25th May 2018 10:26
LONDON (Alliance News) - Turnaround specialist Volvere PLC said Friday its 2017 profit and revenue rose sharply after an impressive performance from its majority-owned Impetus Automotive subsidiary as it committed to further share buybacks.
In 2017, pretax profit increased to GBP3.5 million from GBP2.0 million the year prior. This was after revenue rose to GBP43.4 million from GBP33.0 million the year before.
Volvere does not pay a dividend.
The growth in earnings was attributed to a strong performance by the company's 83%-owned unit Impetus Automotive Ltd. Revenue at Impetus jumped to GBP27.3 million from GBP17.4 million the year prior and pretax profit to GBP3.3 million from GBP1.1 million the year before.
Its other investments in Shire Foods Ltd - an 80% stake - and the wholly-owned Sira Defence & Security Ltd performed less impressively.
Whilst Shire saw revenue rise 4.5% to GBP15.9 million, pretax profit more than halved to GBP440,000 in 2017. Sira saw both revenue and pretax profit fall, with revenue down 26% to GBP280,000 and pretax profit down to GBP30,000 from GBP160,000 in 2016.
"We remain committed to seeking under-performing businesses that we believe we can build into attractive market-leading companies," Volvere Chief Executive Officer Jonathan Lander said. "The group's recent strong financial performance, coupled with the strength of its balance sheet, mean we will continue buying back the group's shares when we consider to do so is in the interests of our shareholders."
During 2017, Volvere acquired 417,595 shares at a cost of GBP3.5 million. It did not disclose any specific details regarding its plans to buy back further new shares.
Shares in Volvere were 0.8% higher at 983.00 pence on Friday.
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