I really like these figures – 1.8, 2.9, 5.6, 7.2 – and investors should do too!
In million pounds sterling they represent the four-year profit span for Venture Life Group (LON:VLG).
Yesterday the self-care products group bought another big line for its portfolio.
The Business
Venture Life, whose products are sold in over 90 countries worldwide, is an international consumer self-care company focused on developing, manufacturing and commercialising products for the global self-care market.
With operations in the UK, Italy, The Netherlands and Sweden, the group’s product portfolio includes some key products such as the UltraDEX and Dentyl oral care product ranges, the Balance Activ range in the area of women’s intimate healthcare, the Lift and Glucogel product ranges for hypoglycaemia, Gelclair and Pomi-T for oncology support, Earol for ear wax removal, products for fungal infections and proctology, and dermo-cosmetics for addressing the signs of ageing.
The group’s products, which are typically recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies and grocery multiples.
In the UK and The Netherlands these are supplied direct by the company to retailers, elsewhere they are supplied by the group’s international distribution partners.
Through its two Development & Manufacturing operations in Italy and Sweden, the group also provides development and manufacturing services to companies in the medical devices and cosmetic sectors.
Acquisition Of Health & Her
Yesterday VLG acquired for up to £10m, the Cardiff-based Health & Her specialist female health business that specialises upon the transitional elements of hormone health, providing supplements and digital support for the female hormonal health journey.
H&H is a leading brand in hormonal wellbeing supplements and offers a free educational app to support holistic health.
The company’s H&H app is the world's second-largest menopause app, the No.1 menopause app recommended by ORCHA, and the first to publish its impact on menopausal health (British Medical Journal).
VLG CEO Jerry Randall stated that:
"We are delighted to have acquired H&H, an exciting and dynamic business in the innovative area of supporting hormone change in men and women through all life stages.
The business has been well invested in its growth and development, and we will be able to leverage all these assets going forward.
Recent new launches into the US retail market and a deep pipeline of new products are expected to deliver meaningful growth in the short to medium term.
We are very pleased also that the dynamic and innovative founders, Kate Bache and Gervase Fay, will be staying with us to continue the H&H journey and growth.
Hormone change is an area poorly understood by the consumer, but with tools such as the H&H app and specifically designed food supplements consumers can access significant education and support for these changes.
Becoming part of the Venture Life Group will allow the considerable resources of the Group to be applied to continue to drive the growth of the business, expanding its reach and generating meaningful synergies with our current portfolio and operations."
Insider Purchases
I always like to see quoted company directors taking positions in their group’s equity.
So, I was pleased to see that straight after yesterday’s acquisition announcement, Mark Adams, one of VLG’ s non-executives, purchased 116,496 shares @ 42.79p each, taking his holding up to 175,000 shares.
Also, Chairman Paul McGreevy bought 116,519 shares @ 42.9p each, taking his holding up to 806,385 in total.
Analyst Views
Chris Donnellan and Adam McCarter at Cavendish Capital Markets view the H&H buy as a strong acquisition and following the VLG ‘buy and build’ strategy.
For the current year to end-December the analysts are estimating £52.5m (£51.4m) sales, with adjusted pre-tax profits of £2.9m (£1.8m), worth 4.6p (4.1p) per share in earnings.
For 2025 they see £59.4m revenues, £5.6m profits, and 6.1p per share earnings.
Jumping forward into 2026 they have a £64.5m turnover, £7.2m profits and earnings of 7.1p.
The brokers have a 68p a share Price Objective.
In My View
At the start of this month I stated that I noted that on the back of the standstill sales in the first half of the year, which in turn increased its Interim loss, saw the group’s shares easing back by 7% to the then 44.5p, valuing the company at only £56m, they were up to 51.25p in mid-July, which is a level that I consider will soon be bettered and then some.
My view was that trading on 9.6 times current year earnings and just 7.3 times prospective, that Venture Life Group’s shares were cheap – well my stance has not changed, if anything it has been strengthened further by yesterday’s announced acquisition of Health & Her – expanding the group’s impressive product portfolio.
£1.8m - £2.9m - £5.6m - £7.2m - that is what I call PROFITS GROWTH!
The shares now at only 42p, value the expanding group at just £53m – too cheap for such a growth profile.
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