Volvere

SPECULATIVE BUY

Turnaround investment concern Volvere shows a £7.2m profit on selling defence and environment-linked Sira Certification for £8.6m.

AIM-quoted Volvere, steered by chief executive officer Jonathan Lander and chaired by ex-Dixons boss and former Tory party treasurer Lord Kalms, bought the four businesses making up Sira Certification, which provides certification services for products that are used within explosive environments, for £1.4m four years ago. Now it is selling them to the UK subsidiary of CSA Group, a Canadian not-for-profit association serving business, industry, government and consumers, for an initial £8m, with another £600,000 payable if certain earnings targets are met this year and next.

After the sale, which does not affect Volvere’s separate Sira Defence & Security business, the company says it will have cash of £18.5m and marketable securities worth approximately £1.5m. Volvere’s estimated net assets will be roughly 320p a share.

That compares with a current share price of 262p, up from a 91.5p 12-month low but down from a 277.5p year’s high, and leaves scope for improvement.

Tags: AIM, Cash, Mergers & acquisitions, Speculative punts

Sector: General Financial

Companies: Volvere

Market cap: £15m

PE Forecast: n/a

Share price: 262p