30th Mar 2005 06:00
Embargoed: not to be released until 7.00 am on 30 March, 2005 SILENTPOINT PLC ("Silentpoint" or "the Company") Preliminary Results for the year ended 31 October, 2004 Silentpoint plc, an investment company, today announces its preliminary resultsfor the year ended 31 October 2004.Highlights * Profit before tax increased by 83 per cent. to ‚£100,704 (2003: ‚£55,071) * Earnings per share increased by 87 per cent. to 0.58p (2003: 0.31p) * Investment of a 40.1 per cent. interest in Silvermines Media plc in June 2004 * Acquisition by Silvermines Media plc of two oil and gas projects in February 2005 and change of name to Cambrian Oil & Gas plc. Silentpoint currently holds 10.4 per cent. of Cambrian Oil & Gas, a company with interests in the Krygyz republic and former Soviet Union providing a platform for expansion and consolidation * Investment of a 28.6 per cent. interest in India Star Energy plc in March 2005 * Small company investment scene still favourable * Current net cash, after above investments, of ‚£700,000 Commenting on the results, Haresh Kanabar, Silentpoint's Chairman, said:"I think this is a satisfactory result underlining the attractions of investingin quality small companies with prospects of capital growth. As gains are onlybooked on disposal, we anticipate boosting future returns. The outlook for 2005remains positive."Enquiries:Haresh Kanabar, Chairman, Silentpoint plc 020 7070 7283Smit Berry, Chief Executive, Silentpoint plc 020 8656 4648CHAIRMAN'S STATEMENTI have pleasure in enclosing the results for the twelve months to 31 October2004, which has proven to be a busy period for your company.Before reporting on the year under review, I again set out Silentpoint'sstrategy and focus. As we highlighted two years ago, this is based aroundfinding a balanced solution offering significant growth for the Company'sfunds, while mitigated the risks wherever possible. Central to our strategy isinvestment in, or acquisition of, unquoted businesses with establishedoperations as well as the investment in, or acquisition of, undervalued quotedand unquoted companies.I am pleased to report that profit before tax last year increased to ‚£100,704,which compares to a profit in the previous year of ‚£55,071. Although we do notrevalue investments but hold them at the lower of cost or net realisable valueon the balance sheet, net assets have been significantly enhanced by twocorporate transactions since the year end. Earnings per share increased to0.58p (2003: 0.31p).Cambrian Oil & Gas (AIM: COIL)In June last year, as reported at our interim stage, we acquired a holding of9.28 million shares in Silvermines Media plc ("Silvermines Media"), a companywhose shares were admitted to trading on AIM in July 2004. This was our biggestsingle investment to date and represented 40.1 per cent. of Silvermines' issuedshare capital at the time our investment was made.A number of opportunities were subsequently examined by the board ofSilvermines Media, of which I was a director at the time, and in February, togain exposure to the oil sector, Silvermines Media acquired Zhibek Resourcesplc, an independent oil & gas company and a division of Cambrian Mining Plc("Cambrian Mining"), an established AIM listed mining finance company. The nameof the enlarged group has subsequently been changed to Cambrian Oil & Gas plc("Cambrian Oil & Gas").The transaction has brought with it not only existing oil and gas explorationand production activities but also a continuing relationship with CambrianMining, which, on implementation of the proposals, has agreed to offer all ofits potential future opportunities in oil and gas interests to Cambrian Oil &Gas in the first instance. As part of the transaction, Silvermines Mediaconcluded a placing which raised ‚£2.25 million before expenses.Silentpoint subscribed for a further 2,000,000 shares in Silvermines Mediapursuant to the placing, alongside Cambrian Mining which also invested.Following completion of the transaction, Silentpoint held 11,280,000 sharesrepresenting 10.4 per cent. of the enlarged capital of Cambrian Oil & Gas,which it still holds.Cambrian Oil & Gas is active in the Kyrgyz Republic, part of the former SovietUnion and an established oil producing country. Its key personnel have beenactive there for more than five years and have established a strong presence inthe country through their early involvement.The business of Cambrian Oil & Gas consists of two projects. The first is aproduction sharing contract with Kyrgyzneftegas to work over the Beshkent Togapfield in the south-west of the country. The field was discovered and developedin the Soviet era but existing equipment is dated and there has been littlemodern technology used to maximise flows. That means that a large proportion ofthe oil remains in place and is accessible to even simple means of recoverysuch as waterflooding. This field has more than 70 producing wells and hasproduced 4 million barrels to date and Cambrian Oil & Gas has thereforeinitiated a water flooding programme to improve recovery rates and provideearly cash flow with relatively low risk.Cambrian Oil & Gas also has a licence (72 per cent.) in the Tash Kumyr region,where the company has used seismic data to identify five drilling targets. Thislicence, of 840 sq. kilometres, is close to some of the largest fields in thecountry. The company plans one well later this year at South Karagundai whichhas the potential to deliver a significant upside for shareholders.The directors of Cambrian Oil & Gas have publicly stated that they believe thatCambrian Oil & Gas is in a strong position to take advantage of otheracquisition opportunities in the Krygyz Republic and elsewhere in the formerSoviet Union.India Star Energy (AIM: INDY)The first half of the year has also been eventful with a further move in orderto make use of our positive cash balance to generate further growth forshareholders. I am pleased to announce that Silentpoint has invested ‚£320,000in India Star Energy, a company whose shares are expected to commence tradingon AIM later today.Silentpoint has invested a total of ‚£320,000 in India Star Energy and now holds40,000,000 ordinary shares, representing 28.57 per cent. of the issued sharecapital of India Star Energy.India Star Energy is a newly incorporated company that has been established toinvest in or acquire interests in projects, businesses or companies in theresource sector with a focus on energy. The directors of India Star Energyanticipate that acquisitions will mainly be in the non-renewable energy sectorwhich includes oil, gas, coal and uranium.Geographically the directors of India Star Energy have stated that they willconcentrate on investment opportunities in areas in the Indian subcontinent aswell as China, the former Soviet Union, South East Asia and Africa, andopportunities relating to uranium initially in areas where there has alreadybeen production, such as Canada, Australia and South Africa. One area that theyintend to specifically target is the Indian subcontinent and, in particular,India itself.OutlookI think this is a satisfactory result underlining the attractions of investingin quality small companies with prospects of capital growth. As gains are onlybooked on disposal, we anticipate boosting future returns. The outlook for 2005remains positive.Haresh KanabarChairmanProfit and Loss AccountFor the year ended 31 October, 2004 Note Year ended Year ended 31 October, 31 October, 2004 2003 (As restated) ‚£ ‚£ Turnover - investment income 171,910 87,294 Diminution in value of current asset (30,000) -investments Other operating expenses (net) (76,472) (67,790) Operating profit 65,438 19,504 Other interest receivable and similar 35,266 35,567income Profit on ordinary activities before 100,704 55,071taxation Taxation - - Profit for the year 100,704 55,071 Earnings per share: Basic and diluted 3 0.58p 0.31pBalance SheetAs at 31 October, 2004 As at As at 31 October 31 October 2004 2003 ‚£ ‚£ Fixed Assets Investments 264,000 - Current Assets Investments 173,213 359,850 Debtors 75,680 24,070 Cash at bank and in hand 850,577 874,819 1,099,470 1,258,739 Creditors: Amounts falling due within one year (12,588) (8,561) Net Current Assets 1,086,882 1,250,178 Net Assets 1,350,882 1,250,178 Capital and Reserves Called up Share Capital 350,000 350,000 Share Premium Account 1,076,496 1,076,496 Profit and Loss Account (75,614) (176,318) Equity Shareholders' Funds 1,350,882 1,250,178 Cash Flow StatementFor the year ended 31 October, 2004 Year Year ended ended 31 October 31 October 2004 2003 (As restated) ‚£ ‚£ Cash flow from operating activities (59,508) (334,793) Return on investments and servicing of 35,266 35,567finance Cash outflow before financing and use of (24,242) (299,226)Liquid Resources Management of liquid resources 34,102 315,041 Increase in cash in the period 9,860 15,815 Reconciliation of net cash flow to movement in net funds Increase in cash in the period 9,860 15,815 Cash outflow from increase in liquid (190,739) 40,532resources Changes in net funds resulting from cash (180,879) 56,347flows Non-cash movement of funds (30,000) - Movement in Net Funds in the Period (210,879) 56,347 Net funds at 1 November 2003 1,234,669 1,178,322 Net funds at 31 October 2004 1,023,790 1,234,669Notes to the Preliminary Results1. The financial statements have been prepared under historical cost convention and in accordance with applicable accounting standards.2. No dividend is proposed for the year ended 31 October, 2004.3. Basic and diluted earnings per ordinary share have been calculated using the weighted average number of shares in issue during the financial year. The weighted average number of equity shares in issue is 17,500,000 (2003: 17,500,000) and the profit after tax is ‚£100,704 (2003: ‚£55,071).4. The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The profit and loss account for the year ended 31 October, 2004, the balance sheet as at 31 October, 2004 and the cash flow statement and associated notes for the year then ended have been extracted from the Company's financial statements upon which the auditors have given an unqualified audit report. Those financial statements have not yet been delivered to the Registrar of Companies. The 2003 accounts have been delivered to the Registrar of Companies and the auditors reported on them, their report was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. 5. Copies of the annual accounts are being sent to shareholders and are available from the Company's registered office, 84 Addiscombe Road, Croydon, Surrey CR0 5PP.ENDSILENTPOINT PLCRelated Shares:
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