Business Closure - Indulgence Patisserie

RNS Number : 7233F

Volvere PLC

08 November 2022

 

8 November 2022

Volvere plc

("Volvere" or the "Company")

Business Closure - Indulgence Patisserie

Volvere plc (AIM: VLE), the growth and turnaround investment company, announces the closure of Indulgence Patisserie Limited.

In our interim results, released on 29 September 2022, we reported that we were continuing to assess the ongoing viability of Indulgence Patisserie, the Group's frozen desserts business, in the light of the future sales opportunities, product margins and overhead costs associated with it. Over the last few months, we have seen no improvement in raw material or energy costs and we do not believe this situation will improve sufficiently to continue manufacturing from the Colchester site.  As a result, in order to prevent further material losses, we have decided to close the Indulgence business.  We are, therefore, also marketing the freehold properties for sale. 

The business reported a loss before tax and intra-Group management charges for the six months to 30 June 2022 of £1.51 million on revenues of £2.09 million.  No manufacturing has taken place since early August and this has, as expected, significantly reduced underlying trading losses since the half year as orders are being met from existing stocks of finished goods.  We have notified all remaining staff at Indulgence of our decision and are working with customers constructively to ensure we can continue to support them for as long as possible.

It is naturally disappointing that we have had to take this decision but, in the current environment, we believe it to be the best course of action.  We are grateful to our staff and customers for their support.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

For further information:

Volvere plc Jonathan Lander, CEO	Tel: [phone] www.volvere.co.uk
Cairn Financial Advisers LLP (Nominated Adviser) Sandy Jamieson/James Lewis	Tel: + 44 (0) 20 7213 0880
Canaccord Genuity Limited (Joint Broker) Bobbie Hilliam	Tel: + 44 (0) 207 523 8000
Hobart Capital Markets LLP (Joint Broker) Lee Richardson	Tel: [phone]

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