12 March 2024

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 2023.  All data in this announcement is unaudited, although the comparative information for the year ending 31 December 2022 has been extracted from audited data for that year. 

In line with the prior year, Shire Foods Limited ("Shire"), the Group's 80 per cent. owned frozen pastry products manufacturer, was the Group's principal trading subsidiary and, along with the Group's central activities, represents the Group's continuing operations.  In 2022 the Group closed Indulgence Patisserie Limited ("Indulgence") and its results are reported as discontinued operations, net of associated tax.

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 £14.82 (31 December 2022: £13.90) and Group net assets of approximately £37.50 million (31 December 2022: £35.75 million).

During the year all properties associated with the Indulgence business were sold for a total consideration (net of costs) of £2.25 million (31 December 2022: carrying value £2.10 million), increasing the Group's cash.  Cash and available for sale investments represented approximately £23.74 million (31 December 2022: £20.79 million) of the Group's net assets.

Financial Performance

The improvement in the Group's net assets per share and cash position reflects improved trading in Shire, increased income from treasury management activities and a gain on the sale of properties formerly used by Indulgence.  The Group expects overall profit before tax and profit after tax for the year to be £4.75 million and £3.61 million respectively (2022: loss before and after tax £0.06 million).

Revenue from continuing operations was approximately £42.95 million (2022: £38.03 million) and profit before tax was £3.64 million (2022: profit before tax of £2.33 million).  This is inclusive of Shire's profit before tax, intra-Group interest and management charges*, which was £3.86 million (2022: £2.78 million).

Revenue from discontinued operations was approximately £0.10 million (2022: £3.53 million) and profit (after associated tax) and before intra-Group interest and management charges* was £1.12 million (2022: loss of £2.39 million). This result reflects the gain on disposal of the former Indulgence properties.

Outlook  

Whilst 2023 was not a year without its challenges at both a corporate and trading level, we are pleased with the financial performance of the Group during the period.

2024 will see the impact of another minimum wage increase and increased energy costs in Shire.  We are working to ensure our margins reflect these, whilst balancing the need to keep pricing sufficiently keen to avoid material volume reductions.  We have been encouraged, however, by the levels of new business opportunities we are seeing in Shire and remain cautiously optimistic for the remainder of the year.

Compared to 2022, we have seen an increase in the quality and quantity of potential investment opportunities. We are assessing possible transactions, including those that are complementary to Shire.  More broadly, we are focused on enhancing shareholder value and, inter alia, continue to monitor and review our ongoing requirements in terms of the cash required to deliver our strategy.

* 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 2023 on or around 24 May 2024.

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:

Notes to editors:

Volvere plc (AIM: VLE), is a growth and turnaround investment company. The Group's sole current trading activity is food manufacturing. The Group currently employs approximately 270 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.