Volvere reports higher 2025 profits as Shire Foods drives growth despite cost pressures

Volvere (LSE:VLE) delivered another year of growth in 2025, supported entirely by its frozen pastry subsidiary Shire Foods. Revenue from continuing operations rose to £52.7m, while profit before tax increased slightly to £6.75m. Net assets climbed to £47.2m, equivalent to £19.80 per share, and the group’s cash and available-for-sale investments grew to £33.22m despite spending £0.43m on share buybacks.

Shire Foods generated underlying profit before tax of £6.31m, which included a £0.40m one-off credit. Management described trading as satisfactory given rising input costs across raw materials, distribution and oil-linked supply chains. The company said it is investing in production capacity and implementing pricing adjustments to help safeguard margins. With a strong balance sheet, Volvere believes it is well positioned to take advantage of a potential increase in distressed acquisition opportunities as cost inflation and higher interest rates place pressure on weaker businesses.

The group also noted that the market value of one of its available-for-sale investments has declined since the year-end due to geopolitical and broader market volatility, though it remains significantly above its original cost. Volvere plans to release its audited results for the year around 15 May 2026, which will provide further details on trading performance, investment movements and the outlook amid a still challenging inflationary backdrop.

The company’s outlook is supported by solid financial performance and positive technical indicators. Its strong balance sheet and disciplined cash management underpin stability and future growth prospects. While valuation appears reasonable, the lack of a dividend yield and signs of potentially overbought technical conditions present minor concerns. The recent share repurchase programme also contributes positively to investor sentiment.

More about Volvere

Volvere plc is a UK-based growth and turnaround investment company listed on AIM. Its only current trading activity is food manufacturing through its 80%-owned frozen pastry producer Shire Foods. The group employs around 270 people and focuses on creating value in distressed or underperforming businesses, supported by a strong balance sheet that allows it to pursue new investment opportunities.