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Has the large seller (Downing Micro Cap fund?) finally finished selling? Would be nice to get a Holding RNS to confirm...

"Profit growth and lower debt: a lot to like about Venture Life"

Simon Thompson's summary:

For the year ahead, house broker Cavendish expects adjusted operating profit margins to increase one percentage point to 8.5 per cent, which on 7 per cent higher revenue of £55mn could drive up operating profit 20 per cent to £4.7mn. Furthermore, estimated free cash flow of £6.1mn (2024) and £7.8mn (2025) is predicted to slash net debt from £13.7mn to £9.2mn (2024) and £1.9mn (2025). In other words, the £47mn market capitalisation company is on course to be almost debt free next year when it is forecast to deliver underlying operating profit of £6.1mn on revenue of £59.4mn.

The operational improvement in the business and balance sheet deleveraging were key bull points when I suggested buying the shares, at 30.5p (‘Investors are too cautious with this cash-generative company’, 26 September 2023). That’s still the case. Cavendish’s fair valuation of 68p a share is not unreasonable, representing a target forward price/earnings (PE) ratio of 10 for 2025. Buy.

Good results, perhaps people expected more information on outlook?

Today's price movement is just traders in and out from yesterday.

Will need additional fresh buyers to get this into the 40p's IMO. I reckon this will happen over next 2 weeks.

Simon Thompson in Investors Chronicle is a fan and regularly reviews and tips this as a buy.

Lovely tree shake this morning and opportunity to buy cheaply.

Https://www.londonstockexchange.com/news-article/VLG/notice-of-results-and-investor-presentation/16406660

First patient has been dosed with iSCIB1+ in the SCOPE trial.

Great news, but again why is RNS dropped middle of day so many will miss it?

Bet the shorters are working hard this morning to keep a cap on the price.. LOL

Just bought back in here at £1.17 in readiness for FY trading update. Last year was out 20th April.

Of course revenue may still be lower than previous years, but margins and profits are definitely improving.

Minimal net debt. Cash conversion for Xmas period should be strong.

Just watched the November presentations and the new CFO looks really focused on improving profitability, through simplicity (reduced SKUs etc) which I like.

Board have put out a very upbeat trading update. Assume this is to reassure investors with share price 35% off last Summer's high of 265p. Note in 2023 they didn't put AGM trade update out; so a clear sign to holders not to worry and in fact add more at lowly prices (with Downing II selling off RFX and other small caps to close a fund down)

https://www.londonstockexchange.com/news-article/RFX/agm-trading-update/16369858

Worth buying Matches "brand" out of receivership?

Lets face it, the current share price significantly undervalues this business and the hedge funds know it. Hence any good news and subsequent share price jump like this morning, is sold into heavily.

The funds will keep the share price where they want it - i.e. really low in order to buy more shares cheaply. Normally at the end of the day, mopping up as many as they can.

Any private investors selling at this level will kick themselves when price eventually doubles. Its just a waiting game and at the moment the funds are on top. Of course its also a massive opportunity to buy these shares and sit on them for the MBO, takeover or re-rating which will happen in 2024.

For those of you who are tempted to buy - here's a reminder of how solid this business is!

The key metrics here are:

Market Capex at share price of £1.80 = £56.97m

Net cash = £5.039m

Pre tax profit = £10.1m

Dividend = 10.1p (5.6% yield)

Thanks Rivaldo, missed this holding update. Good news as you say.

About time share price started to move upwards again - slight rise yesterday, but still a bargain at current price.

No idea mate! Another couple of biggish trades went through earlier around 175/6p..

I'm looking forward to a Holding RNS or two, to confirm they are done.

Between 2 funds, they have taken off 33% of the share value here - just constant sells, against any liquidity.

Very frustrating for holders

Results look solid enough, lets see what the market thinks..

Revenue up 14.6% to £297.7m

EBITDA up 15.6% to £106.6m

Profit up 25.7% to £67.1m

Net cash £33.9m

Final dividend recommendation 4.42p

Looking ahead

Installing 180 photo booths a month

Installing 80 to 90 laundry units a month

I find the crazy thing is that by selling piecemeal into any liquidity, these funds are destroying the value of their remaining holdings of RFX!

Simply madness....

But agree with you, a lovely opportunity to buy shares at daft cheap prices.

427,830 shares gone through at 186p

I'm expecting to see Holding RNS soon that big seller is out..

Share price should recover then.

Good call, Surprised! A couple of funds have been selling RFX for a while, presumably due to PIs taking money out and funds closing. As a result, any decent PIs buys have been sold into and this has spooked / scared others from buying.

As always market makers drop bid hard, at first sign of a few large sells and spread can be large..

However RFX now dirt cheap at this price (35% off year high price, despite record £10m profit) and decent dividend too.

What's not to like!!

The weird thing for me here is that there are still private investors selling small blocks of shares around 192p. Makes no sense when this goes ex dividend next week 15 Feb at 7.1p a share. Surely they would hang on for a few more weeks to pick up their 3.5% return.

Yes there are other PIs buying around 195-197p, but its pretty much stalemate at the moment in terns of buy / sells.

Full year results to 31/10/23 (and hopefully update to present) are due on Thursday 22nd Feb.

The market makers just did a nice shake down, but share bounced back to 127p. I'm expecting price to break 130p shortly..