Volvere Share Discussion Threads

[asagi] 19/3/2019 07:20

Trading Statement:


Shire, in which Volvere has an 80 per cent. holding, had revenues of £18.3 million (2017: £15.9 million) and achieved a profit before tax, intra-group interest and management charges* of approximately £0.79 million (2017: £0.64 million)
...
The Group expects to report increased year-end consolidated net assets per share (excluding non-controlling interests) of approximately £12.48 (31 December 2017: £6.59) and Group net assets of approximately £40.3 million (31 December 2017: £26.1 million).

[rivaldo] 18/3/2019 08:53

Anyone else going tomorrow?

[rivaldo] 11/3/2019 15:11

VLE are presenting on 19th March at Blackthorn Focus - I wonder if this means there'll be a trading update that morning or just before?



"On March 19th, Blackthorn Focus, in collaboration with City PR firm KTZ Communications, is running a results presentation for K3 Business Technology Group and an investor briefing from Volvere plc.

The event will include a business lunch and is free to attend.

Volvere is an AIM-quoted industrial holding company that specialises in turnaround investing. It does so with considerable success. In the last five years, book value per share has increased from 346p to 675p. Substantial uplift to that figure is expected to be confirmed with final results thanks to a recent material share buyback (at 1,102p) and the October 2018 disposal of Impetus Automotive for a premium in excess of £20m to book value.

Volvere will be represented by Mr Jonathan Lander, co-Founder and CEO."

[rivaldo] 08/3/2019 09:28

Hope we do get an update dsct.

It would be useful for VLE to remind the market re the current quantum of the cash pile, and also perhaps to confirm that H1's steady improvement at Shire has continued, especially as anticipated following the £1m capital investment.

[dsct] 02/3/2019 21:25

The past two years we've had a 'Trading update and Notice of Final results' RNS (07/03/18 & 20/03/17) with the prelim results being late May.

I wonder if we'll have the same this month ?

It may be with the sale of Impetus, they'll not bother (or make a brief statement), and wait until the prelims to give more details on the smaller companies left, and perhaps more importantly, what they intend doing with the £30+m cash.

[rivaldo] 31/1/2019 14:47

...and similarly today, an £11k sale is taken without a problem, whilst an £11k buy causes a small tick up.

[rivaldo] 30/1/2019 15:28

Good to see a £20k+ sell at 1012p happily accepted into the market. Either there's a buyer out there, or perhaps VLE are re-starting the buybacks.

[hpcg] 29/1/2019 10:18

rivaldo - my conclusion also that corporate action is brewing. Though that isn't much of a leap in the dark given that is what the company does.

[rivaldo] 29/1/2019 07:38

Intriguing news - what's behind the change of advisers from N_1 Singer to Cairn and Hobart.....



Forthcoming corporate activity? Or just that Singer were to expensive? Whatever, it certainly isn't because VLE need to raise money :o))

[rivaldo] 08/1/2019 14:45

Happy New Year to all holders here.

I do agree with a prior poster here who noted that perhaps the Landers have achieved optimum timing in offloading Impetus when they did.

VLE should be getting plenty of proposals through the doors at present. Hopefully another bargain purchase will presage another step up in the share price.

[zoolook] 31/12/2018 15:19

Brief summary by Graham Neary on the Stockopedia Small Cap report on his VLE holding:

hxxps://www.stockopedia.com/content/small-cap-value-report-mon-31-dec-2018-reflections-vle-brby-hat-pcf-crl-bats-rec-dpeu-ucg-431063/

[rivaldo] 05/12/2018 08:34

Nice coverage of JL's speech at Mello London here (also positive mention of another of my holds, KAPE, by Gervais Williams).

Amazing that VLE were the only bidders for Impetus from 80 potential bidders!

Also interesting that the Landers usually know within 5 minutes of meeting management whether a company could be a good investment. I know others disagree, but I've also found that meeting management at presentations etc is often - though of course not always - very helpful in reaching an opinion on potential investment.

Remember that the £33m cash per the below excludes the almost £3m deferred consideration:



"Volvere

VLE is a turnaround specialist set up in 2002
Looks for loss-making or marginally profitable companies that are unsuitable for other private equity outfits & improves them
They look in the UK, possibly Europe
£10-£100m revenue companies
They want board control and typically 100% of equity
They like people businesses
Impetus Automotive was their most recent purchase; it was offered to 80 people & VLE was the only one to make an offer
VLE currently has £33m of cash & Shire Foods (acquired for £0.54m in 2011 —> 2017 PBT of £0.64m and revenue of c£15m)

Q&A

Q: What are you going to do with the cash? What about Brexit?

A: There was a £6m buyback in October. There will be more of the same turnaround strategy. Brexit - disruption can present opportunities for a company like VLE

Q: Tell us more about your strategy

A: A lot of it by now is gut instinct developed over the years. They often know within five minutes. They look for managerial resilience and good character. They then do desk work on the company

Investing is all about the price. Believe in the people in a business and treat them fairly."

[melf] 30/11/2018 14:41

Own up....who sold 3 shares today?

[stemis] 29/11/2018 20:29

It was the interims I was thinking about, thx

[cockerhoop] 29/11/2018 15:18

JL stated at Mello that cash was £33m (presumably excluding the deferred consideration).

[stemis] 29/11/2018 14:00

I think it would actually be helpful if Volvere published a company only balance sheet.

[rivaldo] 29/11/2018 13:22

Yes, but remember that's within the subsidiaries (Shire from memory). Also within the subsidiaries are a large surplus of receivables over payables. Indeed, group net assets at £26.9m are well above the £20.4m cash (including £2.3m of inventories, plus the freehold property etc).

I tend to take a conservative view of the rest of the positive tangible assets by not including anything for them except the property and contra'ing off the rest. If you take a different view that's up to you :o))

[stemis] 29/11/2018 12:29

Wasn't the net cash at 30/6 £19m (there's £1.4m of loans and other borrowings)?

[rivaldo] 29/11/2018 09:23

So the current m/cap is £32.7m.

This compares to the effective current cash pile of £37.4m, comprising £20.4m at 30/6, plus £23.1m for Impetus (incl. £2.87m deferred) less £6.06m buybacks.

Plus the 80% of Shire Foods is worth say £5m (incl. the £2.6m freehold property).

Add on say £600k for Sira Defence and you get £43m.

With cash receipts up to Impetus' sale in October, VLE's NAV should now equate to around 1400p per share, compared to the current 1050p share price.

Without any premium for the Landers' track record or for the likely value arising out of any further acquisitions.

[rivaldo] 28/11/2018 13:41

I had a chat with JL afterwards. A couple of things which may be of interest. I asked re Shire Foods about the effect of the hot summer, pies going in and out of fashion etc, but JL noted that their products were now stocked in the likes of Aldi, Lidl and Iceland (for example), which of course are the supermarkets enjoying the most success.

I also got the impression that VLE might well consider another food sector acquisition to complement Shire/bulk it up, though this may well just have been JL being polite :o))

For the record, apparently Andrew Cohen hasn't sold any shares and is sitting there with his stake (JL wishes he would sell some, presumably to buy back!).

I share Andrew Cohen's sentiments....

[nfs] 28/11/2018 09:46

I was at MelloFirst time seeing Jonathan Very impressive Mr contrarian clearly

[zoolook] 27/11/2018 16:33

Will there be footage of the talk available to view?

[jamtomorrow2] 27/11/2018 09:51

What was that?

[cockerhoop] 26/11/2018 23:16

General consensus amongst VLE holders was disappointment that he didn't share his 16,000 bagger CDO investment with shareholders :-)

[rivaldo] 26/11/2018 22:45

JL presented at Mello today and was as engaging as ever. The main thrust was general in tone about investing pitfalls/golden rules, but there was a brief section about VLE and running through the success of the Impetus investment.

In particular JL noted that the current cash pile was excessive and there would likely be more buybacks (presumably dependent on achievable prices and available stock).

More later in the week when there's more time (unless anyone else who was there can add to the above).