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Share Name Share Symbol Market Type Share ISIN Share Description
Venture Life Group Plc LSE:VLG London Ordinary Share GB00BFPM8908 ORD 0.3P
  Price Change % Change Share Price Shares Traded Last Trade
  0.10 0.18% 55.50 634,690 10:14:50
Bid Price Offer Price High Price Low Price Open Price
55.00 56.00 56.00 55.50 56.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Health Care Equipment & Services 30.08 3.28 2.74 20.3 70
Last Trade Time Trade Type Trade Size Trade Price Currency
16:46:33 O 50,000 55.221 GBX

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Date Time Title Posts
24/9/202109:56Venture Life Group plc1,151
17/9/202110:16ValueGrowth Investing35,070
02/4/201510:58Venture Life Group - Intro video-

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DateSubject
25/9/2021
09:20
Venture Life Daily Update: Venture Life Group Plc is listed in the Health Care Equipment & Services sector of the London Stock Exchange with ticker VLG. The last closing price for Venture Life was 55.40p.
Venture Life Group Plc has a 4 week average price of 55.40p and a 12 week average price of 55.40p.
The 1 year high share price is 117p while the 1 year low share price is currently 55.40p.
There are currently 125,810,530 shares in issue and the average daily traded volume is 889,593 shares. The market capitalisation of Venture Life Group Plc is £69,824,844.15.
24/8/2021
13:51
red ninja: Most of the PIs who were spitting tacks over last trading update must have exited by now. The current share price is not expensive if you accept the Cenkos projections are reasonable.
17/8/2021
12:28
red ninja: ST does not appear to believe he has had a left hand wallop, from 1109 :- "In my view, there has been a massive overreaction to last week’s trading update – 2022 forecasts are in line with the expectations I outlined in last week’s article – and the share price fall is not only overdone, but is likely to prove a cracking buying opportunity. I am certainly not changing my 130p target price. BUY." I guess it will become clearer who has had the left hand wallop in a year to eighteen months. even fairer play to those who bought around the 64.5 - 65p level before ST updated backing.
17/8/2021
08:45
melody9999: Hew - I think that VLG might have reported the Chinese distributor issue earlier. But the hand gel is just market demand. Overall, with other product lines performing well, it is not clear to me that management should have put out an additional RNS before the TU. Having said that, given the share price reaction, it will certainly focus management's attention on the issue. Meanwhile I concur with ST that this is a buying opportunity
17/8/2021
08:14
sev22: Here is Simon Thompson's latest column released last night: Venture Life: Investors overlook massive earnings upgrades. It’s not often that a company releases a trading update, analysts upgrade their current year EPS estimates by 19 per cent and introduce estimates that indicate 38 per cent EPS growth next year, and the share price sheds a third of its value. However, that is exactly what has happened to Aim-traded Venture Life (VLG:65p), a developer, manufacturer and distributor of products for the self-care markets. Clearly, investors have been spooked by news of materially lower sales of hand sanitising gels and sales of the company’s Dentyl products to its Chinese partner. In the first half of 2021, these two segments delivered £0.3m of combined revenue, down from £5.5m in the first half of 2020, which explains why Venture’s first half revenue declined from £16.8m to £13.8m. Please note the latter figure includes a £1.1m revenue contribution from the recent acquisition of BBI Healthcare, a highly profitable global market leading women's health and diabetes/energy management company. Excluding these revenue streams, Venture’s other legacy businesses performed well, delivering 9 per cent higher revenue of £12.4m in the six-month period. The shortfall prompted house broker to rein in its 2021 revenue estimate from £33m to £29.2m for Venture’s legacy businesses, before accounting for the contribution from this summer’s earnings enhancing acquisitions which has prompted earnings upgrades. Though that’s disappointing, it is in no way a disaster given that the same businesses posted revenue of £30.1m in 2020, so effectively their revenue could only decline by 3 per cent year on year. I am not sure that many investors selling out have grasped this fact. True, the overstocking of hand sanitising gel in retail channels (that resulted from panic buying last year) will take time to unwind, so the contribution from this opportunistic segment isn’t going to be anything like last year. However, analysts weren’t factoring much in the way of second half sales in any case. More importantly, Venture’s partner for Dentyl in China is still suffering from the effects of the Covid-19 lockdowns in 2020 on its offline business, so is not taking new stock at the rate anticipated when it entered the distribution agreement in 2020. With a debtor balance of less than £300,000 outstanding, below the provision made in last year’s accounts, Venture could terminate the distribution agreement, as it’s entitled to, and take its business elsewhere effectively at nil cost. Chief executive Jerry Randall confirmed that he is talking to other European based companies which have operations in China with a view to entering an agreement with them unless the current distributor fulfils its obligations. Mr Randall also points out that Venture’s order book (pre-acquisitions and excluding orders for the China partner) is higher year on year despite the lockdowns across many markets, and expects Venture to produce meaningful revenue and profit growth in 2021. Unfortunately, the lack of earnings guidance in last Friday’s trading update has left retail investors in the dark, which has exacerbated the share price fall. I can shed some light on the matter. Crunching the numbers House broker Cenkos Securities produced a detailed note for clients which included material earnings upgrades, even if investors have ignored them, or perhaps more likely are simply unaware of them. The broker expects BBI to produce annual gross profit of £6.1m on revenue of £10.5m in 2021, and has taken a seven-month contribution from this high margin (58 per cent) business in its 2021 forecast. Cenkos also expects the more recent acquisition of Helsin Healthcare’s oncology support products to deliver 2021 gross profit of £1.3m on sales of £2.5m, and has embedded a five-month contribution into its 2021 forecasts. Combined the two acquisitions add £6.74m to 2021 revenue which when added to Cenkos’ £29.2m reduced forecast for Venture’s legacy business means that annual revenue should still rise 20 per cent to £36m. On a gross margin of 43 per cent this produces gross profit of £15.6m, up from £12.8m in 2020 and £14.3m previously forecast, hence the upgrade in current year Ebitda from £7m to £8.4m and the £1m upgrade in operating profit to £5.6m. On this basis, earnings per share (EPS) rises by 19 per cent to 4.53p. Mr Randall is comfortable with these forecasts. He also notes that proforma net debt of £5m (after accounting for all acquisitions) should unwind to Cenkos’ forecast (£2.1m) by the year-end after factoring in the second half profit contribution and working capital flows. More importantly, the cost savings (staff costs, facilities etc) and revenue synergies (extension of distribution agreement into new territories) from BBI underpin bumper profit growth in 2022, hence why Cenkos believe that BBI can contribute £7m of gross profit (up from £6.1m forecast in 2021) on £12.1m revenue next year. Analysts also believe that Helsin will generate gross profit of £1.6m on revenue of £3m in 2022, too, a sensible prediction given that sales are set to rebound as hospitals restart oncology treatments post pandemic. 2022 earnings growth materially under priced The point is that the contribution from both acquisitions accounts for 40 per cent of Cenkos’ £21m gross profit estimate for 2022 and a third of its £46m revenue estimate. Their contribution de-risks the investment case by diversifying the product offering, while offering a source of profit growth by reinvigorating the brands through self-help measures. Moreover, the acquisitions generate higher gross margins, which is why Cenkos expect Ebitda to rise from £8.5m to £11.95m in 2022. To put that figure into perspective, it’s more or less in line with the upgrade I was looking for in my article last week (‘Exploiting an earnings upgrade opportunity’, 10 August 2021). So, with Ebitda forecast to rise by £3.5m and depreciation charges and amortisation charges only rising by £0.5m, then effectively 85 per cent of next year’s Ebitda growth should be converted into operating profit, hence why Cenkos expect operating profit to rise from £5.6m to £8.5m in 2022 and deliver 38 per cent higher EPS of 6.21p. On this basis, the shares are trading on a miserly, forward PE ratio of 10.5. If anything, the risk to 2022 earnings estimates is skewed to the upside. That’s because Randall confirmed that the company has firepower of £20m plus through Venture’s new bank facility to make further earnings accretive acquisitions. In my view, there has been a massive overreaction to last week’s trading update – 2022 forecasts are in line with the expectations I outlined in last week’s article – and the share price fall is not only overdone, but is likely to prove a cracking buying opportunity. I am certainly not changing my 130p target price. BUY.
16/8/2021
22:19
melody9999: I agree with Simon Thomson from the Investors Chronicle that the share price fall has been a massive over-reaction; hence why I did not sell a single share. His summary below: So, with Ebitda forecast to rise by £3.5m and depreciation charges and amortisation charges only rising by £0.5m, then effectively 85 per cent of next year’s Ebitda growth should be converted into operating profit, hence why Cenkos expect operating profit to rise from £5.6m to £8.5m in 2022 and deliver 38 per cent higher EPS of 6.21p. On this basis, the shares are trading on a miserly, forward PE ratio of 10.5. If anything, the risk to 2022 earnings estimates is skewed to the upside. That’s because Randall confirmed that the company has firepower of £20m plus through Venture’s new bank facility to make further earnings accretive acquisitions. In my view, there has been a massive overreaction to last week’s trading update – 2022 forecasts are in line with the expectations I outlined in last week’s article – and the share price fall is not only overdone, but is likely to prove a cracking buying opportunity. I am certainly not changing my 130p target price. Buy.
13/8/2021
11:30
rivaldo: ...this management have increased the share price by almost 150% to the current 73.5p in the last 18 months or so. Not so bad. Cenkos have now raised their forecasts to 4.53p adjusted EPS this year, rising to 6.21p EPS next year. That's a P/E of 16.2 falling to just 11.8, now incorporating the acquisitions. It's still possible that there'll be another earnings-enhancing acquisition or two soon. Management have earned the market's distrust with (a) share sales and (b) failing to flag the extent of the drop in the "one-off" sales of hand sanitiser and Dentyl China. Nevertheless, this doesn't mean that the core business is not a good, steadily growing business with lots of growth potential from both existing production facilities and the current product portfolio. Just look at the success of the relatively recently acquired Kelo-cote, which presumably is part of the reason why the order book excluding the "one-offs" is up 9%. IMO this company may, looking forward, be considered to have been an absolute bargain at these levels. EDIT - thanks for that Simon. Interesting to see the difference between the Cenkos and Singer numbers. Singer show absolutely no workings or detail, whereas Cenkos' note is far more detailed. I note that Singer now have a 130p fair valuation "using a peer-based 15x EV/EBITDA multiple".
13/8/2021
07:40
simon gordon: VLG is on c.4x sales. Two things rocked the share price hard in 2020: China contract and HS. The first indication the China contract was a dud was the February T/U: "There were no further shipments of product to our Chinese oral care partner in H2, but shipments are due to resume in H1 2021." They've been walking that contract down since and today totally fessed up to the market.
06/8/2021
08:47
sev22: This is what Simon Thompson had to say after the previous acquisition back in June. I would expect an update next week and an increase in his target price following this morning's news. Aim-traded Venture Life (VLG:92p), a developer, manufacturer and distributor of products for the self-care market, has announced the £36m acquisition of BBI Healthcare, a highly profitable global market leading women's health and diabetes/energy management company. BBI’s key brands are Balance Activ, the leading UK brand for the treatment of bacterial vaginosis; Glucogel, the number one glucose gel prescribed in the UK for hypoglycemia; and Lift, a range of glucose gels, shots and chewable tablets. BBI owns all the IP associated with the brands which are sold or partnered across 27 countries. In addition, BBI has developed a new women’s health product and signed a distribution agreement with an [undisclosed] international partner for the new product to be launched under their own well-known brand in Europe, China and USA. This is the first acquisition since Venture raised £34m placing and £2m open offer at 90p a share last November to fund its acquisition strategy. BBI reported adjusted cash profit of £2.6m on £10.2m revenue in 2020, and profits will be materially higher this year after taking account of product initiatives and cost synergies. In fact, the £36m acquisition has been priced on a “high single-digit cash profit multiple for 2021”, implying cash profit will grow by at least 50 per cent. Moreover, there are multiple strategic benefits that will boost BBI’s profits in 2022 including cross-selling opportunities between Venture’s existing customer base, marketing BBI’s products through its enlarged distribution network, and utilising BBI’s manufacturing facilities in Sweden. They are currently running at 20 per cent capacity, thus offering a material opportunity to generate additional revenue by ramping up production. Although the acquisition leaves Venture in a slightly positive net cash position, the group is putting in place a revolving credit facility to enable further acquisitions. Management expect to update the market soon on other deals in the pipeline including Project Vulcan, a company focused on oncology support therapies to treat the dermatological and oral side-effects of cancer treatments. Venture’s directors see an opportunity to increase the distribution of the brands' products into more territories using its own network of local partners, along with new partners. In 2019, Vulcan generated £3.5m in net sales and an estimated cash profit excess of £1.2m. The £5.5m consideration equates to 4.5 times cash profit. The point is that although housebroker Cenkos Securities is holding fire on upgrading its estimates for now, then we are guaranteed some hefty uplifts later this summer. Analysts currently expect Venture’s cash profit (pre-BBI acquisition) to increase 14 per cent to £7m on 10 per cent higher revenue of £33.3m. However, a six-month contribution in 2021 from BBI would increase Venture’s cash profit to £9m, implying 50 per cent year-on-year growth. On an annualised basis, group cash profit run rate will be closer to £11m, or 83 per cent higher than in 2020. This implies Venture is being valued on a multiple of 10 times annualised cash profit to enterprise valuation, a modest rating for a company that is set to generate further revenue and cost benefits from BBI and has a cracking track record of integrating acquisitions. The key reason why the shares have doubled since I initiated coverage, at 45p, in my May 2019 Alpha Report is management’s ability to outperform. The BBI acquisition and imminent news of further bolt-on deals are set to support further earnings upgrades, and that’s simply not being priced in. I maintain my 130p target price. BUY.
06/8/2021
07:11
rivaldo: Looks like a very good acquisition of three oncology brands, two of which VLG already manufacture. Immediately earnings-enhancing given £1.3m historic gross profit for a £4.7m consideration - and that was in the first pandemic year, so there should be a sharp increase in profits from here. Especially with the various synergies and growth/partnering strategies which VLG can bring to the party: Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-Acquisition-of-Oncology-Sup/85772749
22/1/2021
16:13
qs99: Yup, thanks Riv, just a shame VLG share price heading in the wrong direction! Let's hope we get some news soon on trading, deals etc
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