Volvere shares jump despite 'challenging' year

14th Mar 2023 15:55

(Sharecast News) - Turnaround investor Volvere said in an update on Tuesday that revenue from continuing operations in 2022 came in at £38.03m, up from £30.61m year-on-year.

The AIM-traded company said its overall profit before tax for the 12 months ended 31 December was £2.33m, rising from £1.07m in 2021.

It said Shire Foods, its 80%-owned frozen pastry products manufacturer, was its primary continuing trading subsidiary during the year, along with its central activities, representing continuing operations.

Volvere had announced the closure of Indulgence Patisserie, its frozen desserts business, on 8 November, due to significant continuing losses.

As a result, Indulgence would be reported in the final results as 'discontinued operations'.

Revenue from discontinued operations was around £3.53m, down from £4.97m in 2021, while the firm's overall loss before tax and group management charges was £2.57m, widening from £1.01m in the prior year.

The group said it expected to report total revenue from continuing and discontinued operations of about £41.56m, up from £35.58m, and an overall loss before tax of £0.24m, swinging from a profit before tax of £0.07m.

Volvere said it anticipated year-end consolidated net assets per share, excluding non-controlling interests, of £13.82, up from £13.49 in 2021, and group net assets of £35.58m, down from £37.05m.

Of the group net assets, cash and marketable securities represented around £20.78m, down from £21.87m, with the reduction in cash and net assets reflecting the purchases of treasury shares amounting to £2.09m during the year.

"The past year has been, without doubt, one of the group's most challenging," the board said in its statement.

"The decision to close Indulgence was unfortunate but necessary given the circumstances.

"Since the year-end, labour market challenges and raw material price pressures have shown some signs of abating."

Volvere's directors said early indications were that the focus on margins in Shire had ensured that the company started 2023 with "appropriate" customer pricing.

"In the wider economy, we are seeing an increasing number of investment opportunities across multiple sectors as businesses grapple with higher energy, raw material, staff and finance costs at a time of flat or reduced demand.

"Our strong balance sheet will enable us to capitalise on these opportunities as they arise."

Volvere said it would announce its full-year results for the 12 months ended 31 December on or around 26 May.

At 1526 GMT, shares in Volvere were up 19.17% at 1,149.97p.

Reporting by Josh White for Sharecast.com.