Volvere half-year profit jumps after "record" trading at Shire Foods

(Alliance News) - Volvere PLC on Friday said its half-year profit has increased by more than four ...

Alliance News 13 September, 2024 | 1:26PM
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(Alliance News) - Volvere PLC on Friday said its half-year profit has increased by more than four times the amount year-on-year with "record" trading for Shire Foods Ltd, despite challenges in the mergers & acquisitions market hindering further growth for the company.

Volvere is based in Leamington Spa, England, and invests in undervalued or distressed businesses. Shire Foods, which is a frozen pastry products manufacturer, is the firm's only current trading subsidiary.

The group's pretax profit for the six months ended June 30 multiplied fourfold to GBP2.2 million from GBP440,000 the year prior. Revenue for the year was GBP22.2 million, up 16% on-year from GBP19.1 million. This revenue was an "all-time high" for Shire Foods.

Volvere declared no interim dividend, unchanged from the same time last year.

Net assets per share increased to GBP15.85 on June 30, up 13% on-year from GBP14.00. The company reported total net assets of GBP38.6 million, which was an increase of 9.3% from GBP35.3 million in June last year.

However, Co-Founder & Director Nick Lander said: "Whilst we are continuing to review potential investment opportunities, deal flow has been patchy in recent months. This may reflect the summer period, but the reduction in interest rates may be easing pressure on debt servicing and levels of distress. We know our experiences in this regard are not unique, but broadly reflect the wider mergers & acquisitions market."

Chair David Buchler said: "The focus continues on the performance of the group's trading subsidiary, Shire Foods, whilst seeking further investment opportunities."

Shares in Volvere were up 8.3% at 1,527.00 pence each in London on Friday afternoon.

By Emily Parsons, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Volvere PLC 1,500.00 GBX 6.38 -

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