Report

Record Revenue Year

​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.
Underlying
Venture Life Group

Venture Life Group is a holding company, engaged in the development and commercialisation of healthcare products. Co.'s products address healthcare issues from oral healthcare, women's intimate health, neurology, cardiovascular and dermatology. Co.'s products include UltraDEX, a product range for the treatment of halitosis. Co.'s other brands are: NeuroAge™, a food supplement indicated for short-term memory loss and cognitive function; Myco Clear™ , indicated for the management of onychomycosis; Rosa calma™, a range of three topical products that treats this inflammatory skin condition; and Procto-eze™ Plus, a range of medical devices and cosmetics for the treatment of haemorrhoids.

Provider
Equity Development
Equity Development

​Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.

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