Venture Life Share Discussion Threads

[celeritas] 17/3/2023 17:24

The RNS at the start of the week was reassuring, I expect with HSBC taking SVB it'll be business as usual..

[celeritas] 17/3/2023 17:18

The order book is pushed right out from 2 to 3 months to 6 to 7 months so they should have good visibility.. In line will be great, hopefully with improving margins going forward... Supply chain costs are falling so should help..

[eagle eye] 17/3/2023 17:06

FY results to Dec22 are due next Wednesday.
I look forward to the outlook statement, plus seeing expectations for FY 25.
Hopefully forecasts will be lean and mean as there is no room for disappointment in this market.

[celeritas] 17/3/2023 10:29

It amazes me the market does turn up these anomalies of severely undervalued companies... Apart from mouthwash which people have forgotten about again after covid the company is going from strength to strength, new markets are opening, yeah these take years to build but they are opening, growth will build and build. These aren't small mkts either, Brazil and Germany are huge never mind once we eventually open up in China again. New in house organic products are promised so I expect to see news on that front this year, cost synergies of acquired companies will also feed in.. Capacity isn't a problem either with plenty of scope in Italy and Sweden for a lot more production...
There's also always the chance of being taken over with so many self care products under one umbrella, it takes all the leg work away for any acquiring company..

[celeritas] 14/3/2023 16:37

Gross margins should show they are firmly in the 40s come the next lot of results, I expect they'll pass mid 40s once the full year is out.. I'm also looking forward to see how products are doing on Amazon Germany which is the largest in Europe, particularly Balance Activ which has also launched in Brazil courtesy of Bayer..

[celeritas] 13/3/2023 12:32

Great communication plus the added bonus of an unexpected update which shows VLG is growing strongly.. Net debt after the Earol takeover was 1.5x circa the end of 22, it's already at 1.3x, great going..

[eagle eye] 13/3/2023 10:59

Reassuring details on SVB and good to see the opportunity used for a trading update.
I'm impressed by management's ability to communicate well and allay investor's concerns.

[qs99] 13/3/2023 10:39

Really nice update IMO....

[rivaldo] 13/3/2023 09:01

Indeed - and the trading commentary in today's RNS provides even more reassurance:

"The Group's audited results for the year ended 31(st) December 2022 are expected to be published around the end of the first quarter of 2023 and the Group expects that these will be at least in line with market expectations. Trading momentum has continued in the first two months of the current year and the Group has seen strong cash generation as expected which has reduced Group leverage to 1.3x net debt to Adjusted EBITDA. Liquidity is sufficient and stable, and the Board do not envisage any impact or risk to the business arising from events at SVB.

Jerry Randall, Chief Executive Officer, commented: "The Group has had a strong start to 2023 and seen very good cash generation off the back of strong trading in Q4 2022, and is trading in line with our expectations. The acquisiton of HL Healthcare Limited is integrating well into the Group and contributing positively to EBITDA and cashflow. As stated the Group has no deposits with Silicon Valley Bank, and so is not exposed to any deposit risk."

[stemis] 13/3/2023 08:38

Almost as exactly as analysed on here. The market being what it is however, when there's worries of a problem, share price falls 4p. Turns out there is no problem, share price recovers 2p.

[brummy_git] 13/3/2023 07:16

Its business as usual at OTC healthcare products group Venture Life - following Friday's collapse of Silicon Valley Bank.

All the details here.

[bagpuss67] 13/3/2023 07:06

Nice update

[celeritas] 12/3/2023 22:47

Vlg will very likely have no deposits with them.. The only issue is now finding a partner to run alongside Santander for anymore takeovers in mind but I can't see that happening for another year.. It looks like there's a plethora of institutions wanting to buy SVB UK now anyway, HSBC are favourite..

[eagle eye] 12/3/2023 20:48

I've contacted Venture Life and have been told an RNS will be released tomorrow morning about the relationship with Silicon Valley Bank.
As investors are aware, the company entered into a Revolving Credit Facility with Santander and Silicon Valley Bank in June 2021.
Hopefully this will clarify the situation.

Eagle Eye

[qs99] 12/3/2023 18:38

As long as institutions like VLG, they will find another banker.....IMO/DYOR

[melody9999] 12/3/2023 17:49

Thanks SteMis - that seems like a sound analysis.

[stemis] 12/3/2023 13:16

Always worth noting that in it's accounts it refers to Santander as it's 'main banker'

[stemis] 11/3/2023 20:39

It looks like the facility is a syndicate of Santander and SVB. Hard to know what the split is but since Santander are the lead bank

hxxps://www.santander.co.uk/about-santander/media-centre/press-releases/consumer-healthcare-company-receives-healthy-dose-of

"We’re pleased to act as agent and co-ordinator bank to provide this financial package to the company"

I'm guessing they are providing at least half the £30m facility. I can't see why Santander wouldn't be prepared to make their portion (£15m+) independently available and that should be enough, with VLG's cash balance, to fund the contingent consideration and, if necessary any repayment to SVB (which I think is probably unlikely, as a rescue for SVB may occur and, if not, the loans will simply be allowed to run by the receiver).

What it probably does do, until/unless VLG agrees a replacement to the SVB facilities, is stop any immediate acquisition of brands by VLG.

[melody9999] 11/3/2023 17:44

I've been looking at the impact of the SVB facility not being available.

1 From the HY:
At 30 June 2022, the Group has drawn net £8.5 million (Dec-21: £8.5m), which has been used to pay down all other debt in the Group and the first payment for HICP.

The facility was called upon to make the second and final payment in relation to the acquisition of HICP in August 2022 and we expect the overall amount drawn to come back in line with the end of June 2022 level of drawdown by end of the year, before any further acquisitions.

2 Acquisition of Earol etc
Acquired three new Ear-Nose-Throat ("ENT") brands (the "Brands") through the acquisition of the entire issued share capital of the UK based company, HL Healthcare Limited ("HL") for a total consideration of £13.0 million.

The total consideration of £13.0 million will be settled by an initial cash consideration of £8.0 million, £3.0 million contingent consideration based on revenue performance for the year ending 31 March 2023 and the issue of a £2.0 million subordinated loan note, due to mature in 2024.

So c £16.5M of the facility may be drawn at present and VLG may be 'on the hook' for up to £3M consideration at the end of March.

In the meantime VLG recorded cash of £5.393M at Jun 22, £7,896M at Dec 21 and £5,235M at Jun 21. They have used the SVB facility to pay down all other debt so no problem there.

So I'm thinking that this is an unwelcome challenge for VLG but no more than that. that. Guess they will be thinking of asking Santander to find alternative finance if SVB fails. VLG have been trading well since the SVB facility was put in place, so perhaps they are in a better place to obtain competitive terms?

Am I missing anything? What do others think?

[rimau1] 11/3/2023 13:31

If you’ve drawn-down the SVB facility its business as usual but any undrawn amounts no chance. I know of a company that tried to draw down a revolving loan facility on Friday morning and it was no longer possible.

[effortless cool] 10/3/2023 16:34

You're correct, they are on the right side of the credit risk but they are on the wrong side of the liquidity risk.

Potential consequences are lack of further access to lending facility; worst case the facility is withdrawn entirely and any drawn debt needs to be immediately repaid/refinanced (although I've no insight into whether this is possible under the terms of the facility).

[mjneish] 10/3/2023 16:17

Better than lending to someone who then defaults.

So what are the consequences?

[effortless cool] 10/3/2023 15:57

Borrowing from Silicon Valley Bank.

[qs99] 10/3/2023 15:16

Sold off much more than the market, any views?

[celeritas] 07/3/2023 13:47

Bayer launched Canesflor and Canesbalance in Brazil mid 22 which is really Balance Activ, I expect Balance Activ to follow once Bayer have led the way like they have in many other countries.

Here the sun is pushing Bayers product.