REG - Volvere PLC - Trading Update and Notice of Final Results

VolvereAnnouncement

12/03/2024 08:00

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RNS Number : 4897G  Volvere PLC  12 March 2024

12 March 2024

Volvere plc

(the "Group" or "Volvere")

Trading Update and Notice of Final Results

Volvere plc (AIM: VLE), the growth and turnaround investment company, is
pleased to provide the following trading update for the financial year ended
31 December 2023.  All data in this announcement is unaudited, although the
comparative information for the year ending 31 December 2022 has been
extracted from audited data for that year.

In line with the prior year, Shire Foods Limited ("Shire"), the Group's 80 per
cent. owned frozen pastry products manufacturer, was the Group's principal
trading subsidiary and, along with the Group's central activities, represents
the Group's continuing operations.  In 2022 the Group closed Indulgence
Patisserie Limited ("Indulgence") and its results are reported as discontinued
operations, net of associated tax.

Group Net Assets per Share and Net Assets

The Group expects to report year-end consolidated net assets per share
(excluding non-controlling interests) of approximately £14.82 (31 December
2022: £13.90) and Group net assets of approximately £37.50 million (31
December 2022: £35.75 million).

During the year all properties associated with the Indulgence business were
sold for a total consideration (net of costs) of £2.25 million (31 December
2022: carrying value £2.10 million), increasing the Group's cash.  Cash and
available for sale investments represented approximately £23.74 million (31
December 2022: £20.79 million) of the Group's net assets.

Financial Performance

The improvement in the Group's net assets per share and cash position reflects
improved trading in Shire, increased income from treasury management
activities and a gain on the sale of properties formerly used by Indulgence.
The Group expects overall profit before tax and profit after tax for the year
to be £4.75 million and £3.61 million respectively (2022: loss before and
after tax £0.06 million).

Revenue from continuing operations was approximately £42.95 million (2022:
£38.03 million) and profit before tax was £3.64 million (2022: profit before
tax of £2.33 million).  This is inclusive of Shire's profit before tax,
intra-Group interest and management charges*, which was £3.86 million (2022:
£2.78 million).

Revenue from discontinued operations was approximately £0.10 million (2022:
£3.53 million) and profit (after associated tax) and before intra-Group
interest and management charges* was £1.12 million (2022: loss of £2.39
million). This result reflects the gain on disposal of the former Indulgence
properties.

Outlook

Whilst 2023 was not a year without its challenges at both a corporate and
trading level, we are pleased with the financial performance of the Group
during the period.

2024 will see the impact of another minimum wage increase and increased energy
costs in Shire.  We are working to ensure our margins reflect these, whilst
balancing the need to keep pricing sufficiently keen to avoid material volume
reductions.  We have been encouraged, however, by the levels of new business
opportunities we are seeing in Shire and remain cautiously optimistic for the
remainder of the year.

Compared to 2022, we have seen an increase in the quality and quantity of
potential investment opportunities. We are assessing possible transactions,
including those that are complementary to Shire.  More broadly, we are
focused on enhancing shareholder value and, inter alia, continue to monitor
and review our ongoing requirements in terms of the cash required to deliver
our strategy.

 

* profit before intra-Group interest and management charges is considered to
be a relevant, useful interpretation of the trading results of the business
such that its performance can be understood on a basis which is independent of
its ownership by the Group.

Notice of Final Results

Volvere expects to announce its full year results for the year ended 31
December 2023 on or around 24 May 2024.

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

For further information:

 Volvere plc

 Nick Lander, Co-founder & Director                 Tel: +44 (0) 1926 335700

 www.volvere.co.uk (http://www.volvere.co.uk)

 Cairn Financial Advisers LLP (Nominated Adviser)   Tel: + 44 (0) 207 213 0880

 Sandy Jamieson, James Caithie

 Canaccord Genuity Limited (Joint Broker)           Tel: + 44 (0) 207 523 8000

 Bobbie Hilliam/Alex Aylen
 Hobart Capital Markets LLP (Joint Broker)

 Lee Richardson                                     Tel: + 44 (0) 207 070 5691

 

Notes to editors:

Volvere plc (AIM: VLE), is a growth and turnaround investment company. The
Group's sole current trading activity is food manufacturing. The Group
currently employs approximately 270 people.

For further information, please visit www.volvere.co.uk
(http://www.volvere.co.uk) .

 

Forward-looking statements:

This announcement may contain certain statements about the future outlook for
Volvere plc. Although the directors believe their expectations are based on
reasonable assumptions, any statements about future outlook may be influenced
by factors that could cause actual outcomes and results to be materially
different.

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