Volvere in the black as it faces Covid crisis

By Josh White

Date: Thursday 16 Apr 2020

Volvere in the black as it faces Covid crisis

(Sharecast News) - Growth and turnaround investment specialist Volvere said it expected to pre-tax profit of ?3.1m, swinging from a loss of ?2.5m.
The company on Thursday said it expected to report revenue from continuing operations of around ?23m, up from ?18.3m.

Shire, in which Volvere has an 80% holding, grew revenues by around 26% to ?23m, up from ?18.3m, and achieved a profit before tax, intra-group interest and management charges of around ?1.29m, compared to ?0.85m a year earlier.

Profit before tax was ?1.09m, rising from ?0.65m, with the difference being intra-group interest and management charges.

Volvere said it was pleased with the growth Shire achieved in 2019, which came primarily from a "deepening of relationships" with existing customers, resulting in wider distribution and broader product ranges.

It said it was continuing to invest in site capacity, and in 2020 had committed to invest a further ?0.4m in an additional manufacturing line.

The group said it expected to report increased year-end consolidated net assets per share, excluding non-controlling interests, of about ?13.82, up from ?12.50, and group net assets of around ?26.9m, down from ?40.4m.

Of the group net assets, cash represented approximately ?19.3m, falling from ?34.1m year-on-year.

It said the reduction in its net assets and cash was primarily the result of share repurchases totalling ?16.6m in 2019, up from ?6.1m in 2018, which were largely effected through the tender offer announced in May.

Looking at its current trading, Volvere noted that its businesses were both food manufacturers and, as a result, had an "important part to play" during the Covid-19 coronavirus pandemic.

"In the first quarter of 2020 there has been an uplift in sales made to our retail customers when compared with the comparable period of 2019," the board said in its statement.

"However, it is too early to say whether this will be sustained and ultimately translate into higher sales for the group for the year overall.

"In both Shire and Indulgence there are foodservice customers from whom we have seen a downturn in orders."

"Irrespective of the current pandemic, the group is in a strong financial position, with significant cash resources and committed to the long-term future of both Shire and Indulgence."

At 1442 BST, shares in Volvere were up 2.07% at 1,332p.


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