Venture Life Share Price (VLG)

https://www.proactiveinvestors.co.uk/companies/news/915981/venture-life-reports-strong-order-book-and-sales-as-demand-for-its-hand-sanitiser-gel-rockets-915981.html

Good to see spare capacity generating a return, although the barriers to entry to the antiseptic gel market seem very limited so the profits from this will be short term. The China orders for Dentyl are more significant. These types of product can act to kill oral bacteria and viruses and may have long term take up in under developed markets and provide a stimulus to sales in more advanced markets......should get a boost from Covid19 for several years.....it is an ill wind that blows no one any good. A long anticipated return for long suffering VLG shareholders is on the cards.

Zooming up again today....

Great to see from today's RNS that VLG are doing their bit:

"Finally, as part of the effort to combat COVID-19, the Group is manufacturing hand sanitiser gel at its facility in North Lombardy, which it is supplying free of charge on a compassionate basis to local hospitals and pharmacies to help in the fight against COVID-19. Whilst before the outbreak this was not a significant product for the Group, there are now very high levels of demand for this product from retail customers, which the Group is endeavouring to satisfy."

Cenkos actually note that VLG are producing hand sanitiser gel "to meet very significant retail demand", with a proportion being supplied free to local hospitals and pharmacies, so I assume VLG are being properly paid for their supplies to retailers.

Nice summary here:

Https://www.investorschampion.com/channel/blog/coronavirus-impact-25-march-are-any-dividends-safe

"Venture Life: miraculously gets an upgrade

Consumer self-care group Venture Life Group (LON: VLG) has issued a very positive trading update moving the broker to upgrade forecasts. All its business units in the UK, Italy and the Netherlands remain operational with stringent precautions in place to protect employees and comply with government rulings. The group’s Italian business is still allowed to operate as it is considered an essential business.

The group has received orders of over €7m from its Chinese partner (compared to only €0.5m total sales in 2019) for Dentyl and other products, for delivery in 2020.

As part of the effort to combat coronavirus, Venture Life is manufacturing hand sanitiser gel at its facility in North Lombardy, which it is supplying free of charge to local hospitals and pharmacies.

In recognition of the positive news the house broker upgraded forecasts for the year ending December 2020, a highly unusual outcome in the current environment. Forecast adjusted earnings per share of 4.3p equates to a very modest price earnings multiple of 7.8x at the current share price of 33p, which rose 30% on the day."