9th Apr 2020 11:42
(Alliance News) - Venture Life Group PLC on Thursday reported record annual earnings for the business, and it expressed confidence in its outlook amid the Covid-19 outbreak.
The stock was trading 15% higher at 47.82 pence each on Thursday morning n London.
Venture Lige develops, manufactures, and commercialises self-care products.
It said pretax profit for 2019 was GBP1.4 million, all but doubling from GBP710,000 in 2018. Revenue rose 7.4% to GBP20.2 million from GBP18.8 million.
Venture Life said that its Venture Life Brands business - made up of its own assets and brands - accounted for 33% of revenue in 2019 compared to 35% in 2018. The Customer Brands category - which comprises customer-owned assets and brands which have been developed and manufactured by Venture - represented 65% of revenue in 2019 unchanged from the year prior.
Venture Life Brands recorded 1% growth in revenue to GBP6.7 million while the Customer Brands business saw revenue grow 11% to GBP13.5 million.
The Bracknell-based company said revenue of GBP10.8 million in the second half was 14% higher than in the first half of the year due to the typically consumer order pattern.
Gross profit margin increased to 40% in 2019 from 39% in 2018.
Venture Life reassured that it has been able to maintain production at its facility in Italy despite the lockdown restrictions imposed there. It also has a "deep" long-term order book that continues to grow.
"Whilst the full global impact of Covid-19 is not known, the group is very well positioned to withstand the situation. We have a strong balance sheet, dedicated and hard-working employees, a robust order book and significant inventory position, which gives the board confidence for the year ahead in these difficult circumstances," said Chief Executive Jerry Randall.
Venture Life said its order book value stands at more than 2.5 times its value at the same time last year, excluding the order book at development and distribution company PharmaSource BV, an acquisition which was completed in January.
As at the end of December, Venture Life had cash of GBP10.7 million.
By Ife Taiwo; [email protected]
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