Venture Life Share Discussion Threads

[qs99] 22/9/2022 08:03

Agreed, organic growth looks v. healthy. Let's hope this is the start of the revival....DYOR

[pngasef] 22/9/2022 07:57

Good results.

[lammylover] 26/8/2022 12:51

IHC should be pretty bullet proof as supplying medical equipment to NHS and other global healthcare providers. If there is any sort of winter pandemic, you can bet your bottom dollar that IHC will pick up more ventilator business. Also specialised in neo natal baby care and no-one's going to cut expenditure here..

[basem1] 25/8/2022 16:05

The IHC chart is a stinker though Lammy whichever way you cut it A big red flag for me despite the company looking in good shape Sorry for o/t

[basem1] 25/8/2022 16:01

IHC looks interesting ebitda/ nett cash against market cap look good will investigate further. A Rivaldo type stock. I have not seen if he posts there.

[lammylover] 25/8/2022 15:53

I think there's a few funds bailing out of small AIM shares - yesterday IHC took a 10% drop, and later showed a 272k sell at 10% below market. No real explanation for it other than perhaps they are concerned that a lot of outfits are relying on a strong H2, which is a risk. I don't think its necessarily VLG weakness to inflation. Probably just a forced seller who then spooks others to sell at crazy daft prices..

[basem1] 25/8/2022 15:27

I had 35000 so enough to be painful if I hadn't I'm around 2600 gbp up this year with them been in and out a few times with some largish holdings. Best watched for now, summer volumes and all that. Very cheap if trading is still in line

[csmwssk12hu] 25/8/2022 15:06

Yes I just bailed luckily I didn’t have much but when it starts to drop on no news somebody knows something and those sales are big

[basem1] 25/8/2022 15:00

And I felt daft at selling at 33.7 a fortnight ago.............

[brummy_git] 10/8/2022 14:29

Jamie Constable of Singers talks positively about Venture Life here (starts 14:05)

www.linkedin.com/feed/update/urn:li:activity:6963076334847725568/

[csmwssk12hu] 08/8/2022 12:51

35 about to go

[csmwssk12hu] 08/8/2022 10:48

That 100k buy cleared the last of 34

[csmwssk12hu] 08/8/2022 09:51

Someone keeps buying 50000 shares at a time here

[csmwssk12hu] 05/8/2022 15:39

Rns on the way, director buy again?

[csmwssk12hu] 04/8/2022 12:50

I’ve got the feeling this is about to go on a tun to 41 you were informed imho dyor

[basem1] 01/8/2022 08:29

Will ST give a mention today We will know a minute or two after 12

[1jat] 29/7/2022 18:28

Sadly no one is interested inVLG at present.
V low volumes since Monday….all on holiday?

[qs99] 29/7/2022 09:08

Thanks, always love your updates BG, v. helpful!

Good weekend

[brummy_git] 29/7/2022 08:17

Positive H1'22 trading update from OTC healthcare firm Venture Life on Monday.

All the details here.

www.linkedin.com/posts/paul-hill-a5994116_vlg-vlg-activity-6958680648207233025-zY5T?utm_source=linkedin_share&utm_medium=member_desktop_web

[qs99] 25/7/2022 14:45

Great thanks for posting, should see this high 40s IMO ahead of next update, with continued delivery over 6 months allowing progress beyond the TP of these brokers DYOR

[se81] 25/7/2022 14:23

And cenkos

Venture Life has provided a Trading Update for the six months to June 2022, noting that trading is inline with management’s expectations and remains on track to meet our FY22E forecasts. Revenues are expected to be £18.9m for H1/22E (+36%), supported by recent acquisitions and gross and adjusted EBITDA margins have increased. Net debt, including finance leases, was £7.2m, improved versus £7.5m at Dec-21A. The order book remains strong and ahead of the same period last year and supports the H2/22E expectations alongside trading to date and the normal H2-weighting. We maintain forecasts and our Buy recommendation.

 Trading – H1/22E revenues are expected to be £18.9m, up 36% reported (35% at constant exchange rates (CER)), supported by the acquisitions of BBI Healthcare and the Helsinn portfolio, which contributed £6.3m in the period. On a proforma basis revenue growth was 4%, reflecting solid performance in difficult market conditions.

 Margins – Margins improved in the period, with gross margin up by 4% and adjusted EBITDA margin up by 3% versus H1/21A, indicating gross margin of c39.6% and adjusted EBITDA margin of c17.0%. Gross margin was supported by the acquisitions and the mitigation of input costs, while cost synergies supported the EBITDA margin.  Cash – Net debt, excluding finance leases, improved to £2.6m versus £3.2m at Dec21A, reflecting £1.5m of cash flow generated from operations versus an outflow of £0.7m in H1/21A. Net debt including finance leases was £7.2m at the end of June 22.

 Outlook – Management note that conditions remain changing and challenging but with positive signs on supply chain issues. Cost increases are being shared with customers where possible and costs are being managed to support margins. VLG revenues are generally H2-weighted and the company sees its H2/22E trading well underpinned by the order book, which we expect is being well supported by the recent acquisitions, and certain orders which moved into H2/22 due to supply chain timings. The company remains confident on FY/22E expectations.

 Investment thesis – We see H1/22E trading maintaining the performance demonstrated in the H2/21A results following the recent acquisitions. 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.

[se81] 25/7/2022 14:21

From singer this morning

VLG is showing signs of recovery, with mitigations clawing back lost margin. It has also successfully integrated and locked in planned synergies from the recent acquisitions, which are clearly enhancing the portfolio and earnings quality. Although delayed by lock-down, growth potential remains significant in China from its new distribution partner. VLG is therefore returning to profitable growth as forecast. The platform is highly scalable and trades on just 4.9x EV/EBITDA falling to 3.6x, and offers a 13% FCF yield. Our target price remains at 65p.

VLG has delivered H1 revenue of c£18.9m, equating to growth of 36% (35% CCB). This has been driven largely by the effect of acquisitions (BBI and Helsinn), which contributed £6.3m (vs £1.4m H1’21), with LFL growth of 10% at BBI and 6% at Helsinn. Organic growth across the rest of the portfolio was 1%, driven by customer brands rather than VLG own brands. VLG brands still account for well over 50% of revenues. While Covid-related lockdowns in Shanghai impacted performance through its new Chinese partner, restrictions are now easing. Management continues to expect the new partner to begin to realise the potential for its products, but remains mindful of the risk presented by China’s stance on Covid. On a pro-forma enlarged basis, LFL sales growth was 4%, underlining the resilience of Venture Life’s products through the cost of living crisis and the increasing importance of self-care to consumers. Including the recently acquired businesses, the order book remains strong and is ahead of the same time last year too. As seen historically, revenues are weighted towards H2 this year and these are well underpinned by the current order book strength.

Although against a weak comparative, gross margin has improved c400bps, reflecting the accretive impact of the acquisitions and progress mitigating some of the adverse effect of increased input costs. Early than normal purchasing by certain customers is enabling supplies to be procured cost effectively and in sufficient time to produce. Encouragingly, there are signs that the supply chain issues have plateaued. Alongside delivery of pre-identified acquisition synergies, EBITDA margin has recovered c300bps, suggesting c£1.3m EBITDA growth YoY to c£3m. ND reduced by £0.6m vs Dec’21 to £2.6m.

Impact on earnings & valuation The progress to date, and strength of the order book, mean VLG is confident it will deliver financial performance in line with market expectations. The margin uplift is particularly encouraging, and customers have been very responsive to its request to order further out than normal, enabling it to ensure supply of raw materials/packaging in time to produce, and to also manage costs effectively. Our 12-month target price of 65p offers a TSR of c100%. This uses a target multiple of 8x EV/EBITDA underpinned by improving visibility and confidence in the profitable growth outlook. For a business generating >20% EBITDA margins and a forward (2-year) EPS CAGR of almost 25%, this could prove to be too miserly and therefore leaves scope for further multiple expansion.

[qs99] 25/7/2022 13:36

Isn't VLG a Simon T fav, so could see some positive write ups in IC? DYOR

[qs99] 25/7/2022 13:01

Does make you wonder IMO, with the net debt levels so low, whether Exec team may try and take it private at subdued levels? Thoughts? DYOR

[qs99] 25/7/2022 12:54

That is a massive vote of confidence again by directors....DYOR but looks good for further progress IMO...