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Alliance Pharma, a key customer of VLG, has reported positively today - in particular regarding the comments re Kelo-Cote which VLG manufactures for APH. Which hopefully bodes well for VLG's trading update next month.
Key highlights were:
'a strong second half performance drove record sales for the Year and further underlying profit expansion. With continued investment planned to support new product development and increased marketing, the Group is well positioned for growth over the medium term'.
'Consumer Healthcare see-through revenue up 11% at constant exchange rates to £136.4m (2022: £125.2m) and up 9% on a reported basis'.
'Continued strong consumer demand driving significant recovery in Kelo-Cote franchise revenues in H2, with FY 2023 revenues reaching £63.2m, +29% at constant exchange rates'
Well corrected Jatw yes Stocko have them as the 23rd Sept. Thx
LearningG,
The July results are a sales update near the end of July. The H1 financials are not out until September. Previous years RNSs give an idea on the timing if there is no formal calendar entry.
I would expect a further drop and then a run up to results in July. Bit vague July its 4 weeks to go surely late or early would have helped. Today most SPs under pressure so longer term this will rerate.
It’s frustrating. Despite the company putting out decent results / rns and the stock market rising in general, this seems trapped at around 40p. After the recent results I was expecting nearer 50.
A reassuring update - good enough at this stage to be confident about trading in line, whilst the business "continues to perform well". Upgrades can come later in the year as confidence grows.
Also pleased to see major shareholders taking an active role in getting the resolution for the proposed disapplication of pre-emption rights withdrawn:
Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-AGM-Statement/93976247
"The business continues to perform well and our increased focus on promoting the VLG owned brands is delivering pleasing results, with an additional 35 new listings secured within UK retail since the beginning of the year. We remain confident about the outlook for the year ahead and our ability to deliver full year performance in line with management's expectations. Further commentary over first half trading will be provided as part of our usual business update in July."
Good to see the upward trend here continuing - and encouraging news re Gelclair too:
Https://www.accesswire.com/866208/jaguar-health-to-initiate-commercial-footprint-in-cancer-supportive-care-at-american-society-of-clinical-oncology-asco-annual-meeting-with-exhibit-booth-for-fda-approved-gelclair-oral-mucositis-product
Must admit to being a bit disappointed by the share price and that it barely moved with the results.
I guess the next upward move may come with the sales update at the end of July as a preview of the HY results in September. There is always the prospect of an acquisition with an ad-hoc update.
I doubt anyone here is holding for a dividend.
Buying new product and extending brands is the name of this game. Pay cash, take on debt, bring the debt down. Repeat.
Not sure if paying off debt first would be more beneficial, before paying dividends
A move to the main market could be beneficial to the share price, would then appear on the radar of more investment fund managers.
Yes, this share seems to have everything going for it right now, except a divi but if this they can deliver on the growth then I guess it doesn’t matter.
Cavendish's latest research from earlier this month hasn't been posted here yet in detail.
They have a 68p target price, and they forecast 5.5p EPS this year rising to 6.9p EPS and then 7.9p EPS.
Here's some extracts:
"Strong organic growth; focus on EBITDA
Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x.
Management have focused on growth with three therapy areas generating double-digit revenue growth and online sales up +40%. Our extended forecasts anticipate increased investment, developing new products and expanding distribution channels to drive future revenue growth, with a focus on EBITDA and cash generation. We believe Venture Life has delivered strong organic performance in 2023 and anticipate on-going growth which could be complemented by re-starting the M&A strategy."
"Cash – The company generated cash from operations of £9.8m (FY22: £6.2m), indicating cash conversion of 85%. FCF for debt servicing was £4.8m, up strongly versus £2.8m in FY22. Strong cash generation and no M&A in 2023 allowed the company to deleverage, closing FY23 with net debt to adjusted EBITDA of 1.3x (FY22: 1.65x), which has subsequently fallen to 1.15x."
"Outlook – We note Venture Life’s stated commitment to improving EBITDA margins, that, while lowered in the near-term, are expected to benefit from marketing investment. This reflects a focus on profit and cash generation across all revenue streams, generally regardless of the differing gross margins. We expect this focus to support profit and cash growth for the business.
Investment thesis – Venture Life has delivered an organic 2023, demonstrating its ability to grow revenues and generate cash, allowing the company to de-leverage. We believe the company exited 2023 in excellent shape, noting a diverse product portfolio with further organic growth opportunities, available manufacturing capacity for expansion into new opportunities and a stronger balance sheet to re-engage its M&A strategy."
They also "expect the company to re-initiate its acquisition strategy during 2024 and beyond", and "as of the end of FY24E, based upon our forecasts of the current business, Venture Life would have £16m of the initial £30m RCF available, plus the potential to draw a further £20m".
Under different scenarios this could add between a further £2.5m-£7.5m of EBITDA to current forecasts.
Yep, breaking upwards nicely now. Hopefully soon to attack the early '23 levels of 45p-46p and then to move on up to 60p or more.
Thanks for sharing this Rivaldo. Excellent news and great to see the price move out of the 30’s.
Very encouraging info posted elsewhere (by Celeritas) about the new license and distribution deal in the United States for Gelclair and VLG's partner Jaguar Health.
Jaguar Health is expanding its focus to include cancer-related supportive care, with Gelclair being a foundational element in this strategy.
Https://in.investing.com/news/jaguar-health-names-new-svp-of-growth-strategy-93CH-4133486
Jaguar's stock rocketed 44% "after the pharmaceutical company announced a new license for a chemo mouth treatment", i.e Gelclair:
Https://investorplace.com/2024/04/why-is-jaguar-health-jagx-stock-up-44-today/
And:
Https://jaguarhealth.gcs-web.com/news-releases/news-release-details/jaguar-health-appoints-biopharmaceutical-industry-veteran
Beza - the Execs (3) each have 1m shares on option, so dont expect them to buy more…but the NEDs should be…or be paid in shares….
Suspect opportunities have already been identified and are potentially already in the pipeline undergoing due diligence. I expect at least one M&A announcement in Q2/Q3.
Shows the stability and strength of this company to have RCF under 3% … that seems very good and will be a huge advantage funding expansion plans in the current climate…. Pick up some bolt on acquisitions on cheap multiples and they will pay back fairly quick
Good to see the new RCF now agreed - and also (as previewed by whythefuss!):
"New Partner in USA
The Company also announces that it has finalised an exclusive long-term license and distribution deal in the United States for Gelclair, an FDA-approved oral mucositis prescription product, with Jaguar Health (NASDAQ:JAGX). This agreement, spanning 5 years, entails license fees, royalties, and product revenue payments to the Company.
"We are really pleased to have partnered Gelclair in the USA, a market where Gelclair has been present for many years," said Jerry Randall, CEO of VLG. "This new agreement will ensure the continued supply of Gelclair to US oncology patients suffering oral mucositis, and generate meaningful additional revenues for the Company in the future."
Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-RCF-in-Place-and-New-Partner-in-the-USA/93683690
Now that the dust has settled on the latest update, it would be good to see some decent sized Director buying to further demonstrate their confidence here.
Https://jaguarhealth.gcs-web.com/news-releases/news-release-details/jaguar-health-licenses-fda-approved-oral-mucositis-product-us
New partner in the US for their oncology product
Jatw - lots of different words in your response but seeing straight through that, you are saying the exact same thing I posted previously ie. you have no confidence in the growth and status of the Company in the short, medium or even long term. In response you have simply underlined that.
But you remain a Shareholder!
PS: My user name has nothing to do with football.