5th Apr 2006 07:00
For Immediate Release 5 April 2006 SILENTPOINT PLC ("Silentpoint" or "the Company") Preliminary results for the year ended 31 October 2005 Silentpoint today announces its results for the year ended 31 October 2005.Highlights: * Profit before tax : ‚£131,687 (2004: ‚£100,704); * Earnings per share 0.66p (2004: 0.58p); * Acquisition of interest in India Star Energy PLC ("India Star") which through a joint venture holds interests in platinum, paladium and uranium assets; * Net cash, after above investments, of ‚£633,715 as at 31 October 2005; and * Performance reflects benefit of continuing the policy of investing in quality small companies with prospects of capital growth. Commenting today, Haresh Kanabar, Chairman, said: "Our investments to datedemonstrate the successful implementation of the Board's strategy."5 April 2006Enquiries:Smit Berry - Chief Executive 020 8656 4648Haresh Kanabar - Chairman 020 7297 0010Chairman's statementDear Shareholder,I am pleased to be writing to you again to report that we have completedanother satisfactory year in respect of our results. The profit before tax of ‚£131,687 for the year is an improvement over the ‚£100,704 reported last year. Itrepresents gains from current asset disposals and lower interest receivable onthe Company's cash balance. Net cash balances at the year end amounted to ‚£633,715.Our performance to date demonstrates the successful implementation of theBoard's strategy. The year represents a milestone as we now have availabledistributable reserves for the first time in the Company's history although nodividend is proposed at this time as the Directors believe it prudent tocontinue to seek to deliver capital growth for shareholders.Our purpose is to create value for shareholders by finding a balanced solutionoffering significant growth for the Company's funds, whilst the risks aremitigated as much as possible. These results reflect the benefit of continuingthe policy of investing in quality small companies with prospects of capitalgrowth.Investment ReviewIn my interim statement I noted that with junior oil plays representing almost30 per cent. of AIM constituents in value terms there would continue to be apolarisation of investor interest towards those companies which were atproduction stage and away from those at exploration stage. This remains ourview on the investment cycle and with the deemed concentration of risk we haverecently reduced our interest in Cambrian Oil & Gas Plc but remain asignificant shareholder. Profit from this disposal will fall into the currentyear.Cambrian Oil & Gas, an independent oil and gas company, continues to perform inline with management expectations and remains well financed. Cambrian Oil &Gas, through its main operating subsidiary, Zhibek Resources PLC, hascontinuing focus on oil exploration, development and production activities inthe former Soviet Union with three operational projects in the Krygz Republic.These projects include the Beshkent water injection project; the Tash Kumyrexploration project - an exploration licence area with five prospects; and anintermountain basin exploration licence area which adjoins Lake Toktogul.The most advanced project is the production sharing contract withKyrgyzneftegas to work over the Beshkent Togap field in the southwest of thecountry. The field has over 70 production wells and Cambrian Oil & Gasinitiated a water flooding programme in October to improve recovery rates and,if successful, deliver early cashflows for the company. Cambrian Oil & Gas hasalso begun processing 100km of 2D seismic data relating to the company's TashKumyr licence.During the year, Cambrian Oil & Gas also acquired an interest in Elko EnergyInc, which holds the largest permit in the Danish waters of the North Sea andan interest in a re-development project in China. The transaction was supportedby Cambrian Mining Plc which co-invested. Cambrian Oil & Gas continues to havea right of first refusal over all oil projects sourced by Cambrian Mining Plc.During the year, we also acquired a holding of 40 million shares in India StarEnergy plc, a company whose shares were admitted to AIM in March 2005. A numberof opportunities were examined by its board and it has concluded twotransactions. In July 2005, India Star Energy plc acquired an interest in ajoint venture to develop uranium properties. More recently, in February 2006 itacquired a strategic stake in platinum group metal company, Canadian GoldenDragon Limited, which provides it with access to two late stage opportunities.Our investment portfolio holds a number of other quoted investments and hasperformed well in terms of capital growth. As indicated at the half year stage,we have taken a decision to increase the size of holdings and accelerated therate of investments, although we would caution that this may affect reportedprofitability in the short term as we hold investments at the lower of cost orrealisable value.OutlookWe view the results as satisfactory and the board remain enthusiastic andambitious to drive Silentpoint forward. I thank shareholders for theircommitment.Haresh KanabarChairman5 April 2006PROFIT AND LOSS ACCOUNTFor the year ended 31 October 2005 Notes 2005 2004 ‚£ ‚£ Turnover - investment income 203,974 171,910 Diminution in value of current (20,000) (30,000)asset investments Other operating expenses (net) (84,426) (76,472) Operating profit 99,548 65,438Other interest receivable and 32,139 35,266similar income Profit on ordinary activities 131,687 100,704before taxation Taxation (16,274) - Profit/(Loss) on ordinary 115,413 100,704activities after taxation Earnings per share-basic and 0.66p 0.58pdiluted The operating profit for the year arises from the company's continuingoperations.No separate statement of total recognised gains and losses has been presentedas all such gains and losses have been dealt with in the profit and lossaccount.BALANCE SHEETAs at 31 October 2005 2005 2004 ‚£ ‚£ Fixed assets Investments - 264,000 - 264,000 Current assets Investments 766,914 173,213 Debtors 96,240 75,680 Cash at bank and in hand 633,715 850,577 1,496,869 1,099,470 Creditors: amounts falling due (30,574) (12,588)within one year Net current assets 1,466,295 1,086,882 Total assets less current 1,466,295 1,350,882liabilities Capital and reserves Share capital 350,000 350,000 Share premium 1,076,496 1,076,496 Profit and loss account 39,799 (75,614) Shareholders' funds-equity 1,466,295 1,350,882interests CASH FLOW STATEMENTFor the year ended 31 October 2005 2005 2004 ‚£ ‚£ Net cash outflow from operating (232,727) (59,508)activities Returns on investments and servicing 32,139 35,266of finance NET CASH OUTFLOW BEFORE FINANCING (200,588) (24,242)AND USE OF LIQUID RESOURCES Management of liquid resources 205,908 34,102 Taxation (16,274) - (Decrease)/Increase in cash in the (10,954) 9,860period RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (DECREASE)/INCREASE IN CASH IN THE (10,954) 9,860PERIOD Cash inflow/(outflow) from increase 407,793 (190,739)in liquid resources Change in net funds resulting from 396,839 (180,879)cash flows Non-cash movement of funds (20,000) (30,000) MOVEMENT IN NET FUNDS IN THE PERIOD 376,839 (210,879) NET FUNDS AT 1 NOVEMBER 2004 1,023,790 1,234,669 NET FUNDS AT 31 OCTOBER 2005 1,400,629 1,023,790Notes to the Preliminary Results 1. 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 2005. 3. Basic earnings per ordinary share has 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 (2004: 17,500,000) and the profit after tax is ‚£115,413 (2004: ‚£100,704). 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, 2005, the balance sheet as at 31 October, 2005 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 2004 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:
Sylvania Platinum