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Good to see BGF Investment Management buying more as well as Slater - they now own 9%, or 11.4m shares:
Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-Holdings-in-Company/93312890
Good to see Slater Investments buying more - they now own 18%, with 22.77m shares
Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-Holdings-in-Company/93213683
A 30% increase in profits and a reduction in debt should add up to a 30% increase in share price, at least I would have thought.
Patience required, still significantly undervalued and I am holding for +60p+
Thanks for this - and the share price is looking good now with this morning's break above 40p.
Https://www.youtube.com/watch?v=wVVkU9gG_J8&pp=ygUMVmVudHVyZSBMaWZl
Massive massive well done to holders here....epic patience has been rewarded. I was a complete mug selling months back...the value on offer was more than clear but I was impatient.
genuinely always great to see patient investors rewarded like today! Hats off!
Superb rise now. Glad to see our patience has been rewarded.
Now up over 10% on over 750k shares traded, so hopefully any sellers are being squeezed out.
Cavendish summarise in today's note as follows:
"Delivering organically
Venture Life Group has released a positive trading update, with revenues expected to be in-line with our forecasts at £51m +16% YoY and a c2ppts uplift in EBITDA margin. FY23E revenue growth was delivered completely organically, a first since 2019, in-line with the company’s near-term focus on organic growth. Significantly, cash from operations increased over 70% to c£9.5m (in-line with expectations) supporting our analysis of free cash generation and yield. Cash generation also supported a reduction in group net leverage, which was 1.25x at December 2023 versus 1.65x at the close of 2022. Looking forward, Venture Life aims to build on its momentum through targeted investment in sales and marketing to position the group for sustained future growth and profitability."
And:
"Cash – The group delivered strong cash from operations, generating c£9.5m (Cavendish est. £9.5m), up over 70% YoY. This cash flow has helped further lower group net leverage to 1.25x at year-end 2023 versus 1.65x as of December 2022. The company notes further improvement to c1.1x post period end.
- Operational – Management has seen encouraging sales from newly developed products, noting improved sales volumes supported by price increases through H2/23A, which will clearly be supportive into FY24E. The company’s digital transformation strategy delivered online sales growth +40% to £3.8m for the year (H1/23 £1.6m). Through the year 28 new listings were achieved across UK retailers, which will further support our FY24E revenue growth expectations."
Undervaled so much still holding for 60p+
After today's update, Finncap have reiterated their 68p target price and their forecasts of 5.4p EPS for last year, rising to 6.4p EPS this year.
Net debt is due to fall to a mere £5.3m at the end of this year (from £16.6m at the end of 2022).
Which puts VLG on a current year P/E of just 5.3.
Excellent - a solid trading update in line with expectations, and with no hiccups whatsoever:
- cash coversion and net debt both improving nicely
- own brands revenues growing well organically and now 59% of total revenues
- margins up and benefit of price increases still to come
- and a strong, confident outlook:
"Benefiting from our robust growth, clear strategic priorities aimed at refining our operation, substantial generation of free cashflow and a strong balance sheet, we are now in a prime position to deliver strong shareholder returns"
Time for a re-rating.
From Alliance Pharma's trading update today - hopefully bodes well for VLG's Kelo-Cote production:
"Continued strong consumer demand, particularly in China, drove significant recovery in Kelo-Cote franchise revenues in H2, leading to FY23 revenues of £63.2m, up 29% CER (FY22: £50.0m)"
20th Dec 23 RNS - Slater Fund have increased holding 16 to 17%. Good show of confidence that VLG is due to bounce back.
Still holding for 60p which I think the stock should easily amount too!
Of equal interest might be how they acquired the increased stake…..who has sold out to Slater.
Presumably they have taken a huge loss on their stake and have lost confidence in VLG.
Other Qs what does Slater own that could be merged with VLG….these events dont happen in isolation. If you have a 15-20% shareholder keen on the idea it is harder for the Boards to refuse.
My apologies! Take 2:
https://www.morningstar.com/stocks/xlon/vlg/ownership
Https://www.londonstockexchange.com/news-article/VLG/holding-s-in-company/16221160
That's for Central Asia Metals??
Https://www.morningstar.com/stocks/xlon/caml/ownership
Slater Investments Ltd are an existing shareholder.
WOW. Slater take a 16.03% position (from zero declared!) Must have serious confidence in this share.
The routine TUs are end July and end Jan…..the Dec item (and others) have coincided with acquisitions / new contract announcements….
Clearly the market thinks something is afoot today…..unless it is excited about the millions of people who are going to better off by £35/m following today’s NI cut…who will want to rush out and top up their self care products….
Agree that this is massively undervalued
Last year there was a trading update on 1st December and I expect one again this year. Perhaps that can be the catalyst for a rise in the SP?
This is worth around the 60p
From the Half Year Report 25/09.
“and as expected, we will be launching newly developed products in the second half of the year and increasing our distribution points in the UK, which will both contribute to the expected stronger revenues in H2”
Nothing new yet on the website, as far as I could see.