Volvere Share Discussion Threads

[rivaldo] 05/9/2022 12:57

Well, VLE's £22m of cash (against the £25.2m m/cap) is looking pretty handy in the current economic climate. There should be bargains galore out there pretty soon.

Shire's business will certainly be suffering from increased running costs - hopefully they've forward fixed their energy costs. But the May prelims indicated that Shire are able to pass on most of their increased costs to their customer base.

Last year's interims were published on 17th September, so not too long to wait.

[rivaldo] 30/5/2022 12:09

Hi JakNife, don't think so! Maybe without realising/remembering who the other was?

[rivaldo] 30/5/2022 10:42

Just caught up here as away at Mello and elsewhere at the end of last week.

Shire's results were excellent. This is now a sizeable company, with revenues up 13% at £30.6m and PBT up 18% to £2.14m. The vegan range is doing really well and gets very good reviews AFAICS. The business has navigated all the current supply chain and labour issues extremely well to date.

With Shire, £21.09m cash and 1349p of net assets VLE's value relative to its share price looks in good shape.

It's such a shame that Indulgence was bought in Feb'20 right at the onset of the pandemic. The consolation is that only £1.25m was spent in taking it out of administration, but I would never have expected that £5.6m of loan monies would need to be made available to them.

Hopefully this year Indulgence will finally show some improvement with European economies now fully open, at least enough to offset any cost and logistics difficulties.

And of course some acquisition news would be welcome and a nice catalyst.....

[zoolook] 27/5/2022 18:33

Unfortunately you have to be a subscriber to read the full article.

hxxps://monopolyinvestor.substack.com/p/volvere-where-patience-is-an-art?

[cockerhoop] 25/5/2022 12:35

elsa,

That's not correct the group cash is £21.87m, offsetting this is total external debt of £3.468m down from £3.971m.

The £5.5m you allude to includes buying Indulgence and supporting working capital since acquisition, it's not sitting on the balance sheet as cash.

Agree you need to know your accounting ;-)

[exv] 25/5/2022 11:58

Agreed, you do need to know your accounting

[elsa7878] 25/5/2022 10:56

I was an investor but sold sometime ago.
Shire is a decent business and could be worth £15 million plus even in this environment.
Cash £22 million.
Indulgence is a dud. The sooner they admit it the better. Close it / sell it (who would want it?) and share price would jump 25%+ immediately despite the closure costs and loans write offs.
Even turnaround specialist need to admit they got it wrong sometimes.

[1tx] 25/5/2022 10:33

Yes I thought that the lack of investment was a bit odd as well.We only own 80% but a modest additional loan hardly seems risky.Shire has been a good purchase & worth in my opinion more than book value..Indulgence still to prove itself,the next 12 months needs a turnaround,I had not realised Europe sales were so important & problems re closed catering outlets in Europe are worse than UK.If we can't find anything to invest £21m cash in the next 12 months it might be time to return surplus cash.

[galles] 25/5/2022 09:31

I like boring. Don't you? :)

[eezymunny] 25/5/2022 08:11

Finals. Boring.

[zoolook] 12/4/2022 13:10

However, they’ve been paying below the £13.50 of the October 2020 placing.

[tiswas] 12/4/2022 08:28

Well, I just paid 10.58 for a few this morning so not sure how such cheap stock is around if the company is in the market for its own shares and questions the wisdom of the prices paid by them to date!

[zangdook] 11/4/2022 14:26

I'm not sure what's going on here but if that's the bottom maybe I should snuffle up a couple.

[rivaldo] 10/3/2022 07:46

A very substantial buyback yesterday - £242,000 via 21,000 shares at 1152p. That's £622,000 in the last few days....

[rhomboid] 08/3/2022 19:27

I’m pretty sure they’re rational capital allocators…& I’m pretty sure they’ll demonstrate that shortly other than through buybacks

[pireric] 08/3/2022 18:21

^ + on top of that it's removing residual retail liquidity from the market

[cockerhoop] 08/3/2022 09:31

EM,

I'm certainly not suggesting that buying back shares at a discount is a terrible idea, but it didn't need the raising of funds to do it. It's definitely superior to just sitting on the cash.

The underwhelming part is the raising of additional funds to acquire (perhaps indicating potential targets in view) and then failing to execute.

Their performance in creating value from acquired businesses is stellar so i'd prefer them to be investing in turnaround opportunities.

[samenic] 08/3/2022 08:17

Tip my hat to them,at least they are increasing liquidity so that you can exit....

[cockerhoop] 08/3/2022 07:50

So 16 months after raising £9.7m (to supplement the approx £16m cash they had at the time) the best use of the the money they can find is buying back their own shares - somewhat underwhelming.

[rivaldo] 08/3/2022 07:31

For the record another almost £60,000 of shares bought back at 1190p - that's around £380k in total in the last few days:

[zoolook] 03/3/2022 08:57

Glad they are doing something positive with that cash…