Share Name Share Symbol Market Type Share ISIN Share Description
Volvere Plc LSE:VLE London Ordinary Share GB0032302688 ORD 0.00001P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 1,350.00 2,326 14:41:21
Bid Price Offer Price High Price Low Price Open Price
1,300.00 1,400.00 1,370.00 1,350.00 1,350.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 18.64 -2.43 590.10 2.3 25
Last Trade Time Trade Type Trade Size Trade Price Currency
14:40:35 O 1,500 1,330.00 GBX

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Volvere Daily Update: Volvere Plc is listed in the General Financial sector of the London Stock Exchange with ticker VLE. The last closing price for Volvere was 1,350p.
Volvere Plc has a 4 week average price of 1,350p and a 12 week average price of 1,285p.
The 1 year high share price is 1,570p while the 1 year low share price is currently 1,055p.
There are currently 1,834,182 shares in issue and the average daily traded volume is 1,221 shares. The market capitalisation of Volvere Plc is £24,761,457.
rivaldo: Nice move up. VLE should benefit from the second lockdown in their seasonally much better H2, with more people eating at home during the day, particularly given the cold weather. In addition - and this has been mentioned previously by VLE - the schools and universities are staying open this time, which will benefit Shire's food service sales.
rivaldo: Wake up everyone :o)) £10m placing at 1350p....impressively, no discount at all to the share price. Us PIs have a chance to get involved too. Summarised by: "The Directors believe the current business environment will lead to an increase in distressed and turnaround opportunities available to the Group, specifically due to the impact of Covid-19 and Brexit in the UK." That would give VLE £26m+ of cash firepower. The Landers must have some decent-sized targets in mind.
rivaldo: Another buyback - this time £33,000's worth at 1312p: Https://
rivaldo: RNS - good to see VLE restarting the buybacks as I hoped, buying back shares at 1290p yesterday: Https://
rivaldo: Nice bounce now. JamesSmith23, there are no intangibles re Shire as Shire cost a ridiculously low £0.5m, which was less than the value of its assets let alone the value of its business, so there was no goodwill. I have no doubt the Landers will sort out Indulgence as they have every other business they've acquired for VLE. COVID may have exacerbated its initial losses, but may accelerate the necessary restructuring. And VLE will have good contacts with major retailers via the success of Shire Foods, so the new products launching next year should therefore make good inroads.
jamessmith23: Good to see shire growing its revenue, but would have been good to see this coming through a bit more to the bottom line.I also wasn't aware indulgence would be as loss making as it has been in H1, obviously changes take time but a loss of 600k on 1.5m of revenue is pretty severe and hopefully won't as a drag for long.Volvere share price has bounced back big time since the drawdown and is close to all time highs, which was I think based on results looking slightly better than this so wouldn't be surprised to see the price fall following these results, also people focus on NAV which is a fair bit lower. With Indulgence offsetting a lot of the profit from Shire, this would put me off making anymore significant loss making acquisitions until the overall company has reached a more profitable level. This probably remains a good long term hold, provided you have faith in management, but the short term picture looks a lot more unknown.
glawsiain: Here you go: Volvere (LON:VLE) Share price: £14.50 (+5.5%) No. of shares: 1.8 million Market cap: £25 million Final Results Please note that I have a long position in VLE. As you may already know, I have an overly large position in this - 25% of my portfolio. Not exactly in tune with standard portfolio construction practices. When I originally bought in, it was for less than 10%. But the price has nearly trebled, so here was are. It's a turnaround investment vehicle, typically buying businesses out of administration. It then reinvigorates them, gives management a decent stake, and helps them to grow, before selling them on. Results - for those who closely follow the company, I don't think these results contain much that is new. The main points are: NAV per share now £13.85 Net assets £25.4 million (excluding non-controlling interests), of which £19 million is cash. The only operating subsidiary which was left at the end of year, Shire Foods, grew revenue by 25% and PBT (before Volvere's charges) almost doubles to £1.4 million. Volvere owns 80% of Shire (the rest of it was awarded to management), so its adjusted pre-tax profit that is attributable to Volvere is £1.1 million. One of the key features of the Volvere strategy is incentivising management at subsidiaries, and I note that Shire paid a £500k dividend. Shire management will have received £100k of this. Success in 2019 is explained as follows: I am pleased with the growth achieved in 2019, which came principally from a deepening of relationships with existing customers, resulting in wider distribution and broader product ranges. Particularly encouraging was the growth in vegan product lines, where we believe we have developed flavours and textures that appeal to a wide consumer audience Covid-19 impact - "too early to say" whether the sales uplift to supermarkets will be sustained and result in full-year growth. Foodservice customers have been hammered, and they represented 12.5% of Shire's 2019 sales. Volvere expects them to return to normal when trading restrictions are ended. Production and costs are affected by social distancing measures - "we are still achieving an encouraging level of output and, for the most part, meeting customer demand". Indulgence Patisserie - a small acquisition made earlier this year. It is making progress, with more to do: "...we have been working to improve customer and supplier relationships, increasing teamwork and investing in new systems - and whilst we have been encouraged on a number of fronts, there is still work to be done in making the business more efficient and reducing costs." Strategy - this bit is interesting. Jonathan Lander said on April 21st that markets were experiencing "peak gloom". But it looks like Volvere is waiting for more fallout from this crisis, before it does another deal. It's not in a rush: We are already seeing increased levels of distressed deal flow due to the COVID-19 pandemic. The length of the economic effects is uncertain, but I fear it is likely to extend well into 2021 and possibly beyond. The anticipated reductions in financial support from state schemes will probably trigger more hardship for individuals and companies. We will do what we can to rescue those businesses which we believe viable, in all sectors and geographies, in accordance with our investment mandate, but with added focus on building a larger group of food businesses, leveraging our competencies in this area. I think this is fairly clear, and sounds sensible. Remember that Volvere's strategy typically involves buying out a bank loan for a company in administration. But with the government support schemes currently in place, such as furlough and loans, many companies have avoided going into administration. It makes sense to wait until some of these schemes are over, and only then to make a move. My view No change to my view here (what did you expect?!) The share price is now at a small (5%) premium to NAV, but I don't think that's unfair. Remember that this vehicle has compounded wealth at an extraordinary rate for nearly 20 years now. A small premium for this sparkling track record hardly seems unreasonable. If we deduct year-end cash from Volvere's market cap, we are left with an enterprise value of just £6.4 million. With Shire earning (pre-tax) £1.1 million for Shire in 2019, the implied pre-tax earnings multiple is a mere 6x. Some cash has been used to buy Indulgence, but I note that Volvere did not even pay a premium over book value in that deal. And there is clearly some potential for it to benefit from the association with Shire, as they are both in the business of manufacturing frozen food. Happy to continue holding, then.
zangdook: I understand the arguments, but I sold some of my VLE shares to raise cash to buy elsewhere because, even allowing for the potential for appreciation here before the market in general recovers, some stocks have fallen so far that I feel their short- or medium-term potential is greater. For example, what are the odds of each of VLE and RDSB doubling from here within a year or 18 months? I'd like to have some of each. VLE will pick up bargains but it then needs time to turn them around before their value will be reflected in the share price
boadicea: When the dust clears, which may be some time, there are going to be many 'good' companies that have fallen into administration or similar due to lack of lquid reserves at the start of the crisis. Many may be capable, in sales and trading terms, of a strong bounce back but lack the cash to kick it off. We don't know what the official financing arrangements (government/banks) might be in such cases. Almost certainly there will be many sme's that fall into the finacial cracks in the system and thereby a prospect of a rich hunting ground for VLE to deploy its mainly liquid resources. The firmness of the VLE share price probably shows that my view is shared by others. The market (=all of us and certainly myself!) with some obvious exceptions (travel companies etc.) is having considerable difficulty in grading the magnitude of the effects as between companies, from the big losers (manufacturers lacking imported components?)to the marginal losers, or possibly marginal or large gainers (on-line education?). How transient will be the effects? Will a rush of investment into circumventory measures prove to be a long term waste of money? Certainly I see VLE as a firm hold since experience shows that the management is unlikley to make poor decisions in deploying its mountain of cash.
glawsiain: Volvere (LON:VLE) Share price: 1250p (+9%) No. of shares: 1.8 million Market cap: £23 million Half-year Report (In case anybody was not aware, I have a long position in VLE.) Volvere has published some decent interims - happy days. This is an investment company which currently has just a single operating subsidiary, Shire Foods, after all the other subsidiaries were sold for handsome profits. Shire, in Leamington Spa, seems to be doing nicely. I attended Volvere's AGM this year, and reviewed my notes from it this morning. At the AGM, Volvere management talked about Shire's capacity constraints and its expansion push in terms of production lines and cooking vessels. The H1 revenue increase at Shire is even better than I would have hoped for, at 39%. This helped to offset margin pressure from raw materials and wage inflation. The overall jump in Shire's adjusted PBT was from a £170k loss to a £240k gain. Shire supplies frozen food to discount supermarkets, and this is a nice sector to be in right now (e.g. Aldi expansion). As far as developing its product portfolio is concerned, Shire is focused on the vegan segment - another growth area: We are actively responding to the increased demand for vegan products and have agreed several new products with retail customers. In addition, we have launched our own brand - Naughty Vegan - into the foodservice market. Time for a few calculations. Last year, Shire produced an adjusted PBT result in H2 of about £1 million (based on a £170k loss in H1 and an £850k profit for the full year). If it matches that this year, it is on course for adjusted PBT of £1.24 million. But given the strength of H1 this year, the end result could (should?) be materially better than this. Maybe £1.5 million is a reasonable guess. Volvere says that additional opportunities will be sought for Shire in 2020, on the back of its increased capacity. Another little tidbit that is worth noting: the "majority" of Shire's expansion is being funded externally, i.e. Volvere is keeping its own powder dry for acquisitions, rather than funding Shire. The balance sheet is spelled out here: 5d8c8eed1cb45VLE_20190926.PNG If you can read these, you'll see that Shire ("Food manufacturing") has more than £6 million in liabilities/provisions (up from £4.4 million a year ago). Evidently, Volvere wants to keep that £19 million cash pile available for takeover opportunities, rather than funding Shire unnecessarily. But Shire seems able to carry this leverage, at least for now. You can see from the above table that it still has net assets of £7.1 million (including freehold property). Volvere HQ, meanwhile has no debt and is sitting on £19 million of cash. Volvere management have said previously that about £20 million is the most they need to execute their strategy. Outlook The Chairman says: "We remain positive about the outlook for our business and believe that the current economic and political uncertainty will provide further investment opportunities." The logic here is that uncertainty can create buying opportunities for value investors such as VLE. The CEO says (and I've added the bold): Our strategy throughout 2019 remains as before - to deliver shareholder value through improving trading performance of our existing portfolio, identifying new opportunities, and investment realisations. The level of deal opportunities has increased since 2018 and we remain optimistic that we will identify new businesses in which to invest. My view The only slight worry is that there hasn't been an acquisition for some time. It looks like the last one was in March 2015. But having said that, I am much happier for Volvere to remain patient and to wait until it gets something that it is very confident in, rather than doing something for the sake of it. So I really don't mind if deal news is slow. Better to be slow than to get it wrong. As for the current valuation, I am inclined to believe that Volvere is worth central cash (£19 million) plus the value of Shire. Some investors might then apply a discount given the administrative overhead and the uncertainty over future investment performance. Personally, I think that Volvere management have done more than enough to prove the soundness of their approach. They might mistakes in future, and/or they might be unlucky, but I don't think there can be much doubt that their methods have been sound (at least historically). Let's think for a minute about what Shire is worth. Book value is £7.1 million, and adjusted PBT (to exclude intra-Group management charges and interest) looks like it could hit £1.5 million this year. Let's call that net income of £1.2 million. The ROE at Shire might therefore be in the region of 17%, thanks to the use of leverage. It will be difficult for Shire to grow very fast very quickly, although if the "Naughty Vegan" brand were to take off, who knows how lucrative that might be? Personally, I would value Shire today at around £10 million, or 8x after-tax earnings. That's a modest but fair multiple for a food manufacturing business, and not an outrageous premium to tangible book value. So I believe that this is a conservative estimate. Volvere owns 80% of Shire, so I would put Volvere's stake at £8 million. The 20% that it doesn't own is important - it helps to incentivise the managers on the ground at Shire. Add on the group cash balance and you get a Volvere valuation of £27 million. Feel free to disagree with this number. You then have the great imponderable of future investing performance to consider. I think that Volvere management are very good at their jobs, and I'm happy to back them. Others might disagree, and might have no interest in VLE at all, or unless it is much more keenly priced. Based on my £27 million estimate, VLE trades at a 15% discount to current fair value. The discount is more like 8% if you use the official NAV published today. Both of these estimates are based on the mid-price. The bid-offer spread, as always, is huge, so short-term traders must stay away. This share is something to hold for years, to give management a chance to work their magic (or to fail miserably, as the case may be - but they haven't made too many mistakes so far!) Despite this share representing 17% of my equity portfolio, I have no immediate plans to sell.
Volvere share price data is direct from the London Stock Exchange
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