Venture Life Group: Half Year Report
Venture Life Group plc (AIM: VLG), the international consumer self-care group focused on developing, manufacturing and commercialising products for the ageing population, presents its unaudited interim results for the six months ended 30 June 2017.
- Revenues increased 28% to £7.8 million (H1 2016: £6.1 million)
- Gross profit increased 27% to £2.9 million (H1 2016: £2.3 million)
- EBITDA increased to £0.3 million (H1 2016: £0.1 million)
- Loss before tax, amortisation and exceptional items reduced to £0.1 million (H1 2016: loss of £0.3 million)
- Adjusted loss per share reduced to 0.3p (H1 2016: adjusted loss of 0.8p)
- Cash at period end of £1.3 million (31 December 2016: £2.0 million)
- Two successful UK advertising campaigns completed for UltraDEX, leading to the highest monthly UK sales for the UltraDEX brand since 2012 recorded in June 2017
- Four new long-term distribution agreements signed across UltraDEX and Procto-eze in two countries
- Successful launch of Original Bioscalin in India and market sales uptake positive so far
- Continued growth in Lubatti sales in the China market
- Highest ever monthly revenue recorded for Biokosmes in June 2017
- European patent granted over the UltraDEX sensitive product
- Two new medical device products, Myco Clear and RosaCalma, received European registration approval, commenced human clinical studies on Myco Clear
Post-period end highlights:
- New long term distribution agreements signed for UltraDEX in five new EU markets (Italy and the Nordics)
- First two deals signed on Myco Clear
- Highest recorded sales out in China for the Lubatti brand in July 2017
Jerry Randall, CEO of Venture Life, said:
“I am delighted with the revenue growth across the Group for the period. UltraDEX is now fully integrated into the Group and has contributed to our revenue growth in the first half of the year, as it continues to deliver on the promises we made at the time of the acquisition. Outside of the UltraDEX revenue contribution, organic revenue growth of 23% was delivered by the rest of the business, demonstrating the robust nature of our sales model. We have invested heavily in the first half in the UK revitalisation of UltraDEX, and this was rewarded in June with our highest level of monthly sales of the brand since at least 2012. I am also particularly pleased with the continued progress of Biokosmes, which delivered its highest month of revenue ever in June.
“We have chosen to invest significantly in support of the Brands business, which includes the marketing support for UltraDEX, as we believe there is significant unlocked value in this asset. This expenditure in the Brands business, and delays in orders from some international distributors, means that our margins and sales mix is expected to differ from our original projections for the full year. We expect full year revenues to be in line with market expectations, however, we now anticipate that whilst EBITDA for the year will show a significant improvement of at least 50% on the prior year EBITDA of £0.8m, it will not meet current market expectations.
“Continued progress in signing new distribution partners also demonstrates the strong international appeal of our portfolio. Our robust business model is delivering excellent organic growth, and the success of the UltraDEX acquisition is demonstrating our ability to acquire and assimilate interesting products. In this regard, I expect us to continue to explore M&A opportunities to complement our core organic growth, and drive sustainable profitability for the Group over the long term.”