Equity Resources plc

October 05, 2010 07:40 ET

Audited Results for the year ended 31 May 2010

                                        Equity Resources plc
                                ("Equity Resources" or the "Company")
                           Audited Results for the year ended 31 May 2010
The  Directors of Equity Resources plc are pleased to announce the audited results of the Company for
the year ended 31 May 2010.

Chairman's Statement

I  am  pleased to present the Company's annual statement to shareholders for the twelve month  period
ended 31 May 2010.


Although modest in absolute terms, the gross profit for the year amounting to £109,141 showing a 222%
return  on  the funds invested represents a start towards rebuilding shareholder value following  the
difficulties  of the past.  Since the year end, significant further progress has been made  with  the
net  asset value based on closing bid prices on 30 September 2010, showing an increase to 1.28  pence
per share fully discounted for directors' options; this was announced on 1 October 2010.


Of  the  £510,000 short term loan finance secured during 2008, the Company repaid a further  £150,000
during  the year leaving £50,000 only outstanding at the year end.  Immediately before the year  end,
the  Company was granted an interest free short term loan for a period of up to six months to  enable
the balance of the original loan to be repaid which occurred on 4 June 2010.

Investment review

Of  the  loan  funds secured, £150,000 was invested in Regency Mines plc and Red Rock  Resources  plc
("Red  Rock"),  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

Red  Rock  Resources plc - www.rrrplc.com - has become a gold explorer in Kenya and has  gold  mining
interests  in  Columbia;  in  each case it is partnering others to  which  it  provides  much  needed
expertise and finance and has options to acquire controlling interests and to generate cash flow.

Aside  from  gold,  Red Rock has been hugely successful in its iron ore and manganese  joint  venture
alongside Pallinghurst Resources, www.pallinghurst.com, which is building a major steel feed  venture
through Jupiter Mines Limited, ASX quoted, www.jupitermines.com into which Red Rock disposed  of  its
Australian iron ore and manganese interests.  In addition, it disposed of its Australian and Malawian
uranium  and rare earth interests to Resource Star Limited, ASX quoted, www.resourcestar.com.au.   In
both cases Red Rock retains an equity interest.

In  addition,  Red  Rock holds equity interests in uranium explorer Cue Resources  Limited  (www.cue-
resources.com) and in Kansai Mining Corporation Limited (www.kansaimining.com).

At  the  closing  bid  price of 5.85 pence per share on 30 September 2010, the  Company  has  so  far
multiplied its investment eleven times; we expect further increases in the coming year.

Regency Mines plc - www.regency-mines.com - has mineral exploration interests in Australia and  Papua
New  Guinea  with  a 24% equity interest in Red Rock Resources plc.  The principle  metal  target  is

Based on closing bid prices on 30 September 2010, this investment shows a 40% appreciation since  the
year end.

Results for the year

The  profit  for the year, net of administrative costs, amounts to £66,650, that is, 0.14  pence  per

Future plans

It  remains  the  intention of the Board to take all reasonable steps to enhance  shareholder  value,
taking  profits as may be considered advisable to finally clear the Company's liabilities, to finance
necessary administrative overheads and to provide funds for further investments.

At  30 September 2010, the remaining investments had a market bid value of £706,500 leading to a  net
asset  value  per  share of 1.28 pence fully diluted for directors' options, but  excluding  warrants
exercisable at 1 penny issued in May 2005 to the Company's founders.

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.  Furthermore, the investee company  websites
as previously noted are a valuable source of information.

Annual general meeting

We  plan to hold our annual general meeting during November 2010 at a venue and on a date and time to
be announced shortly.

John Watkins

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 in 2008 failed; these have been replaced by investments in two mineral  exploration
companies  which  have  proved to be profitable and 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.  Details of other financial risks and their management are given in Note 19 to  the
financial statements.

Results and dividends

The audited financial statements for the year ended 31 May 2010 follow:


for the year ended 31 May 2010

                                                                     Year ended         Year ended
                                                                    31 May 2010        31 May 2009
                                                                              £                  £
Operating income                                                        158,971                  -

Direct costs                                                             49,830                  -

Gross profit                                                            109,141                  -

Administrative expenses                                                 (42,099)           (31,763)

Operating profit/(loss)                                                  67,042            (31,763)

Interest receivable                                                           -              1,983

Other interest payable                                                     (392)            (8,388)

Profit/(loss) on ordinary activities before                              66,650            (38,168)

Tax on profit on ordinary activities                                          -                  -

Profit/(loss) on ordinary activities after taxation                      66,650            (38,168)
Profit/(loss) per share - basic                                      0.14 pence       (0.08) pence

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

All operations are continuing.

Balance sheet
As at 31 May 2010

                                                 31 May 2010                    31 May 2009
                                                  £              £              £              £
Current assets                                                                                     
Debtors                                         45,621                         4,689

Investments                                    101,000                       200,000

Cash at bank                                    22,214                        33,828

                                               168,835                       238,517 
Creditors - amounts due within                (122,709)                     (262,422)               
one year

Net current assets                                             46,126                      (23,905)

Total assets less current                                      46,126                      (23,905)
Share capital and reserves                                                                         
Called-up share capital                        479,750                       479,750

Share premium account                          471,250                       471,250

Profit and loss account                       (908,255)                     (974,905) 
Share based payments reserve                     3,381                             -

                                                               46,126                      (23,905)

Equity shareholders' funds                                     46,126                      (23,905)

Cash flow statement
for the year ended 31 May 2010

                                                             Year ended                 Year ended   
                                                            31 May 2010                31 May 2009
                                                                      £                          £
Net cash (outflow) from operating                                88,778                    (21,771)   

Returns on investment and servicing                                                                  
of finance:

Interest receivable                                                   -                      1,983   

Interest payable                                                   (392)                    (8,388) 
Taxation                                                              -                          -  
Acquisitions                                                          -                   (200,000) 
Cash outflow before financing                                    88,386                   (228,176) 
Issue of new equity                                                   -                          -   

Loans received, less repayments                                (100,000)                   250,000   

Increase/(decrease) in cash in  the                              11,614                     21,824   

Earnings per share                                                       Year ended     Year ended
                                                                             31 May         31 May
                                                                               2010           2009
                                                                                  £              £
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.

Profit/(loss) for the year                                                   66,650       (38,153)

Weighted average number of Ordinary shares of £0.001 in issue            47,975,000     47,975,000

Earnings per share - basic                                               0.14 pence   (0.08) pence

A  diluted  profit/(loss) per share has not  been  calculated;  for                             
2010,  all warrants and options were 'under water' and for 2009  to
do so would reduce the loss per share.

The  balance sheet at 31 May 2010, 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.

The financial statements were approved by the Board of Directors on 5 October 2010.

The auditors, Ashings Limited, signed their report without qualification on 5 October 2010.

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 are responsible for the contents of this announcement.


Equity Resources plc                     
John Watkins, Chairman                   Tel: 01483 771992
St Helens Capital Partners LLP           
Corporate Adviser                        Tel:  020 7368 6959
Duncan Vasey                             duncanvasey@sthcp.com

Contact Information

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