi
                           www.lisungwe.com
*          Lotus Resources Mineral exploration in China
  plc                      www.lotus-resources.com
*          Oracle          Coal mining in Pakistan
  Coalfields plc           www.oraclecoalfields.com
*          Red Rock        Iron ore and manganese exploration in
  Resources plc            Australia and Zambia; uranium exploration
                           in Malawi
                           www.rrrplc.com
*          Regency Mines   Copper & nickel exploration in Australia
  plc                      and Papua New Guinea
                           www.regency-mines.com
*          Sheba           Gold exploration in Ethiopia
  Exploration (UK) plc     www.shebagold.com
*          St Helens       Corporate finance advisor
  Capital plc              www.sthelenscapital.com
*          Sunrise         Diamond exploration in Finland
  Diamonds plc             www.sunrisediamonds.com
*          Treslow Limited Copper & nickel in Ontario, Canada
*          Woburn Energy   Oil & gas in the North Sea and Columbia
  plc - formerly Black     www.woburnenergy.com
  Rock Oil & Gas plc



Shareholders and  others who  wish to  receive electronic  copies  of
announcements are invited to register their email address on the home
page of the Company website: www.starvest.co.uk.
Copies of  this  interim  report  are available  free  of  charge  by
application in  writing to  the Company  Secretary at  the  Company's
registered office, 123 Goldsworth Road,  Woking, GU21 6LR,  by  email
to  [e-mail]   or   from   the   Company's   website   at
www.starvest.co.uk.
Enquiries to:

  * Bruce Rowan, telephone [phone]
  * John Watkins, telephone [phone], or to [e-mail]
  * Gerry Beaney or Colin Aaronson, Grant Thornton UK LLP, telephone
    020 7383 5100

End

---END OF MESSAGE---




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