Volvere PLC Trading Update and Notice of Final Results (9074G)

TIDMVLE

RNS Number : 9074G

Volvere PLC

07 March 2018

7 March 2018

Volvere plc

(the "Group" or "Volvere")

Trading Update and Notice of Final Results

Volvere plc (AIM: VLE), the growth and turnaround investment company, is pleased to provide the following trading update for the financial year ended 31 December 2017. All 2017 data in this announcement is unaudited; comparative data relates to the audited financial year ended 31 December 2016.

The Group expects to report record revenue of approximately GBP43.2 million (2016: GBP33.0 million) and profit before tax of GBP3.22 million (2016: GBP1.94 million).

Operating Businesses

Revenue growth in 2017 principally reflects increased activity in Impetus Automotive Limited ("Impetus"), the Group's automotive consulting business, and Shire Foods Limited ("Shire"), the Group's frozen pie and pastry manufacturing business.

Impetus

Impetus, in which Volvere has an 83 per cent. holding, had revenues of GBP27.1 million (2016: GBP17.4 million) and profit before tax, intra-group interest and management charges* of approximately GBP3.37 million (2016: GBP1.49 million). Profit before tax was GBP3.04 million (2016: GBP1.11 million) - with the difference being intra-group interest and management charges.

The strong performance reflects new work won during 2017. Whilst the decline in new car sales in the UK has affected the scale of some manufacturer programmes, there remain many opportunities for Impetus in what is a very large sector.

Shire Foods

Shire, in which Volvere has an 80 per cent. holding, had revenues of GBP15.9 million (2016: GBP15.2 million) and profit before tax, intra-group interest and management charges* of approximately GBP0.64 million (2016: GBP1.15 million). Profit before tax was GBP0.44 million (2016: GBP0.91 million) - with the difference being intra-group interest and management charges.

The result in 2017 is stated after a one-off impairment charge of GBP0.19 million due to the accelerated write down of equipment that is being removed from service. This equipment is being replaced with other (capacity-increasing) equipment in 2018. We are investing in Shire so that we have the capability to grow. We expect revenues to increase in 2018 and with that, profitability, although this will depend on our ability to contain the effects of higher raw material and labour costs.

Sira

Sira Defence and Security ("Sira"), the Group's digital CCTV viewing software business, achieved revenue of GBP0.28 million (2016: GBP0.38 million) and expects to report a profit before tax of GBP0.03 million (2016: GBP0.16 million).

Group Net Assets Per Share and Net Assets

The Group expects to report increased year-end consolidated net assets per share (excluding non-controlling interests) of approximately GBP6.56 (31 December 2016: GBP6.17) and Group net assets of approximately GBP26.0 million (31 December 2016: GBP26.6 million). Of the Group net assets, cash including marketable securities represented approximately GBP18.4 million (31 December 2016: GBP20.1 million), of which marketable securities represented GBP6.3 million (31 December 2016: GBPnil million). The level of cash including marketable securities is particularly pleasing given that the Group repurchased GBP3.46 million of its own shares in the year.

* profit before intra-group interest and management charges is considered to be a relevant, useful interpretation of the trading results of the business such that its performance can be understood on a basis which is independent of its ownership by the Group.

Notice of Final Results

Volvere expects to announce its full year results for the year ended 31 December 2017 on 25 May 2018.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information:

Volvere plc

   Jonathan Lander, CEO                                               Tel: [phone] 

www.volvere.co.uk

N+1 Singer (Nominated Adviser and Broker)

   Aubrey Powell/Liz Yong                                              Tel: + 44 (0) 20 7496 3000 

Notes to editors:

Volvere plc (AIM: VLE), is a growth and turnaround investment company. The Group's current trading businesses are organised into three divisions: security solutions; food manufacturing; and automotive consultancy. The Group currently employs over 500 people.

For further information, please visit www.volvere.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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March 07, 2018 02:01 ET (07:01 GMT)