25th Mar 2015 11:32
LONDON (Alliance News) - Venture Life Group PLC posted a slightly widened pretax loss for 2014 due to costs related to its listing on AIM, and it expressed confidence in its prospects although it cautioned that the weakening euro may hit its results.
Venture said that the weakening of the euro may make its product prices more attractive to buyers outside of the Eurozone, but may also hit its reported numbers in sterling. Regardless it expects 2015 to be a "year of material top-line growth on a like-for-like basis as the distribution agreements signed to date begin to deliver new revenues in addition to repeat business".
Venture Life listed on AIM last March, and subsequently acquired Italian development and manufacturing business Biokosmes Srl.
The company posted a pretax loss of GBP1.5 million in 2014, compared with a GBP1.1 million loss in 2013, as a significant jump in revenue to GBP7.2 million from GBP486,000 was offset by higher cost of sales and operating expenses, and exceptional costs relating to its IPO.
The integration of Biokosmes into its manufacturing business helped boost revenue, while its brands business reported a 39% rise in revenue to GBP670,000 from GBP490,000.
Additionally, gross margin in Brands improved to 50% from 38% as the company moved manufacturing of a significant proportion of its products in-house. It expects gross margins in the Brands business to be nearer in 45% in 2015 due to the mix of products to be sold.
The company has recommended a dividend of 0.04 pence for the year.
"With the acquisition of Biokosmes and listing on AIM, our focus in 2014 was to structure the business to deliver sustainable and strong long term growth. The agreements we have entered into more recently demonstrate the sales momentum we are now building to deliver profitable growth. Consequently, the board remains confident in the prospects of the group," said Chief Executive Officer Jerry Randall in a statement.
Shares in Venture Life are untraded. It last traded at 88.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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