Venture Life Share Discussion Threads

[paleje] 20/5/2022 07:49

ST gave them strong coverage in yesterdays IC, his conclusion below with link:-

If Venture delivers on analysts’ forecasts, then expect a material re-rating from the current valuation of 5.5 times cash profit estimates to enterprise valuation. That’s a hefty 60 per cent plus discount to sector peers, as I pointed out at the start of the year (‘Venture Life’s recovery potential revealed’, 10 January 2022). N+1 Singer’s 66p target price is not only double Venture’s current share price, but the directors are targeting further earnings accretive bolt-on acquisitions to utilise the £50mn low-cost credit facilities in place, another catalyst for earnings upgrades to support my 100p target. Buy.

[csmwssk12hu] 18/5/2022 11:42

These have got takeover written all over them now, usual profitable British business, cash in bank, growing business, undervalued screaming take me private

[apatel21] 17/5/2022 18:08

In the Post Period end section The last bullet point started off with 'Despite a challenging first quarter'It could be interpreted in 2 ways+ve focus on despite-ve focus on challenging

[basem1] 17/5/2022 10:31

I have been bullish on these since the last TU regarding increased turnover etc and have tipped them to a couple of friends I actually thought todays results were a little downbeat. I was expecting a little more. Just my take fwiw.

[rivaldo] 17/5/2022 10:28

They actually say they've made an "encouraging start to 2022". Rightly cautious elsewhere about the current supply chain environment, but the overall outlook is very enocuraging:

"We have seen an encouraging start to 2022, with the current order book comfortably ahead of the same time last year on a like for like basis, including the acquired businesses. This reflects growth in the underlying business plus the effect of customers supporting us by ordering further forward to help manage supply chain disruption and secure stock, which gives us greater visibility of revenues. Good commercial progress has already been made in 2022 to date, including the appointment of our new partner for the Chinese market, and customer price increases being put in place to further mitigate the cost increases seen in 2021."

"Having made some very good immediately earnings enhancing acquisitions and worked hard to mitigate difficult trading factors seen in 2021, we have a much stronger consolidated business going into 2022, evidenced by the stronger order book, with a much higher proportion of high margin VLG Brands, and the significantly increased revenues and profit in the second half. This growth in size, along with plenty of internal manufacturing capacity available, and coupled with our partners' growing confidence coming out of Covid, gives us a solid foundation for future organic growth."

[apatel21] 17/5/2022 10:12

Cautious statement about Q1 not helping

[csmwssk12hu] 17/5/2022 09:51

Pe of 8 going forward with sales growing quickly against previous year is madness, these should be way higher imho and volume today has been terrible only £70k worth, imagine how it would have moved if there was volume, clearly a market issue of people sitting on hands on everything, very soon Russia Ukraine will be over and the likes of these will be biggest gainers imho dyor

[rivaldo] 17/5/2022 08:49

Pleasantly surprised by the results, which were nicely ahead of broker expectations. The outlook is confident too.

Producing 4.65p adjusted diluted EPS in a pandemic-hit year when Chinese sales and hand sanitizer sales both reduced to almost nothing is pretty impressive.

Hopefully the new Samarkand distributorship agreement will kick in smoothly and quickly given SMK's already existing trade routes into Asia.

Cenkos have introduced what they call "conservative" forecasts of 4.52p adjusted EPS this year.

They summarise:

"FY21 results, positive outlook

Venture Life Group has reported its results for FY21A, with revenues and adjusted EBITDA coming in ahead of our forecasts. Revenues, supported by two acquisitions, grew 9% to £32.8m with the acquisitions more than offsetting lost FY20A COVID-related sales and significantly reduced shipments to China. The gross margin was also affected by these factors, though also supported by higher margin acquisitions. Adjusted EBITDA grew 8%.

Management have provided a positive outlook for FY22E, based on trading to date and the order book, which supports our forecasts and the introduction of FY23E expectations. We believe the company has set strong foundations for growth and maintain our Buy recommendation."

"Investment thesis – We believe the H2/21A performance demonstrates the potential within Venture Life. Looking forward, the company has a stronger and broader portfolio of Brands, a larger order book (vs the same point in 2021) and
increased available manufacturing capacity to support organic Group level growth.
With a strong balance sheet, we expect this organic growth to be supported by
additional accretive acquisitions. We maintain our Buy rating."

[csmwssk12hu] 17/5/2022 08:44

It did this on its trading statement day, climbed slowly then just took off, within three days it went from 30p to 58p imho dyor

[rimau1] 17/5/2022 08:15

I don’t think this could be any better given the external headwinds. FY21 revenues ahead of the TU, China should be back in track with SMK as a partner and demonstrating the ability to pass on price increases gives this a nice inflation protection which should be the case with branded consumables. Firepower for earnings enhancing acquisitions too. I was out of VLG for a long time but feels like this is now in a better place and i have taken an entry position on the bell for a long term hold.

[brummy_git] 17/5/2022 08:09

After a challenging H1’21 (re pandemic), the VLG’s growth strategy is back on track & firing on all cylinders.

Find out here why from CEO Jerry Randall & CFO Daniel Wells.

www.linkedin.com/posts/paul-hill-a5994116_qa-with-venture-life-ceo-jerry-randall-activity-6932224738765242368-B2oN?utm_source=linkedin_share&utm_medium=member_desktop_web

www.voxmarkets.co.uk/media/62833f2126e0eca8e7ee2bee/?context=/?mediaAssetId=

[thedudie] 17/5/2022 08:01

...we expect to see continued organic growth within the portfolio, a significant part of which will be coming from our 2021 acquisitions, which we also expect to supplement with immediately earnings enhancing acquisitions




We have seen an encouraging start to 2022, with the current order book comfortably ahead of the same time last year on a like for like basis, including the acquired businesses. This reflects growth in the underlying business plus the effect of customers supporting us by ordering further forward to help manage supply chain disruption and secure stock, which gives us greater visibility of revenues

[csmwssk12hu] 17/5/2022 07:55

Sales and profit 200k ahead of trading statement, I think this will be todays 50% plus riser imho dyor

[brummy_git] 17/5/2022 07:51

Material upside potential being offered at OTC, consumer healthcare firm
Venture Life.

All the latest news & commentary here.

www.linkedin.com/posts/paul-hill-a5994116_vlg-vlg-vlg-activity-6932220627776884736-JAIi?utm_source=linkedin_share&utm_medium=member_desktop_web

[qs99] 17/5/2022 07:30

Not a bad statement given everything IMO....decent EBITDA, H2 growth flow forward, cash on balance sheet and facility for more deals, order book ahead so should see growth this year no/IMO?

Let's see how Mr Market takes it

[1jat] 17/5/2022 07:26

So the 2021 results are here…..underwhelming and with a caution about Q1.
Staying below 50p all year IMO, need to see sales and profit growth and some director buying would be helpful.

[csmwssk12hu] 26/4/2022 08:56

Element is today put out statement saying personal care sales have soared, should bode well for the sector

[csmwssk12hu] 22/4/2022 08:18

I’m starting to wonder if there is a bid in the offing, there’s been a few bids in this sector recently and these look far too cheap at current levels, would welcome 80p to £1 announcement with results, I’ve seen this before with delayed results, all imho dyor

[brummy_git] 19/4/2022 07:57

Looks like VLG's auditors (ie Grant Thornton) have an internal resourcing issue, which will push the 2021 results into early May.

All the details here.

www.linkedin.com/posts/paul-hill-a5994116_vlg-vlg-activity-6922073890928082944-Npeh?utm_source=linkedin_share&utm_medium=member_desktop_web

[1jat] 14/4/2022 16:57

Now definitely into the second half of April for the results, so much for the RNS promising early April.

Will there be a nasty surprise provision ruining managements upbeat assessment?

[pngasef] 05/4/2022 07:28

Fire the auditors. This just isn't good enough.

[basem1] 01/4/2022 11:16

Looks like the bottom is in here The ask has increased a bit and bid has strengthened I was going to add at 36.9 but have missed that for now

[qs99] 23/3/2022 18:21

Indeed, hopeless....

[stemis] 23/3/2022 15:32

Bloody Grant Thornton AGAIN. Why does anyone use this shower?

[pngasef] 23/3/2022 15:14

......April unfortunately!