Volvere Share Discussion Threads

[melf] 06/10/2016 18:50

Thanks Martin. Looks like we're seeing a bit more oomph from the Landers with regard to publicising this undervalued stock. Hopefully this exposure will help the share price at least reach the NAV per share!

[martinthebrave] 06/10/2016 17:37

Blackthorn Focus event - AIM Investor Focus will next run on October 18th at the offices of Edison Investment Research. The four companies participating are: James Halstead plc, Next Fifteen Communications, Orchard Funding Group and Volvere plc. Each participating company will make a 40 minute presentation at the event. - hxxp://www.blackthornfocus.com/blackthorn-event/apply/477-2526d541608569dbbebdaffbcd1e136901192617

[melf] 03/10/2016 14:25

IC I've tried that one but it doesn't give a definitive answer re IHT. The problem is that business property relief only relates to trading assets. VLE have investments in marketable securities I believe which would be classed as investment assets and therefore are likely to be disqualified from the relief. There is also the question of the cash they're are holding - as to how that would be treated. This is a really tricky one as far as BPR is concerned and alas I think it would come down to HMRC's opinion. The reality is, I think this company would partially qualify for BPR but I couldn't tell you what percentage that is.

[longshanks] 27/9/2016 16:38

My next 1000 shares will be cheaper....

[melf] 27/9/2016 16:09

What do expect??.....NAV goes up - share price goes down!

[eeza] 27/9/2016 15:37

It was the mention of 'no-brainer' wot dun it.

[longshanks] 27/9/2016 15:34

My timing wasn't the best!

[longshanks] 22/9/2016 11:18

Joining the merry gang here: bought an initial 1,000 shares as it seems a "no-brainer"

[cockerhoop] 22/9/2016 08:28

Rivaldo,

Nothing in there not already known here:

Last couple of paragraphs:

The point being that these three investments are effectively in the price for free. That’s because at the end of June 2016, Volvere had cash and marketable securities of £18.5m available for new investments, a sum worth 452p a share. The company’s borrowings of £2.37m are modest in relation to the profitability of the aforementioned three holdings and also in relation to their conservative book values of £6.5m.

The downside risk here looks very limited given the hefty cash backing. I would also flag up that Volvere’s retained profits from the second half will undoubtedly deliver another record net asset value per share at the year-end and one that’s heading towards 600p. So, with the investment risk still skewed to the upside, and the company cashed up to make further value enhancing acquisitions, I continue to rate Volvere’s shares a buy.

[rivaldo] 22/9/2016 08:23

Lo and behold, ST mentioned VLE in his Bargain Update yesterday which brought in a little buying.

Does anyone have access to his commentary?



"Volvere’s record net asset value I still believe...shares of Aim-traded investment company Volvere..."

[rivaldo] 21/9/2016 10:54

Welcome eeza. You will need patience here, but as you can see from the chart patience usually pays off in spades!

Simon Thompson does however have a liking for VLE, so if he tips it post-results then things may move much more quickly.

[eeza] 21/9/2016 08:59

Joined the happy band with just a few.

[spob] 20/9/2016 13:35

Just topped up here

Agree with the above comments

The valuation placed on the 3 investments is a gift

[melf] 20/9/2016 12:53

Interestingly the bid has remained the same but the spread has narrowed today.

[eezymunny] 20/9/2016 10:25

Indeed rivaldo. Whichever way you play with numbers at the fringe, it's miles too cheap unless trading in the subs falls apart. As ever with VLE, Mr Market is too dim and we may have to wait until a disposal to turn our ballpark valuations into hard cash. If Impetus is sold on a similar price/sales to JMP (and they are in many ways quite similar) that would be c. £11m. I guess there's almost no book value to Impetus (was only £20k at March 2015) so VLE's 79% share (£8.7m) would drop straight to VLE's NAV (less mgt bonus) and give us a NAV uplift of c. £2/share.

It might all go wrong of course ;)

[rivaldo] 20/9/2016 10:04

Nice summary EM. And it's even better than that considering Shire's H2 weighting.

Let's say Impetus makes an annualised round £1m PBT, and Sira £0.1m. Shire made £1.28m PBT in H2'15, so let's assume this drops to say £0.87m, which would mean a round £1m annualised PBT from Shire.

That's £2.1m PBT from the three operating businesses. Deduct 20% tax and times 80% ownership gives say £1.4m - which on a low-ish multiple of 10 is worth £14m, i.e around 350p per share (excluding the £2.45m freehold property which is worth another 60p per share).

In theory then, the 453p per share of cash plus businesses are worth conservatively 800p+ per share, excluding the 60p of freehold property which might perhaps be left out of this calculation depending on your view of the potential multiple for Shire Foods.

[eezymunny] 20/9/2016 09:10

Yes, all just rough numbers Melf. The market cap is utter nonsense IMO unless business nosedives across the 3 subs and there's no sign of that at all. Why they don't buy back more share is entirely beyond me (most things are!).

[melf] 20/9/2016 09:04

Eezy, don't forget Shire has a freehold property as well, valued (2014 I think) at £2.5M.........that just adds to craziness!

If I wasn't fully loaded...........

[eezymunny] 20/9/2016 08:52

Yes, cash & marketable securities £18.5m vs market cap c. £20.4m.

So dear old Mr Market says the three operating businesses with combined H1 t/o of 14.5m and pbt of £0.7m (annualised c. £30m and £1.5m?) are worth just £1.9m (a P/E of c. 1.6, price/sales of just .06)

Go figure :)

Patience, ladies n gentlemen. Patience!

[rivaldo] 20/9/2016 07:25

Interims out early :o)) Pretty good overall considering the seasonally quiet H1 as regards Shire Foods:



- NAV is up to 576p
- the cash pile alone is up to 453p per share (£18.5m)!
- Impetus is storming ahead and on track for £1m+ PBT this year, winning "significant" new business
- Shire was encouragingly similar to last year given the loss of a client, though the much more profitable H2 may suffer higher raw material costs now
- Sira Defence continues to grow, slowly but surely

Looks like the investment side was completely inactive as their cost remained the same whilst their value rose somewhat.

Perhaps the most intriguing comment is about deal flow improving - maybe a hint that a new acquisition is in the offing?

[melf] 16/9/2016 11:53

Riv, I think they will probably be the week after next going on last year's.

As far as the results are concerned I don't think it's unreasonable to look for net assets per share to be pushing 600p on the basis that hopefully the available for sale investment have turned the corner plus cash generation from the businesses. Of course, we don't know what effect the major customer loss has had on Shire, so that could be the fly in the ointment.

[rivaldo] 13/9/2016 14:13

:o)) I think "basic" sums it up...perhaps it's just the start and there's more to come. Or (more likely) perhaps it's emblematic of the Landers' waste not want not philosophy.

Tempting pictures of the pies though.

Results next week hopefully going by last year.