Trading Update

RNS Number : 5251T
Venture Life Group PLC
25 July 2022

25 July 2022




("Venture Life", "VLG" or the "Company")


Trading Update

Trading in line with management's expectations for the first half and confidence in full year outlook

Venture Life (AIM: VLG), a leader in developing, manufacturing and commercialising products for the international self-care market, announces a trading update for the six months ended 30 June 2022. The Group expects to release interim results in September.


The Company expects to report revenues for the six months ended 30 June 2022 of £18.9 million, a growth of 36% over the same period previous year.  This is reflective of the impact of the recent acquisitions of BBI Healthcare Limited ("BBI") and Helsinn Integrative Care Portfolio ("HICP") (together the "Acquisitions") aswell as a difficult prior year comparable.

Key Highlights:

· Group revenues of £18.9 million, a growth of 36% (35% on a constant currency basis) over last year and reflecting the impact of recent acquisitions;

· The Acquisitions contributed revenues of £6.3 million (H1 2021 reported revenues £1.4 million);

· Group gross margins and adjusted EBITDA margins improved by 4ppts and 3ppts respectively over the same period in the prior year ;

· Cash inflow generated from operating activities of £1.5 million (H1 2021: £0.7 million outflow);

· Net debt before finance leases reduced to £2.6 million (Dec: £3.2 million);

· Net debt after finance leases reduced to £7.2 million (Dec: £7.5 million); and

· Order book remains strong and is ahead of the same period last year as customers place increased focus on ensuring security of supply.


The Acquisitions delivered revenue growth of 10% and 6% respectively on a like for like basis. Outside of the Acquisitions, the revenue performance over the remainder of the business was 1% ahead of the same period last year, driven by growth from customer brands, which, given the second half weighting of  international revenues is in line with management's expectations.  Whilst COVID-related lockdowns in Shanghai impacted first half performance from our new Chinese partner, the restrictions are now easing and as such we continue to expect our new partner to begin to realise the potential for our products in the Chinese market.  Nonetheless we remain mindful of the risk presented by China's stance on Covid.

Including the Acquisitions, and on a proforma basis, the overall revenue performance of the Group was 4% ahead of H1 2021 which, the Board believes, highlights the resilience of Venture Life's products through the cost of living crisis and the increasing importance of selfcare to consumers.


Although we remain mindful of the changing and challenging economic backdrop, there are signs that the supply chain issues have plateaued. The team are continuing to deliver the margin protection strategy through robust cost management and by sharing cost increases with customers wherever possible. The current order book strength is enabling supplies to be purchased cost effectively and in sufficient time to produce. The first half percentage gross margin improvement demonstrates both the accretive impact of the Acquisitions plus the progress made in mitigating some of the adverse impacts faced from increased input costs. Pre-identified cost synergies from the Acquisitions have been secured as expected and support an overall improvement in adjusted EBITDA margin percentage.

The order book remains strong and is ahead of the same time last year, including the recently acquired businesses. As seen historically in the Group, revenues are weighted towards the second half of the year and these are well underpinned by the current order book strength. Based on trading performance to date and visibility over second half revenue, the Board is confident the Group is on course to deliver full year financial performance in line with market expectations.


Jerry Randall, CEO of Venture Life, commented: "The Group has delivered revenue growth in the first half primarily through the Acquisitions. The challenging retail environment continued in the first half, but I am delighted to see that, notwithstanding this, a number of our own brands, as well as some customer brands, have demonstrated strong revenue growth in the period.  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.

As is normal our revenues are weighted in the second half of the year, and this will be the same for 2022, supplemented also by some orders that moved into H2 as a result of supply chain timings. The unlocking of Shanghai should allow our new partner to begin to market our products there, but these are early days and we continue to monitor the situation.

The progress to date and the order book in hand mean the Board is confident the Group will deliver financial performance in 2022 in line with market expectations."


*Adjusted EBITDA is EBITDA before deduction of exceptional items and share based payments


For further information, please contact:


Venture Life Group PLC                                                                                           +44 (0) 1344 578004

Jerry Randall, Chief Executive Officer

Daniel Wells, Chief Financial Officer


Cenkos Securities plc (Nomad and Joint Broker)     +44 (0) 20 7397 8900

Stephen Keys / Camilla Hume (Corporate Finance)

Russell Kerr / Michael Johnson (Sales)


Singer Capital Markets (Joint Broker)

Shaun Dobson / Alaina Wong  (Corporate Finance)   +44 (0) 20 74963000

Jonathan Dighe (Sales)


About Venture Life ( )

Venture Life is an international consumer self-care company focused on developing, manufacturing and commercialising products for the global self-care market. With operations in the UK, Italy, The Netherlands and Sweden, the Group's product portfolio includes some key products such as the UltraDEX and Dentyl oral care product ranges, the Balance Activ range in the area of women's intimate healthcare, the Lift and Glucogel product ranges for hypoglycaemia, Gelclair and Pomi-T for oncology support, products for fungal infections and proctology, and dermo-cosmetics for addressing the signs of ageing. Its products are sold in over 90 countries worldwide.

The products, which are typically recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies and grocery multiples. In the UK and The Netherlands these are supplied direct by the company to retailers, elsewhere they are supplied by the Group's international distribution partners. 

Through its two Development & Manufacturing operations in Italy and Sweden, the Group also provides development and manufacturing services to companies in the medical devices and cosmetic sectors.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
UK 100

Latest directors dealings