Good morning!
A huge pile of news today. The impact on my own portfolio has been a small net positive: Volvere (LON:VLE) shares are up, while IG Group (LON:IGG) shares are down after the CEO stepped down.
Final list:
- Volvere (LON:VLE)
- Bonmarche Holdings (LON:BON)
- Mountfield (LON:MOGP)
- Zoo Digital (LON:ZOO)
- Fishing Republic (LON:FISH)
- IG Group (LON:IGG)
Volvere (LON:VLE)
- Share price: 960p (+8%)
- No. of shares: 3.7 million
- Market cap: £36 million
(Please note that I currently hold VLE shares.)
This is the largest position in my portfolio again.
As a refresher, this is the investment vehicle that finds companies in need of some restructuring. Typically, their bank debt has become too large. Volvere comes in and replaces the bank with a majority equity stake.
It has compounded NAV at a double digit percentage rate for many years. I'm a relative newcomer, only owning it since May 2016 (you can find my original write-up here).
Today's interim results are about as good as I could have reasonably hoped for. The company's key subsidiaries, of which there are only two, have both improved compared to last year.
- Impetus Automotive (website)
These are consultants to the automotive industry - clue in the name!
I wouldn't normally want to own shares in a company like this, as revenues are quite lumpy and contract-driven. However, I don't mind owning it within Volvere's portfolio, as Volvere was able to buy it at a very favourable price. It's also just a small part of the overall NAV.
Impetus revenues are up 21% to £14.8 million and PBT up 31% to £1.9 million (before intra-group charges), after picking up new business.
The statement is cautious about making further growth in the short-term, on the basis of uncertainty in the sector at the moment (including Brexit-related uncertainty).
That's ok - Impetus doesn't owe us anything. Performance has been superb! If it merely carries on at the current rate of profitability, it will be a fine result.
- Shire…
Unlock the rest of this article with a 14 day trial
Already have an account?
Login here