Having successfully executed perhaps the deal of the year by selling its contract development, manufacturing operations and non-core products for €62m (£53.0m or 41p/share) to Biodue SpA, Venture Life Group (VLG) - a niche consumer healthcare products firm - said this morning that its remaining activities were trading in line with expectations..
The group delivered impressive H1'25 revenue growth of 38% to £15.3m (11% LFL) - driven by its power brands and the newly acquired Health & Her/Him business, which was up 21% LFL to £3.4m. All told, leaving June net cash at a chunky £36m - providing ample firepower to execute its M&A strategy.
Elsewhere, the company has continued to invest in marketing that is expected to further drive topline growth in H2, with a number of new distributor listings having already been added.
Moreover, going forward house broker Cavendish has a 100p target price on the stock, based on FY25 turnover, EBITDA, EBIT and EPS estimates rising to £38.4m (+44%), £7.3m, £4.3m and 3.9p (+26%) respectively - meaning at 56.5p, the shares trade on a modest 7.9x EV/EBIT, representing attractive value for a healthcare products firm generating double-digit organic growth.
Lastly, the Board has decided to change its year-end reporting date to 31 May from 31 Dec, with the first full period closing in May'26. Similarly, there have been 4 new senior appointments in order to deliver even greater shareholder value.
CEO Jerry Randall commenting: "I am very excited to announce the appointments, bringing a wealth of energy, expertise and experience into our business. Since the acquisition of Health & Her, Kate Bache and Gervase Fernandes have delivered strong YoY growth and continued to successfully develop the Health & Her brand. I am delighted that they will be bringing that wider expertise and their energy to bear as we drive the group forward.
Similarly, I am delighted that Sarah Arthur will be joining us on a full time basis where the Group will, and has already begun to, benefit from her extensive expertise and experience with Johnson & Johnson in the global health & beauty space. And finally the appointment of Matt Jeffs in order to carefully assess and transact the exciting M&A opportunities in the market. These appointments combined with our existing dynamic team will drive both organic and acquired growth, applying the significant resource we have from the divested CDMO businesses, and delivering on our new capital light brand focused strategy for growth. I am very excited for what the team will deliver from here."
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