Volvere Share Discussion Threads

[simso] 23/6/2018 19:38

rhomboid: unfortunately I cannot make it down this year. Are you going?

[rhomboid] 23/6/2018 16:56

Is anyone attending Monday’s AGM?

[zangdook] 20/6/2018 13:07

Pity Lloyds, Halifax and iWeb customers are too thick to understand all that.

[rivaldo] 20/6/2018 09:03

Great to see Simon Thompson tipping VLE once again.

Here's the missing first half of the above article FYI:

"I have been casting my eye over the annual results from Aim-traded investment company Volvere (VLE:940p). It’s a company I know well, having included the shares, at 419p, in my 2016 Bargain Shares Portfolio. I last advised running profits ahead of the full-year results (‘Bargain Shares: Beating the market’, 12 Mar 2018). They were eye-catching.

Volvere’s pre-tax profit surged by 74 per cent to £3.45m on record revenue of £43.4m, driven by the performance of Impetus Automotive, a provider of consulting services to the automotive sector in which Volvere has an 83 per cent stake. Impetus trebled its pre-tax profit to £3.3m (better than I had expected) on revenue of £27.3m, reflecting an improved client focus, and a major contract for the management and delivery of a large automotive manufacturer's learning and development activities in the UK. Impetus accounts for just £3.7m of Volvere's net asset value (NAV) of £26.1m, or 659p a share, so is effectively in the books for little more than its annual pre-tax profit."

[snew] 19/6/2018 13:11

not sure where you get cut off but the second half of the article:

"Volvere’s 80 per cent stake in Shire Foods looks undervalued, too. It’s valued in the accounts at £6.2m, representing less than eight times underlying pre-tax profit of £830,000, which was earned on slightly higher revenues of £15.8m. True, profits slipped as margins took a hit from higher raw material and staff costs, and restricted the ability to pass on these increases to customers. However, finance director Nick Lander notes that “in recent months there has been a greater realism about the need to either increase consumer prices (or reduce the quantity of product supplied at a given retail price), or to absorb cost increases from Shire.” A planned £950,000 investment in new equipment will enable Shire to manufacture its products at a higher margin, offering substance to the directors’ view that the business will return to growth this year. That possibility is not being priced in.

That’s because if you strip out Volvere’s net funds of £16.3m, a sum worth 445p a share, from its £34.3m market value, then the stakes in Shire and Impetus are effectively in the price for £18m, or only 4.4 times their combined annual pre-tax profit, and this ignores any value in Volvere’s small digital CCTV business. Run profits."

[xajorkith] 19/6/2018 13:09

Anyone subscribe & have the rest of this?

As you said rivaldo, just a matter of time before it was recommended.

[rivaldo] 15/6/2018 12:34

Great to hear GI - you've picked some beauties (including VLE of course!). I looked at FEVR ages ago and thought it was too expensive. I now see this is a classic mistake. Quality companies are usually expensive, rarely become "cheap" and in stable markets continue to rise. As I've realised from holding ACSO, KWS, FDEV etc.

Must be just a question of time before VLE get tipped somewhere at this price as it's definitively NOT expensive at this price. IMO anyway :o))

[greek islander] 14/6/2018 15:54

Rivaldo

After taking my profit here in VLE and investing it all in Fevertree 12-13 months ago I am back in again for the 4th time buying 6k. Looking for the usual steady gain. On the best run of my investing career having bought lots of NEXT 6 months ago and Burford 19 months ago. A 300k investment in NXT has proved amazing. Beginning to enjoy myself now.

[rivaldo] 10/6/2018 18:02

That's what I said was likely in terms of price.

But I'd also suggest that the Landers might see potential here. If the acquisition price was indeed cheap, and within VLE's means, then adding it onto Shire with the resulting synergies and efficiencies might just present a bargain opportunity. It might also make the eventual sale of Shire that much easier and attractive as part of a much larger entity.

[melf] 08/6/2018 09:00

So the shares are c900p on the bid. I wonder if we could be nearing buy back territory??

[rivaldo] 06/6/2018 12:48

A quick thought - this year's H1 results should look terrific against the comparative, as the first major contract win for Impetus only commenced in April'17. So this year's H1 will have a full six months' contribution from that contract.

[thechurch333] 04/6/2018 10:29

They need to establish who ate all the pies...

[rivaldo] 04/6/2018 07:25

That's good news for Shire Foods I'd have thought.

And here's some encouraging news from Impetus Automotive:



"Impetus Automotive support the growth of Suzuki business sales
June 01, 2018

Impetus Automotive are pleased to be supporting the growth of Suzuki Business Sales with the appointment of three new Business Development Managers, delivering regional activity across the network.

This follows the increase in Dealers offering the highly competitive “Fit for Fleet” range to local fleet customers. Reporting to Graeme Jenkins, Head of Fleet, the team will be focusing on developing SME business as well as supporting the development of the Suzuki Business Partner network through training and customer relationship management. “We are delighted to be working with Impetus and draw upon their deep experience within Fleet Sales” commented Graeme.

David Gorvett of Impetus added “It is great to have the opportunity to support Suzuki with their continued growth in Fleet and we look forward to working with Graeme and his team on their new journey”.

The team, consisting of Louise Kelly, Joe Skinner and Tim Whitworth are a mix of promotion from within Impetus and external recruits. Building upon their manufacturer, leasing company and Dealer experience, the team are well equipped to support Suzuki’s long term growth strategy."

[rp19] 03/6/2018 21:05

Pie recalls at a competitor -

[rivaldo] 28/5/2018 23:06

Cheers Simso, absolutely right, the property revaluation was credited to revaluation reserve and wouldn't have gone through the P&L.

In a way it might have been better for Impetus to have saved up some ammo for this year rather than beating the already flagged numbers so comprehensively.

Hopefully the more encouraging sentiment re Shire will lead to a sale in the next 6-12 months.

I'm sure VLE will attract some attention from the likes of Simon Thompson post-results. This will probably encourage a load more buying, whilst braver souls will get in earlier considering the still large discount to the true NAV here.

[rhomboid] 27/5/2018 18:02

Thx Simso...you are indeed correct..I’m guilty as charged 🙂

Apologies for the red herring

[simso] 27/5/2018 17:55

In terms of the final PBT number, I agree with Rivaldo that the final number of £3.5m was better than the £3.22m flagged at the TU in March, and that the main difference seems to be that Impetus delivered £3.6m, having originally flagged £3.37m at the TU. The Property Revaluation was additional good news, which went through the Consolidated Statement of Comprehensive Income rather than headline P&L.

I was absolutely delighted with the statement on Friday...not just the headline numbers but also the key messages within. I certainly agree with rhomboid that there are more grounds for encouragement with Shire than I had previously imagined.

[rhomboid] 27/5/2018 09:51

Hi Rivaldo

The results whilst excellent were bang in line with trading update, the property revaluation gain goes through the face of the P&L and constitutes the variance to the TU.

I’m encouraged by this ;

‘In recent months, however, there has been greater realism about the need to either increase consumer prices (or to appropriately reduce the quantity of product supplied for a given retail price) or to absorb cost increases from Shire. However, as part of a balanced, partnering approach with clients, Shire will continue to seek volume growth through increasing the number of lines offered to individual clients and seek to minimise cost increases wherever possible.’

..when that is taken in conjunction with the 950k of Capex (850k externally funded) this year it suggests they’re going to have a much more profitable & therefore saleable Shire foods business.

Re Impetus I’ve been reading through the website and looking at the case studies..my belief is this could be a long term growth business as it is operating in a structurally high growth market , given how capex light it is I can see Volvere retaining this for a fair while before exiting at a multiple of today’s VLE market cap. Sira is a sideshow

Finally I’m intrigued by the current asset investment piece..anyone know what they are?

Cheers

[zoolook] 25/5/2018 19:47

What was your mistrust based on?

[topvest] 25/5/2018 19:30

Well done to those that have held here. I've never had much trust in management, but maybe I have been wrong.

[rivaldo] 25/5/2018 12:33

Looks like a few short-term traders exited this morning (or some have taken profits whilst there's good liquidity). I think they'll miss out.

VLE are the largest holding in Graham Neary's portfolio, and he's filed a decent write-up on Stockopedia:



He never seems to get particularly enthusiastic about shares, so for him to say that the current m/cap is "conservative" is probably as good as it gets!

[xajorkith] 25/5/2018 07:53

Another excellent set of results as expected :)

Glad to see the buybacks will continue, further underpinning the ongoing value here.