TIDMVLE
RNS Number : 8128S
Volvere PLC
14 March 2023
14 March 2023
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 2022. All data in this
announcement is unaudited, although the comparative information for
the year ending 31 December 2021 has been extracted from audited
data for that year.
Shire Foods Limited ("Shire"), the Group's 80 per cent. owned
frozen pastry products manufacturer , was the Group's principal
continuing trading subsidiary during the year and, along with the
Group's central activities, represents the Group's continuing
operations. On 8 November 2022, the Group announced the closure of
Indulgence Patisserie Limited ("Indulgence"), the Group's frozen
desserts business, in view of significant continuing losses.
Indulgence will, therefore, be reported in the Group's final
results as "discontinued operations".
Financial Performance
Revenue from continuing operations was approximately GBP38.03
million (2021: GBP30.61 million) and an overall profit before tax
of GBP2.33 million (2021: profit before tax of GBP1.07
million).
Revenue from discontinued operations was approximately GBP3.53
million (2021: GBP4.97 million) and an overall loss before tax and
Group management charges of GBP2.57 million (2021: loss of GBP1.01
million).
The Group expects to report total revenue from continuing and
discontinued operations of approximately GBP41.56 million (2021:
GBP35.58 million) and an overall loss before tax of GBP0.24 million
(2021: profit before tax of GBP0.07 million).
Operating Businesses
Overview
Given the wider economic environment, Shire's performance was
good. In line with most businesses in the UK, the company faced
significant upward pressure in raw material costs and overheads, as
well as having to recruit within a challenging labour market.
Similar pressures affected Indulgence, but its smaller scale and
less efficient operations meant that its business was, on balance,
no longer viable.
Shire Foods - continuing
Shire continued to grow in 2022, with revenues increasing by
approximately 24.2% to a new record of GBP38.03 million (2021:
GBP30.61 million).
Profit before tax, intra-group interest and management charges*
was approximately GBP2.78 million (2021: GBP2.14 million). Profit
before tax was GBP2.43 million (2021: GBP1.89 million) - with the
difference being intra-group interest and management charges.
During 2022, Shire continued to provide operational and commercial
support to Indulgence and this again has resulted in some costs
being recharged which would otherwise have been borne by Shire.
Indulgence Patisserie Limited
Manufacturing was suspended in August 2022 and did not
recommence given the outlook for the business. All roles were,
regrettably, made redundant. The result for Indulgence reflects the
trading losses in the year along with the inevitable write-downs of
stock, plant and equipment whose value was impaired following the
decision to cease trading.
The loss before tax, intra-group interest and management
charges* was approximately GBP2.57 million (2021: loss GBP1.01
million), stated after impairment charges and other asset
write-downs associated with closure of approximately GBP0.48
million (2021: Nil). The loss before tax was GBP2.68 million (2021:
loss GBP1.10 million) - with the difference being intra-group
interest and management charges.
Since the year end, the Group has sold one of the Indulgence
properties at a modest premium to its book value and is actively
marketing the other. The value of the sold property has been
reflected in the year end valuation, with the remaining property
stated at the last independent valuation.
Whilst there may be some limited costs associated with
Indulgence in 2023, the Group does not expect these to be
material.
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
GBP13.82 (31 December 2021: GBP13.49) and Group net assets of
approximately GBP35.58 million (31 December 2021: GBP37.05
million).
Of the Group net assets, cash and marketable securities
represented approximately GBP20.78 million (31 December 2021:
GBP21.87 million).
The reduction in the Group's cash and net assets reflects the
purchases of treasury shares amounting to GBP2.09 million during
the year.
Current Trading
The past year has been, without doubt, one of the Group's most
challenging. The decision to close Indulgence was unfortunate but
necessary given the circumstances.
Since the year-end, labour market challenges and raw material
price pressures have shown some signs of abating. Early indications
are that the focus on margins in Shire has ensured that we have
commenced 2023 with appropriate customer pricing.
In the wider economy, we are seeing an increasing number of
investment opportunities across multiple sectors as businesses
grapple with higher energy, raw material, staff and finance costs
at a time of flat or reduced demand. Our strong balance sheet will
enable us to capitalise on these opportunities as they arise.
* 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 2022 on or around 26 May 2023.
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
Jonathan Lander, CEO Tel: +44 (0) 1926 335700
www.volvere.co.uk
Cairn Financial Advisers LLP (Nominated Tel: + 44 (0) 207 213
Adviser) 0880
Sandy Jamieson, James Caithie
Canaccord Genuity Limited (Joint Broker) Tel: + 44 (0) 207 523
Bobbie Hilliam/Alex Aylen/Georgina McCooke 8000
Hobart Capital Markets LLP (Joint Broker) Tel: + 44 (0) 207 070
Lee Richardson 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 250
people.
For further information, please visit 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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END
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