Volvere Shares Up As Investee Performance Drives Profit, Revenue Gain

7th Mar 2018 12:02

LONDON (Alliance News) - Growth and turnaround investment firm Volvere PLC shares rose on Wednesday as the company said it expects revenue and profit to both increase strongly in 2017 year-on-year.

Volvere shares were up 8.9% at 964.00 pence on Wednesday at midday.

Volvere is guiding for "record" revenue of GBP43.2 million, compared to GBP33.0 million in 2016. Pretax profit is guided to come in at GBP3.2 million, after it posted GBP1.9 million pretax profit in 2016.

The company said revenue growth primarily reflects activity in its automotive consulting business Impetus Automotive Ltd and its frozen pie and pastry business Shire Foods Ltd.

Impetus, in which Volvere has an 83% interest, posted GBP27.1 million of revenue and GBP3.0 million of pretax profit in 2017. These figures compare to GBP17.4 million and GBP1.1 million for 2016 respectively.

The strong performance from Impetus, it said, was mainly due to new work won, despite the decline in new car sales in the UK.

Volvere's investee Shire, in which it has an 80% stake, recorded revenue of GBP15.9 million in 2017, up from GBP15.2 million in 2016. Pretax profit was down to GBP440,000 from GBP910,000, with 2017 results included a one-off impairment of GBP190,000.

Volvere expects Shire's revenue and profitability to increase in 2018, depending on the effect of higher raw material and labour costs.

Volvere will release full results for 2017 on May 25.

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