Venture Life Share Discussion Threads

[apad] 07/8/2018 07:59

Too many 'adjusted' in ROR interims.
Still, they have an 'innovation funnel' to fix that!
Nevertheless a quick read doesn't look all that bad.
Lifting tide.
apad

[janeann] 07/8/2018 07:32

You aren't alone red.

ZTF interims; all looks positive with the new capacity coming on stream. Very upbeat given its inline with expectations.

[redartbmud] 06/8/2018 22:29

I may have bought back Rsw too soon, but may well take a trading stake on
'significant' weakness.

red

[apad] 06/8/2018 17:53

RSW will drop through the 200 day.
It'll be a great buy. Market is missing the story and the balance sheet!
apad

[apad] 06/8/2018 17:30

BVXP is only up 12% in the last 3 months.
The story is stronger than that.
apad😎

[apad] 06/8/2018 17:22

ZOO falling back nicely, might be able to increase soon.
Bought in to the story, and I like companies that pose existential threats, especially when they are well managed.
I still don't 'get' LTG and PRSM - both up 50% YTD. Fascinating.
apad

[apad] 06/8/2018 16:35

Pillocks, the lot of them.
apad😡
ps
Not Ella.
Shame the way she finished her life.

[redartbmud] 06/8/2018 16:02

Ella Fitzgerald - Blue Skies (High Quality - Remastered) - YouTube


red

[redartbmud] 06/8/2018 15:43

Blue skies shining on you:-)

red

[apad] 06/8/2018 15:08

Tintins say £43 for FEVR!
Assuming success in yoodleland I presume.
apad

[apad] 06/8/2018 08:55

Infrastructure investment is one of my no go areas.

Channel Tunnel


Early years of VOD.

apad

[runthejoules] 05/8/2018 22:37

SHARES 20th July:

Marketing efforts at Venture Life (VLG) appear to be paying off as its UltraDEX products, including toothpaste and mouthwash, in June enjoyed their highest month of sales over the last five years.

The company promoted the product range in the UK through TV advertising and promotions through independent coffee shops.

& 26th July:

26 Jul 2018
Venture Life seeks a step change in growth with major fundraise and strategic acquisition

The healthcare company is also aiming for at least 10% annual organic sales growth
26 July 2018|Under The Bonnet
Issue: 26 Jul 2018 - Page 43

If you have ever shopped in Boots or Superdrug, you may be familiar with some of international healthcare group Venture Life’s (VLG:AIM) products.

One of its biggest brands is UltraDEX, an oral healthcare product range that was introduced through the acquisition of Periproducts in 2016.

Venture Life develops, manufactures and commercialises self-care products for companies, including healthcare products acquirer Alliance Pharma (APH:AIM).

The business was founded in 2010 by Jerry Randall and Sharon Collins, who previously worked together at Sinclair Pharma (SPH:AIM). After merging with Italian contract manufacturer Biokosmes, the company floated on the stock market in 2014 at 109p.

The shares currently trade 59% lower at 45p despite robust revenue growth over the last few years and a profit breakthrough in 2017.

The stock market performance has been disappointing yet the stock is arguably at a turning point, both financially and strategically.

A major fundraise has now been proposed which should strengthen the balance sheet and help pay for the acquisition of Dentyl which comes with mouthwash and breath freshener products.

TAPPING INTO SELF-CARE TRENDS

One of the biggest catalysts for Venture Life is an ageing population, which is expected to increase demand for self-care products as people look to take better care of themselves in old age.

Northland Capital analyst Vadim Alexandre argues the burden of care is shifting to individuals due to pressure on global healthcare systems amid the global obesity epidemic.

In Europe, the self-care market is worth £20bn according to data from the Association of the European Self-Medication Industry.

Venture Life wants to grow its presence in Europe, China and the US. In a bid to tap into high demand, it manufactures food supplements, including NeuroAge to improve brain function and the Benecol brand to lower cholesterol.

The company also develops medical devices focusing on women’s intimate health through the Vonalei brand and cosmetics such as Chinese skin care range Lubatti.

STRONG REPEAT REVENUES

Venture Life benefits from loyal customers as approximately 90% of its sales are from repeat orders.

Its biggest client, Alliance Pharma, accounts for 24% of sales and recently renewed a contract for the manufacture of oral care and dermatological products until 2025.

The contract covers the manufacturing of Alliance’s eczema treatment Atopiclair and mouth ulcer medication Aloclair, and offers sales visibility from a key customer.

Other customers include Japanese conglomerate Sunstar, Spanish pharma company Almirall and Swiss pharma group Helsinn, representing under 10% of sales each.

UltraDEX products, including mouthwash and toothpaste, are priced a premium compared to well-known competitor brands such as Listerine and Colgate.

Venture Life manufacturing director Gianluca Braguti says UltraDEX products should not be compared to these other popular brands as they are medicated.

AMBITIOUS GROWTH ASPIRATIONS

Chief executive officer Jerry Randall says the company is aiming for between 10% and 20% annual organic sales growth, which could be supplemented through acquisitions.

Indeed, Venture Life has proposed the acquisitions of mouthwash product Dentyl and breath-freshening capsules BB Mints for £4.2m, which are expected to be earnings enhancing in the first financial year.

An oversubscribed fundraising of £18.7m – if approved by shareholders – will be used to fund the acquisitions, explore more M&A and repay convertible bonds and loan notes. The latter will result in its interest expense falling by £0.3m a year.

Future acquisition targets must have a well-known brand in a niche market and be innovative and profitable, with products preferably specialising in oral healthcare.

To achieve higher organic growth, expanded global distribution is being targeted via existing and new businesses, as well as more distribution deals for UltraDEX.

PARTNERSHIP TARGET

UltraDEX is currently partnered in 14 markets. Venture Life is on track for 30 partnerships by 2020 and new undisclosed products are in the pipeline.

Panmure Gordon analyst Mike Mitchell says the pipeline offers a runway of new product launches in 2018 and 2019 without risks associated with clinical development campaigns for pharma products.

POTENTIAL EXPANSION IN THE WORKS

At the heart of Venture Life’s operations is its manufacturing facility in Italy where 650 products and 21m units were made last year.

The facility could be expanded to meet demand although it currently has 50% spare capacity.

Braguti believes customers are drawn to the company for manufacturing thanks to its flexible mixing capacity. Venture Life can develop products with capacity of at least 8 litres to up to 8,000 litres.

As a precautionary measure should there be any potential delays or production issues, a recovery plan is in place with a backup of approximately 1,200 formulations.

All goods are circulated via partnerships or distributors with retailers such as Amazon, Tesco (TSCO) and Ocado (OCDO) receiving discounts for selling Venture Life’s products.

If tougher import tariffs on goods from the EU into the UK are enforced post-Brexit, the UltraDEX range would be affected, representing 20% of sales.

In this scenario, the company would move manufacturing of UltraDEX to a second manufacturer in the UK. (LMJ)

DISCLAIMER: The author attended a trip to Venture Life’s manufacturing facility in Italy which was paid for by the company.

[redartbmud] 05/8/2018 19:14

It can be done, as long as there is no outside interference, and government doesn't take too much out as tax.

red

[droyden] 05/8/2018 18:56

For what it's worth, in some parts of Edinburgh you can struggle to get a decent 4G signal, so much so that you (in my experience with vodafone) need to force it to 3G in order to get anything that isn't frustrating.

Currently on holiday in Switzerland, full 4G+ half way up mountains! Really remarkable.

[redartbmud] 05/8/2018 15:38

APAD

I take your point on fixed line and 5G in the longer term.
they have not yet bottomed 100% UK mobile coverage, and do not seem to have advanced too far in that area of late. The cost implications, plus resistance to towers in certain locations appear to be the stumbling blocks.
I could not believe the BT strategy at the time they sold their mobile network. It was obviously the future for the industry. The subsequent recent purchase of their current mobile network has gone some way to redress, but must have set them back both timewise and financially.

Sadly the obscene cost of 'buying' licenses for 2G, 3G, 4G was just a punitive tax on the industry, where they were forced to overpay in a bidding war that destroyed real competition, at the time, and weakened the participants. They had far less to spend on the roll out of the infrastructure as a result.

Once the mobile becomes the single source of access, will costs rise for all users?

red

[apad] 05/8/2018 12:19

Hi dacian,
I think your approach has a lot of merit. If they can get a decent share of the 5G roll-out they might do well.
David Rhodes was a gifted engineer who hit the market pitch perfect and they have foundered ever since he left.
A friend of mine went to work for him, so I got some inside feedback at the time.
Please keep me informed about your research if you find something interesting.

BTW. My view of 5G is that will pose a significant threat to fixed line operators, such as BT, because our mobile phones will supplant the built-in routers. You can already use your mobile as a router, but it isn't powerful enough to compete.
So, who will need to pay a monthly rental, in 5G times, to BT for a line?
Nobody.
apad😊

[lauders] 04/8/2018 12:17

jamielein - I went to check the latest info on the DOTD BB and it was the last post (still is) showing by compnews1 (No. 998). You would need to ask him/her. I just followed the link and noted the contents which I thought some here would appreciate. Good to see some interest from yourself and red!

[jamielein] 04/8/2018 10:18

Lauders - that link to the citywire newsletter - is there a place you can subscribe to be alerted about new issues each week? Where did you get the link from?

Thanks

[apad] 04/8/2018 09:59

WEIR broke of its talks to sell the pump division to the swiss in March 2007 and announced its intention to sell in Apr. 2017.
Interesting.
I would have thought SPX would be keen, but no news since and the yoodles have a currency advantage.
To me the pumps are the USP of WEIR. Wonder why they want to sell?
At least ROR are sticking to their last.
apad😎

[apad] 04/8/2018 09:40

Ditto.
apad

[redartbmud] 04/8/2018 08:47

Lauders

Thanks for the article.
The reasons for my long term ownership of Renishaw, Spirax and to a lesser degree Rotork is precisely the quality of the businesses and their respective positions in their fields.
It is no coincidence that the management of those businesses is first class. They have the vision to continue what they do well.
Rotork has slipped of late. They got the timing wrong, and overpaid for the last couple of acquisitions. Peter France lost his job as CEO as a direct result. It does look like it is now recovering. The O&G sector has been brutal.
If I do have a formula, for my more measured long term investments, it is to find similar businesses and then to buy and hold, and add on the dips. So far, I have closed my eyes to the volatility in markets. It is impossible to predict the exact timing and depth of market collapses. It is galling to see a prized possession -20% or so, but I still receive the dividends, and if I am brave enough I have the choice to add more. After all. I can always sell the over-weighting down in the recovery. My little trick of just recovering my investment gives me a few more shares, reduces the average price and increases the yield.
These shares always trade at a premium to their peers, so conviction is essential when taking the plunge. After all, I will buy my Oatibix from the supermarket that gives me the best price at the time of purchase.

red

[lauders] 04/8/2018 01:47

Some of the companies mentioned here are covered on page 3 of this document:


Liontrust Special Situations: we’re too big for small caps

This leads them to have biases towards specific sectors.
For example, drug and technology companies typically
have high levels of intellectual property. This explains
why the fund has positions in Shire and GlaxoSmithKline,
Fidessa and dotDigital. Shire and Fidessa are currently the
subject of takeover approaches.
Industrial companies also fall into this category. ‘We’re
lucky in Britain to have manufacturing companies that lead
the world,’ said Fosh.
For example, Spirax Sarco is a world leader in the use
of steam in industrial processes, Rotork in actuators and
Renishaw in measurement, motion control, healthcare,
spectroscopy and manufacturing.

[thelongandtheshortandthetall] 04/8/2018 00:02

Its hard to resist partaking in an activity you enjoy ay Red.