Venture Life Group – portfolio of well-known products, with £36m cash at bank, valued at £75m, shares 58.50p, broker TP 100p

28.07.2025

The news coming from the Venture Life Group (LON:VLG) on Friday morning, 25^th July, seemed to have passed the market by – well that is my view anyway.

Following the completed disposal of its contract development and manufacturing operations, the £75m-capitalised pharmaceuticals and biotechnology group now has a net cash position of some £36m – and it is now needing to spend the cash on suitable earnings enhancing opportunities.

It is also making a change to its year-end accounting date.

The Business

Venture Life is an international consumer self-care company focused on commercialising products for the global self-care market.

Headquartered in Bracknell, Berkshire, the group's product portfolio includes Balance Activ in the area of women's intimate healthcare, Earol® supporting ENT care, Lift and Glucogel product ranges for energy and glucose management and hypoglycaemia, plus the Health & Her product range supporting the hormonal lifecycle.

The products, which are typically recommended by pharmacists or healthcare practitioners, are available primarily through health & beauty stores, pharmacies, grocery multiples and e-commerce channels and are sold globally.

In the UK, Ireland and the USA these are supplied direct by the company to retailers, elsewhere they are supplied by the group's international distribution partners. 

The Disposal

In May this year the group agreed to the divestment of its contract development and manufacturing organisation, or CDMO, and certain other non-core assets to the global investment firm Riverside Co. portfolio company BioDue.

The sale price was €62m in cash.

The Board believes that the Sale represents an opportunity for the company to realise cash at an attractive multiple on lower margin capital intensive assets which it can redeploy, post repayment of the Debt, in the growth of its existing Power Brands as well as in the acquisition of carefully selected, margin accretive, fast growth assets, at lower multiples, in key geographic markets (UK/US/EU), where the Board believes there is a significant opportunity to create strong commercial synergies across the group's core categories of interest.

As a consequence, and following the Sale, the group will become a pure play consumer healthcare brand platform focusing on "Proactive Healthy Longevity" for the consumer, providing both preventative and treatment solutions to support a longer healthier life.

This will involve investment in data driven insight and integrated digital capabilities to help drive growth from its existing brands, simultaneously leveraging an omnichannel go to market strategy in key markets to be where the shopper shops and seeking selective acquisitions in complementary high growth categories which have a clear road to profitable growth.

Year End Date Change

The group also announced that in alignment with its revised strategy and with the objective of reducing revenue seasonality and managing specific operating costs more effectively, the company is intending to amend the year-end accounting date to 31^st May.

That change is subject to customary market procedures, after which the current reporting period will be extended to conclude on 31^st May 2026, and a further announcement will follow in due course.

Management Comment

Upon the sale announcement CEO Jerry Randall stated that:

"I am delighted to announce the Sale today and to have achieved a 11x the Target Asset's EBITDA for FY 24. 

This is an exciting transaction and achieves many objectives for Venture Life.   

In particular, it enables us to simplify the structure of the business, invest in our Power Brands and become a pure play consumer healthcare platform with a strategic focus on products and brands that support proactive, healthy longevity in their customer base. 

The significant cash and debt resources that the Group will have at its disposal going forward will enable us to invest behind our current exciting Power Brands to drive growth ahead of peers and capitalise on some of the exciting earnings accretive M&A opportunities that exist in the consumer healthcare space.

We have seen good growth to date in 2025 in our Power Brands and the increased financial resources now available to us will allow us to further increase investment into them and continue to drive growth across them and any future acquired brands."

The group’s delayed AGM is now due to be held next Tuesday, 5^th August.

The Equity

There are some 128.06m shares in issue.

The larger holders include Slater Investments (11.19%), BGF Investment Management (9.05%), River Global Investors (8.06%), TrinityBridge (7.30%), Hargreaves Lansdown Asset Management (7.14%), Stonehage Fleming Investment Management (6.58%), Chelverton Asset Management (3.25%), Octopus Investments (2.57%), Quilter Cheviot (1.03%) and JM Finn (0.80%).

Brokers View

Analysts Chris Donnellan and Adam McCarter, at Cavendish Capital Markets, rate the shares as a BUY, with a Target Price of 100p.

They state that:

“The board sees trading to date as on-course to meet market expectations, having delivered 1H25 revenues of £15.3m, up c38% reported and c11% on a proforma basis.

We remain positive on Venture Life’s newly focused commercial strategy, and believe the valuation is yet to reflect this potential.”

They conclude that:

“Operationally, the company’s capital expenditures will fall, improving cash conversion and allowing the company to progress its organic and M&A strategies.

While we acknowledge the share performance, up c70% since the Feb 2025 low, we still see the post-sale valuation multiples offering an attractive entry point for investors.”

The latest note from the brokers shows estimates for the current year to end-December for £38.4m (£26.6m) revenues, with adjusted pre-tax profits of £3.7m (£2.5m), lifting earnings to 3.9p (3.1p) per share.

For the following year they see £42.4m sales, £5.9m profits and 5.5p earnings.

In the 2027 year the analysts estimate that £46.3m sales will boost profits to £7.5m, generating 6.8p earnings per share.

My View

The analysts may well have to alter their estimates when the authorities give permission to extend the current year to end-May 2026.

However, I feel that the recent disposal could aid a highly important transformation of the group’s product portfolio as well as its balance sheet.

Capitalised at £75m, with £36m net cash in the bank – that makes Venture Life Group shares an attractive proposition at the current 58.50p.

I now set a Target Price at 73p.

(Profile 28.07.25 @ 58.50p set a Target Price of 73p)