S-ventures Plc Share Price (SVEN.PL)

Forecasts and Valuation

House broker, VSA Capital, is forecasting revenue of £13 million in the year to 31 July 2022, all from Pulsin, with an EBITDA of £1.8 million and PBT of £1.5 million.

The 2023 financial year commences in less than six months, and VSA is forecasting revenue of £18 million, with an EBITDA of £3.1 million, and PBT of £2.8 million. EPS is forecast at 3.1, putting the stock on a 2023 multiple of 16x earnings.

Using an amalgamation of sum of parts, EV/Revenue, EV/EBITDA, and a DCF model, VSA has arrived at a valuation of £84.9 million, and a November 2022 target price of 76p.

With how acquisitive S-Ventures has been since listing in September 2020, it would not be a surprise to see its portfolio expanded in the near future, and for forecasts to be revised upwards.

Certainly those investors who came in at the £3 million raise at 70p in December 2021 must anticipate making a healthy return over the next 18 months, and today’s price of 50p seems a very attractive entry price for a buy-and-build growth stock in an exciting industry forecast to be worth $98 billion by 2025.

https://s-venturesplc.com/

https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=SVEN

S-Ventures, the Aquis-listed food tech and wellness conglomerate, is worthy of a closer look by investors. A market cap, at a 50p mid-price, of £58.4 million.

In December it announced the completion of a £3 million placing at 70p per share, a premium to the then prevailing share price of 24.5p, and a 40% premium to the current mid-price of 50p. The unit offering saw one warrant issued at 200p for every three shares subscribed, thereby creating 1,428,571 warrants with an expiry date of 20 December 2023.

Reputable Directors and Advisors

There are some big players involved, including director, Bhanu Choudhrie, eldest son of the UHNW Choudhrie family, and, as announced in November, advisor, Julien Machot, Managing Partner of VERSO Capital. The Company is led by serial entrepreneur, Scott Livingston, who founded and led the rapid growth of Westlab Ltd, a mineral salts business.

Acquisitions and Investments

To date, S-Ventures has made one acquisition and four investments.

Pulsin – 100% ownership: In July 2021 the Company acquired Pulsin Ltd for c.£7.5m via a combination of £2 million in cash, £2 million in the form of loan notes, and a total of 15,176,814 new ordinary shares.

Pulsin is a plant-based nutrition company that produces protein bars, nutritional snacks and keto bars, under its own brand and also for third parties.

In the 12 months to 30 April 2021 Pulsin had gross sales of £7.05 million, and c.£1.2 million of net debt. (www.pulsin.co.uk)

Vegan Punk Ventures – 50% ownership: In August 2021, S-Ventures entered into a JV, Vegan Punk Ventures Ltd, to invest in the production and sale of plant-based meat and fish alternatives that promote healthy living and sustainable agriculture. Commercially the venture will operate under the “PlantPunk” brand, and S-Ventures has committed loan-funding of £100,000 to co-fund the JV. (http://www.plantpunkfoods.com)

Ohso Chocolate – 75.1% ownership: Ohso is a probiotic chocolate company, whose bars contain over a billion gut friendly bacteria to aid in the maintenance of a healthy gut microbiome. (https://ohso.com)

We Love Purely – 75.1% ownership: We Love Purely is a healthy snacking brand, offering a premium plantain crisp product, Purely Plantain Chips in UK and international markets. Its products are stocked in the likes of Harrods, Selfridges, Ocado, Holland and Barrett, and Spinneys in Dubai. Plantains contain high amounts of resistant starch, functioning as a prebiotic to aid gut health. (https://welovepurely.com)

Coldpress – 3.3% ownership, up to 6.2%: Coldpress produces high-quality vitamin fortified super juices and smoothies, which are sold in Waitrose, Ocado, Co-op, Nisa, and other outlets. (https://cold-press.com)

Having looked at the recent investments made by S Ven in the Plant based food sector it looks like they have made a couple of strong bets

Does anyone have a view of the upsides here?

https://www.proactiveinvestors.co.uk/companies/news/929362/s-ventures-eyes--opportunities-to-scale--in-the-wellness-sector-after-listing-on-aquis-929362.html