Starvest plc
Company No. 03981468
Starvest plc
Report and Financial Statements
For the Year Ended 30 September 2023
Starvest plc
CONTENTS
Officers and professional advisers
Chairman’s statement
Investment Portfolio
Portfolio Review
Board of directors
Strategic report
Directors’ report
Directors’ responsibilities statement
Independent auditor’s report
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Page
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20
Starvest plc
2023 Annual Report and Financial Statements
Officers and professional advisers
Directors
Callum N Baxter – Non-Executive Chairman
Mark J Badros – Chief Executive Officer
Gemma Cryan – Executive Director
Secretary and
registered office
Business address
Auditor
Stephen Ronaldson
Salisbury House
London Wall
London EC2M 5PS
33 St. James’s Square
London SW1Y 4JS
info@starvest.co.uk
Tel: 02077 696 876
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Registered number
03981468
Solicitors
Banker
Registrars
Druces LLP
Salisbury House
London Wall
London EC2M 5PS
Clydesdale Bank/Virgin Money
Banking Hall
30 St.Vincent Place
Glasgow G1 2HL
Lloyds Bank
Threadneedle Street
London EC2R 5AU
Share Registrars Limited
Molex House
Millennium Centre
Crosby Way
Farnham
Surrey GU9 7XX
Tel: 01252 821 390
Website
www.starvest.co.uk
1
Starvest plc
2023 Annual Report and Financial Statements
Chairman’s Statement
Dear Fellow Shareholders:
Since Starvest’s formation in 2000, the Company's management and directors have made investments to support
early-stage mineral exploration ventures with a focus on small-company new issues and pre-initial public offering
opportunities. Our successful investments in Greatland Gold plc (“Greatland”) and Ariana Resources plc (“Ariana”)
now account for substantially all of the net asset value (“NAV”) of the Company. At the same time, however, the
public markets have persistently valued Starvest’s shares at a discount to NAV that has generally ranged from 25
to 45%, and was approximately 25% as at 31 October 2023.
Faced with the dilemma of incurring corporate-level taxes from selling shares while having the Company’s capital
tied up in investments that we believe still offer long-term value, we have sought opportunities to deliver economic
value to you in a tax-efficient way. This year, the Board took an important decision to close this value gap to
enhance shareholder value.
The Company received overwhelming shareholder approval for a series of proposals to cancel the admission of
the Company’s Ordinary Shares to trading on AIM (the “Cancellation”). Following the Cancellation, we anticipate
placing the Company in a solvent members’ voluntary liquidation (the “Liquidation”) pursuant to the UK Companies
Act 2006. We have retained Moorfields Advisory Ltd to serve as liquidation agent (the “Liquidation Agent”) during
this process, which is expected to entail a distribution in specie to our shareholders of the Greatland and Ariana
shares in our portfolio. As a result, these financial statements are prepared on a basis other than going concern.
Based on the current holdings of Greatland and Ariana shares, we believe that you will receive an in-kind
distribution of shares in a ratio of approximately 1.33 Greatland shares and 0.199 Ariana shares (provided,
however, that no fractional shares will be distributed) for every share of Starvest that you hold. In the discretion of
the Board and the Proposed Liquidators, some of the share portfolio may be retained to ensure that there is
sufficient cash to pay creditors and meet professional fees. To the extent that cash remains after paying creditors
and fees, we will make a further distribution of cash pro rata to our shareholders.
We recommend that you carefully review the Company’s Circular dated 27th October 2023, which is available at
the Company’s website and which describes these proposed transactions in greater detail.
As a result, we expect that this letter will be my final annual report on the Company. We have included for your
review our statutory accounts and a summary of our investment portfolio.
We thank you for your support over the years.
Callum N Baxter
Chairman
15 December 2023
2
Starvest plc
2023 Annual Report and Financial Statements
Investment 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.
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.
At closing values
31 October 2023
30 September 2023
30 September 2022
Trading portfolio value
Company net asset value
Net asset value per share
Closing share price
Share price discount to net asset
value
Market capitalisation
£7.5 m
£7.7 m
13.2 p
10.0 p
25%
£5.8 m
£5.3 m
£5.5 m
9.4 p
5.5 p
41%
£3.2 m
£6.2 m
£6.6 m
11.3 p
8.0 p
29%
£4.7 m
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, which represents the largest part of the
Company’s portfolio, is focused on exploration and development in Western Australia. Greatland also has farm-
in and joint venture agreements in place with its major partner, Newmont Corporation (“Newmont”), which
acquired Newcrest Mining Ltd. in November 2023.
The company, in conjunction with its joint venture partner, has continued to report excellent drilling results from
the Havieron project with an Inferred Mineral Resource estimate of 6.5Moz AuEq. The resource does not take into
account drilling carried out beyond February 2022, which could see a significant increase in resource if included
and drilling to date has yet to close off the deposit, with Havieron remaining open at depth and in multiple
directions, allowing for significant resource growth in the future. An update on the resource is expected in
December 2023.
The company also entered into a joint venture with Rio Tinto in the Paterson area covering 1,884sq km of ground
and recently applied to acquire four new licences of its own at Yannarie in the Gascoyne covering 126sq km.
Elsewhere, Greatland announced that drilling permits have been granted on the Ernest Giles licence and with
heritage agreements now in place after lengthy negotiations, drilling is due to recommence on the gold targets.
Prioritising the Western Australian projects, Greatland entered into an option agreement to sell the two Tasmania
exploration licences to Flynn Gold for an initial purchase price of A$200,000 with deferred consideration and
royalty equal to 1% net smelter returns of any future production.
In November 2023, Newmont completed the acquisition of Newcrest to create the world’s leading gold company
with robust copper production. Greatland have publicly welcomed the opportunity to continue work on the
Havieron project with their new joint venture partner.
3
Starvest plc
2023 Annual Report and Financial Statements
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.
Ariana Resources reported that gold production at the Kiziltepe mine was in line with guidance for 2023. Its share
of profits for the six months to 30 June 2023 was £0.7m. During the year the company completed drilling and
geophysics which tested extensions of the near mine vein system and aided near mine exploration. Construction
of a second mine at Tavsan is underway and the company released an increase in JORC compliant resource for
the project to 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. The company also acquired three new greenfield exploration licences in eastern Turkey.
Elsewhere, West Tethyan Resources, a company which Ariana own a 75% stake in, completed an agreement to
acquire the Slivova Gold Project in Kosovo and a Preliminary Economic Assessment reporting a NPV of 8%, IRR
of 29% at US$1,835/oz Au, with an average production rate of 13,000 oz Au per annum over a seven-year mine
life.
4
Starvest plc
2023 Annual Report and Financial Statements
Board of directors
Callum N Baxter – Non-Executive Chairman
Mr. Baxter is a qualified Geologist (MSc Geol) and investor. His primary experience lies in early-stage exploration
geology and he has been involved in several discoveries throughout his more than 25 years in the industry. Callum
has more than 20 years of experience in capital markets with many investments focusing on early-stage
exploration opportunities. He was an Executive Director of Starvest investee company, Greatland Gold plc
(AIM:GGP), from 2006 until 2021.
Mark J Badros – Chief Executive Officer
Mr. Badros has more than 18 years of financial and investment experience in public and private equities as an
analyst and investment manager at mutual funds and hedge funds, including Merrill Lynch Investment Managers,
Zweig-DiMenna Associates, Highland Capital and Ironbound Capital. Mark graduated from Princeton University
and received his law degree from Harvard Law School. He began his career practising securities, mergers and
acquisitions, and corporate law in New York.
Gemma M Cryan – Executive Director
Miss Cryan holds formal qualifications in geology (BSc Hons) and has over 20 years of industry experience in the
oil and gas industry, followed by mineral exploration, in both private and public companies throughout North
America, Europe, Australasia and Africa. Her time has been spent in the field, and in management roles assisting
with corporate matters. Gemma is well-versed in pre-IPO activities and early-stage mineral exploration ventures
and she is a Non-Executive Director of Great Western Mining Corporation Plc (AIM:GWMO) and First
Development Resources Plc (unquoted).
5
Starvest plc
2023 Annual Report and Financial Statements
Strategic report
Principal activities and business review
Since Starvest’s formation in 2000, the Company's management and directors have made investments to support
early-stage mineral exploration ventures with a focus on small-company new issues and pre-initial public offering
opportunities. Our successful investments in Greatland and Ariana now account for substantially all of the net
asset value (NAV) of the Company.
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 2023 the Company recorded a loss before tax of £1,115,359 (compared to
a loss of £7,540,842 in 2022), equating to a loss of 1.91 pence (2022: 12.69 pence) per share with net cash
outflow of £226,835 (2022: inflow of £327,830. The Company’s cash deposits stood at £179,271 at the period
end.
Key Performance Indicators
The Company’s key measure of performance is the market value of its investment holdings. As a secondary metric,
the Company seeks to manage the administrative and other expenses associated with achieving its investment
results. The Company does not have any operating activities and thus the directors take the opinion that analysis
using operating key performance indicators is not necessary for an understanding of the performance,
development or position of the business at the present time.
Key risks and uncertainties
This business carries a high level of risk and uncertainty with commensurately high potential returns.
Following the Cancellation as described above, the Company’s shares are no longer listed on AIM. As a result,
there will be no public market for the Company’s shares and there can be no assurance that shareholders will be
able to trade in the Company’s shares. There can be no assurance of any liquid markets in Starvest shares, or
that any available price quotes or offers will bear any relationship to the prices at which Starvest has traded on
AIM or the underlying value of the investment portfolio.
The Company is expected to call a Second General Meeting at which shareholders will be asked to approve
entering liquidation. There can be no assurance that shareholders will approve the resolutions to place the
Company in liquidation and to appoint the Liquidation Agent.
Upon the appointment of the Liquidation Agent to wind up the company in a solvent members’ liquidation, the
Liquidation Agent will assume executive control of the Company in place of the board of directors. The directors
who have hitherto managed the Company and prepared its reports and filings will no longer have control of the
Company. Although the current directors have retained the Liquidation Agent for preparatory work and expect to
appoint the Liquidation Agent to place the Company into liquidation, there can be no assurance as to the actions
of the Liquidation Agent.
Moreover, during the period between the cancellation of the Company’s admission to trading on AIM and the
proposed distribution in specie, the publicly quoted prices of Greatland and Ariana shares may fluctuate, and the
value of the proposed distribution may concomitantly fluctuate, although neither shareholders nor the Company
will readily be able to effect transactions in Greatland or Ariana shares to realise that value.
Finally, assuming the distribution in specie is completed, shareholders may have to take certain actions with
respect to their accounts in which they hold Starvest shares to exercise control over and make financial decisions
with respect to the distributed shares.
6
Starvest plc
2023 Annual Report and Financial Statements
Section 172 Statement
Section 172 (1) of the Companies Act obliges the Directors to promote the success of the Company for the benefit
of the Company’s members as a whole. This section specifies that the Directors must act in good faith when
promoting the success of the Company and in doing so have regard (amongst other things) to:
a) The likely consequences of any decision in the long term;
b) The interests of the Company’s employees;
c) The need to foster the Company’s business relationship with suppliers, customers and others;
d) The impact of the Company’s operations on the community and environment;
e) The desirability of the Company maintaining a reputation for high standards of business conduct; and
f) The need to act fairly as between members of the Company.
The Board of Directors is collectively responsible for formulating the Company’s strategy, which is to invest in
businesses where prospects appear to be exceptional at an attractive price and deliver good risk-adjusted
investment returns to its shareholders. Since 1 October 2021, the Board took the decision to reduce its
concentration of risk in one project by divesting some of its position.
In October 2023 the Board sought opportunities to deliver economic value to shareholders in a tax-efficient way
and took the decision to propose to cancel the admission of the Company’s Ordinary Shares to trading on AIM
(the “Cancellation”). Following the Cancellation, we anticipate placing the Company in a solvent members’
voluntary liquidation (the “Liquidation”) pursuant to the UK Companies Act 2006. We have retained Moorfields
Advisory Ltd to serve as liquidation agent (the “Liquidation Agent”) during this process, which is expected to entail
a distribution in specie of the Greatland and Ariana shares in our portfolio to our shareholders.
The Board places equal importance on all shareholders and strives for transparent and effective external
communications, within the regulatory confined of a listed company, the primary communication tool for regulatory
matters and matters of material substance was through the Regulatory News Service (“RNS”). Since delisting, the
primary communication tools are via announcements on the Company website and statutory releases to
shareholders.
We also provide an environment where shareholders can interact with the Board and management, ask questions
and raise their concerns. The Directors believe they have acted in a way they consider most likely to promote the
success of the Company for the benefit of its members as a whole, as required by Section 172 (1) of the
Companies Act 2006.
By order of the Board
Mark Badros
Chief Executive Officer
15 December 2023
Company registration number: 03981468
7
Starvest plc
2023 Annual Report and Financial Statements
Directors’ report
The Directors present their twenty-third annual report on the affairs of the Company, together with the financial
statements for the year ended 30 September 2023.
Results and dividends
The Company’s results are set out in the statement of comprehensive income on page 16. The audited financial
statements for the year ended 30 September 2023 are set out on pages 20 to 28.
Except as discussed elsewhere in this report in regards to the distribution in specie of Greatland and Ariana shares
and the possible distribution of residual cash as part of a winding-up transaction, the Directors do not recommend
the payment of a dividend for the year (2022: £nil).
Directors
The Directors who served during the year are as follows:
Callum N Baxter
Mark J Badros
Gemma M Cryan
Substantial shareholdings
At the close of business on 12 December 2023, the following were registered as being interested in 3% or more
of the Company’s ordinary share capital:
Ordinary shares
of £0.01 each
Percentage of
issued share
capital
WB Nominees Limited (of which 12,670,000 representing
21.74% are beneficially owned by Carole Rowan)
Hargreaves Lansdown (Nominees) Limited
Interactive Investor Services Nominees Limited
Rock (Nominees) Limited (of which 8,090,753 representing
13.90% are beneficially owned by Callum N Baxter)
Platform Securities Nominees Limited (of which 3,116,122
representing 5.35% are beneficially owned by Philip J Milton
& Company Plc)
HSBC Nominees Limited
12,692,261
21.78%
11,212,608
8,420,099
8,376,774
19.24%
14.45%
14.37%
3,984,842
6.84%
2,040,099
3.50%
Charitable and political donations
During the year the Company donated 777,477 shares it held in Alpha Prospects plc to ShareGift.org. The carrying
value of these share was £nil (2022: £nil).
Payment of suppliers
The Company’s policy is to settle terms of payment with suppliers when agreeing terms of business, to ensure
that suppliers are aware of the terms of payment and to abide by them. It is usual for suppliers to be paid within
30 days of receipt of invoice. At 30 September 2023, amounts owed to the Company’s trade creditors were equal
to costs incurred of 2 days (2022: 44 days).
Events after the end of the Reporting Period
As disclosed elsewhere in the financial statements, as of 29 November 2023, the Company’s shares ceased
trading on AIM and the Company’s admission to trading on AIM was cancelled. The Company has put before the
shareholders certain resolutions that would place the Company in voluntary solvent members’ liquidation and
provide for a subsequent capital distribution of assets to shareholders. This plan to distribute the Company’s
assets is subject to approval by the Company’s shareholders.
Remuneration
The remuneration of the Directors has been fixed by the Board as a whole. The Board seeks to provide appropriate
reward for the skill and time commitment required so as to retain the right calibre of director without paying more
than is necessary.
8
Starvest plc
2023 Annual Report and Financial Statements
Directors’ report, continued
Details of Directors’ fees and of payments made for professional services rendered are set out in Note 6 to the
financial statements.
Management incentives
The Company has no share purchase, share option or other management incentive scheme.
As required by legislation, the Company has introduced a stakeholders' pension plan for the benefit of any future
employees.
Going concern
The Company finances its day-to-day activities from its available cash resources and, on occasion, by part
disposal of investments and the use of short-term loans.
The Company expects to call a General Meeting of shareholders to approve resolutions to place the Company in
a members’ solvent liquidation as soon as practicable. Therefore, the Company has prepared its financial
statements on a basis other than going concern.
As at 30 September 2023, the Company has no Borrowings and £179,271 in cash and cash equivalents. In
connection with the resolutions to place the Company in liquidation and to appoint the Liquidation Agent, the
directors have affirm a Declaration of Solvency to provide a statutory declaration that the Company will be able to
pay all its creditors in full, together with statutory interest within a period not exceeding twelve months.
Control procedures
The Board has approved financial budgets and cash forecasts; in addition, it has implemented procedures to
ensure compliance with applicable accounting standards and effective reporting.
Financial instruments
The Company uses financial instruments, comprising cash, trade investments and trade creditors, which arise
directly from its operations. The main purpose of these instruments is to further the company’s operations.
Short-term debtors and creditors
Short-term debtors and creditors have been excluded from all the following disclosures.
Trade investments
Trade investments are stated at fair market value less any provision for impairment. The movements between
market and book value are set out in Note 10. The Board met monthly to consider investment strategy in respect
of the Company’s portfolio.
Interest rate risk
The Company finances its operations through retained profits and new investment funds raised. The Board utilises
short term floating rate interest bearing accounts to ensure adequate working capital is available whilst maximising
returns on deposits.
Liquidity risk
The Company seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs
and to invest cash assets safely and profitably. More information about the company’s liquidity risk, and the
management of that risk, is given under ‘going concern’ in Note 2 and in Note 18 to the financial statements.
Borrowing facilities
As at 30 September 2023, the Company has no borrowings (2022: none).
Currency risk
The Company trades substantially within the United Kingdom and all transactions are denominated in Sterling.
Consequently, the Company is not significantly exposed to currency risk.
Fair values
Except where shown above, the fair values of the Company’s financial instruments are considered equal to the
book value.
9
Starvest plc
2023 Annual Report and Financial Statements
Directors’ report, continued
Market price and credit risk
Management do not consider credit risk to be material to the Company. The Company is naturally exposed to
market price risk by the nature of its trade in investments, and the fluctuation of market and fair prices of its
investment portfolio.
Statement of disclosure of information to auditors
The Directors confirm that so far as each of the Directors is aware:
there is no relevant audit information of which the Company’s auditor is unaware; and
the Directors have taken all the steps that they ought to have taken as directors in order to make
themselves aware of any relevant audit information and to establish that the auditors are aware of that
information.
By order of the Board
Mark Badros
Chief Executive Officer
15 December 2023
Company registration number: 03981468
10
Starvest plc
2023 Annual Report and Financial Statements
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.
Mark Badros
Chief Executive Officer
15 December 2023
11
Starvest plc
2023 Annual Report and Financial Statements
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STARVEST PLC
Opinion
We have audited the financial statements of Starvest Plc (the ‘company’) for the year ended 30 September 2023
which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of
Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant
accounting policies. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in
the UK and Republic of Ireland] (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
give a true and fair view of the state of the company’s affairs as at 30 September 2023 and of its loss for
the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We are independent of the company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Emphasis of matter – financial statements prepared on a basis other than going concern
We draw attention to note 20 to the financial statements which explains that the directors intend to liquidate the
company, following a distribution of assets to shareholders by way of a capital distribution, and therefore do not
consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Accordingly the financial statements have been prepared on a basis other than going concern as described in
note 20. Our opinion is not modified in respect of this matter.
Our application of materiality
The scope of our audit was influenced by our application of materiality. The quantitative and qualitative thresholds for
materiality determine the scope of our audit and the nature, timing and extent of our audit procedures.
Materiality for the company financial statements was set at £158,000 (2022: £184,000). This was calculated based on
3% of net assets, of which equity investments comprise the majority of the balance. The basis for calculating materiality
is unchanged from the previous year, with the reduction reflecting the fall in fair value of equity investments at year-end.
The benchmark used is the one which we determined, in our professional judgment, to be the key benchmark within
the financial statements relevant to shareholders of an investment management company in assessing financial
performance. The key driver of the company and assessment of its performance is linked to the valuation of its equity
investments held. Performance materiality has been set at £110,600 (2022: £128,800) being 70% of headline
materiality, based upon our assessment of risk and the absence of any audit adjustments in previous periods.
We agreed to report to those charged with governance all corrected and uncorrected misstatements we identified
through our audit with a value in excess of £7,600 (2022: £9,200). We also agreed to report any other audit
misstatements below that threshold that we believe warranted reporting on qualitative grounds.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period and include the most significant assessed risks of material
12
Starvest plc
2023 Annual Report and Financial Statements
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STARVEST PLC
misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our scope addressed this matter
Financial assets at fair value through profit or loss
(Note 11)
The Company holds equity investments with a car-
rying value of £5m (2022: £6m) as at 30 September
2023. The portfolio consists of listed investments,
and thus are valued under Level 1 of the fair value
hierarchy.
Unlisted investments are subject to management
valuation, and therefore require management judge-
ment and estimation. These investments have a car-
rying value of £nil, having been fully written down in
previous periods.
Based upon the significance of the value of the in-
vestments held at the year end, this was determined
to be a Key Audit Matter.
Our work in this area included:
Ensuring each investment is valued correctly,
agreeing year end fair values to independent
sources of price data;
ensuring that all asset types are categorised and
disclosed correctly as per UK GAAP;
ensuring that the company has legal title to the
investments held; and
performing tests of detail on investment dispos-
als in the year.
Other information
The other information comprises the information included in the annual report, other than the financial statements
and our auditor’s report thereon. The directors are responsible for the other information contained within the annual
report. Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our
responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors’ report.
13
Starvest plc
2023 Annual Report and Financial Statements
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STARVEST PLC
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control
as the directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
We obtained an understanding of the company and the sector in which it operates to identify laws and
regulations that could reasonably be expected to have a direct effect on the financial statements. We
obtained our understanding in this regard through discussions with management and application of cu-
mulative audit knowledge.
We determined the principal laws and regulations relevant to the company in this regard to be those arising
from:
- Companies Act 2006
- FRS 102
- AIM Rules
We designed our audit procedures to ensure the audit team considered whether there were any indica-
tions of non-compliance by the company with those laws and regulations. These procedures included, but
were not limited to:
- Enquiries of management
- Review of board minutes and other correspondence
- Review of the company’s related party transactions and disclosures
We also identified the risks of material misstatement of the financial statements due to fraud. We consid-
ered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of
controls, that the existence and valuation of investments represented the greatest risk of fraud.
14
Starvest plc
2023 Annual Report and Financial Statements
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STARVEST PLC
We addressed the risk of fraud arising from management override of controls by performing audit proce-
dures which included, but were not limited to: the testing of journals and evaluating the business rationale
of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions reflected
in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is
also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional
concealment, forgery, collusion, omission or misrepresentation
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions reflected
in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is
also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional
concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s
report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
David Thompson (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
15 December 2023
15 Westferry Circus
Canary Wharf
London E14 4HD
15
Starvest plc
2023 Annual Report and Financial Statements
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Administrative expenses
Loss on disposal of financial assets
Movement in fair value of financial assets
through profit or loss
Investment income
Operating loss
Loss on ordinary activities before tax
Tax on ordinary activities
Loss for the financial year attributable to
Equity holders of the Company
Earnings per share
Basic
Diluted
Note
Year ended 30
September 2023
£
Year ended 30
September 2022
£
(345,643)
(21,937)
(750,880)
3,101
(1,115,359)
(1,115,359)
-
(1,115,359)
(305,944)
(53,398)
(7,234,928)
53,428
(7,540,842)
(7,540,842)
1,671,086
(5,869,756)
(1.91 pence)
(1.91 pence)
(10.09 pence)
(10.09 pence)
10
5
7
8
8
There are no other recognised gains and losses in either year other than the result for the year.
The accompanying accounting policies and notes form an integral part of these financial statements.
16
Starvest plc
2023 Annual Report and Financial Statements
STATEMENT OF FINANCIAL POSITION
30 SEPTEMBER 2023
Note
Year ended 30
September 2023
Non-current assets
Financial assets at fair value through profit or loss
10
Total non-current assets
Current assets
Financial assets at fair value through profit or loss
Trade and other receivables
Cash and cash equivalents
Total current assets
Current liabilities
Trade and other payables
Total current liabilities
Net current assets
Provision for deferred tax
Total assets
Net assets
Capital and reserves
Called up share capital
Share premium account
Retained earnings
Total equity shareholders’ funds
10
9
11
7
12
£
-
-
5,282,299
48,566
179,271
5,510,136
(27,568)
(27,568)
Year ended 30
September 2022
£
6,156,173
6,156,173
-
77,424
406,106
483,530
(41,776)
(41,776)
200,269
441,754
-
-
-
-
5,482,568
6,597,927
582,824
1,888,863
3,010,881
5,482,568
582,824
1,888,863
4,126,240
6,597,927
These financial statements were approved and authorised for issue by the Board of Directors on 15 December
2023.
Signed on behalf of the Board of Directors
Mark Badros
Chief Executive Officer
Company No. 03981468
Gemma M Cryan
Executive Director
The accompanying accounting policies and notes form an integral part of these financial statements.
17
Starvest plc
2023 annual report and financial statements
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Share capital Share premium
£
£
Retained
earnings
£
Total Equity
attributable to
shareholders
£
At 1 October 2021
579,820
1,848,173
9,995,996
12,423,989
Loss for the period
Total comprehensive income
Shares issued
Total contributions by and distributions
to owners
-
-
3,004
3,004
-
-
(5,869,756)
(5,869,756)
(5,869,756)
(5,869,756)
40,690
40,690
-
-
43,694
43,694
At 30 September 2022
582,824
1,888,863
4,126,240
6,597,927
Loss for the period
Total comprehensive income
-
-
-
-
(1,115,359)
(1,115,359)
(1,115,359)
(1,115,359)
At 30 September 2023
582,824
1,888,863
3,010,881
5,482,568
18
Starvest plc
2023 annual report and financial statements
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Cash flows from operating activities
Loss before tax
Shares issued in settlement of salary and fees
Movement in fair value of financial assets through profit
or loss
Loss on sale of financial assets through profit or loss
Decrease/(increase) in debtors
Decrease in creditors
Net cash used in operating activities
Cash flows from investing activities
Proceeds from sale of financial assets through profit of
loss
Net cash generated from investing activities
Note
30 September
2023
30 September
2022
£
£
(1,115,359)
(7,540,842)
-
43,694
750,880
7,234,928
21,937
28,859
(14,208)
53,398
(13,885)
(43,851)
(327,891)
(266,558)
101,056
101,056
594,388
594,388
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of year
14
(226,835)
406,106
179,271
327,830
78,276
406,106
The accompanying notes and accounting policies form an integral part of these financial statements.
19
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 15 December 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
On 27 October 2023, the Company announced a plan for the cancellation of its AIM listing and a members’ solvent
voluntary liquidation, including the capital distribution to members of certain assets. The plan is subject to approval
by the Company’s members. The directors expect shareholders to approve the plan. It is therefore inappropriate
to prepare the financial statements on a going concern basis, and they have therefore been prepared on a basis
other than going concern. In the directors’ opinion, there are no material adjustments arising from the change in
the basis of accounting that require reflection in these financial statements.
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 profit or loss 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
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.
factors related
to
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
20
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
3.
Principal Accounting Policies, continued
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 2023 unlisted shares were valued at £nil (2022: £nil).
Investments in listed company shares are remeasured to market value at each balance sheet date under level 1
of the fair value hierarchy. 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.
21
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
3.
Principal Accounting Policies, continued
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 continued 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 Company has not generated any revenues from external customers during the period.
5.
Operating Profit/(Loss)
This is stated after charging:
Auditor’s remuneration:
- audit services
Director’s emoluments – note 6
Year ended 30
September
2023
Year ended 30
September
2022
£
£
27,480
19,200
141,321
141,321
There are no employees, other than the Directors of the company (2022: 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.
Year ended 30 September 2023
C Baxter
G Cryan
M Badros
Shares
issued in
settlement
of fees –
see note
£
-
-
-
-
Pension
£
-
1,321
-
1,321
Total
£
27,000
54,321
60,000
141,321
Salary and
Fees
£
27,000
53,000
60,000
140,000
22
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6.
Directors’ Emoluments, continued
Year ended 30 September 2022
C Baxter
G Cryan
M Badros
Shares
issued in
settlement
of fees –
see note
£
15,000
6,847
-
21,847
Pension
£
-
1,321
-
1,321
Total
£
57,250
57,321
29,750
141,321
Salary and
Fees
£
42,250
46,153
29,750
118,153
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 2022. No such settlements were made in
2023:
In respect of Callum Baxter’s total remuneration, £15,000 was settled in shares in the Company and at 30
September 2022 £nil of his net salary remained outstanding.
In respect of Gemma Cryan’s total remuneration £6,847 was settled in shares in the Company and at 30
September 2022 £nil of her net salary remained outstanding.
In respect of Mark Badros’s total remuneration, at 30 September 2022 £nil of his net salary remained
outstanding.
7.
Corporation Tax
a) Analysis of credit in the period
United Kingdom corporation tax at 19% (2022: 19%)
Deferred taxation at 25% (2022: 25%)
Year ended 30
September
Year ended 30
September
2023
£
-
-
-
2022
£
-
(1,671,086)
(1,671,086)
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% (2022: 19%). The differences are explained below:
23
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
7.
Corporation Tax, continued
b) Factors affecting tax charge for the period, continued
Year ended 30
September
Year ended 30
September
2023
£
2022
£
Loss on ordinary activities before tax
(1,115,359)
(7,540,842)
Loss multiplied by standard rate of tax at 25% (2022: 19%)
(278,840)
(1,432,760)
Effects of:
Losses carried forward not recognised as deferred tax assets
278,840
1,432,760
Deferred tax credit
c) Deferred tax
Deferred tax liability b/fwd at 30 September 2022 and 2021
Credit for the year
Deferred tax liability c/fwd at 30 September 2023 and 2022
Capital losses b/fwd at 30 September 2022 and 2021
Current year capital (losses)/profits
Capital losses c/fwd at 30 September 2023 and 2022
Excess management expenses b/fwd at 30 September
Current year excess management expenses
Adjustments in respect of prior periods
Excess management expenses c/fwd at 30 September
Total losses
-
-
-
-
-
(1,671,086)
(1,671,086)
1,671,086
(1,671,086)
-
(3,323,065)
(3,515,024)
(965,976)
191,959
(4,289,042)
(3,323,065)
(2,255,412)
(2,249,467)
(345,644)
(305,944)
-
-
(2,901,056)
(2,555,411)
(7,190,097)
(5,878,476)
A deferred tax liability provision of £nil has been released during the year (2022: £1,671,086) on the future tax
payable on profits, on disposal of investments.
The Company has not recognised a deferred tax asset on available losses.
In May 2021, the UK Government enacted a budget that increased the corporation tax rate from 1 April 2023 to
25% from the current rate of 19%.
24
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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.
(Loss) for the year
Weighted average number of Ordinary shares of £0.01 in issue
(Loss) per share – basic and diluted
There are no potential dilutive shares in issue.
9.
Trade and Other Receivables
Prepayments
Deposits
Funds held on account
Dividends receivable
Year ended
30 September
2023
£
(1,115,359)
Year ended
30 September
2022
£
(5,869,756)
58,282,493
(1.91 pence)
58,181,646
(10.09 pence)
Year ended
30 September
2023
£
40,177
380
8,008
-
48,565
Year ended
30 September
2022
£
49,904
-
3,720
23,800
77,424
Short term loans to related parties
At 30 September 2023 loans to Equity Resources Ltd (“EQR”), an associate of the company, totalling
£20,000 (2022: £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 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 £20,000.
10.
Financial assets at fair value through profit or loss
Listed equity securities
Fair value of investments at 1 October
Additions
Disposals
Fair value loss on financial assets through profit or loss
Fair value at 30 September
The fair value carrying values of the investments above were as follows:
Quoted on AIM
Quoted on foreign stock exchanges
30 September
2023
£
30 September
2022
£
6,156,173
-
(122,994)
(750,880)
5,282,299
14,038,887
-
(647,786)
(7,234,928)
6,156,173
5,282,299
-
5,282,299
6,156,173
-
6,156,173
25
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10.
Financial assets at fair value through profit or loss, continued
The Company has holdings in the companies described in the review of portfolio on pages 3 and 4. Of these,
the Company has holdings amounting to 20% or more of the issued share capital of the following companies:
Name
Equity Resources
Limited – see note [1]
Country of
incorporation
England &
Wales
Class of
shares
held
Percentage
of issued
capital
(Loss) for
the last
financial
year
Capital and
reserves at
last
balance
sheet date
Ordinary
28.41%
(£2,181)
(£39,918)
Accounting
year end
31 May
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 £nil.
No information for Equity Resources Limited is available for the year ended 31 May 2023.
11.
Trade and Other Payables: Amounts falling due within one year
Trade creditors
Accruals
Employment and social security costs
Other payables
12.
Share Capital
The called up share capital of the Company was as follows:
Called up, allotted, issued and fully paid
As at 30 September 2021
Issued 16 November 2021 in lieu of fees at 16.5p
Issued 7 April 2022 in lieu of fees at 13p
As at 30 September 2022 and 30 September 2023
Share Warrants
The Company currently has no unexercised warrants in issue.
30 September
2023
£
790
26,521
257
-
27,568
30 September
2022
£
19,792
21,470
514
-
41,776
Number of Shares
57,982,031
132,407
168,055
58,282,493
£
648,579
21,847
21,847
692,273
13. Share options
During the year ended 30 September 2023 no new options were granted and the Company currently has no
unexercised options in issue.
26
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
14. Cash and Cash Equivalents
Cash at bank
Net cash and cash equivalents
Year ended 30
September 2022
£
406,106
406,106
Cash flow
£
(226,835)
(226,835)
Year ended 30
September 2023
£
179,271
179,271
Capital Commitments
15.
As at 30 September 2023 and 30 September 2022, the Company had no commitments other than for expenses
incurred in the normal course of business.
16.
There were no contingent liabilities at 30 September 2023 (2022: £nil).
Contingent Liabilities
Related Party Transactions
17.
During the year Greatland Gold plc, a company which Callum Baxter was formerly a director of, provided shared
office space to the Company. The cost was £1,900 (2022-£11,400). At the year-end there was £nil payable to
Greatland Gold plc (2022: £950).
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
£141,321 (2022: £141,321). Refer to note 6 for more information.
Financial Instruments
18.
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 2023 there were no loans outstanding (2022: £nil).
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.
27
Starvest plc
2023 annual report and financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
18.
Financial Instruments, continued
Categories of financial instruments
Financial assets
Trade investments at fair value through profit and loss
5,282,299
6,156,173
Year ended 30
September 2023
Year ended 30
September 2022
£
£
Dividends receivable at amortised cost
Cash and cash equivalents at amortised cost
Investment funds held on account at amortised cost
Financial liabilities at amortised cost
Accruals and payables
-
179,271
8,008
23,800
406,106
3,720
5,469,578
6,589,799
27,568
27,568
41,776
41,776
Capital Management
19.
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.
Events After the End of the Reporting Period
20.
As disclosed elsewhere in the financial statements, on 27 October 2023 the Company announced a plan for the
de-listing of its shares from AIM and the subsequent capital distribution of assets to shareholders. This plan is
subject to approval by the Company’s members.
21.
Ultimate controlling party
There is no ultimate controlling party.
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