Volvere Share Discussion Threads

[rivaldo] 31/3/2020 08:33

Peel Hunt have upgraded Cranswick to a Buy. You might just as easily substitute VLE (or Shire Foods) for Cranswick in this article as Cranswick are a supplier of pies and sausages to Britain's supermarkets:



"Cranswick PLC (LON:CWK) is likely to be benefitting from the surge in demand for food through UK retailers amid the coronavirus lockdown, as well as from higher prices and demand for pork in China, analysts reckon....

“Schools are unlikely to return until autumn and summer holidays are likely to be spent at home, which means demand through retailers will remain high,” the Peel Hunt analysts said in a note to clients.

Over at Liberum, analysts also seemed to have picked up that Cranswick “continues to trade well” in its core UK market amidst high consumer demand for staple protein sources of sausages, bacon, ham and chicken.

”With food and farming deemed essential by the government during the coronavirus crisis, all of Cranswick's facilities are running at high operating rates, the Liberum analysts said in a separate note on Monday.

[zoolook] 27/3/2020 08:26

Ah cool. Already in :-)

[cockerhoop] 26/3/2020 17:30

Hope typing is not too painful Simon ;-)

Eezy was last seen having a coffee with Neill Ricketts in the M5 services in Gloucester .................I'll get my coat!

[zoolook] 26/3/2020 16:49

Spill the beans Eezy

[cockerhoop] 26/3/2020 16:49

Usual trading update and notice of results will be released once finalised. Not too long to wait.

[eezymunny] 26/3/2020 16:34

I'm slightly worried that VLE has been overtaken as the most obvious candidate in the UK to own a lot of.

There's one that's so cheap I could laugh myself to sleep tonight.

[eezymunny] 26/3/2020 16:10

All time high and still only valued at tangible book.

Just all the future profits of Shire (presumably trading its socks off), the cakes and whatever else comes along, in for free now.

[yamaha865] 26/3/2020 16:04

ello ello, whats going on here then? showing as north of £13.20

[rivaldo] 26/3/2020 14:23

There's actually been a trading update for each of the last 3 years in March, which is a pretty solid pattern. I'd be very surprised if that isn't repeated (with nothing until May's results).

[yamaha865] 26/3/2020 13:21

There has been a trading update in March the prior 2 years but not before that. May have to wait until results in May

[piedro] 26/3/2020 12:07

... I prefer,
(3) awaiting to announce a new deal

:-)

[rivaldo] 26/3/2020 11:18

The trading update is late. Hopefully any day now.

Likely due to either or both (1) having to finalise the figures given logistics difficulties due to the virus, and (2) having to count all the additional money coming in to Shire Foods from its supermarket customer base :o))

[rivaldo] 23/3/2020 10:58

Nice to see some blue in my portfolio today (apart from BYOT, which is screaming ahead) :o))

Looks like any overhang/sellers are now out.

The interview in post 3285 above re Shire Foods' current success is really worth listening to if you haven't already.

[cockerhoop] 20/3/2020 21:02

I actually felt for Kevin Newey, the interviewer was worse than appaling.

Certainly Shire doing decent business but new acquisition Indulgence certainly has exposure to the Food Service Sector - though the current issues may perhaps assist restructuring?

Pleased that Shire employ all their staff - no agency.

[rivaldo] 20/3/2020 15:45

It seems obvious to me that with almost EVERYONE now at home all day long, sales from supermarkets of pies, sausage rolls etc are going to increase greatly for some time to come as this crisis plays out.

Of course KN is saying that this initial surge will last for a matter of weeks. But what will happen after that? People will have to restock. They won't wait until their freezers are empty - they will be topping up when they can. And they won't be buying sandwiches at Pret or sausage rolls at Greggs any more.

And since Shire are now out of the food service sector I can't see how that would affect them either. In fact, the reduced demand from there might benefit Shire in providing ease of supply for ingredients and potentially reduced ingredient costs too.

Plus Shire's products are now being seen by a whole new audience of potential customers.

[cfro] 20/3/2020 14:57

Interviewer to Kevin Newey: can you see any positives about this situation?
KN answer: Not really!

I've listened to a lot of podcasts and read a lot of company statements in the last few days and it's all very depressing. What a dire situation we all face.

Shire foods obviously seeing a lot of short term demand which is great but KN saying that he doesnt expect it to last much more than two weeks or so as people only have so much room in their freezers.

It is paramount as KN also alludes to that the food service sector remains in business in 3 or 4 months time otherwise it will affect Shire foods further out too.

(note: im not a shareholder here, just taking a passing interest. GL to all holders)

[rivaldo] 20/3/2020 11:27

Fabulous new 11 minute interview with the Commercial Manager at Shire Foods about how the pandemic is positively affecting the company:



Highlights:

- Shire are now a supplier to food retailers of pies, sausage rolls, vegan products etc, having transitioned away from the food service market
- Shire are seeing a "large upturn in sales and demand for these products"
- Shire supply Aldi, Iceland, Morrisons, Lidl, Asda and B&M (via Heron Foods)
- sales are accelerating and are like Christmas sales every day at present (remember, this is usually the seasonally quiet time of year)
- most ingredients are British, so no problems sourcing them
- Shire are working 24 hours per day for 5 days
- he doesn't foresee any staffing problems
- their supermarket clients are seeing loads of new customers now coming in every day and so are building up a new and expanding customer base

[boadicea] 18/3/2020 17:27

In retrospect it might, at first sight, seem a pity that the company didn't hang on to more of its cash in view of the prospective bargains that may be thrown up in some months time. That may turn out to be many months as suppressing the spread with drastic measures is like having a tiger by the tail. When do you let it go? Well, not before a vaccine or antiviral is developed or most of us have had it, whichever comes first, otherwise the rapid progression to herd immunity will resume.

However, I digress. The point that I wished to note is that the total issued share capital was not reduced and the shares remain held in treasury. I assume that they are available for sale subject to a minimum of formalities - possibly shareholder approval? Given the company's record should they not be as good as cash?

As a result, less than 30% of the share issue is currently in circulation.

Extract below -
"If the Tender Offer is implemented in full, this will result in the purchase of up to 1,283,927 Ordinary Shares (approximately 41.18 per cent. of the Existing Ordinary Shares), which will be held in treasury. The issued Ordinary Share capital of the Company (excluding treasury shares) will then be 1,834,182, and the Ordinary Shares held in treasury will be 4,372,892."

Any views?

[yamaha865] 18/3/2020 13:07

Hopefully get a trading update soon....usually there is one in March

[zangdook] 18/3/2020 10:46

All true...still, if I hadn't already disposed of much of the cash I could buy back here today for less than I sold for. I still have around 60% of my holding and if all goes well I'll increase in future.

[rivaldo] 18/3/2020 09:40

The m/cap in the thread header has finally been corrected to £19.4m :o))

Well done ADVFN.....

Understood zangdook. Personally I can see substantial upside here, partially from Shire Foods continuing to progress/thrive in this environment, but also due to the potential for bargains arising at present - any decent-sized acquisition may bring in some excitement and interest given VLE's exceptional track record.

Most importantly the downside here is surely minimal if any given the cash and asset backing, whilst other stocks which might be considered bargains might a few days or weeks later not quite turn out that way.