Being a publicly listed company can often be challenging, especially during bear markets. All management teams can do is adapt accordingly, hit their numbers and keep the long term strategy on track. By doing so, that should eventuallyhelp investors recognise the upside potential.

One company doing just this is Venture Life (VLG). In another encouraging trading update this morning, the over-the-counter consumer healthcare firm said that 2022 adjusted EBITDA would be “at least in line with market expectations” of £8.3m-£8.7m on revenues up 34% - or 17% on a like-for-like basis - to £44.0m. Within this, Venture Life's own brands grew sales 29% to £23.2m (53% of total) with 3rd party product salesa climbing 41% to £20.8m.

Better still, momentum remains favourable, with H2 22 sales and EBITDA coming in at £25.1m and £5.2m respectively, compared to £18.9m and £3.3m in H1. The 2023 opening orderbook has climbed impressively too - up 114% on last year – implying another strong year ahead.

The balance sheet also looks healthy, with net debt closing Dec 22 at 1.4x proforma EBITDA (of an estimated £10m) - or circa £14m, reflecting the recent £13m acquisition of HL Healthcare, which specialises in ear, nose & throat products. And gearing is expected to fall in 2023 thanks to the cash generative nature of group and the unwinding of year-end inventory build - to 1x or lower in 12 months’ time.

CEO Jerry Randall commented: ”The full year effect of the acquisitions made in 2021 has positively contributed to both revenues and profitability, as well as delivering organic growth across the ex-BBI brands. Our supply chain team has done an excellent job to ensure that at all times we have had the raw materials and packaging to manufacture to meet our own brand and customers’ needs.”

Broker Singer has reiterated its 72p a share price target, and is forecasting FY 23 turnover, EBITDA and EPS to be £50.5m, £11.8m and 4.1p, respectively. That puts the stock (at 40p) on a frugal valuation of 5.5x EV/EBITDA and a PE ration of 9.7x.

Similarly,  would rate Venture Life on a 13x 2023 EV/EBIT multiple, equivalent to 71p a share.