Volvere (VLE)

Volvere VLE Logo

The growth and turnaround investment company

7-Mar-2018 – 880p – £32.3m – PER 22.9

Trading Update For The 12 Months To End December 2017 – Expects to report record Revenue of approximately £43.2m (2016: £33.0m) and PBT of £3.22m (2016: £1.94m). Cash of £18.4m.

Had this on my Watchlist at 880p and seriously considering paying up here.

25-May-2018 – 975p – £35.8m – PER 25.4

Results For The 12 Months To End December 2017 –  Record Revenue and PBT of £43.4m (2016: £33.0m) and £3.5m (2016: £2.0m) respectively – EPS up from, 32.6p to 56.4p. Looking forward to an encouraging 2018, lots of cash and will probably buy back more shares (£3m+ bought back in 2017).

Bought in here just yesterday ahead of these results, expecting them to be at least in-line. These seem (much) better than in-line. If there is a concern it’s perhaps that they need to put that cash to work (hopefully on new companies). The 3 companies (all profitable but only one of them growing) currently on the books don’t seem exactly inspiring – Auto business (the main leader which probably justifies Volveres current rating on its own) has had a great year and looks like it should be OK (don’t expect this years stellar growth to be repeated, but who knows), Food business not so sure about (although spending on equipment (quite a lot (£1m)) is in progress, to increase margins) and the Security business also doesn’t look too great (looking to licensing). I will continue to hold for now with a keen interest on how these 3 companies perform and how that cash is deployed.

27-Sep-2018 – 890p – £32.6m – PER 15.8

Interim Results For The 6 Months To End June 2018 – Record Revenue (£22m), up about 20% and PBT (£1.28m), up about 60%. Very strong performance by Impetus with Shire and SDS meeting expectations. Look forward to delivering a strong H2.

I remain Long here, still seems decent value on a PER of 15 (much less if you strip out the Cash).

Subsequent note: Sold out here in October – Having sold off the main business and with little idea what was going to happen with the cash here I decided it was prudent to sell up.

22-May-2019 – 1125p – £35m – PER 16.4

Results For The 12 Months To End December 2018 – A steady ship – To quote the CEO “Group net assets at record £40.4m and £34.1m of cash. What is not to like” – NAV is £12.50.

I sold out here last wondering what they were going to do with the cash pile – Should have been more patient!

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