Volvere soars as profit from continuing operations more than doubles

(Alliance News) - Volvere PLC on Tuesday said it expects to report a revenue rise in 2022 as the company shed its loss-making frozen desserts business in the year.

The investment company said it expects to report total revenue of GBP41.6 million in 2022, up 17% from GBP35.6 million the previous year.

Of this, it expects revenue from continuing operations to total GBP38.0 million, up from GBP30.6 million the year prior, but revenue from discounted operation of GBP3.5 million, down from GBP5 million the year prior.

Shire Foods Ltd, the company's 80%-owned frozen pastry products manufacturer, was Volvere's principal continuing trading subsidiary during the year and, along with the company's other central activities, represents its continuing operations.

Indulgence Patisserie Ltd, the company frozen desserts business, is counted as "discontinued operations" following its closure as a result of continuing losses. Indulgence's manufacturing was suspended in August and did not recommence, given the outlook for the business.

Volvere expects an overall pretax loss of GBP240,000, widened from GBP70,000 in 2021.

However, it expects an pretax profit of GBP2.3 million from continuing operation, more than doubled from GBP1.1 million in 2021.

Its pretax loss from discounted operations and management charges is expected at GBP2.6 million, widened from GBP1.0 million in 2021.

Volvere said, given the wider economic environment, Shire's performance was "good". It noted significant upward pressure in raw material costs and overheads, as well as having to recruit within a "challenging" labour market.

The company said that Indulgence suffered with similar pressures, but explained its smaller scale and less efficient operations meant that its business was no longer viable.

Since the year-end, Volvere has sold one of the Indulgence properties at a "modest premium" to its book value and is actively marketing the other.

"The value of the sold property has been reflected in the year end valuation, with the remaining property stated at the last independent valuation," the company said.

Volvere added that whilst there may be some "limited" costs associated with Indulgence in 2023, it does not expect these to be material.

It said the decision to close Indulgence was "unfortunate but necessary."

Volvere expects to announce its full-year results for 2022 on, or around, May 26. Shares in the firm were up 14% at 1,100.00 pence on Tuesday midday in London.

By Heather Rydings, Alliance News senior economics reporter

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