Venture Life Share Discussion Threads

[qs99] 01/6/2022 10:32

CEO was very clear on presentation of final results IMO that he thought the shares were undervalued...they have followed that up with some buying by directors....Shanghai opening gives hope of China "coming good" should see more acquisitions this year IMO...let's see....have loaded up to back our collective hunches! DYOR

[csmwssk12hu] 01/6/2022 10:09

Yes something is happening now I’ve said it a few times I feel takeover personally it’s just way to cheap, sad another British company heading into private equity hands no doubt imho dyor

[qs99] 01/6/2022 10:02

36p now on the offer, that is a big jump, so perhaps a squeeze coming on with so little stock around? DYOR

[basem1] 01/6/2022 09:59

Great entry point here

[qs99] 01/6/2022 09:57

chuff all stock around...looking forward to the mid-40s on re-opening of Shanghai, and also just a v. low valuation tbh! DYOR

[se81] 01/6/2022 09:49

fingers crossed overhang cleared....

[basem1] 01/6/2022 09:46

God knows where it got Kings from lol

[basem1] 01/6/2022 09:45

Limits......predictive text

[basem1] 01/6/2022 09:45

Pretty sure they were buys I have been playing with the kings all morning Managed to add a cheeky 50,000 shares

[qs99] 01/6/2022 09:43

With Shanghai opening up now, could that help their Chinese partner? DYOR

[mirfield] 01/6/2022 09:39

...though showing as sales quite possibly buys ...

[mirfield] 01/6/2022 09:37

Some large sales going through. Just did a dummy sell at 32.35p but unable to buy online??

[basem1] 01/6/2022 09:37

Looks like we are going up now

[qs99] 30/5/2022 19:33

Listening to the presentation sounded like the management are frustrated at the low valuation so director buying and credible delivery should hopefully combine to help see this along.

Shanghai gradually opening up again may also help...

DYOR

[csmwssk12hu] 30/5/2022 16:53

Average daily volume 397k per day over last 12 months, today 1.2 million, treble normal volume, directors buying and the rns came to late in the day to affect the volume so why treble the normal volume

[csmwssk12hu] 30/5/2022 16:47

Hi Sid I didn’t say it was a director’s purchase I said there was big purchases going through which was unusual as there is not normally much volume, there was more than one so may get more rns out in next few days, £50k is a lot to put in for a first time purchase on a small company unless you feel very confident imho dyor

[sid_b] 30/5/2022 16:35

@csmwssk12hu Where did you find the info about the director's purchase of £50k so early in the day?

[se81] 30/5/2022 16:28

Mcgreevy taken a decent chunk- 150k shares (maybe more to come)

[1jat] 30/5/2022 13:40

Csm….a takeover…possible but unlikely….

If I am not mistaken the chair also changed recently…more likely the recent investors want their people in power…

[csmwssk12hu] 30/5/2022 09:47

Todays move are screaming takeover in progress in my opinion, two directors going who could be involved who knows, share purchases at top end £50,000 value, no one puts that in to a smallish company unless they are expecting something soon, look at the graph as well it’s bottomed out a few sessions ago and is climbing imho dyor

[sev22] 26/5/2022 08:38

VENTURE LIFE GROUP PLC - Final Results Presentation 2021 (25th May 2022).

[1jat] 22/5/2022 10:36

Some big IFs there.
No rerating for a while as delivery evidence is needed.
I would love this to get back to 90p eventually.

[sev22] 20/5/2022 19:23

Here is the article in full which appeared last night:

Primed for bumper profit growth.

A developer, manufacturer and distributor of products for the self-care markets, is well placed to deliver a step change in profits.

May 19, 2022
By Simon Thompson

. 2021 underlying pre-tax profit rises 5 per cent to £4.56mn on 9 per cent higher revenue of £32.8mn.

· 2021 reported pre-tax profit of £0.95mn stated after £1.3mn exceptional costs and £2.3mn amortisation charge.

· Closing net debt of £3.2mn (excluding £4.2mn lease obligations).

· Contribution from last summer’s acquisitions materially underpins 2022 earnings forecasts.

Aim-traded Venture Life (VLG:33p), a developer, manufacturer and distributor of products for the self-care markets, is well placed to deliver a step change in profits this year as it reaps the full benefits of last summer’s complementary brand acquisitions: BBI Healthcare, a highly profitable market leading women's health and diabetes/energy management company; and oncology support product company, Helsinn.

Having been successfully integrated into the group, Venture’s own brands accounted for two-thirds of group revenue in the second half of last year. They are higher margin product sales, too, hence why analysts at Cenkos Securities believes gross margin will increase by almost three percentage points to 42.4 per cent this year.

Furthermore, with current year revenue forecast to rise by a quarter to £41.3mn, both gross profit and cash profit should increase by almost a third to £17.5mn and £8.7mn, respectively, to produce £7.3mn of net cash from operations, an outcome that would deleverage the balance sheet completely (excluding £4.2mn of lease liabilities).

On this basis, expect underlying pre-tax profit (before amortisation charges, share based payments and exceptional costs) of £6.8mn, or 49 per cent higher than in 2021, to produce adjusted earnings per share (EPS) of 4.5p. This implies the shares are rated on a current year price/earnings (PE) ratio of 7.3. They are priced 43 per cent below book value, too.

Admittedly, investors may be sceptical about such heady revenue forecasts given past disappointments. So, it’s worth noting that group revenue would have been £37.8mn on a proforrma basis if BBI and Helsinn had been part of the group for the whole of last year. Moreover, Venture entered 2022 with its like-for-like order book well ahead of the same point last year, so is generating underlying sales growth. Customers are also ordering further ahead to secure supply, a factor that supports revenue growth estimates, as does the launch of 18 in-market products through the group’s international distribution partners and the upside from 11 new distribution agreements signed last year.

In addition, Venture parted company last December with its former Chinese partner who failed to meet the minimum contract obligations for two of the group’s leading oral care brands – Dentyl and UltraDEX. New distribution partner Samarkand Global should materially outperform the £0.3mn annual sales achieved in China given its expertise in connecting UK brands such as Omorovicza, Temple Spa and Philip Kingsley to the Chinese consumer.

Importantly, Venture’s management has been managing supply chain issues well, successfully pushing through product price increases this year to mitigate higher input costs such as transport to protect gross margin.

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.

[jagworth] 20/5/2022 19:10

The ST article mentioned was published May 19 Investor's Chronicle Online (as above).
Not in printed version.

[rivaldo] 20/5/2022 09:56

Cheers paleje. Also from the article:

"On this basis, expect underlying pre-tax profit (before amortisation charges, share based payments and exceptional costs) of £6.8mn, or 49 per cent higher than in 2021, to produce adjusted earnings per share (EPS) of 4.5p. This implies the shares are rated on a current year price/earnings (PE)ratio of 7.3. They are priced 43 per cent below book value, too."