Good morning!

News today has thankfully calmed down a little, at least as far as UK small-caps are concerned.

This means I can go back and look at some of the stories I've missed this week:

From today's news, I might look at:

Volvere (LON:VLE)

  • Share price: £11.25p 
  • No. of shares: 3.1 million
  • Market cap: £35 million

(Please note that I have a long position in VLE.)

I've been slow to update on Volvere. This might seem strange, given that it's my biggest holding, at 16% of my portfolio.

However, I felt there was little to say, since not much had changed as a consequence of Tuesday's trading update.

This update was the first piece of news since October. Things move slowly in Volvere-land!

Results for the year ending December 2018:

  • revenue from continuing operations improved to £18.6 million from £16.2 million. £18.3 million of revenue is attributable to Shire Foods. The rest to Sira Defence.
  • underlying result before tax from continuing operations is £100k.

Segmental Analysis

Shire's profit before tax and intra-group charges was £790k.

Volvere plans to invest £2 million into Shire in 2019, in the form of new plant and equipment.

Francis wrote a great comment on Wednesday after attending the company presentation, explaining that the focus is now on expanding Shire's vegan/vegetarian and healthy pies. The product range has already expanded a lot over the past year.

I still have a pretty good impression of Shire: could it be worth £10 million+ on eventual disposal, or is that too much to hope for? It has a freehold property in Leamington Spa, blue-chip customers and a decent track record. I'd like to see it generate PBT before intra-group charges of £1 million+ this year, but I know that it operates in a fairly competitively sector so I'm not going to get carried away at this point.

On top of that we have…

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