15th Feb 2018 07:00
15 February 2018
Venn Life Sciences Holdings Plc
("Venn" or the "Company")
Trading and Strategy Update
Venn Life Sciences ("Venn") an Integrated Drug Development Partner offering a combination of drug development expertise and clinical trial design and management to pharmaceutical, biotechnology and medical device organisations announces a trading and strategy update.
2017 was another solid year for Venn with the business delivering revenues of €17.8m (2016: €18.2m), broadly in line with market expectations, improved EBITDA performance and a closing cash position of €1.2m (2016: €3.4m). Given the headwind from project deferrals, announced at the half year, the Board believes that this outcome reflects solid progress in the business. Furthermore, 2017 represented a transition year for Venn during which significant investment was made in infrastructure, systems, governance and management, in order to have the ability to access higher value customer markets.
Strategic Review
Up until 2016 the business delivered strong growth, largely through an acquisition-driven model. However, highly regulated customers typically demand the highest standards of governance and integrated operational systems. Therefore, since 2016, the Board has prioritised organic growth while concentrating on business integration, optimising the cost base and implementing the systems and structures demanded by those customers it seeks to engage with.
With the operational foundations for a larger business already laid, the Board has conducted a strategic review of the business and the sources of future growth. The Board has concluded that, in order to maximise operational leverage in the business, it makes sense to focus on both organic and in-organic revenue growth in the near term. To drive organic growth the board is increasing the business development team and in assessing the suitability of inorganic opportunities, intends to prioritise both geographic and service line extension in the late phase (Phase II onwards) part of Venn's business. Improved future profitability will therefore be delivered primarily through more aggressive revenue growth and efficient project execution, which we believe Venn now has the systems and infrastructure to deliver.
The Board is making a firm commitment to this adjustment to strategy and committing the necessary talent and resources to achieve it. We see the recent appointment of Cenkos Securities, which has specific CRO industry expertise, as a strong indication of our intent and we look forward to working with the team there to identify and execute shareholder value-enhancing opportunities.
Enquiries:
Venn Life Sciences Holdings Plc | ||
Allan Wood, Non-Executive Chairman | ||
Tony Richardson, Chief Executive Officer | Tel: +353 1 5499341 | |
Cenkos (Nominated Advisor and Co-Broker) Mark Connelly/Steve Cox (Corporate Finance) | Tel: +44(0)20 3764 2341 | |
Davy (ESM Adviser and Co-Broker) | ||
Fergal Meegan / Matthew de Vere White (Corporate Finance) | Tel: +353 1 679 6363 | |
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Hybridan LLP (Co-Broker) | Tel: +44 (0)20 3764 2341 | |
Claire Louise Noyce | ||
About Venn Life Sciences: Venn Life Sciences is an Integrated Drug Development Partner offering a unique combination of drug development expertise and clinical trial design and management to pharmaceutical, biotechnology and medical device organisations. Venn have dedicated operations in France, Germany, the Netherlands, the UK, Ireland with partners across Europe and the US.
Further information in relation to Venn Life Sciences www.vennlifesciences.com
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