Venture Life Group plc
(“Venture Life” or “the Company”)
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 ending 31 December 2016.
As stated at the time of the interim results on 21 September 2016, the strong revenue growth that we saw in the first half has continued into the second half of the year with the strong order book and strengthening Euro converting into improving revenue. As a result of the continued growth, the Group expects to report revenue for the year ending 31 December 2016 of not less than £14.0 million, an increase of more than 50% on Group revenue reported for the year ended 31 December 2015.
UltraDEX acquisition and performance
The Group has made good progress on the integration of Periproducts since the acquisition of the company and the UltraDEX brand in March 2016. Manufacturing processes for the UltraDEX toothpaste and oral rinse products have been fully established at the Group’s manufacturing facility in Italy and the first UltraDEX products manufactured in-house have been shipped to customers. The leasehold property previously occupied by Periproducts in Ruislip has now been vacated and all operations transferred to Venture Life’s offices in Bracknell.
The UltraDEX advertising campaign which launched on 10 October 2016 ran as planned for two weeks and the product sampling activity at certain London railway stations was well-received by consumers. As previously announced, the planned advertising campaign had led to a number of major UK retailers planning to increase store distribution and product listings for UltraDEX in Q4 2016. The Group saw an uplift in UltraDEX revenue compared to preceding months, in both September, resulting from these extra listings, and also during October, when there were both increased listings and the advertising campaign running.
As previously announced, the Group has signed three long term international distribution agreements for the UltraDEX range, and the first of these partners to launch the product in market is Serra Pamies in Spain. Serra Pamies initiated the launch during October 2016 with product manufactured at our Development & Manufacturing business. Malaysia will be the next market to launch UltraDEX in January 2017 and the product is currently in production.
UK Sales Director appointed
Tim Scott joined Venture Life on 4 November 2016 as the Group’s new UK Sales Director. Tim has extensive experience of the health and beauty sector, having previously worked within the oral care division at GSK as well as for Sleek Cosmetics, acquired in 2015 by the Walgreens Boots Alliance Group. Tim will be responsible for developing our key account strategy and sales of our branded products into the UK market. Initially this will be focused on the UltraDEX range but we expect the scope to be widened to include bringing more of the Group’s branded products to the UK market.
Other Commercial Activities
We continue to seek to partner our products globally, and have interest from many countries in our portfolio of products, including the new UltraDEX brand.
Our Development & Manufacturing business continues to grow and the Group expects 2016 to be a record year for revenue for this business. As part of our ambitious plans to grow the Group, we continue to invest in the Development & Manufacturing business to accommodate our growth plans and ensure that we remain competitive in quality, service and price.
The order book for 2017 is already building steadily and we are pleased to report that the order book for our Development & Manufacturing business for the month of January 2017 is already 45% higher than actual revenue recognised in January 2016, excluding intercompany sales.
Jerry Randall, CEO of Venture Life, commented: “The strong revenue growth this year is further evidence that the Group is on a trajectory towards achieving its strategic goal of becoming sustainably profitable. I am particularly pleased that we have now fully integrated the UltraDEX business into the Group and that we already have international partners preparing to launch the UltraDEX brand in overseas markets. I am delighted to welcome Tim Scott into the Group, to grow our UK presence with key retailers, initially with our UltraDEX product range. The strong Development & Manufacturing order book for January 2017, which is well ahead of actual January 2016 revenue, demonstrates that the momentum is continuing into 2017.”
For further information please contact:
Venture Life Group PLC +44 (0) 1344 742870
Jerry Randall, Chief Executive Officer
James Hunter, Chief Financial Officer
Panmure Gordon (UK) Limited (Nominated Adviser and Joint Broker) +44 (0) 20 7886 2500
Freddy Crossley/Peter Steel/Duncan Monteith (Corporate Finance)
Tom Salvesen (Corporate Broking)
Turner Pope Investments (TPI) Ltd (Joint Broker)
James Pope/Ben Turner +44 (0) 20 3621 4120
Walbrook PR firstname.lastname@example.org 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
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.