Pre-Close Trading Statement

RNS Number : 5594S

Venture Life Group PLC

09 July 2015

 



Venture Life Group plc

("Venture Life" or "the Group")

Pre-Close Trading Statement

Bracknell, UK - 9 July 2015: Venture Life Group plc (AIM: VLG), the international consumer self-care group focused on developing, manufacturing and commercialising products for the ageing population, today provides a pre-close trading statement for the first half of the financial year ending 31 December 2015.

Revenue in the first half of 2015 is in line with market expectations and the Board continues to be encouraged by the trends in current trading.

Brands Momentum

In the first half, three long-term distribution deals were signed, four of Venture Life's brands (across nine products) have been launched by partners, and product registrations were completed in three countries.

Further to the signing of the distribution deal in January 2015 with Gialen, our partner in China, we have received the first purchase order in connection with the supply of a range of skin-care products. In accordance with the terms of the agreement we have also received payment up front of the equivalent of €0.52m for 50% of this first order. Timing of the delivery of first products to China is dependent on product registration approval in China, which is well-advanced. 

Investment in People

In order to continue to drive sales growth, the Group has also invested in its management resource with the appointment of two additional Business Development directors. It is anticipated that their impact will be felt in 2016 and beyond.

An additional International Alliance Manager, a Market Intelligence Analyst and a Marketing and Regulatory Executive were also appointed in the first half and this newly expanded team will allow us to fully exploit opportunities in the market.

New Product Development

Four new products (of which three are medical devices and one a cosmetic) in the Vonalei™ women's health range have been developed, and the first of these is expected to be launched in-market in early 2016.  Three more products are expected to complete development during the second half of this year.

Two new further medical devices were developed for customers, one to be launched in October and another which is now under clinical evaluation. A new skin-care line has also been developed for an existing Italian customer, Paglieri, with several new products developed for another Italian customer, Giuliani.

Following the signing of a letter of intent with OptiBiotix Health plc in June 2015 for the two companies to enter a Strategic Development and Commercial Alliance, planning is well underway to develop healthcare products based on microbiome modulators, and we anticipate this will yield first products into the market in 2016.

New Manufacturing Deals

Biokosmes has agreed a new 10-year deal with a significant Swiss customer to manufacture a product for treating onychomycosis and the first order is expected later this year. A new product line for dry mouth has also been launched with another major customer with the first order due to be delivered next month.

Also, and as announced earlier in the year, Venture Life sold a number of trademarks to an existing customer for an up-front cash payment, sales-based milestone payments and increased manufacturing at its Biokosmes plant, for which orders have already been received.

Manufacturing Investment

Investment has been made at our manufacturing plant in Italy with new cooling and cleaning systems recently installed.  This upgrade should ensure much improved production capacity and utilisation rates.

Commenting, Chief Executive Officer, Jerry Randall, said: "I am pleased at how well the now integrated Group is progressing, with trading in line with our growth expectations. Every part of the business is working well and contributing, and through our investment in new people and plant equipment, we expect to continue this accelerated rate of growth. The launch of our products in China, once registration is complete, will mark a significant milestone for the Group, and we look forward to continued growth through further product development, and increased business with both existing and new customers. We remain optimistic about our prospects for the second half of the year and beyond."

- Ends -

For further information please contact:

Venture Life Group PLC

Jerry Randall, Chief Executive Officer                                                                          [phone]

James Hunter, Chief Financial Officer                                                   

Panmure Gordon (UK) Limited (Nominated Adviser and Broker)                             
Freddy Crossley                                                                                                               [phone]

Duncan Monteith                                                                                                           
Corporate Finance

Tom Salvesen
Corporate Broking                                                                               

Square1 Consulting

David Bick                                                                                                                          [phone]

Mark Longson                                                                                                   

Notes to editors

About Venture Life

Venture Life is an international consumer self-care company focused on developing, manufacturing and commercialising products for the ageing population. The Group's product range and pipeline currently includes food supplements for lowering cholesterol and maintaining brain function, dermo-cosmetics for addressing the signs of ageing, and medical devices for improving minor aches and pains, dry eyes and itchy skin. The products, which typically are recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies supplied by the Group's international distribution partners.

Through its manufacturing company, Biokosmes, the Group also provides development and manufacturing services to companies in the medical devices and cosmetic sectors.

The Group's own branded products are currently sold or partnered in over 40 countries and currently include:

      ·     food supplements to maintain brain function and memory;

      ·     dermo-cosmetics for addressing the signs of skin ageing and hair loss, and

      ·     medical devices for improving conditions such as minor aches and pains, dry eyes and itchy skin.

The Company has a healthy development pipeline including products in areas such as diabetes, cardiovascular health, obesity, cognitive function and skin ageing. Products coming from the pipeline will be expected to have intellectual property protection and be supported by independent clinical evidence of efficacy.

 

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