SECTOR: HEALTHCARE, MINING
Reinstatement of Forecasts for 2017E and 2018E
NORTHLAND VIEW
§ On 31st January, Venture Life Group (‘VLG’) released a Trading Update, which detailed expected changes to its financial reporting as a result of last year’s adoption of IFRS 16. As a result, Northland placed its forecasts to end-December 2017E and 2018E under review. Having now factored these accounting changes in its model, Northland has updated its projections. Adoption of IFRS 16, which is mandatory for periods commencing on or after 1 January 2019, will require lessees to account for all leases on their balance sheets, including those which had previously been treated as operating leases and accounted for in the P&L account as an “in-year” expense.
§ Venture Life has already confirmed this has had the effect of increasing EBITDA by approximately £0.4 million but, due to a related amortisation charge, that this will have minimal effect on the reported profit before tax. The principal effect seen in Northland’s own headline forecasts has therefore been seen to increase 2017E EBITDA from £1.26m previously to £1.66m now and 2018E EBITDA from £2.00m to £2.33m, based on unchanged revenue and gross margin projections.
These forecast changes upgrades, which result from adoption of the new accounting standard, have been preceded on 13 February by a positive commercial update for the year ended 31 December 2017 confirming continued growth of the Group’s brands. . Northland expects the Group to continue to demonstrate a further improvement in profitability during 2018E, resulting from its high operating leverage. Venture Life also confirmed it will announce its preliminary results for the year ended 31 December 2017 on Thursday 22 March 2018.
COMPANY DESCRIPTION - Venture Life Group plc is a consumer healthcare company. The group develops, manufactures, and commercialises self-care products which target the ageing population.
Calidus Resources appoints Mark Connelly as Chairman
NORTHLAND VIEW
- Calidus Resources, a company that Keras Resources holds a significant interest in (458.375m shares), announced it has appointed Mark Connelly as Non-Executive Chairman.
Mr Connelly was previously MD of Papillion Resources and instrumental in its sale to B2Gold Corp for US$570m in 2014. He was also COO of Endeavour Mining Corporation following its merger with Adamus Resources where he was CEO. He is currently Non-Executive Chairman of West African Resources and a Non-Executive Director at Ausdrill and Tiger Resources.
COMPANY DESCRIPTION
Keras Resources is an exploration company with interests in gold projects, located in Australia, a manganese project and a cobalt-nickel project, located in Togo.