Volvere 2025 trading update: growth, cash strength, and cost headwinds
Volvere has delivered a tidy set of unaudited numbers for 2025, driven entirely by its 80%-owned frozen pastry maker, Shire Foods. Revenue and profit nudged higher, net assets per share stepped up, and the cash pile grew again. The tone is confident but realistic: management is feeling cost pressures and flags volatility in its investment portfolio, yet they are leaning into efficiency and pricing to defend margins.
Here is the snapshot.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Group revenue – continuing operations | £52.70 million | £49.04 million | +7.5% |
| Group profit before tax – continuing operations | £6.75 million | £6.34 million | +6.5% |
| Group profit after tax | £5.11 million | £4.84 million | +5.6% |
| Group net assets | £47.20 million | £41.90 million | +12.6% |
| Consolidated net assets per share (excl. non-controlling interests) | £19.80 | £17.20 | +15.1% |
| Cash and available-for-sale investments | £33.22 million | £27.84 million | +19.3% |
| Share buy-backs in year | £0.43 million | £1.51 million | Lower |
Note: net assets per share excludes non-controlling interests (the 20% of Shire not owned by Volvere) and is calculated over 2,189,922 shares at 31 December 2025 (2024: 2,208,922).
Shire Foods: steady profits with a one-off boost
All group revenues came from Shire Foods. Underlying profit before tax, intra-group interest and management charges was £6.31 million (2024: £6.17 million), up 2.3%. A one-off £0.40 million credit from releasing provisions no longer required lifted Shire’s overall result to £6.71 million.
Management notes that raw material and distribution costs picked up in H2 2025 and have continued into 2026. In response, Shire is investing in production capability to raise productivity and is pushing through price increases. That balance – productivity plus pricing – is exactly what you want to see when input costs move against you.
Balance sheet: bigger cushion, optionality intact
Group net assets rose to £47.20 million, and net assets per share increased to £19.80. Cash at year end stood at £28.27 million, with a further £4.95 million in available-for-sale investments, taking the liquid pool to £33.22 million. For a business of around 270 employees focused on one trading subsidiary, that is a chunky safety net and gives Volvere firepower if distressed opportunities appear.
Two caveats worth noting:
- Management says the available-for-sale investment has fallen in value since year end due to market volatility, though it remains significantly above cost.
- Share buy-backs slowed to £0.43 million from £1.51 million in 2024. The company still retired shares – which supports per-share metrics – but at a gentler pace.
Costs and oil: real headwinds to watch
Volvere flags a continued rise in raw materials and distribution costs into 2026. A high oil price is singled out as a likely supply chain drag. That matters for frozen pastry quite directly: think transport, packaging, and certain commodity inputs whose prices track energy. The company’s response – invest in efficiency and lift selling prices – is sensible, but it typically lags the cost curve and can pressure volumes if consumers push back.
There is also the everyday risk that inflation squeezes consumer wallets, potentially denting demand. Management calls out this uncertainty clearly, which is helpful context for 2026 expectations.
Strategy and pipeline: patient, but ready to pounce
Volvere remains committed to a long-term plan at Shire built on innovation, quality and efficiency. Beyond that, they are scoping new investments. If cost inflation lingers and interest rates stay high or move higher, management expects more distressed businesses to surface. With £33.22 million in cash and investments, the balance sheet is set up to move quickly if something attractive comes along.
For shareholders, that optionality is a material part of the thesis. The group’s past playbook is to buy well, improve operations, and crystallise value – but the RNS does not disclose any live targets.
Key definitions, quickly
- Consolidated net assets per share: the group’s book value attributable to Volvere shareholders divided by shares outstanding, excluding the 20% of Shire it does not own.
- Available-for-sale investments: the group’s investment holdings measured at fair value. Management notes these moved down after year end due to market volatility.
- One-off credit: a £0.40 million benefit from provisions no longer required. Helpful, but not repeatable.
- Discontinued operations: there were none in 2025 (2024 showed a £0.02 million loss).
My take: solid progress with sensible caution
Positives first. Revenue rose 7.5% and profit before tax advanced 6.5%, despite H2 cost pressure. Net assets per share climbed 15.1% and the cash-plus-investments pot rose to £33.22 million. Underlying profitability at Shire edged up even before the one-off credit, and management is doing the right things on productivity and prices.
The watchouts are straightforward. Cost inflation is back on the pitch and may run ahead of price increases at times. A high oil price could squeeze supply chain economics. The available-for-sale investment has dipped post year end. And the group remains reliant on a single trading subsidiary, so diversification rests on future deal-making.
Overall, this is a reassuring update. Volvere looks well-capitalised, operationally disciplined, and alert to opportunities. If they can keep costs in check and maintain pricing, 2026 could be another year of steady compounding – with a free option on a value-accretive acquisition.
What to watch into the May results
- Gross margin trends at Shire – are price increases offsetting input and distribution costs.
- Any further commentary on the value of available-for-sale investments post year end.
- Cash deployment: pace of buy-backs, capex in production, and any movement on new investments.
- Outlook language on volumes and consumer demand into H1 2026.
Dates and logistics
Volvere expects to announce full year results for 2025 on or around 15 May 2026. This RNS contains inside information and the directors are responsible for its release.
