28th May 2020 12:39
(Alliance News) - Starvest PLC on Thursday reported a sharp rise in interim profit on a rise in investment write backs.
In the six months to March 31, the early-stage mineral exploration investor recorded a pretax profit of GBP2.5 million, sharply higher than the GBP640,451 seen in the same period the year before.
Revenue more than doubled to GBP62,253 from GBP27,165.
Starvest recorded GBP2.7 million in investment write backs in the first half, sharply higher than the GBP889,741 reported the year before.
Chair Callum Baxter said: "Market performance in the latter half of calendar 2019 remained as per the first half with little direction and minimal movement in many of our portfolio stocks and commodity prices. But from January 2020 the market dynamic changed significantly following reduced oil prices and the impact of Covid-19 which has resulted in major changes across many sectors."
He added: "Overall, throughout the past year we moved our focus to precious metals and trimmed our exposure to oil stocks: a strategy that is now bearing fruit. We note the current market volatility but our leverage to safe-haven assets lets us feel confident that we can retain value and continue to achieve a very positive outcome."
Shares in Starvest weer 4.4% higher in London on Thursday at 9.40 pence each.
By Paul McGowan; [email protected]
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