Venture Life Group

http://www.venture-life.com/ TICKER: VLG     EXCHANGE: AIM

Venture Life manages a growing portfolio of its own healthcare brands focused on ageing consumers, supported by its integrated product development and manufacturing model. Sold without prescription, these brands address common ailments of ageing, cater for a population with raised expectations of quality of life and longevity, and travel well across international markets.

LATEST REPORTS

 
Delivering strong revenue momentum
Published: Jul 13 2017

Venture Life (VLG) combines innovation, product development, formulation and contract manufacturing expertise and an international partner distribution network across >40 countries. VLG's product range spans brands that address common ailments associated with ageing.
VLG reports strong revenue growth of 28% to £7.8m in the H1'17 period – or 18% on a like-for-like basis – as investment in promotion of the UltraDEX oral care range paid off, indicating that VLG is well on track to deliver our FY17 estimated revenue. We estimate that line extensions, prospects of further international expansion of the brand, will be a key driver of future margin and revenue growth. There are also indications that the Biokosmes manufacturing site is increasing output and revenues, having achieved a record high in sales in June. We maintain our forecasts ahead of FY17 results. 
As a result of a focus on marketing and promotional and TV advertising campaigns, VLG reports that the UltraDEX range delivered the highest level of revenue for the past 5 years during H117; and it is also looking ahead to further expansion in the UK.
Other growth drivers in the period include sales of non-branded products, manufactured by the integrated manufacturing facility Biokosmes – which delivered a record revenue month in June. Non-branded revenues from the site reached £10.5m in FY16.
We retain our DCF valuation of £46m or 124p per share, and forecast 2017-2019 CAGR of 16% on revenue with EBTAE margin rising from 9% to 15% over the period. Given the prospects of international and domestic brand expansion, we think the current share price places the shares on an unduly low EV/FY17 sales multiple of 1.3 x
 
View the Results Webinar
Published: Mar 24 2017

You can now hear Jerry Randall, Chief Executive Officer, and Sharon Collins, Commercial Director, present the final results for the year ended 31st December 2016 on behalf of Venture Life Group plc.
To view simply click on the video below. 
 
Visibility on brands rising with profits
Published: Mar 23 2017

Venture Life (VLG) combines innovation, product development, formulation and contract manufacturing expertise and an international partner distribution network across over 40 countries.

Results for 2016 show that VLG delivered on all KPIs, notably the successful launch of newly acquired UltraDEX brand, increasing branded revenues by 250%, helping VLG to exceed revenue expectations up 57% to £14.3m and providing a maiden EBITDA profit of £0.8m. The company is on track to deliver sustainable profitability in the short term as it continues to expand its range of higher margin branded products, an important step towards the further transformation of VLG into a company with higher brand visibility.

Expansion of the brand portfolio came through acquisition of strategic oral health range UltraDEX. VLG is well on the way to leveraging the established reputation of UltraDEX backed by efficacy and clinical evidence provides an entry point to form new distribution partnerships in additional territories across the brands portfolio. Initial distribution agreements were struck for Benecol 'once-a-day' liquid sachet in Turkey and Jordan, developed in-house at the Biokosmes site.

New Product Development is in full swing with 3 topical medical devices developed in house are due for launch in 2017: Myco-Clear to treat fungal nail infections, Photo-ALL for drug induced UVA sensitivity and Rosacalma a topical treatment for Rosacea reinforcing the portfolio of medical devices with differentiated products.

Financial highlights included 57% FY16 revenue growth to £14.3m, driven in part by a stronger Euro and with significant contribution from newly acquired UltraDEX range which boosted branded revenues by over 2.5x from £1.1m in FY15 to £3.8m. Strong growth in contracted manufacturing revenues from the Biokosmes site, up 31% in FY16, contributed to a maiden positive EBITDA of £0.8m in FY16.

Our DCF valuation of VLG is £46m equivalent to 124p/share, with no major changes to our underlying forecasts. We use an 11% WACC and 2% long term growth rate. The shares trade on an EV/2017 sales multiple of 1.2x which appears undemanding given the prospects of near term sustainable profitability and growing premium brand visibility.

NB the management will present a webinar for investors at 2.45pm  TODAY  Register here

 
A year of maiden profitability
Published: Jan 26 2017

Venture Life (VLG) combines innovation, product development, formulation and contract manufacturing expertise and an international partner distribution network across over 40 countries. VLG's product range spans brands that address common ailments associated with the ageing process.
Pre-close 2016 update:on track to report £14.3m of total group revenues at FY16 results, equivalent to 57% year-on-year growth, consequently hitting the target of a maiden positive EBITDA result with an end of year gross cash position of c £2m. 
Key growth drivers were expansion of the brands business direct in the UK and through formation of global distribution agreements, and continued investment in its development and manufacturing business which increases its flexibility to roll-out new products. 
The year has started well, with the growing order book in place and January revenues 45% above the same period in 2016. Looking forward, drivers include further launches. VLG unveils today 3 products developed in-house, to be launched by international partners in 2017. 
VLG shares trade well below their 12-month high of 78p, on an EV/2016 sales multiple of c 1.5x, while our DCF valuation supports a fair value of 120 pence per share. 
REMINDER: VLG Investor Presentation at Panmure Gordon (EC4) TODAY @ 3pm. To register e mail   [email protected]
 
Record Revenue Year
Published: Nov 15 2016

Venture Life combines innovation, product development, formulation and contract manufacturing expertise and an international partner distribution network across >40 countries. Their product range spans brands that address common ailments associated with the ageing process.
This week’s trading update confirms that strong H1 revenue growth has continued through H2. That and a firmer Euro indicates FY2016 revenues of not less than £14m, signalling a >50% increase over FY2015. In addition, a strong order book for Development & Manufacturing suggests that the current buoyant business momentum continues into 2017. 
Encouragingly, UltraDEX revenues rose in Sept/Oct, through increased store listings, supported by planned advertising and efforts to broaden customer awareness. October saw the first of three international launches - Spain.   
Order book build bodes well for 2017 outlook. Jan '17 orders for Development & Manufacturing business are >45% ahead of actual revenues in Jan '16. Future order flow should help support this positive growth indicator. A UK Sales Director anticipates a sharper market focus on UltraDEX in 2017 as well as opportunities to implement more brand launches in the UK market.
For the moment, our forecasts remain unchanged and we reiterate our view of a move to sustainable profitability from 2017. The current order book momentum is positive whilst our forward forecast CAGR for EBT of >75% pa is starting to attract investor interest. Our DCF analysis supports a fair value of 120 pence per share – see our August initiation note and listen to CEO’s presentation on the ED website.
 
Venture Life - Equity Development Investor Forum, September 2016
Published: Sep 30 2016

Jerry Randall, Chief Executive Officer, presents the case for investing in Venture Life. 

 
'Eze-ing along nicely
Published: Sep 22 2016

VLG confirmed its July trading update with strong interim results, notable for a first positive EBITDA result. A buoyant outlook, aiming to capitalise on significant growth plans for UltraDEX, further new products (as they reach the market) and a growing order book for Development & Manufacturing services, should translate into higher revenues, a higher level of operating gearing and high trajectory profit growth from 2017.
Step change in performance starts with UltraDEX. This newly-acquired product brightened Brand division H1 revenue results, contributing £0.9m to the period's £1.2m total. A UK 'refresh' campaign for UltraDEX is planned for the autumn.
A premium growth story. We forecast CAGR for revenues of 16% from 2016 and a move to sustainable profitability from 2017. These interim results and a forward forecast CAGR for EBT of >75% pa are starting to attract investor interest. Our DCF analysis supports a fair value of 120 pence per share.
NB Venture Life will be appearing alongside Benchmark Holdings and Vp at our next investor forum on Wednesday 28th September. To register please click here.

ARCHIVE

2016
Live long and prosper
Published: Aug 03 2016

Venture Life manages a growing portfolio of its own healthcare brands focused on ageing consumers, supported by its integrated product development and manufacturing model. Sold without prescription, these brands address common ailments of ageing, cater for a population with raised expectations of quality of life and longevity, and travel well across international markets.
Trends for the self-care, self-pay consumer healthcare market are positive, highlighting opportunities in both developed and emerging markets. Venture Life maximises brand value through international distribution agreements outside of the UK. 
International growth paints a particularly positive picture. UltraDEX, Lubatti, Benecol, NeuroAge and Procto-eze are all set to expand revenue prospects in Europe and other international markets (notably China).
The company owns a manufacturing centre in Italy (Biokosmes), which is key to the operational scale, efficiencies and leveraging improved financial metrics in our model. 
We regard the investment story as being low-risk, but offering high-growth potential. CAGR revenue growth of 17% is forecast from 2016, and a move into profits of . With a pre-tax forecasts of £0.54m in 2017 and £1.39m in 2018. That translates into a forward CAGR for EBT of nearly 70% pa. 
Our DCF analysis supports a fair value of ~£44m which equates to 120p per share, more than twice the current level.