About us
The Board has managed the Company as an investment company since January 2002.
Collectively, the Board has a wealth of experience over many years of investing in small company new issues and pre-IPO opportunities in the natural resources and mineral exploration sectors.
Company objectives
The Company is established as a source of early stage finance to fledgling businesses, to maximise the capital value of the Company and to generate benefits for Shareholders in the form of capital growth and modest dividends.
Investing strategy
Whilst the Company has no exclusive commitment to the natural resources sector, the Board sees this as having considerable growth potential for the foreseeable future. Historically, investments were generally made immediately prior to an initial public offering, at IPO on the AIM or PLUS markets and in the aftermarket. As the nature of the market has changed since 2008, it is more likely that the future investment portfolio will include a spread of up to forty companies that generally have moved beyond the IPO stage but remain in the early stages of identifying a commercial resource and/or moving towards development with the appropriate finance.
Initial investments are for varying amounts but usually in the range £100,000 - £300,000. These companies are invariably not generating cash, rather they have a constant requirement to raise new equity cash in order to continue exploration and development. Therefore after appropriate due diligence, the Company may provide further funding support and make later market purchases so that the total investment may be greater than £300,000.
The business is inherently high risk and of a cyclical nature dependent upon fluctuations in the world economic activity which impacts on the demands for minerals.
The investee companies, being small, almost invariably lack share market liquidity, even if they are quoted on AIM, PLUS, ASX, TSX or TSX-V. Therefore, in the early years it is rarely possible to sell an investment at approaching the quoted market price with the result that extreme patience is required whilst the investee company develops and ultimately attracts market interest. If and when an explorer finds a large exploitable resource, it may become the object of a third party bid, or otherwise become a much larger entity; either way an opportunity to realise cash is expected to follow.
Of the thirty to forty investments held at any one time, it is expected that more than five will prove to be ‘winners’; from half of the remainder we may expect to see modest share price improvements. Overall, the expectation is that in time Shareholders returns will be acceptable if not substantial.
Accordingly, the Board is unable to give any estimate of the quantum or timing of returns. That stated, when profits have been realised and adequate cash is available, it is the intention of the Board to recommend the distribution of up to half the profits realised.
The Company currently has investments in the following companies which themselves are investment companies: Equity Resources plc, Guild Acquisitions plc; Addworth plc and International Mining & Infrastructure Corporation plc.
The Company takes no part in the active management of investee companies, although directors of the Company are also non-executive directors on the boards of seven such companies, with one director being the executive chairman of an eighth.
A brief history
The cash available for investment in January 2002 was £550,000 since when further funds amounting to £827,250 were raised through placings making a total available cash of £1,377,250. By June 2007, the net asset value had increased to £19.2m or 47 pence per share – using mid market prices. Since that date, investee company values have fallen substantially; some ventures have failed. However, the Directors remain confident of a substantial recovery given time.
Company Statistics
|
|
30 September
2011
|
31 March
2011
|
30 September
2010
|
31 March
2010
|
|
Trading portfolio value
|
£5.47m
|
£10.03m
|
£4.57m
|
£3.53m
|
|
Company asset value net of debt
|
£6.62m
|
£10.10m
|
£4.19m
|
£3.19m
|
|
Net asset value - fully diluted per share
|
17.57p
|
26.16p
|
11.28p
|
8.88p
|
|
Share price
|
13.0p
|
13.75p
|
7.75p
|
5.75p
|
|
Share price discount to fully diluted net asset value
|
26%
|
47%
|
31.3%
|
35%
|
|
Market capitalisation
|
£4.77m
|
£5.05m
|
£2.84m
|
£2.01m
|
Up to 31st March 2008, all net asset values were based on mid market prices or the Directors' valuation, if lower. From 30th September 2008, the values are based on closing bid prices or Directors' valuation if lower.
Corporate information
The Company is incorporated in England and Wales.
Click here for the Web Shareshop (Holdings) plc offer for subscription prospectus dated June 2000. The Company has not issued any further admission document.
The Memorandum & Articles of Association were last adopted in general meeting on 14 December 2009 and are available: click here
The Company’s shares are quoted on the Alternative Investment Market of the London Stock Exchange (AIM) under Symbol: SVE. The shares are also traded on PLUS Markets.
There are no restrictions on the transfer of AIM securities.
Starvest, formerly The Web Shareshop, was admitted to AIM in September 2000 having commenced to trade earlier that year.
