Volvere Share Discussion Threads

[rivaldo] 04/10/2018 15:55

I'd also welcome more buybacks, but with £43m+ of cash I'd have thought there's only a relatively small amount of shares which would be freely available to buy back anyway. Unless one of the larger holders like Andrew Cohen wants to top-slice or exit, which seems unlikely unless due to personal circumstances as VLE still trades at a pretty sizeable discount to its true NAV.

My hope is that the Landers have another deal in the works, or are intending to find one quickly, which has (as others have said) led them to expedite the sale of Impetus.

[yamaha865] 04/10/2018 15:14

Agreed re buybacks, if the share is trading at under net cash its a no brainer

[zangdook] 04/10/2018 15:07

Well, if they do distribute something, do it before the May woman reduces the pound to 50 euro cents so we can put it in something other than sterling cash.

edit. re Melf above. If they want to distribute more money I'd be happy with buybacks rather than dividend, as long as the shares are trading under reasonable value.
I'd also be concerned about the company holding a large pile of sterling through possible Brexit turmoil. I'm not sure how much of their cash they keep as cash.

[melf] 04/10/2018 15:05

The problem with a special dividend is that many people will get hit for income tax thereon and some of those at the higher rate.

[greyingsurfer] 04/10/2018 15:03

Since they said recently that they think there may well be Brexit related opportunities, this is surely not the time to start distributing cash?

[jimmywilson612] 04/10/2018 14:50

At least the Landers can concentrate more of their time to both Shire * Sira businesses.

Agree that something does need to be done with the cash pile. Either share buy-back or a special dividend.

[zoolook] 04/10/2018 13:51

Maybe one day the market will value this at a sum of its assets which includes its main asset - the exceptional track record of the Lander's to add extraordinary value

[zangdook] 04/10/2018 13:30

They have so much money now that if there's nothing coming up and the share price falls back another buyback might be worthwhile.

[shanklin] 04/10/2018 13:28

I wonder whether the sale was driven from the wish to maximise the return on Impetus, or whether VLE see some excellent opportunities for which the proceeds will prove useful.

Stating in their HY results that:

"Although through the first half of 2018 deal flow has remained steady, we did not identify any opportunities which we deemed worthy of investment."

certainly leaves the potential for a more interesting opportunity to have been identified since 30-Jun-18.

[hpcg] 04/10/2018 13:26

I'd like them to keep all the cash and buy a meaningfully sized distressed company.

[melf] 04/10/2018 12:55

What a nice backstop for the share price now :-#)

[xajorkith] 04/10/2018 11:50

Oops! Probably best I read the RNS before commenting in future.

Great news & very pleased to see the share price responding in kind.

Edit: surprised it’s fallen back as should be at least 1200p

[zangdook] 04/10/2018 11:46

What a pity this company is too complicated for Lloyds customers to understand, even now it's down to two subsidiaries and a large pot of cash.

[stemis] 04/10/2018 11:31

Proforma net asset value is £43.9m or 1197p a share, including net cash of £42.1m (1148p a share). I'm guessing the £23.1m they 'retain' includes their share of the £2.87m retention. They are left with a tiny business (Sira) and another which just about covers their central costs.

1175p share price looks pretty fair value to me.

[greek islander] 04/10/2018 11:18

The Landers will undoubtedly have been looking at many options for some time. They will have known about the Impetus sale for a while now. Expect an announcement in due course. Investing in companies is usually at a low level - Impetus was just 1.25m.
This influx of cash could lead to the purchase of a number of targets. However, just don't expect anything quickly. Volvere does not do quickly! Soon VLE will have an even more massive pot of cash. This has to be a better investment and a sounder one than putting your pension fund into a bank. If only VLE attracted the sort of speculators of an ASOS the share price would be double what it is today.
A special divi is a splendid idea to reward existing shareholders (many of them long term) when the company will soon be swimming in cash and we know what a poor investment that is.

[boadicea] 04/10/2018 11:17

It looks as if they might be getting ready for any exaggerated Brexit fallout opportunities. I noted the following line in their recent interim report -
"Volvere may perhaps, on balance, be one of the very few businesses to benefit from Brexit-led distress, provided it does not endure too long. We will of course assess any opportunities as they arise."

[spob] 04/10/2018 11:16

tried a dummy buy

could only get around a grands worth

[rivaldo] 04/10/2018 11:16

I certainly chose the wrong morning to go out and be away from the screen :o))

So £23.1m consideration plus £20.4 existing cash equals £43.5m cash |(including the deferred element) - that's almost 1200p per share in cash alone.

Plus the £2.4m of freehold property, plus the value of Shire Foods and Sira.

So the current share price still looks rather low to say the least.

Is the net £23.1m receivable net of or before any bonus payments to the Landers? From the wording I suspect it's after those bonuses due have been deducted. Also, 83% of the gross £31m is £25.7m, which leaves a lot of leeway down to the net £23.1m.

Anyway, congrats to the Landers are due once again. To turn a net £0.73m into £31m is remarkable in such a short timeframe.

Now let's see if we can dispose of Shire Foods too....

[yamaha865] 04/10/2018 11:09

True Callumross but at least now the value is clearly crystalised so hopefully we'll have a decent chance of getting to a £13-£14 range soonish.

Question is- what to do with the money? I think they really need to be looking at another share buy back or even, dare I say it, a special dividend.

[callumross] 04/10/2018 10:33

Unfortunately in his valuation Simso estimated net worth as £29m when it is actually £23m - so the £15.50 valuation he stated would have to come down by a couple pounds a share.

[hpcg] 04/10/2018 10:31

Bought back in at 1090. Very happy to let the Landers invest the cash, and at a slight discount. I think the sale is excellent timing and clearly has capped downside and avoided a potentially difficult trading period. I'll pick up more should it drop back further.

[caterham88] 04/10/2018 10:23

I'm looking forwards to reading ST's take on this, given it was one of his 2016 Bargain Shares in the Investor's Chronicle.

[dsct] 04/10/2018 10:09

Well ! That's not very helpful !
Simso and I recently shared our calculations, and due to this sale, will have to revise them ! lol

Seriously, not a bad uplift from the £1.25m invested in 2015 to the £23.1m net receipt from the sale !

I'd imagine VLE will now be looking for another turn-around, as Shire and Sira have already been 'worked' upon, so unless they've a major change for either of these two, then they'll be needing something new to keep busy. I hope, and doubt they will, just splash the cash on something less worthy.

Well done all holders :o)

[melf] 04/10/2018 10:07

I calculate that the cash alone per share post disposal will be over £12 yet people are willing to sell this morning for £10.50. Am I missing something?

[modform] 04/10/2018 09:51

What a remarkable share, hats off to the management