Comment: Volvere on fire

Investors responded well to turnaround investment specialist Volvere's half year numbers today, sending the shares to a record high.Volvere, Latin for turnaround, made a pre-tax profit of £587,000 in the six months ended 3 July versus a loss of £219,000 a year ago. Revenue from continuing businesses was £5.4m. The firm, run by ambitious brothers Jonathan Lander (CEO) and Nicholas(COO and CFO), said the sale of Sira Certification in July for an initial £8.1m significantly increased cash reserves at a time when cash is valuable. Sira is a global certification business for hazardous area safety equipment, testing things like petrol pumps. The Landers paid just £1.2m for it four years ago.Volvere's net assets per share were 341p at the end of the first half, up from 191p a year ago and 205p on 31 December last year.The shares are trading at a discount, down at 295p, but they have almost tripled since March. They surged nearly 50% during the first few days of July as news of the Sira Certification sale broke.Volvere also boasts an impressive board and great contacts. Lord Kalms of Edgeware, the creator of electrical retailer Dixons, is non-executive chairman, while son Richard Kalms, the founder of support services firm Amey, Neil Ashley, and David Buchle, vice-chairman of Tottenham Hotspur Football Club until 2006, are directors.The company's trading operations are now principally those of marketing and data services firm, Interactive Prospect Targeting. It owns half the group and received a dividend of £0.5m in August. The business made an interim operating profit of £1m. 'As a result the group has now recouped all of its initial investment plus a further £0.3m in less than one year,' it said.Jonathan Lander, who ran successful venture capital firm Dawnay Day Lander until 2007, says some banks are adopting a more lenient approach to covenant breaches, meaning some restructuring opportunities that would involve third party capital are being postponed.But he doesn't think this will last. 'The need for restructurings is inevitable and this will present excellent opportunities for the group's capital and skills in the coming twelve months.''With cash and marketable securities totalling approximately £21m and no debt, the group is well positioned to benefit from the current climate and we are working to identify opportunities to further enhance shareholder value,' he said.Volvere's deal history has impressed investors. In an interview with ShareCast a few weeks ago, Jonathan said its turnaround expertise has been proven. 'We're in the middle of a credit crisis and we have money to spend, so we go into the second half well positioned to succeed.' Who would bet against them? Volvere