Firstly, as prompted by Tamzin last week, here is David Thornton (Editor & Owner of Growth Company Investor) talking about VLG in December -click here.

Results were announced on Thursday 25/3 and can be found by clicking here.

The following day Paul reported on the company and over the two days there were a number of comments in the SCVR but somewhat lost among the total of almost 250 comments so I have picked out as many as I can and these are below.

On Monday 29th at 1p.m. the company presented on Investor Meet Company and you can comment on that here. A recording of that together with written answers to question is available on the IMC site.

Comments 25/3

Me: Venture Life (LON:VLG) results are in line with trading statement. However, the cash from the rights issue means that net cash is just sitting on the balance sheet representing about a third of the Mcap. That will reduce EPS this year unless it is put to use. At the time of the P.O.O. @ 90p in November we were teased with details of 3 acquisitions in progress "Project Vulcan" , "Target A" and "Target B". This morning all we get is "We are continually reviewing opportunities in the market place and we expect to complete on some of these during 2021".


mojomogoz: Ahhh, the Mephisto of guidance and reporting that is Venture Life (LON:VLG) ...

Market liking their results today as up 5%...taking valuation to 45x 2020 earnings if we use PAT and market cap at c.£107.5m.

Adjustments (mainly amortisation) will take you to c.20x 2020 p/e.....but given that the amortisation relates to acquisition intangibles inc 'product formulations' and development costs (really!...shouldn't they be expensed for a potions manufacturer?) the higher adjusted earnings to lower the p/e ratio looks optimistic.

Add in that H2 2020 sales of £13m were just a touch above the rate of H2 2019 (£10.8m) once the build in inventory is removed (£1.8m build from end of H1 2020 to end of year) -> £0.4m/4% YoY growth comparing H2 2020 to H2 2019 excluding the inventory build

Inventory patterns over time are interesting. As at end of 2020 they hold £8.9m of inventory. Their run rate revenue based on adjusting H2 2020…

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