Equity Resources plc
LSE : EQRP

October 01, 2009 09:00 ET

Annual results for the year ended 31 May 2009

                                                                                                           
                                                                                                          
                                                                                                01/10/2009
                                                                                 GB00B0GQJ825/GBP/PLUS-exn
                                                     
                                           
                                           Equity Resources plc
                                                     
                                   ("Equity Resources" or the "Company")
                                                     
ANNUAL RESULTS FOR THE YEAR ENDED 31 May 2009

The  Directors of Equity Resources plc are pleased to announce their audited results of the Company for the
year ended 31 May 2009.

CHAIRMAN'S STATEMENT

I present the Company's annual statement to Shareholders for the twelve month period ended 31 May 2009.

HIGHLIGHTS
The  year  in  question  has  shown some small improvement in that there is  now  some  hope  of  restoring
Shareholder value following the difficulties of 2007 and 2008!

FUNDING
Until  the collapse in the share price of Myhome International plc during the latter half of 2007  and  the
general deterioration in the economic climate, it had been the Board's intention to seek new capital by way
of a placing so as to expand the Company's investment portfolio.  In the event this proved impossible.

Given  that  the Company's net asset value fell so far, all attempts at equity fundraising were  postponed.
The matter will be kept under review.

In October 2008, the Board entered into a conditional agreement under which new investment funds were to be
introduced  consisting  of  an initial loan of £50,000 plus a further loan expected  to  be  a  minimum  of
£360,000, but not to exceed £500,000.  This proposed transaction was subject to Member, Takeover Panel  and
regulatory  approval.  In the event, the Takeover Panel did not agree so the transaction  in  the  original
form was abandoned.

Instead, during the year the Company secured a short term loan of £510,000 bearing interest at 4% per annum
repayable  on 31 October 2009.  As at 31 May 2009, £260,000 had been repaid, with a further £50,000  repaid
in early June 2009.

INVESTMENT REVIEW
As recorded in the 2008 report, DTT plc and Myhome International plc both failed during the year; the costs
of these investments were fully provided for as at 31 May 2008.

Of  the loan funds secured, £150,000 has been invested in Regency Mines plc and Red Rock Resources plc, two
mineral exploration businesses, both of which are traded on the Alternative Investment Market of the London
Stock  Exchange.  As I am a Non-Executive Director of both these companies, the investment  decisions  were
made by my colleagues, Simon McNeill-Ritchie and Arif Virani.

Red Rock Resources plc - www.rrrplc.com - has mineral exploration interests in Australia, Zambia, Kenya and
Malawi.   Principle metal targets are iron ore with a joint venture alongside Pallinghurst  Resources  into
Jupiter Mines Limited, ASX quoted, manganese, gold and uranium through Resource Star Limited.

Regency  Mines plc - www.regency-mines.com - has mineral exploration interests in Australia and  Papua  New
Guinea with a 30% equity interest in Red Rock Resources plc.  The principle metal target is nickel.

Based on closing bid prices, the investments made during the year showed a 52% appreciation at 31 May 2009.

At  31 May 2009, the market value at bid prices of the investments held exceeded the cost such that had the
surplus been taken into account, the negative equity shown in the balance sheet would have been eliminated.

RESULTS FOR THE YEAR
The  full cost of the investments in DTT plc and Myhome International plc has been written off as being  of
no  value  during  the year to 31 May 2008.  Accordingly, during the year under review the loss  represents
administrative costs only.

FUTURE PLANS
It remains the intention of the Board to take all reasonable steps to enhance Shareholder value.

Since  the year end, your Company has raised £102,605 by the sale of a part of the holding in Regency Mines
plc.   At 11 September 2009, the remaining investments had a market bid value of £429,000 leading to a  net
asset value per share of 0.73 pence.

SHAREHOLDER INFORMATION
So  as to conserve resources, the Company does not maintain a website.  However, announcements made to PLUS
Markets are available on www.plusmarketsgroup.com.

ANNUAL GENERAL MEETING
We  plan  to  hold our annual general meeting at 11.00 am on 28 October 2009 at the offices  of  St  Helens
Capital  Plc,  3rd  Floor,  15 St Helen's Place, London EC2M 6DE., when we look forward  to  meeting  those
Shareholders able to attend.  A formal notice is enclosed.

John Watkins
Chairman


EXTRACTS FROM THE DIRECTORS' REPORT

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The  principal activity of the Company is to invest in small companies including pre IPO opportunities  and
to  deal  in  and  take profits from these investments as may be deemed appropriate.  As described  in  the
Chairman's statement, due to adverse market conditions during the previous years, the two investments  held
at  the  beginning  of the year failed; these have been replaced by investments in two mineral  exploration
companies which the Directors believe show potential for future growth.

The Company's key performance indicators, developments during the period and future intentions are given in
the Chairman's statement.

KEY RISKS AND UNCERTAINTIES
This  business  carries  with  it  a  high  level of risk and uncertainty,  although  the  rewards  can  be
outstanding.  Often there is a lack of liquidity in the Company's investments, which are quoted on  AIM  or
PLUS, such that the Company may have difficulty in realising the full value in a forced sale.  Accordingly,
an  investment  is  only  made after thorough research into both the management and  the  business  of  the
investment  target,  both of which are closely monitored thereafter.  Furthermore, the Company  limits  the
amount of each investment, both as to the absolute amount and percentage of the investee company.

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 May 2009

                                                                     Year ended         Year ended
                                                                    31 May 2009        31 May 2008
                                                                              £                  £
Turnover                                                                      -                  -
Provision for unrealised investment losses                                    -          (765,000)
Administrative expenses                                                (31,763)           (40,340)
Operating (loss)                                                       (31,763)          (805,340)
Loss on disposal of investment                                                -           (99,900)
Interest receivable                                                       1,983              1,050
Bank interest payable                                                         -                  -
Other interest payable                                                  (8,388)                  -
(Loss) on ordinary activities before taxation                          (38,168)          (904,190)
Tax on profit on ordinary activities                                          -                  -
(Loss) on ordinary activities after taxation                           (38,168)          (904,190)
                                                                                                  
(Loss) per share - basic and diluted                               (0.08) pence       (1.93) pence


There are no recognised gains and losses in either period other than the loss/profit for the period.

All operations are continuing.

BALANCE SHEET
AS AT 31 May 2009

                                                 31 May 2009                    31 May 2008
                                               £              £              £              £
Current assets                                                                                     
Debtors                                          4,689                         5,733
Cash at bank                                    33,828                        12,004
Investments                                    200,000                             -
                                               238,517                        17,737               
Creditors - amounts due within                (262,422)                       (3,474)               
one year
Net current assets                                           (23,905)                        14,263
Total assets less current                                    (23,905)                        14,263
liabilities
                                                                                       
Share capital and reserves                                                                         
Called-up share capital                        479,750                       479,750
Share premium account                          471,250                       471,250
Profit and loss account                       (974,905)                     (936,737)               
                                                             (23,905)                        14,263
Equity shareholders' funds                                   (23,905)                        14,263

                                                                                       


CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 May 2009

                                                             Year ended                  Year ended
                                                            31 May 2009                 31 May 2008
                                                                      £                           £
                                                                                                   
Net cash (outflow) from operating                              (21,771)                    (37,235)
activities
Returns on investment and servicing                                                                
of finance:
Interest receivable                                               1,983                       1,050
Interest payable                                                (8,388)                           -
Taxation                                                              -                           -
Acquisitions                                                  (200,000)                    (15,000)
Sale of subsidiary                                                    -                         100
CASH OUTFLOW BEFORE FINANCING                                 (228,176)                    (51,085)
Financing:                                                                                         
Issue of new equity                                                   -                      15,000
Loans received, less repayments                                 250,000                           -
Increase/(decrease) in cash in  the                              21,824                    (36,085)
year

EARNINGS PER YEAR                                                   Year ended 31     Year ended 31
                                                                              May               May
                                                                             2009              2008
                                                                                £                 £
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)/profit for the year                                               (38,153)         (904,190)
Weighted average number of Ordinary shares of £0.001 in issue          47,975,000        46,888,934

Earnings per share - basic                                           (0.08) pence      (1.93) pence

Due  to  the loss incurred during the year a diluted loss  per                                     
share  has  not been calculated as this would serve to  reduce
the loss per share.

The  balance sheet at 31 May 2009, the profit and loss account, and the cash flow statement for the
year  then  ended have been extracted from the Company's statutory financial statements upon  which
the  auditor's opinion is unqualified and does not include any statement under Section 237  of  the
Companies Act 1985.

The financial statements were approved by the Board of Directors on 30 September 2009.

The auditors, Ashings Limited, signed their report without qualification on 30 September 2009.

Copies  of the report and financial statements will be posted to Shareholders and will be available
for a period of one month from the Chairman's office:  67 Park Road, Woking, Surrey, GU22 7DH
email:  email@equityresources.co.uk


The Directors of Equity Resources plc accept responsibility for this announcement.
ENQUIRIES:
Equity Resources plc                     
John Watkins, Chairman                   Tel:  01483 771992
                                         Email:  john@equityresources.co.uk

St Helens Capital Partners LLP           
Corporate Adviser                        Tel:  020 7368 6959
Duncan Vasey or Mark Anwyl               
                                         
END


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