TIDMVLG
RNS Number : 1428V
Venture Life Group PLC
26 January 2017
Venture Life Group plc
("Venture Life" or the "Group")
Pre-Close Trading Update
Revenues up 57% year-on-year and maiden full year EBITDA
profits
Venture Life (AIM: VLG), the international consumer self-care
group focused on developing, manufacturing and commercialising
products for the ageing population, provides the following trading
update for the year ended 31 December 2016.
We are pleased to report that the acceleration in revenue growth
exhibited in the first half has continued into the second half of
the year, with our expanding order book and the strengthening Euro
converting into greater revenue and profitability. As a result of
this momentum, the Group has achieved record revenue for the year
ended 31 December 2016 of GBP14.3 million, an increase of 57% on
reported Group revenue for the prior year. Furthermore, the Group's
strong performance will see Venture Life record its first full year
of EBITDA profitability, with revenue growth delivering a
consequent positive drop through consistent with its expectations,
on which will be reported on further at the preliminary results.
Associated cash conversion has also improved and as at 31 December
2016, the Group had cash of approximately GBP2.0 million.
Venture Life will announce its preliminary results for the year
ended 31 December 2016 on Thursday 23 March 2017.
Commercial activities
Our focused growth strategy is to partner our products globally
with reputable pharmaceutical and/or healthcare companies through
long term distribution agreements; to date, we have 33 partners
globally in more than 40 countries on the brands business side. We
also continue to see good and growing interest in our portfolio of
products, including the recently acquired UltraDEX brand, which
sells direct to the grocery and pharmacy channel in the UK. During
2016, we progressed our international partnering business as
follows:
- Signing 13 new long term partnering agreements
- Undertaking 10 new product launches in partner territories
- Achieving 6 new product registrations outside of the EU
Our development & manufacturing business continues to grow
and 2016 yielded another record year of revenue for this business.
We continue to invest in this division to accommodate our ambitious
growth plans and ensure that we remain competitive in our product
quality, service levels and price, in addition to offering
sufficient capacity for our growth plans. The targeted expansion of
our own brands and has seen us enter more international markets,
and as a result we have recently received approvals to manufacture
from both the Brazilian and Korean regulatory authorities. These
will provide a solid platform to open up new territories for
own-brand sales and add to the already extensive approvals that our
development & manufacturing division has received.
2016 has seen the development of three exciting new products
within the Group, each of which will be marketed in 2017 to
international partners. The three products have all been developed
as medical devices, and have been selected for development to meet
exciting commercial market opportunities. The three products
comprise (of which two will be outlined in further detail this
afternoon at our investor presentations):
-- Photo All(TM) for the treatment of drug related photo-sensitivity
-- MycoClear(TM) for the treatment of fungal nail infections, and
-- Lissio Rosa(TM) for the treatment Rosacea.
Our order book for 2017 is building well and January 2017 was
45% higher when compared to actual revenue recognised in January
2016, excluding intercompany sales. We continue to look to the
future with confidence.
New Business Development and Alliance Manager appointments
Since our last update in the autumn, two new important
appointments have been made:
-- Mr Federico Bianchi, Business Development Director. Federico
has a degree in Pharmaceutical Chemistry and is an experienced
business development director, who has worked in the industry for
over 15 years. Previously Federico was with Polichem SA (which was
recently acquired by Almiral) for 7 years, where he was responsible
for all out-licensing activities.
-- Ms Catherine Mason, Head of Alliance Management. Catherine is
an experienced international partner manager, who has worked in the
industry for 30 years. Catherine has previously worked for Abbott
Labs and EKF Diagnostics, and both roles were within international
partner management; she thus brings a wealth of experience to
Venture Life.
Investor Day
Venture Life is hosting a presentation for investors today,
Thursday 26 January 2017, starting at 3pm. The presentation will be
held at the offices of Panmure Gordon, One New Change, London EC4M
9AF. To register your place, please contact
venturelife@walbrookpr.com or call 020 7933 8780. No new material
or trading information will be provided. A copy of the
presentations will be made available on the Group's website at
www.venture-life.com shortly after the event.
Jerry Randall, CEO of Venture Life, commented: "2016 was a
significant year for Venture Life, with the Group achieving record
revenues of GBP14.3m and its maiden full year EBITDA profit. The
acquired revenues of UltraDEX have added to the good organic growth
of the core business, as we continue to develop our brands business
across international markets. Our active development pipeline
continues to produce innovative products to enter interesting and
fast growing market segments, and demonstrates the Group's
continued ability to generate value from within, while we continue
to negotiate and develop new partnerships. I am delighted with the
2016 results, which demonstrate we are on track to become
sustainably profitable'.
For further information please contact:
Venture Life Group PLC +44 (0) 1344 742870
Jerry Randall, Chief Executive
Officer
Panmure Gordon (UK) Limited (Nominated +44 (0) 20 7886
Adviser and Joint Broker) 2500
Freddy Crossley/Peter Steel/Duncan
Monteith (Corporate Finance)
Tom Salvesen (Corporate Broking)
Turner Pope Investments (TPI) Ltd +44 (0) 20 3621
(Joint Broker) 4120
James Pope/Ben Turner
Walbrook PR venturelife@walbrookpr.com
or +44 (0) 20 7933 8780
Paul McManus/Anna Dunphy +44 (0) 7980 541 994 / +44
(0) 7876 741 001
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR).
About Venture Life (www.venture-life.com)
Venture Life is an international consumer self-care company
focused on developing, manufacturing and commercialising products
for the ageing population. The Group's product range and pipeline
currently includes the UltraDEX oral care products range, food
supplements for lowering cholesterol and maintaining brain
function, dermo-cosmetics for addressing the signs of ageing, and
medical devices for improving minor aches and pains, dry eyes and
itchy skin.
The products, which typically are recommended by pharmacists or
healthcare practitioners, are available primarily through
pharmacies supplied by the Group's international distribution
partners.
Through its Development & Manufacturing business, Biokosmes,
the Group also provides development and manufacturing services to
companies in the medical devices and cosmetic sectors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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