VLE tipped overnight by Simon Thompson12 Feb 2026 11:46
As one of his Bargain Shares for last year - and continuing to be so:
Https://www.investorschronicle.co.uk/content/af0d7a52-04fc-49ae-b456-bfca2424472a
"Volvere: Break-up value still materially higher than stated
Bargain Shares 2025 Review: The company’s substantial cash helps de-risk the investment case
Published on February 11, 2026
by Simon Thompson
• Net cash and liquid investments of £31.4mn (1,427p) back up 56 per cent of market capitalisation
• Break-up value 20 per cent higher than current share price
A year ago, investors were grossly underestimating the hidden balance sheet value of Volvere (VLE), an investment company founded by the late Jonathan Lander and his brother Nick. They still are.
The turnaround specialist’s only trading business, an 80 per cent shareholding in Royal Leamington Spa-based Shire Foods, reported 7 per cent higher revenue of £23.8mn in the first half of 2025. It was a record for the company, even though underlying revenue was held back by the loss of a low-margin product, which ceased production.
Having established its first bakery in Warwick in 1970, Shire produces more than 1mn frozen pies, pasties and other pastry products for food retailers and food service customers every week from its factory in Royal Leamington Spa. Its strategy has remained largely unchanged over recent years and is focused on providing quality products as efficiently as possible. The aim is to be customers’ supplier of choice through product innovation and quality and by making products that end consumers will repeatedly purchase.
In the first half of 2025, Shire’s pre-tax profit before intragroup interest and management charges increased by 37 per cent to £2.9mn....
Sensibly, Volvere’s management is considering investing in a second site to enable Shire to grow manufacturing capacity and broaden the product portfolio to include non-pastry product manufacturing. It could add further value to an investment on which Volvere is already reaping material rewards, having received a dividend of £4mn from Shire in 2025, bringing total dividends received to £6.45mn to date. The company acquired 80 per cent of the business in 2011-12 for a bargain basement £0.5mn.
Moreover, the investment is still too conservatively valued in Volvere’s accounts, representing £16.2mn of the company’s net assets of £43.5mn (1,825p), which includes £3.3mn of minority interests. In effect, it is being valued on a multiple of 2.6 times Shire’s 2024 pre-tax profit of £6.1mn. A more realistic valuation is £50mn, representing eight times Shire’s annual operating profit, and perhaps more to a private equity buyer.
To put this sum into some perspective, Volvere only has a market capitalisation of £55.8mn and holds net cash and liquid investments of £31.4mn (1,427p). I estimate a break-up value of at least £67.3mn (3,059p), or a fifth higher than Volvere’s market capitalisation. Buy."
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