Venture Life Share Discussion Threads

[qs99] 31/1/2023 07:37

well said Riv and good morning to you.

plenty of room IMO as well for further M&A if opportunities come along....DYOR

[rivaldo] 31/1/2023 07:30

Very nicely positive trading update, and encouraging as to the outlook:

- VLG are being rather modest in respect of revenues being "slightly" ahead of expectations. The £44m outturn is rather nicely ahead of Cenkos's £41.3m and Singer's £40.8m...
- EBITDA will be "at least" in line, so likely slightly ahead of forecasts
- the order book is a whopping 114% ahead of last year, and trading this year has been positive
- there's "strong post year end cash collection"

Looking good.

[hastings] 31/1/2023 07:20

Revenues ahead of Singer's forecast of £40.8m and EBITDA at least in-line, with positive trading momentum continuing.

[qs99] 31/1/2023 07:16

Thanks BG, looks a v. decent update. Wonder if China re-opening will also provide a material boost into 2023? DYOR etc

[brummy_git] 31/1/2023 07:14

Another positive trading update from OTC consumer healthcare firm Venture Life.

All the details here.

[wooster4] 30/1/2023 15:24

yes - trading update tomorrow

[qs99] 30/1/2023 14:37

Trading update was around this time last year was it not? We only had new licensing agreements announced early Jan, so maybe this jump is ahead of a TU? Thoughts?

DYOR
Cheers
QS99

[rivaldo] 30/1/2023 14:16

You were right :o))

Hopefully still a long way to go.

[basem1] 30/1/2023 08:52

Stock is tight again Should move up shortly Excellent value at this level

[brucie5] 12/1/2023 12:45

At a brief glance, 40p, is the significant level to beat. Thereafter 60p. With a following wind.

;)

[rivaldo] 12/1/2023 08:18

EDIT - already posted above!

[sev22] 12/1/2023 08:16

Investors are being too cautious with this self-care stock.

A developer, manufacturer and distributor of products for the self-care markets is on a recovery mission.

January 11, 2023
By Simon Thompson

*€1.35mn licensing deal for mouth ulcer products in Europe
*Long-term distribution agreements signed in Canada, Vietnam and Brazil for Gelclair
*£13mn acquisition of HL Healthcare brands for 7.6 times cash profit

Aim-traded Venture Life (VLG:36p), a developer, manufacturer and distributor of products for the self-care markets, is well placed to deliver a step change in profits this year, buoyed by complementary brand acquisitions and new licensing and distribution agreements.

In a trading update, management highlighted a raft of new long-term contracts including a 24-month licensing agreement in the EU with an existing customer for its mouth ulcer products; two new distribution agreements for Gelclair (oral mucositis) in Canada and Vietnam, following a similar deal announced with Blau Farmaceutica in Brazil; and a distribution agreement for Pomi-T (management of prostate-specific antigen (PSA) levels) in Peru.

The agreements extend the group’s global reach and highlight the efforts management is making to maximise the value of its brands. This is important after shareholders suffered an annus horribilis in 2021 when profits reversed, a distribution agreement in China failed to deliver (leading to the appointment of a new partner), customers delayed orders and reduced inventory, and input cost pressures accentuated the hit to profits.

Although the group made progress last year – December’s trading update reiterated guidance that points to annual cash profit rising a third to £8.7mn on 25 per cent higher revenue of £41.3mn – investors have been taking a cautious stance given past disappointments.

Investment risk skewed to the upside

However, with 2021 complementary acquisitions performing well – BBI Healthcare, a market-leading women's health and diabetes/energy management company, and oncology support product company Helsinn – and three highly profitable ear-nose-throat brands (Earol, EarolSwim and Sterinase) acquired for £13mn at the tail end of 2022, then analysts at Cenkos Securities pushed through upgrades last month that suggest the group could deliver cash profit of £11.6mn on revenue of £50.4mn this year. On this basis, expect a third higher adjusted earnings per share (EPS) of 6p, implying the shares are rated on a modest price/earnings (PE) ratio of six.

Furthermore, estimated net debt (including leases) of £15.8mn could be paid down to £9.8mn by the end of 2023, thus transferring more of the economic value in the entity from debt to equity holders. These assumptions assume that Venture hits its revenue and profit targets which are based on a maintained gross margin of 42 per cent.

Rated on five times 2023 cash profit estimates to enterprise valuation, less than half the rating of peers, the investment risk remains skewed to the upside. So, having advised bottom fishing, at 28p, when I covered the half-year results (‘Nothing ventured, nothing gained’, 22 September 2022), I feel the shares, at 36p, are worth buying ahead of what should be a reassuringly positive pre-close trading update in late January or early February. Buy.

[toptomcat] 11/1/2023 17:38

Simon Thompson reiterates buy advise this evening, ahead of what should be a positive trading update in next couple weeks

[hastings] 11/1/2023 09:22

Morning riv, cheers and good to be back on board. I'm actually trying right now to speak with both brokers on this!

[rivaldo] 11/1/2023 09:11

Good to see you here hastings - and I note your excellent new article on VLG:



I've tried to reconcile the two forecasts for this year of 6p EPS from Cenkos and 4.1p EPS from Singer, but unfortunately Research Tree only has the front page of Singer's note so it's impossible.

Either way, VLG looks very good value on those numbers.

[hastings] 09/1/2023 15:29

Bought back in last week for a number of reasons, including the points highlighted by rivaldo. Hoping to arrange something with management.

[eagle eye] 09/1/2023 09:32

Great RNS.
Looks like a promising year ahead. Cheap as chips and earnings forecast to grow at a reasonable rate.
Stock thinly traded, but that will work to advantage as investor sentiment proves.
Happy New Year to everyone investing here!

[rivaldo] 09/1/2023 08:50

Great to see products developed internally being adopted and licensed successfully, and then of course being manufactured by VLG's Italian facility too.

Cenkos have an update note out this morning.

They forecast 4.53p adjusted diluted EPS for the year just ended, rising to 6.02p EPS this year. Which puts VLG on a P/E of just 5.98.

VLG have of course already confirmed they're confident in meeting expectations for 2022.

[brummy_git] 09/1/2023 07:45

More great news from Venture Life today.

This time wrt to licensing a new internally developed mouth ulcer treatment, alongside signing additional distribution agreements for Gelclair & Pomi-T .

All the details here.

www.linkedin.com/posts/paul-hill-a5994116_vlg-vlg-activity-7018119661841969153-g6Us?utm_source=share&utm_medium=member_desktop

[qs99] 09/1/2023 07:08

Happy NY!! Lovely RNS to begin the year with

DYOR

[pngasef] 18/12/2022 10:19

I bet VLG is tipped as a star performer in 2023 share columns.

[qs99] 12/12/2022 08:22

No move this morning despite that late move Friday.

[pngasef] 09/12/2022 16:15

Bid coming;-)? Not that I know anything!!

[thedudie] 09/12/2022 16:03

Bit of a sudden rise ?