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

VolvereAnnouncement

13/03/2018 08:43

RNS Number : 9074G
Volvere PLC
07 March 2018
 

7 March 2018
 
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 2017.  All 2017 data in this announcement is unaudited; comparative data relates to the audited financial year ended 31 December 2016.
The Group expects to report record revenue of approximately £43.2 million (2016: £33.0 million) and profit before tax of £3.22 million (2016: £1.94 million).
Operating Businesses
Revenue growth in 2017 principally reflects increased activity in Impetus Automotive Limited ("Impetus"), the Group's automotive consulting business, and Shire Foods Limited ("Shire"), the Group's frozen pie and pastry manufacturing business.
Impetus
Impetus, in which Volvere has an 83 per cent. holding, had revenues of £27.1 million (2016: £17.4 million) and profit before tax, intra-group interest and management charges* of approximately £3.37 million (2016: £1.49 million).  Profit before tax was £3.04 million (2016: £1.11 million) - with the difference being intra-group interest and management charges.
The strong performance reflects new work won during 2017.  Whilst the decline in new car sales in the UK has affected the scale of some manufacturer programmes, there remain many opportunities for Impetus in what is a very large sector.
Shire Foods
Shire, in which Volvere has an 80 per cent. holding, had revenues of £15.9 million (2016: £15.2 million) and profit before tax, intra-group interest and management charges* of approximately £0.64 million (2016: £1.15 million).  Profit before tax was £0.44 million (2016: £0.91 million) - with the difference being intra-group interest and management charges.
The result in 2017 is stated after a one-off impairment charge of £0.19 million due to the accelerated write down of equipment that is being removed from service. This equipment is being replaced with other (capacity-increasing) equipment in 2018.  We are investing in Shire so that we have the capability to grow. We expect revenues to increase in 2018 and with that, profitability, although this will depend on our ability to contain the effects of higher raw material and labour costs. 
Sira
Sira Defence and Security ("Sira"), the Group's digital CCTV viewing software business, achieved revenue of £0.28 million (2016: £0.38 million) and expects to report a profit before tax of £0.03 million (2016: £0.16 million).
Group Net Assets Per Share and Net Assets
The Group expects to report increased year-end consolidated net assets per share (excluding non-controlling interests) of approximately £6.56 (31 December 2016: £6.17) and Group net assets of approximately £26.0 million (31 December 2016: £26.6 million).  Of the Group net assets, cash including marketable securities represented approximately £18.4 million (31 December 2016: £20.1 million), of which marketable securities represented £6.3 million (31 December 2016: £nil million).   The level of cash including marketable securities is particularly pleasing given that the Group repurchased £3.46 million of its own shares in the year.
* 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 2017 on 25 May 2018.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
 
For further information:
Volvere plc
Jonathan Lander, CEO                                               Tel: +44 (0) 20 7634 9707
www.volvere.co.uk                             
N+1 Singer (Nominated Adviser and Broker)
Aubrey Powell/Liz Yong                                              Tel: + 44 (0) 20 7496 3000
  
Notes to editors:
Volvere plc (AIM: VLE), is a growth and turnaround investment company. The Group's current trading businesses are organised into three divisions: security solutions; food manufacturing; and automotive consultancy. The Group currently employs over 500 people.
For further information, please visit www.volvere.co.uk



This information is provided by RNS
The company news service from the London Stock Exchange
 
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