Venture Life Grouphttp://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.
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
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019