Venture Life Share Discussion Threads

[qs99] 31/1/2022 10:55

Sense ADVFN are behind as buys now showing over the 51p offer this site is quoting?

[qs99] 31/1/2022 10:18

20k at full offer, decent volumes to some degree and fortunately majority on the buy-side at the moment....squeeze coming? MMs appeared to try and hold the bid down for a while, didn't last long in the 1st hour....DYOR

[thedudie] 31/1/2022 09:41

Thanks sharw - JR looking confident there.
More M&A looks on the cards - he was keen to say "accretive" and "immediately earnings enhancing".
Wait and see...

[stemis] 31/1/2022 09:37

Don't see why this shouldn't find it's way back to 80p if management can demonstrate they have overcome last years set back...

[sharw] 31/1/2022 09:19

Brummy_git - not all of us are on linkedin so here is the direct link for your video:

[thedudie] 31/1/2022 08:38

Yes the management dropped the ball last year but if revenues are really growing like suggested then this deserves a mush higher rating.

[qs99] 31/1/2022 08:26

Last post for a bit, but as this is a Simon T/IC stock he likes, IMO should provide time for a further "boost" by him this week as well no? DYOR....

While management had a "shocker" last year, maybe they can, little by little start delivering again, allowing shares to rate back towards the broker TPs which are north of £1 on "underlying" valuation from posts before I seem to remember? DYOR

[qs99] 31/1/2022 08:21

very little stock around IMO....DYOR tried buying some chunks this am, only got a few filled GLA

[qs99] 31/1/2022 07:51

China first shipments made as well no? Depending on next quarter response "in market" this could also add "spice" to 2022?

Although article in the ST talked of squeeze on Chinese middle classes possibly becoming prevalent with the crashes in property prices & debt owned etc, so not necessarily the place to put all eggs etc. etc...

DYOR
Cheers
QS99

[rivaldo] 31/1/2022 07:47

Indeed - good to see VLG updating and trading nicely in line, without any nasty surprises and everything appearing to be returning to a smoother path forward.

Good to see "the order book for the Group is significantly ahead of the same time last year".

And lots of progress product-wise:

"We are also pleased to report that a leading UK health and beauty retailer has confirmed they will launch our in-house developed product for rosacea in the UK and Ireland later in H1 2022 with the product being marketed under their own brand. This marks the first product launch under this retailer's own brand and paves the way for future collaboration. Furthermore, another key UK health and beauty retailer will launch our Wart & Verruca Pen and Women's Intimate Gel in H2 2022 under their own brand; finally, other new agreements have been recently completed for other products in other territories.

Following the successful integration of BBI Healthcare and Helsinn acquisitions, one of these new agreements has been signed for Pomi-T in Germany, which marks the start of the expansion plan of this product into key markets around the world, in another of the 5 major EU markets."

[thedudie] 31/1/2022 07:46

Things look to be back in growth here with revenues in H1 £13.9m and in H2 £18.7 but the good news is that quarterly revenues for Q3 look to be £7.2m and for Q4 £11.5m.

Hopefully a big bounce today then ....

[brummy_git] 31/1/2022 07:05

Positive 'in-line' trading update today from OTC consumer healthcare firm Venture Life

All the news & commentary here.

www.linkedin.com/posts/paul-hill-a5994116_vlg-vlg-vlg-activity-6893810876491919361-HxmT

[stemis] 22/1/2022 12:53

Mind you, if Judith MacKenzie doesn't sort out VLG nobody will:



14:10 onwards

[sharw] 22/1/2022 11:32

Brummy_git - not all of us are on linkedin so here is the direct link for that video in post 1282 :



Mind you, if Judith MacKenzie doesn't sort out VLG nobody will:

[brummy_git] 22/1/2022 04:02

VLG (starts 31:55) discussed by Paul Hill & Justin Waite of Vox markets here

www.youtube.com/watch?v=gA_6tDwJA5k

[brummy_git] 22/1/2022 03:54

VLG discussed by Jamie Constable of Singer Capital markets & Paul Hill here (starts 16:05)

www.linkedin.com/posts/paul-hill-a5994116_singer-capital-markets-macro-update-january-activity-6890241940429123584-VgtD

[rivaldo] 18/1/2022 08:19

Alliance Pharma's Trading statememt today is very complimentary about Kelo-Cote's performance:

"Kelo-Cote delivered another excellent performance, particularly in the APAC region, with net revenues of £48.8m (2020: £34.7m), up 47% adjusted for currency and up 41% on a reported basis."

"Our Consumer Healthcare business continued to perform well, with Kelo-Cote enjoying another excellent year of growth as we capitalised on the opportunities identified for the brand."

[stemis] 14/1/2022 18:37

I'm sure there is considerable pressure on management to perform, since they raised capital at 90p little more than a year ago. From anyone who bought their shares recently, of course, that's of passing interest...

[moathunter] 14/1/2022 17:22

Yes, fair points SteMis.
Certainly it's all probabilities under uncertainty as to whether capital is being deployed effectively or not.

VLG is interesting because there could be a wide divergence of its 5 yr outcome- either say a £20m valuation or £80m+. And this year's actions could strongly indicate which way they'll go.

It'll be interesting to see this year the extent of organic growth from their older product lines (deduct the 'accretive new acquisitions' from their year-end's revenue and op.profit), and whether they take on more debt and more operational hiccups.

Increasingly, the shareholder pressure is on management to actually perform.

[stemis] 14/1/2022 15:40

You do realise that one of the purposes of being on the stock market is access to capital? Whether that benefits shareholders depends on whether they use that capital effectively. I think it's too early to say either way in respect of the acquisitions since they haven't really yet reported under VLG's ownership (apart from a month of BBIH).

[moathunter] 14/1/2022 13:26

The following is more a future 5 year view.
2015 2016 2017 2018 2019 2020
Number of Shares
34 37 37 37 84 126!!
Free cash flow
-2 -7 0 -5 1 -6

Shareholders diluted to oblivion.
Zero cash flow generation.
“But look at the top line sales and operating profit growth”

However these sales and profits have been *bought* via acquisitions… funded by equity raising from shareholders… who themselves bid up the share price because they focussed on top line sales and profit growth!

So it’s a merry-go-round and when the share price won’t rise anymore and shareholders get sick of dilution, then the next move is the “revolving credit facility” and gearing up to buy yet more companies.

At some point the music stops and VLG may in fact start producing a bit of cash flow and justify its valuation (‘a company is only worth the sum of its free cash flows, discounted’). But it’s impossible for an investor to benefit from this, as they’ll be diluted away in equity raisings or they’re taking on more risk with debt gearing.
It reminds of Erinaceous Group in 2008 (and many other acquisitive companies).

I had thought there could be a nascent competitive advantage/ Moat emerging due to:
A. competing in niche markets below P&G et al with weak/ nil rivals,
B. VLG having vertically integrated from serving clients with production of their brands, this is then leveraged into forward integration producing their own products from purchased brands and ingredients,
C. VLG's new own brands will slowly gain Switching cost brand habit from customers constantly repeat buying their FMCG...and with such a vertically integrated business (R&D, production, distribution) indicating high FC operationally leveraged, therefore…
D. all this organic+inorganic acquired growth could lead to Scale economies once passed certain size AND
E. Scope economies of having doubled their product range since 2016 for better utilisation of vertical chain.
AND
F. Enlarged group could negotiate new distribution channels into other countries = growth.

So the nascent competitive advantage could be compelling. They just have to stop inorganic acquiring and now organically grow.
But an investor cannot benefit from any nascent competitive advantage, until they know VLG will stop acquiring and diluting and gearing!

Regardless, VLG are paying very high premiums for their acquisitions and are branching into some very divergent areas = complexity to integrate acquisitions, and their vertically integrated production model also = complexity to actually produce some of the acquired products.
Potentially very messy.
(The above looks at very different things to Investors Chronicle).

Watching with interest and certainly not buying.

[qs99] 14/1/2022 12:32

Be great to get back through 50p before the weekend.....

[qs99] 14/1/2022 12:07

IC tip kicking in?

Or possible news soon?

DYOR