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Volvere swings to profit as trading improves, but forecast uncertain

12th Mar 2024 11:43

(Alliance News) - Volvere PLC on Tuesday posted a cautious outlook for the current financial year, ahead of publishing its annual financial results for the year just gone.

Volvere invests in undervalued or distressed businesses. Shire Foods Ltd, which is a frozen pastry products manufacturer, is the firm's principal trading subsidiary. As such, it represents the group's continuing operations.

For the year ended December 31, 2023, the Leamington Spa, England-based investor expects to report consolidated net assets per share of GBP14.82, up from GBP13.90 a year prior.

Overall pretax profit is expected to be GBP4.8 million, swung from a loss of GBP60,000 the previous year. Revenue from continuing operations is expected to be GBP43.0 million, up from GBP38.0 million.

According to Volvere, this improvement in its cash position reflected improved trading in Shire, as well as income from treasury management activities, and a gain on the sale of properties formerly used by Indulgence.

In 2022, the firm closed Indulgence Patisserie Ltd, which was a desserts manufacturer.

Reflecting on the year just gone, Volvere said it was "pleased" with its financial performance over 2023, despite challenges "at both a corporate and trading level".

Looking forward, however, the firm said it expected this year to suffer the impact of another minimum wage increase, as well as increased energy costs in Shire. It said it was "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," Volvere added.

The firm expects to announce its full year results on May 24.

Volvere shares were trading 8.0% higher at 1,145.00 pence each in London on Tuesday morning.

By Holly Beveridge, Alliance News reporter

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