Volvere Share Discussion Threads

[shanklin] 25/10/2018 16:26

So, can private investors tender their shares?

[melf] 25/10/2018 15:13

Someone just sold 500 for 1065p !!!

[the big fella] 25/10/2018 15:04

Is that the same David Buchler (sole non-exec) involved with Langbar?

[eezymunny] 25/10/2018 15:03

Quite nice for everyone I think.

Da bruvvers bank some more (well deserved M'lud) profit and I guess pay just 10% tax, what with entrepreneurs relief etc? Nasty Mr Corbyn and even slightly less nasty Mr Hammond will surely take an axe to that at some point!

Shares bought back at a modest discount to NAV thus enhancing value of remaining shares a little.

[cockerhoop] 25/10/2018 14:53

Buyback at 1102p

[rivaldo] 17/10/2018 10:19

I notice that Jon Lander is presenting at Mello London on Monday November 26th, and "will also be taking part in an interesting panel session on what makes an exceptional Chief Executive". I think he has plenty to contribute in that respect :o))



Hopefully this will spread the word further. Whoever sold at 1008p this morning is selling £43m+ cash plus Shire including £2.6m freehold property plus Sira for a value of £36.9m at that 1008p. Bonkers imho unless for short-term considerations or those with little patience.

[rivaldo] 12/10/2018 14:11

Not yet....but I suspect it's just a matter of time :o))

[melf] 12/10/2018 12:37

Agreed Eezy.......Does anyone know if Simon Thompson commented on the disposal?

[zangdook] 12/10/2018 12:36

169 nonillion?

[eezymunny] 12/10/2018 10:13

Last few years tangible NAV/share

169,163,299,307,316,318,362,400,531,572,547 and my estimate for this year c. 1175

It's a long history of fantastic value creation for shareholders. And yet it sits today at a discount to tangible book. People should be queuing up to buy IMO. Market madness if ever...

[dsct] 10/10/2018 22:28

With VLE being one of my top performing shares today - It didn't drop(!!!), I thought I could safely read on this thread without being reminded of the CAKE fiasco, but OHH NO!, @hpcg has gone and ruined it ! lol (only joking).

I did think your £6.50 was optimistic, being a >50% increase on the pre-fiasco price, then twigged, you meant in entirety, not per share, in which case, I think the strawberry would swing the deal in VLEs favour :o)

Anyway, back to VLE ...

IF, and it's only hypothetical, VLE decided to return cash as a divi at >£11/share, what would happen to the SP?

I know many on here would prefer not to have the divi, but normally the share price would roughly drop by the divi amount - so we'd be holding penny-shares ?

When the shares went ex-divi, I presume we would then have an share price (market cap.) which gave a truer valuation to Shire (and Sira).

[hpcg] 10/10/2018 11:30

Cheaky bid for CAKE? £6.50 and we'll throw in a strawberry on top. Turn it around by not losing track of millions of quid in cash.

[rp19] 09/10/2018 12:47

I think the general market weakness since the impetus news has probably held back the price a bit. Personally happy to sit and wait with VLE.

[kazoom] 09/10/2018 11:59

FWIW, rightly or wrongly, I sold out my smallish position on the back of the disposal.

My reasoning?

Surplus net cash on a balance sheet always seems to be valued below par, so I suspect the share price is likely to drift in the short term.

For the more patient, is seems a pretty safe bet to trust the Landers to spend wisely (if the can turn c. £2m in to £23m what can they do with £43???).

So this might not be a wise move and I may well face the prospect of potentially having to pay much more if I want to get back in as and when they find their next target, but I'll live with that.

Good luck to those more patient than me!

[rivaldo] 09/10/2018 11:10

Agreed (though today's drop is only a fall in the offer price to enable a more reasonable spread - the bid has remained unchanged at 1050p).

The m/cap has only increased post-disposal by some £4.6m (from 950p), despite the additional £23m cash lifting the eventual cash pile to £43m+, i.e almost 1200p per share :o))

[melf] 09/10/2018 10:29

The share price has been really disappointing since the disposal imo. Sitting at well under NAV surely they must seriously be considering a buy back.

[rivaldo] 07/10/2018 18:09

Good to see a brief mention from long-term holder Evil Knievil in his daily column:



"However, a nice surprise this morning is that Volvere (LON:VLE) have concluded a major disposal. This leaves the shares at £11.50 offer. Presumably, they will go higher yet. VLE’s management are clearly clever."

[cockerhoop] 05/10/2018 12:40

Zoolook,

The company currently has shareholder approval (until Sept 2019) to issue up to 545% of the outstanding share capital so whether in treasury or cancelled makes no significant practical difference.

[rivaldo] 05/10/2018 12:14

Exactly zoolook. Or in issuing shares to satisfy the exercise of share options (although from memory VLE has no or at most de minimis options in issue at present).

I agree Simso, a tender would probably be the easiest way once again of extracting further NAV-enhancing value and satisfying anyone who fancied an exit.

Interesting to see how Impetus' acquiror views their purchase - I didn't realise Impetus operated in Australia, China and Japan as well as in Europe:

[zoolook] 05/10/2018 12:07

Thanks hpcg. Didn’t realise that the issuing of new shares always required shareholder approval.

What scenarios would it be useful for then to do them to do this? Maybe when buying a company speedily with a mix of cash and paper?

[hpcg] 05/10/2018 11:05

zoolook - they can be issued again without seeking approval from the members. When I say issued, I mean sold or distributed, they would not be new shares but existent ones.

[zoolook] 05/10/2018 08:45

Quick question on something I don’t understand. What is the advantage in a buyback to holding shares in treasury (which I think Volvere does)as opposed to cancelling them?

[shanklin] 05/10/2018 08:17

simso

I see there was minimal time to respond to the last buy-back announcement. So presumably this was aimed at institutions and insiders not PIs?

At the least the tender price, set on 11-Oct-17, was equal to the closing price on 10-Oct-17

Cheers, Martin

[simso] 05/10/2018 08:10

Delighted with the news yesterday.

In my valuation, the most subjective number was the multiple for Impetus. I had plugged in 12* a projected £4m PBT, and it looks like the Sale was for just under 10*. Everything then works through, confirming that £23.1m will be net of a Lander Bonus of around 10%.

After the deal completes, we will have at least c£43.5m Cash, based on June Balance Sheet + Impetus Sale (although note that almost £3m of this is held back for 18 months). I suspect we will have generated a further £1m+ Cash from Trading since June, so Cash should be north of £12 a share. Given the Landers' impeccable record of deploying cash (Impetus has almost 20 bagged their initial investment in 3 years, and every single investment made over 15 years has been profitable), it seems bizarre that the current market valuation is still at a discount to cash. Personally, I would value cash with the Landers at a premium! Shire (incl Freehold), plus Sira and other working capital must be worth £1.50 a share on the lowliest valuation multiple.

I think the Landers will continue to be extremely careful. I remember Jonathan saying at the Blackthorn event last year that they were not about to risk 15 years of hard work building up the business by making a sizeable acquisition which didn't work. I predict they will continue to look for extremely cheap (certainly sub £5m) targets, be incredibly selective, and that £43m-£45m on Balance Sheet is far too much for our needs. Dividends are a non-starter given the marginal tax rate, and traditional buy backs impossible given liquidity. I predict a big Tender Offer to buy back shares....similar in nature but larger in scale than the one we did last year.

[jimmywilson612] 04/10/2018 17:04

The share is pretty illiquid as things stand so both the dividend and buyback has its drawbacks.

Above anything, I trust the Landers to make the right judgement call for VLE shareholders.