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(Alliance News) - Shares rose in Venture Life Group PLC on Monday after reporting double-digit revenue growth for the first half of 2022, boosting confidence of achieving a full year performance in line with market expectations as supply chain issues start to plateau.
Shares in the Berkshire, England-based self-care product manufacturer and distributor were 13% higher at 36.00 pence on Monday in London.
It was providing a trading update ahead of interim results due to be released in September.
For the six months ended June 30, revenue was GBP18.9 million, up 36% from GBP13.9 million the same period a year before, driven partly by new acquisitions including BBI Healthcare Ltd in June 2021 and Helsinn Integrative Care Portfolio in August 2021.
The acquisitions contributed GBP6.3 million to total revenue, compared to a GBP1.4 million contribution a year prior.
Gross margins increased by four percentage points from 35.6% a year prior.
Looking ahead, despite the continued challenging economic backdrop, Venture Life said that there are signs that supply chain issues have plateaued. Meanwhile, the company's order book remains strong, allowing supplies to be purchased cost effectively and on time for production.
Based on visibility over the second half of the year, which Venture Life's revenue tends to be weighted towards, the company is confident of delivering a 2022 performance in line with expectations.
"The margin improvement seen versus 2021 is particularly encouraging, and customers have been very responsive to our request to order further out than their normal lead times, enabling us to both ensure supply of raw materials and packaging in time to produce, and manage costs. The supply chain environment continues to remain challenging, but the team has done a great job in managing this in the first half and will continue to do so in the second half," said Chief Executive Officer Jerry Randall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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