Voyager Life PLC (AQSE:VOY) said it is in a strong position to make an impact in the wellness sector a mere year after its incorporation.
With Voyager's existing product development plans largely finished for the time being, the company's primary focus is now on revenue generation.
In its first set of interim results since floating on the Aquis Stock Exchange Growth Market at the end of June, the company said the state of play is “as good as we could have hoped for when the company was founded a year ago”.
For much of the first half of this calendar year the company was focused on developing its cannabidiol (CBD) and hemp-related product range, while recent months have seen a rapid increase in customers stocking Voyager products as well as the opening of its own stores.
The company’s re-branding over the summer has been positively received and its products are consistently popular, said company chairman Eric Boyle.
These are still early days for the company, however, and while it has some revenues - £59,000 in the six months to the end of September versus £6,000 in the same period of 2020 – it is unsurprisingly currently making a loss. The loss before tax was £314,000 compared to a loss the year before of £30,000, reflecting increased operating expenses as the company expanded its product range and built a sales network.
Since incorporation, the breakdown of the company’s revenue across its three business lines has been well balanced with online sales accounting for 21%, own store sales (and sales at trade fairs) 37% and trade customers leading with 42%.
However, the St Andrews store opened only two months before the end of the reporting period and no significant sales were made to trade customers before June 2021. As a result, Voyager Life expects the proportion of sales made through stores to perform more strongly henceforth.
The cash position is strong, with a positive balance of £1.85mln at the end of September. Monthly overheads at the end of September were running at less than £50,000, resulting in the positive cash balance ebbing a little to £1.74mln by mid-November. The company has no debt.
Following the opening of the new stores in Edinburgh and Dundee, monthly overheads are expected to rise by about £18,000.
“We have accomplished a great deal in our first year of operations. We have an extensive product range, a growing network of distribution contracts, three of our own stores, increasing brand recognition and a reinvigorated online strategy. With these building blocks in place, the onus is on us to continue to build our revenue. Based on our achievements so far, we are optimistic about the future,” said Nick Tulloch, the chief executive officer.