TIDMVLE
RNS Number : 1021D
Volvere PLC
01 March 2022
1 March 2022
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 2021. All data in this
announcement is unaudited, although the comparative information for
the year ending 31 December 2020 has been extracted from audited
data for that year.
The Group's trading operations include Shire Foods Limited
("Shire"), the Group's 80 per cent. owned frozen pastry products
manufacturer, and Indulgence Patisserie Limited ("Indulgence"),
which was acquired in February 2020 and manufactures frozen
desserts.
Financial Performance
The Group expects to report revenue from continuing operations
of approximately GBP35.58 million (2020: GBP30.81 million) and an
overall profit before tax of GBP0.07 million (2020: loss before tax
of GBP0.55 million).
Operating Businesses
Overview
Shire performed extremely well in the period, and Indulgence
made steady, satisfactory progress. This was achieved despite both
businesses facing significant headwinds including labour, raw
material and energy cost increases, and with suppliers - both
materials suppliers and logistics partners - being at times unable
to meet our requirements. However, with the flexibility and
commitment of both staff and customers, we have been able to
mitigate the effects of these challenges.
Shire Foods
Shire continued to grow in 2021, with revenues increasing by
approximately 12.6% to a new high of GBP30.61 million (2020:
GBP27.19 million) and a solid profit before tax, intra-group
interest and management charges* of approximately GBP2.14 million
(2020: GBP1.81 million). Profit before tax was GBP1.89 million
(2020: GBP1.61 million) - with the difference being intra-group
interest and management charges. During 2021 Shire provided
operational and commercial support to Indulgence and this has
resulted in some costs being recharged which would otherwise have
been borne by Shire.
Indulgence Patisserie Limited
Indulgence achieved revenue of GBP4.97 million, representing
growth of approximately 21% compared with the prior period on an
annualised basis (2020: period 7 February - 31 December 2020
GBP3.62 million). The loss before tax, intra-group interest and
management charges* was approximately GBP1.01 million (2020: loss
GBP1.02 million). The loss before tax was GBP1.08 million (2020:
loss GBP1.02 million) - with the difference being intra-group
interest and management charges.
During the year there was an increase in activity in the food
service sector but, with many customers remaining affected by the
pandemic restrictions, a return to normal trading was frustrated.
However, the retail customer base grew substantially and we expect
this will continue.
During the year, we have invested in new plant and machinery and
we have strengthened the management team. We expect that the
business's performance will improve this year as we launch new
products.
The Group has continued to fund the initial purchase, working
capital and trading losses by way of intra-Group loans.
Group Net Assets per Share and Net Assets
The Group expects to report year-end consolidated net assets per
share (excluding non-controlling interests) of approximately
GBP13.53 (31 December 2020: GBP13.65) and Group net assets of
approximately GBP37.2 million (31 December 2020: GBP37.2
million).
Of the Group net assets, cash represented approximately GBP21.87
million (31 December 2020: GBP23.71 million).
The reduction in Group cash principally reflects the positive
trading in Shire, offset by central costs, capital expenditure in
new plant and the trading losses at Indulgence.
Current Trading
The challenges experienced in 2021 in relation to cost increases
and labour availability continue in 2022 but we are working hard to
protect margins and retain staff, whilst seeking growth
opportunities in food manufacturing.
More generally, we believe the environment for turnaround
investing is improving and we continue to review targets for
acquisition or investment. The Group's high liquidity puts it in a
strong position to capitalise on such opportunities.
As ever, what we have achieved in 2021 would not have been
possible without the extraordinary efforts of our staff, amongst
whom there are many heroes. We are grateful to all of them for
their hard work and continuing commitment to our success.
* 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 2021 on or around 27 May 2022.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
For further information:
Volvere plc
Jonathan Lander, CEO Tel: +44 (0) 1926 335700
www.volvere.co.uk
Cairn Financial Advisers LLP (Nominated Adviser)
Sandy Jamieson/James Lewis Tel: + 44 (0) 207 213 0880
Canaccord Genuity Limited (Joint Broker) Tel: + 44 (0) 207 523 8000
Bobbie Hilliam/Alex Aylen/Georgina McCooke
Hobart Capital Markets LLP (Joint Broker)
Lee Richardson Tel: + 44 (0) 207 070 5691
Notes to editors:
Volvere plc (AIM: VLE), is a growth and turnaround investment
company. The Group's current trading businesses are involved in
food manufacturing. The Group currently employs approximately 260
people.
For further information, please visit www.volvere.co.uk .
Forward-looking statements:
This announcement may contain certain statements about the
future outlook for Volvere plc. Although the directors believe
their expectations are based on reasonable assumptions, any
statements about future outlook may be influenced by factors that
could cause actual outcomes and results to be materially
different.
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