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Northland Capital Partners View on the City - Venture Life Group (LON:VLG)

SECTOR: HEALTHCARE

Venture Life Group (VLG.L)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £16.2m

CURRENT PRICE – 44.0p#

TARGET PRICE – 100p

ANALYST – BARRY GIBB

Year-end Dec

2016A

2017A

2018E

2019E

Revenue (£m)

14.28

16.05

17.80

19.55

EBITDA (£m)

0.80

1.86

2.35

3.16

Adj. pre-tax Profit (£m)

(1.11)

0.06

0.51

1.37

Adj. EPS (p)

(3.76)

(1.00)

0.18

2.36

DPS (p)

-

-

-

-

Net Cash/(Debt) (£m)

(5.15)

(6.32)

(5.94)

(4.51)

P/E (x)

-

-

n/a

18.6

Dividend yield (%)

-

-

-

-

EV/EBITDA (x)

26.9

12.1

9.4

6.6

SOURCE: Northland Capital Partners Limited estimates. #Priced at market close, *Northland Capital Partners Limited acts as Nomad and Joint Broker to Venture Life Group and therefore this information should be viewed as a Marketing Communication.

Recognised in LSE’s '1000 Companies to Inspire Britain 2018' Report

NORTHLAND VIEW

  • Venture Life announces that it has been recognised in the London Stock Exchange's '1000 Companies to Inspire Britain 2018' report for the third consecutive year. The report, now in its fifth year, seeks to identify the fastest-growing and most dynamic small-to-medium sized businesses in the UK.
  • To be included in the list, companies needed to record consistent revenue growth over a minimum of three years, significantly outperforming their industry peers. More detail on the methodology can be found in the report online at https://www.lseg.com/resources/1000-companies-inspire.
  • Jerry Randall, CEO of Venture Life, commented: "This the third year in a row that we have been featured in '1000 Companies to Inspire Britain' which is a great achievement. We have had another year of good organic revenue growth across the business and delivered a profit before tax for the first time which is excellent news. Our product lines continue to strengthen and gain momentum and we are pleased to see that our development and growth over the last year has been recognised by this report and is seen by others as something to celebrate."

By choosing to include Venture Life within its highly-selective list for the third year in succession, the LSE highlights the excellence of the Group's international strategy. Northland also recognises this by forecasting that the Group deliver its first positive annual earnings in 2018E. The fact that the share price has more than halved from levels achieved early last summer, we believe, implies an important buying opportunity.

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.

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