27th May 2016 09:26
LONDON (Alliance News) - Volvere PLC on Friday posted a rise in pretax profit after its revenue from continuing operations more than doubled in 2015, in a year in which it sold its 76% interest in JMP Consultants Ltd and purchased Impetus Automotive Ltd in March.
The AIM-listed growth and turnaround investment company reported a pretax profit of GBP1.3 million for the year ended December 31, up from GBP1.2 million a year earlier, coming from the huge increase in revenue from continuing operations to GBP27.9 million from GBP12.4 million a year earlier. This was offset slightly by an increase in cost of sales, to GBP21.5 million from GBP10.0 million, and in administrative expenses to GBP4.6 million from GBP1.4 million.
Volvere identifies and invests in distressed businesses and securities, and has an 80% stake in frozen pastry retailer Shire Foods, whilst also owning automotive consultant Impetus Automotive and an interest in Sira Defence & Security.
The company sold its share in JMP Consultants in December, having "restored JMP to growth and secured the future for the company". Volvere purchased Impetus Automotive in March.
"The automotive sector undoubtedly faces many challenges, but there remains the need for manufacturers and their distribution networks to develop sustainable profit from long-term relationships with customers, whether-they are trade or end-user," the company said.
"The improvement of vehicle parts and accessories sales and distribution, after-sales service, and vehicle sales and profit margins, are all areas where Impetus's people have wide knowledge and expertise. As a result, we are optimistic about Impetus's prospects and look forward to its contribution to the group," Volvere added.
Within its Shire Foods business, revenue grew 28% to GBP15.5 million, from GBP12.1 million, and pretax profit before intra-group management and interest charges of GBP1.6 million, down from GBP1.7 million.
However, Volvere said "since the end of the year, one customer (whose volumes have been on a declining trend in recent years) has brought some of its manufacturing in-house, which will result in lower revenue for that customer and is likely to reduce profitability as a whole for 2016. This reduction was expected by us for some time and we have been and are actively seeking additional opportunities to utilise our available capacity and are positive about being able to do so."
Shares in Volvere were up 7.9% at 483.00 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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