Starvest returns to profit, sending shares higher

Resources investment minnow Starvest's shares are up 5% after it turned in a full-year pre-tax profit of £81,113, from a write-off laden loss a year earlier of £3.3m.

In the just-finished period, amounts written-off against trade investments totalled £382,594, from £3.2m. Amounts written back against trade investments totalled £643,561, from £78,421.

Starvest said the natural resource sector had made an encouraging recovery throughout 2016 and many of our investee companies saw significant share price increases during the period.

"At the end of 2016 there remained, we believe, many undervalued opportunities. It is at this time we can benefit by employing our sector knowledge and market experience in sourcing compelling investments," the company said.

Starvest said the improvement in its portfolio had been reflected in its share price over the past 12 months, which it said was "strikingly undervalued due to a relatively low investor appetite for companies involved in mining focused investments".

At 10:29 GMT, shares in AIM-quoted Starvest were up 5% to 2.62p each.