Venture Life Group Plc · LSE:VLG
Venture Life — FY2015 Earnings Presentation
19 slides from Venture Life's earnings presentation, May 2016
Slide 1: Disclaimer
Disclaimer This presentation has been prepared by Venture Life Group plc (the “Company”) and is general background information about the Company’s activities at the date of this presentation. The information in this presentation is provided in summary form only and does not purport to be complete. T
Slide 2: 2015 Highlights
2015 Highlights Financial highlights • Revenues increased to £9.1 million (2014: £7.2 million) • Gross profit increased to £3.0 million (2014: £2.7 million) • Loss before tax, amortisation and exceptional items of £0.73 million (2014: loss of £0.59 million) • Cash at 31 December 2015 of £2.9 million
Slide 3: 2015 Highlights: Post-period end highlights
2015 Highlights Post-period end highlights • Acquisition of Periproducts Limited − Consideration of £5.8 million (£4.0 million plus net working capital (c.£1.8 million)) − UltraDEX range of mouthwashes and toothpaste • Eight distribution deals signed in 2016 to date – UltraDEX - 2 – Benecol once-a-d
Slide 4: About Venture Life
About Venture Life • International consumer healthcare group, marketed products, growing Venture Life Group plc partner base and strong product pipeline • Addressing the needs of the ageing population UK Italy • March 2014 - Listed on AIM • March 2014 – Acquired Italian topical • Brand development •
Slide 5: Strategy for growth
Strategy for growth Improve margins Develop innovative products Revenue growth from product acquisition & in-licensing Revenue growth from new & existing partners -5-
Slide 6: Progress made in 2015
Progress made in 2015 Brands business • Revenue growth of 76%* to £1.1 million • Benecol once-a-day sachet and vonalei development completed • Eight distribution agreements signed, including India and China • First Lubatti products shipped to China • Divestment of Bioscalin brand in certain countrie
Slide 7: Leveraging the business
Leveraging the business Bulk manufacturing capacity (kg) • Capacity in the business to accommodate commercial and manufacturing growth 2,250,000 • Gross margin improvement from increased 1,500,000 manufacturing volumes 750,000 • Operating profitability from gross profit increment - 2013 2015 Manufac
Slide 8: Financial results – Income Statement
Financial results – Income Statement • Reported revenues increased 26% to £9.1 million (2014: £7.2 million) • Reported revenue increased by 40% on a constant currency basis • Like-for-like revenues increased 2% to £9.1 million (2014: £8.9 million) • Like-for-like revenue increased by 13% on a consta
Slide 9: Financial results – Cash flow
Financial results – Cash flow • Cash and cash equivalents at 31 December 2015 totalled £2.9 million (2014: £4.9 million) • Net cash outflow during 2015 of £2.0 million with the reduction in cash balances accounted for as follows: – Operating cash flow before movements in working capital - outflow of
Slide 10: Cash/debt position
Cash/debt position £m 31 December 2015 31 December 2014 Change Cash at bank and in hand 2.9 4.9 (2.0) RiBa - (0.2) 0.2 Unsecured bank loans < 1 year - (0.4) 0.4 Unsecured bank loans > 1 year (1.8) (1.7) (0.1) Vendor loan notes (1.4) (1.5) 0.1 Net (debt)/cash (0.3) 1.1 (1.4) - 10 -
Slide 11: Priorities for 2016
Priorities for 2016 • Delivery of Periproducts acquisition benefits – Increasing export business – Transfer of manufacturing to in-house facility in Italy – Restructuring to take out duplicated cost • Refocus of Periproducts marketing and advertising to consolidate UK revenues • Further distribution
Slide 12: Anticipated news flow in 2016
Anticipated news flow in 2016 • Further distribution agreements – Existing brands – UltraDEX • Development and manufacturing contract wins • New product launches • Lubatti 21 shipment to China - 12 -
Slide 13: Summary
Summary • Good progress in difficult trading conditions • Revenues increased across Brands and Manufacturing • First products shipped to China • Investment made in manufacturing facilities to deliver efficiencies and to meet expected demand • Vonalei and Benecol sachet development complete and now b
Slide 14: Appendices
- Venture Le Appendices oe -14-
Slide 15: Venture Life management team
Venture Life management team Jerry Randall • Experienced executive director in international healthcare for over 15 years Chief Executive Officer • Extensive experience in licensing, M&A, fund raising and capital markets • Co-founder of Sinclair Pharma which grew from £1m to £30m revenues • Co-found
Slide 16: Income Statement
Income Statement All amounts expressed as £’000 Year ended Year ended under IFRS 31 December 2015 31 December 2014 Revenue 9,077 7,189 Cost of sales (6,073) (4,535) Gross profit 3,004 2,654 Gross margin 33% 37% Administrative expenses (3,853) (3,373) Amortisation of intangibles (658) (508) Other inc
Slide 17: Balance sheet
Balance sheet All amounts expressed as 31 December 2015 31 December 2014 £’000 under IFRS Fixed assets Intangibles 12,527 12,982 Property, plant & equipment 1,120 975 Fixed assets - total 13,647 13,957 Current assets Inventories 2,235 1,856 Trade and other receivables 3,173 3,257 Other debtors 5 52
Slide 18: The market opportunity
The market opportunity A number of growth drivers The world’s population is ageing World population of persons 60+ ('000)1 3,000,000 Growing Difficult to ageing change 2,500,000 population diet 2,000,000 GROWTH 1,500,000 DRIVERS 1,000,000 Increasing Healthcare focus on self- 500,000 budgets medicati
Slide 19: Shareholder base
Shareholder base Mr Gianluca Braguti 19.2% J O Hambro 11.6% Mr Jerry Randall and associated holdings 10.7% Aviva plc 9.9% Dr Michael Flynn and associated holdings 7.9% Mr Andrew Sinclair and associated holdings 5.8% Quilter Cheviot Limited 5.7% Mr Anthony Ahearne and associated holdings 4.6% Ms Shar