13th Aug 2021 11:12
(Alliance News) - Shares in Venture Life Group PLC dived on Friday as the group reported shrinking interim revenue caused by falling sales of hand sanitiser.
The stock was down 26% at 73.50 pence each in London following the announcement.
Revenue for the six months ended June 30 is expected to be GBP13.8 million, down 18% from GBP16.8 million a year before. The decline was blamed on substantially lower sales of hand sanitising gel and shrinking sales to its Chinese partner for Dentyl mouthwash.
Venture said that away from these two revenue streams, the rest of the business showed overall growth of 9% in the first half, excluding the impact of its acquisition of BBI.
Bracknell, England-based Venture Life makes products for the consumer healthcare market.
Despite the disappointing revenue result, Venture highlighted that it was "starting to see encouraging signs of a post Covid recovery in retail in the UK".
Women's health and diabetes management company BBI Healthcare, bought for GBP36 million in early June, contributed GBP1.1 million in Venture revenue for the period.
The second half will see a "more meaningful contribution" from new acquisitions, with Venture noting it is "well placed to benefit from the confidence that can be seen as the UK and global economies recover from the impact of Covid".
"The progress made this year along with the acquisitions will contribute to another year of meaningful revenue and profit growth for the group, despite some negatives around hand sanitising gel and China," commented Chief Executive Jerry Randall.
"The acquisition of BBI has brought excellent products into the group in two novel areas for us, in addition to some new blue-chip partners, who will be expanding the business in the coming years."
By Will Paige; [email protected]
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