Half-year Results

Volvere plc

("Volvere" or the "Group")

Interim Results for the six months ended 30 June 2026

Volvere plc (AIM: VLE), the growth and turnaround investment company, announces its unaudited Interim Results for the six months ended 30 June 2026.

Highlights

• First half volumes reduced compared to high prior comparable period at Shire Foods with knock-on impact on profitability
• Outlook for Shire Foods remains positive
• Continuing strong liquidity for the Group
• Group continues to seek distressed investment opportunities

Note

1 Based on the net assets attributable to owners of the parent company and the respective period end shares in issue (excluding treasury shares), which were 2,189,922 at 30 June 2026, 2,203,922 at 30 June 2025, and 2,189,922 at 31 December 2025.

For the first half of 2026 the Group has delivered a solid set of results, notwithstanding the effects of weaker comparable trading in the Group's subsidiary, Shire Foods ("Shire"). Revenue and profit before tax were £22.20 million and £0.69 million respectively (30 June 2025: revenue £23.78 million, profit before tax £2.88 million; 31 December 2025: revenue £52.70 million, profit before tax £6.75 million).

Group net assets increased to £48.01 million (30 June 2025: £43.52 million, 31 December 2025: £47.20 million) of which cash and available-for-sale investments were £30.31 million (30 June 2025: £32.03 million, 31 December 2025: £33.22 million).

Net assets per share(1) increased to £20.13 (30 June 2025: £18.25, 31 December 2025: £19.80).

Whilst the Company has not purchased its own shares in the period, it remains committed to doing so where the Board considers it in the interests of all shareholders to do so. This could include substantial holdings where a shareholder wishes to sell all or part of their holding.

As shareholders know, the second half of the year is key in terms of volume over the winter months and we are working hard to deliver a creditable performance in Shire. Whilst the first-half profitability in Shire is less than we would have hoped, our views on the underlying opportunities for the business and the Group have not changed. The expectation is that 2027 will see Shire once again achieve year-on-year profitable growth.

We continue to review potential investments both in the food industry and more widely. Our strong liquidity provides flexibility to react at pace but also supports working capital investment to protect margins. Nevertheless, in view of the current environment both in the UK and internationally, we are adopting a cautious approach to investment decisions.

David Buchler

Chairman

Note 1: Net assets attributable to owners of the parent company divided by total number of ordinary shares outstanding at the reporting date (less those held in treasury) - see note 7.

Executive Management Statement

Overview

In 2024 and 2025 the Group's 80%-owned subsidiary, Shire delivered exceptional performances. Whilst the first half of 2026 has been comparatively weaker, the business still performed well in what can only be described as a challenging environment.

Group revenue (virtually all of which related to Shire) was £22.20 million (30 June 2025: £23.78 million), with Group profit before tax of £0.69 million (30 June 2025: £2.88 million).

Group net assets at the period end increased to £48.01 million (30 June 2025: £43.52 million, 31 December 2025: £47.20 million) and net assets per share increased to £20.13 (30 June 2025: £18.25, 31 December 2025: £19.80).

Financial performance

Food manufacturing segment - Shire Foods

We cautioned previously that profits in Shire would reduce in 2026 when compared to the prior year. When multiple external effects on the business impact on the reported results, it is inevitably met with some frustration by us, no matter our expectations. What shareholders can be certain of is that we have reacted to this environment and mitigated the effects wherever possible. What we have not done, however, is compromise Shire's future by taking short-term decisions that will hamper future growth.

Shire's revenues for the period were £22.19 million, a reduction of £1.59 million compared to the prior comparable period (30 June 2025: £23.78 million, 31 December 2025: £52.70 million). As we reported in May, the comparative results for 2025 (and 2024) included relatively high sales of "value" products for one of our large retail customers and, in addition, the low-margin foodservice product that ceased supply part way through the comparable prior period.

The reduction in both of these contributed to the fall in revenue and profitability. In the first half of 2025, the combined sales value of these products was approximately £3.70 million. Whilst the pipeline of new products and customers was not sufficiently advanced to make up the shortfall in the first half, the progress we made in replacing some of the lost revenue, which we believe will sustain into 2027, was nevertheless encouraging.

As set out below, profit was also impacted by certain cost increases, resulting in profit before tax and intra-Group management and interest charges(2) decreasing to £0.70 million (30 June 2025: £2.87 million, 31 December 2025: £6.31 million).

A summary of Shire's recent financial performance is set out in Table A below.

Note 2: Profit before intra-Group interest and management charges (and in 2025, a one-off provision release) is considered to be a relevant and useful interpretation of the trading results of the business such that its performance can be understood on a basis which is independent of its ownership by the Group.

During the period we continued to see relatively high costs across the board, covering such things as raw materials, labour and distribution costs. In addition, we have recently seen a change in relation to disposal of food waste following the widened collection by councils of waste from domestic properties. Previously, we would receive income from the sale our factory waste for use in anaerobic digestion plants but are now having to pay for collection because of the increased market supply - this alone is expected to impact profit annually by an estimated £0.36 million.

During the late summer months, we have been building inventory in advance of the higher volume winter months. We have significantly increased our investment in beef to help protect margins from further cost increases and to ensure sufficient supply given the global macroeconomic situation, in particular in relation to the ongoing high oil price, which is expected to continue to impact our supply chain costs both directly and indirectly. Following a post-Christmas stock rebuild in the early months of 2026, we reduced our headcount to align with volumes; we will be recruiting again shortly to put in place capacity for the final quarter but, perhaps most importantly, for the volumes we can reasonably predict for 2027.

There is much of which to be positive. After a full re-tender, we were pleased to be able to maintain our partnership with our largest customer. One of our largest customers continues to innovate heavily with us in the savoury pastry category and we have been encouraged by the resulting level of sales. We have launched a range of mini pies and expect to see these forming part of more customers' party food offerings over time. Whilst launches with our fuel station food-to-go customer have taken longer than initially anticipated, we are now seeing incremental sales in the second half of the year as further new products are launched, with early indications of robust volumes and a strengthening partnership.

Investing and management services segment

This segment represents our central functions covering Group management, treasury, finance and IT services. The segment result is the net of the underlying costs of these Group activities, offset by investment revenues and other gains and losses. The loss before tax and intra-Group management and interest charges(2) for the period was £0.01 million (30 June 2025: profit £0.01 million, 31 December 2025: profit £0.04 million). The reduction in the period is again due to a fall in investment yields on cash deposits in line with prevailing interest rates.

The Group continued its approach of using leverage within trading companies whenever appropriate and without recourse to the remainder of the Group.

Earnings per share

Basic and diluted profit per ordinary share (which was all from continuing operations) was 21.86p (30 June 2025: 80.30p, 31 December 2025: 188.89p).

Statement of financial position

Working Capital

Group cash at 30 June was £25.04 million (30 June 2025: £28.52 million, 31 December 2025: £28.27 million). The consolidated statement of cash flows sets out the details of cash movements in the period. Significant specific outflows related to capital expenditure (£0.84 million) and corporation tax (£0.55 million). As noted above, we have increased our inventory in particular in respect of beef to ensure supply availability and predictability of margins for what is a key cost driver. Inventory levels are expected to reduce significantly by the end of the year, albeit that 2027's volumes will most probably require a broader level of inventory holding.

At the period end there was a current asset investment with a carrying value of £5.27 million (30 June 2025: £3.51 million, 31 December 2025: £4.95 million). The difference between the carrying value of the investment at the period end and the original cost has been credited to reserves, net of deferred tax.

Purchase of own shares

Unusually, the Company did not acquire any of its own shares for treasury in the period. This reflected more retail demand for the Company's shares.

Hedging

It is not the Group's policy to enter into derivative instruments to hedge interest rate or foreign exchange risk.

Key performance indicators (KPIs)

The Group uses key performance indicators suitable for the nature and size of the Group's businesses. The key financial performance indicators are revenue and profit before tax. The performance of the Group and the individual trading businesses against these KPIs is outlined above, in the Executive Management statement and disclosed in note 3.

Internally, management uses a variety of non-financial KPIs in respect of the food manufacturing segment, including order intake, manufacturing output and sales, all of which are monitored weekly and reported monthly.

Principal risk factors

The Company and Group face a number of specific business risks that could affect the Company's or Group's success. The Company and Group invests in distressed businesses and securities, which by their nature often carry a higher degree of risk than those that are not distressed. The Group's businesses are principally engaged in the provision of goods and services that are dependent on the continued employment of the Group's employees and availability of suitable, profitable workload. In the food manufacturing segment, there is a dependency on a small number of customers and a reduction in the volume or range of products supplied to those customers or the loss of any one of them could impact the Group materially. Rising inflation, including increases in raw materials and overhead costs, may not be able to be passed on to customers through increased prices and this could result in reduced profitability. The inability to dispose of the company's food waste (that varies with output volumes) could limit or stop production and impact sales. Any pandemic or other such similar event which could affect the consumers, suppliers, customers or staff may limit or inhibit the Group's operations.

These risks are managed by the Board in conjunction with the management of the Group's businesses.

Acquisitions and future strategy

The UK business environment remains somewhat uncertain with geo-politics taking its inflationary toll alongside a UK environment where operating a business is more costly and where the drivers of growth in conjunction with wealth creation seem to be poorly understood. It is against this backdrop that we assess potential investments.

Whilst we have looked at a number of targets in the period, our primary management focus has been on ensuring Shire's implied long-term value to the Group is recognised and protected. This is, I believe, our most important task.

We have traditionally not published forward forecast guidance and this continues to be our preferred approach principally because the variables that can impact revenues are so wide-ranging and unpredictable - from customer merchandising decisions and weather, to name but two. However, I think it is worth sharing that Shire's internal revenue target for 2027 shows growth not only over the full year forecast for 2026, but also over that achieved in 2025. As noted above, the impact of costs is harder to predict - but volume is the key driver in the business - and it is for this reason that we continue to be confident in Shire's medium-term outlook.

Whilst the Company did not purchase its own shares in the period, it remains committed to doing so where the Board considers it in the interests of all shareholders to do so. This could include substantial holdings where a shareholder wishes to sell all or part of their holding. Any shareholder who wishes to do so is invited to contact the Company's joint broker, Hobart Capital Markets LLP.

This period has been one that has stretched the Group's people at all levels. I want to place on record my thanks to my colleagues who continue to go above and beyond to ensure we will see out 2026 - and deliver 2027 - as successfully as possible.

Nick Lander

Co-founder & Director

Consolidated income statement

Notes forming part of the unaudited interim results for the period ended 30 June 2026

1 Financial information and basis of accounting

These interim financial statements have been prepared using accounting policies consistent with IFRS as adopted by the European Union.

These interim financial statements should be read in accordance with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2025. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. AIM-listed companies are not required to comply with IAS 34 Interim Financial Reporting and accordingly the Group has taken advantage of this exemption.

The comparative figures for the year ended 31 December 2025 have been prepared under IFRS. They do not constitute statutory accounts as defined by the Companies Act 2006. The accounts for the 12 months ended 31 December 2025 received an unmodified auditor's report and have been filed with the Registrar of Companies.

Copies of this statement will be available to members of the public at the Company's registered office: Shire House, Tachbrook Road, Leamington Spa CV31 3SF and on its website www.volvere.co.uk.

2 Significant accounting policies

3 Operating segments

An analysis of key financial data by business segment is provided below. The Group's food manufacturing segment is engaged in the production and sale of food products to third party customers, and the investing and management services segment incurs central costs, provides management services and financing to other Group segments and undertakes treasury management on behalf of the Group.

Analysis by business segment:

Notes:

• stated before intra-group interest and management charges
• assets and liabilities stated excluding intra-group balances

4 Investment revenues, other gains and losses and finance income and expense

5 Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

Weighted average number of ordinary shares for the purposes of earnings per share:

There were no share options (or other dilutive instruments) in issue during the period in respect of the parent company's shares (30 June 2025: nil; 31 December 2025: nil).

6 Non-controlling interests

The non-controlling interests of £3.93 million relate to the net assets attributable to the shares not held by the Group at 30 June 2026 in the following subsidiaries:

The Group owns approximately 80% of Shire Foods and 98.6% of NMT.

7 Purchase of own shares

The Company did not acquire any Ordinary shares during the period (30 June 2025: 5,000 shares for £95,000, 31 December 2025: 19,000 shares for £428,000). The total number of Ordinary shares held in treasury at the period end was 4,017,152 shares (30 June 2025: 4,003,152, 31 December 2025: 4,017,152) with an aggregate nominal value of less than £1.

At the period end, the total number of Ordinary shares outstanding (excluding treasury shares), was 2,189,922 (30 June 2025: 2,203,922, 31 December 2025: 2,189,922).

8 Dividend

The Board is not recommending the payment of an interim dividend for the period ended 30 June 2026.