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Ocean Res Cap Hldgs (OCE)

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Tuesday 12 April, 2005

Ocean Res Cap Hldgs

Final Results

Ocean Resources Capital HoldingsPLC
12 April 2005


                      OCEAN RESOURCES CAPITAL HOLDINGS PLC


            Preliminary Results for the year ended 31 December 2004


The Directors of Ocean Resources Capital Holdings Plc announce the preliminary
results for the year ended 31 December 2004.


Financial Highlights

The Company's investment policy is to select resource companies that are either
already generating a positive cash flow or are, in the view of the Board, likely
to be so within two years.  These can be in minerals (precious or base), gem
stones, oil, gas, forest based or any other primary products or companies
providing services to these sectors.


Net Asset Value

The net asset value attributable to the Ordinary shares on 31 December 2004 was
33.09p.  The share price of the Ordinary shares on 31 December 2004 was 19.75p
indicating a discount to net asset value of 40.31%.


Chairman's Statement:


Year ended 31 December 2004

It has proved to be a disappointing year for Ocean Resources with the net asset
value of the investment portfolio falling from 35.82 pence per share to 33.09
pence per share, a year on year decline of 7.6 per cent.  This has resulted in
the Company reporting a loss of £3.1 million for the full year.  Consequently,
the Company will not be paying a dividend for the period ended 31 December 2004.

While it was a good year for the commodity sector in general, it was also a
volatile year, and one of mixed performances, for mining shares.  China's strong
appetite for raw materials to feed her economic growth continued to be the
dominant force driving the commodities sector and, as a result, the large 'blue
chip' FTSE listed mining companies all reported record earnings.  This has been
reflected in the strong performance of their share prices.  In contrast, after a
particularly buoyant and strong first quarter, the junior mining sector suffered
a significant loss of investor support due to fears of a major slow down in
China's economic growth forecasts. The small-cap resource sector, which is the
focus of Ocean Resource's attention, suffered heavily as a result, with share
price falls of over 50 per cent not being uncommon.  While investor sentiment
towards the small-cap sector improved during the second half of the year,
confidence still remains fragile and the market appears more selective than
previously.

During the year, there were a number of positive developments within our
portfolio of companies, as well as some disappointments; these are discussed in
greater detail in the Manager's Report.  The most significant of which is the
ongoing contractual dispute between OreVest plc and the Bulgarian Government in
respect of its manganese mine in northwest Bulgaria, which remains unresolved at
the time of writing.

With the exception of the current situation with OreVest, we are generally
encouraged by the developments that the companies within our portfolio have made
during the last year.  However, we also acknowledge that in many cases, this
progress has not been as fast or as efficient as we had originally hoped but we
continue to be positive and enthusiastic about the Company's projects and look
forward to reporting better news over the course of the coming year.

Your Board continues to believe that the long term outlook for the global
natural resource sector remains positive and that our portfolio is suitably
positioned to benefit from the sector's growth.  We are actively seeking further
ways to enhance both the net asset value and the return to the shareholders.


Peter Seabrook
Chairman
11 April 2005


Consolidated Profit and Loss Account
For the year ended 31 December 2004

                                                                                    2004           2003
                                                                                  £ '000         £ '000
Income from investments
Listed securities                                                                      -             49
Unlisted securities                                                                1,423          1,705

                                                                                   1,423          1,754

Surplus/(loss) on disposal of investments
Listed securities                                                                    704              -
Unlisted securities                                                                (324)            500

Interest receivable and similar income                                                 9             95
Fees and commission                                                                  991              -

Administrative expenses                                                          (1,261)          (370)

Operating profit - pre write down of investments                                   1,542          1,979

Write down of investments                                                        (4,262)       (14,000)

Operating loss                                                                   (2,720)       (12,021)

Interest payable                                                                   (416)          (283)


Loss for year before and after taxation                                          (3,136)       (12,304)

Loss per share
Basic loss per share                                                             (3.68p)       (14.43p)

Diluted loss per share                                                           (3.68p)       (14.43p)



The Group's current period results shown above are derived entirely from
continuing activities



Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 December 2004

                                                                                        2004            2003
                                                                                      £ '000          £ '000

Loss for the financial period                                                        (3,136)        (12,304)
Increase in value of investments                                                         805           2,674


Net recognised losses                                                                (2,331)         (9,630)



Consolidated Note of Historical Cost Profits and Losses
For the year ended 31 December 2004

                                                                                        2004            2003
                                                                                      £ '000          £ '000

Reported loss on ordinary activities before taxation                                 (3,136)        (12,304)
Transfer of realised profit                                                              265               -
Historical cost profit on ordinary activities before taxation                       (12,304)               -

Historical cost retained loss                                                       (15,175)        (12,304)



Balance Sheets of the Group and Company
As at 31 December 2004

                                                       Group         Company           Group         Company
                                                        2004            2004            2003            2003
                                                      £ '000          £ '000          £ '000          £ '000

Fixed asset investments
Group undertakings                                         -               -               -               -
Other investments                                     33,402          33,402          34,091          34,091

                                                      33,402          33,402          34,091          34,091

Current assets
Debtors                                                1,630           1,630           2,528           2,528
Cash at bank and in hand                                  74              74             209             209

                                                       1,704           1,704           2,737           2,737

Creditors: amounts falling due after more            (5,905)         (5,905)         (5,303)         (5,303)
than one year

Net current liabilities                              (4,201)         (4,201)         (2,566)         (2,566)

Total assets less current liabilities                 29,201          29,201          31,525          31,525

Creditors: amounts falling due after more              (999)           (999)           (992)           (992)
than one year

Net assets                                            28,202          28,202          30,533          30,533


Capital and reserves
Called up share capital                                  852             852             852             852
Share premium account                                 38,202          38,202          38,202          38,202
Warrant reserve                                        1,109           1,109           1,109           1,109
Revaluation reserve                                    3,214           3,214           2,674           2,674
Profit and loss account                             (15,175)        (15,175)        (12,304)        (12,304)

Equity shareholders' funds                            28,202          28,202          30,533          30,533

Net asset value per share                             33.09p                          35.82p



Consolidated Cash Flow Statement
For the year ended 31 December 2004

                                                                                      2004        2003
                                                                                    £ '000      £ '000

Net cash outflow from operating activities                                         (1,186)       (435)

Interest paid on loan                                                                (353)       (153)
Interest paid on 8% Convertible Unsecured Loan Stock 2006                             (91)        (38)

Net cash outflow from servicing of finance                                           (444)       (191)

Taxation paid                                                                            -           -

Investing activities
Purchase of fixed asset investments                                                (4,575)     (1,755)
Proceeds of disposal of fixed asset investments                                      5,235         334

Net cash inflow/(outflow) from capital expenditure and financial                       660     (1,421)
investment

Net cash outflow before financing                                                    (970)     (2,047)

Share issue expenses paid                                                                -     (1,472)
Loan (repaid)/drawn down                                                           (2,800)       5,000
Loans repaid/(granted) from/to investee companies                                      832     (1,272)

Net cash (outflow)/inflow from financing                                           (1,968)       2,256

(Decrease)/increase in cash                                                        (2,938)         209

Reconciliation of net cash (outflow)/inflow to movement in net debt
(Outflow)/increase in cash                                                         (2,938)         209
Net repayment/(drawdown) of loan facility                                            2,800     (5,000)
Debt due on 8% Convertible Unsecured Loan Stock 2006                                   (7)       (992)

Movement in net debt in year                                                         (145)     (5,783)
Net debt at beginning of year                                                      (5,783)           -

Net debt at year end                                                               (5,928)     (5,783)

Major non-cash transactions
Equity and non-equity assets received in return for Company shares at                    -      42,621
launch
Interest and commissions received in the form of shares                              1,136         551

                                                                                     1,136      43,172



Notes:

This preliminary statement is not the Company's statutory accounts. The
statutory accounts for the year ended 31 December 2003 have been delivered to
the Registrar of Companies and received an audit report which was unqualified
and did not contain statements under s237(2) and (3) of the Companies Act 1985.

The Report and Accounts will be posted to shareholders. Copies may be obtained
during normal business hours from the Company's registered office, The Registry,
34 Beckenham Road, Beckenham, Kent, BR3 4TU.


By order of the Board

Capita IRG Trustees Limited, Secretary
12 April 2005




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