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

VolvereAnnouncement

19/03/2019 07:05

RNS Number : 2166T
Volvere PLC
19 March 2019
 


19 March 2019
 
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 2018.  All 2018 data in this announcement is unaudited.  In addition, the comparative data relating to the financial year ended 31 December 2017 is also unaudited, since the results of discontinued operations have been re-presented, though it is based upon the audited results for that year.
Financial Performance
The Group expects to report revenue from continuing operations of approximately £18.6 million (re-presented 2017: £16.2 million) and an overall profit before tax of £20.6 million, stated after the profit arising from discontinued operations of £23.1 million (re-presented 2017: loss £0.1 million).  The results for 2017, including the results of now discontinued operations, were revenue of £43.4 million and a profit before tax of £3.5 million.
The result for 2018 reflects the gain arising on the disposal in October 2018 of Impetus Automotive Limited ("IAL"), the Group's then largest subsidiary for a final consideration, before staff and management incentives ("Incentive Payments") and deal costs, of £31.3 million. The Group owned approximately 83% of IAL, which resulted in proceeds receivable by the Group of £26.1 million (some of which are in escrow, as is customary in such transactions).
Incentive Payments relating to the disposal have not been deducted against the profit arising from discontinued operations in 2018 but are instead included in administration costs as part of continuing operations.  Including associated taxes, these totalled approximately £2.5 million in 2018.
Excluding the profit from discontinued operations, the loss before tax from continuing operations was £2.5 million (re-presented 2017: loss £0.1 million), which is stated after Incentive Payments of £2.5 million.  Accordingly, the underlying result before tax from continuing operations improved by approximately £0.1 million year-on-year to breakeven, compared to a re-presented loss of £0.1 million in 2017.
Operating Businesses
Revenue growth in 2018 principally reflects growth in Shire Foods Limited ("Shire"), the Group's frozen pie and pastry manufacturing business.
Shire Foods
Shire, in which Volvere has an 80 per cent. holding, had revenues of £18.3 million (2017: £15.9 million) and achieved a profit before tax, intra-group interest and management charges* of approximately £0.79 million (2017: £0.64 million).  Profit before tax was £0.59 million (2017: £0.44 million) - with the difference being intra-group interest and management charges.
Growth in 2018 resulted mainly from growth with existing customers, where a combination of new product lines and wider store distribution increased revenues.  In 2019 we are expecting further revenue growth and plan to invest approximately £2 million in new plant and equipment to increase capacity further.
Sira
Sira Defence and Security Limited ("Sira"), the Group's digital CCTV viewing software business, achieved revenue of £0.30 million (2017: £0.28 million) and reported a profit before tax, intra-group interest and management charges* of £0.06 million (2017: £0.03 million).  Profit before tax was £nil million (2017: £0.03 million) - with the difference being intra-group interest and management charges.
Although the company's financial performance was very similar to 2017, a number of reseller partnerships were signed in the period, which are expected to make a contribution in 2019 and beyond. The company continues to invest in its intellectual property which it believes is unique.
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 £12.48 (31 December 2017: £6.59) and Group net assets of approximately £40.3 million (31 December 2017: £26.1 million).  Of the Group net assets, cash represented approximately £34.1 million (31 December 2017: £12.1 million).  In addition, at the prior period end there were marketable securities of £6.3 million, which were sold in 2018.  The Group repurchased £6.1 million of its own shares in the year (2017: £3.5 million).
* 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 2018 on 24 May 2019.
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                             
Cairn Financial Advisers LLP (Nominated Adviser)
Sandy Jamieson/James Lewis                                               Tel: + 44 (0) 20 7213 0880
 
Hobart Capital Markets LLP (Broker)
Lee Richardson                                                                      Tel: + 44 (0) 20 7070 5691
  
Notes to editors:
Volvere plc (AIM: VLE), is a growth and turnaround investment company. The Group's current trading businesses are organised into two divisions: security solutions and food manufacturing. The Group currently employs approximately 165 people.
For further information, please visit www.volvere.co.uk




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