Venture Life widens full year losses

Consumer self-care products company Venture Life Group on Wednesday said it widened its 2015 losses as costs rose.

Loss before tax, amortisation and exceptional items came to £0.73m in the year to 31 December 2015, compared to a loss of £0.59m the previous year.

The company attributed the loss to an increase in administrative costs, including overhead costs and a rise in business development expenditure.

Yet revenue rose to £9.1m from £7.2m and gross profit grew to £3m from £2.7m.

“The extensive investment of time and effort made in developing relationships in China in earlier years is beginning to pay off and we made our first shipments of product to our partner in China, Gialen,” said chief executive Jerry Randall.

During the period the group signed a 30- year exclusive distribution agreement with Gialen Group to sell a range of skincare products in China, with the first 'Lubatti Classic' products shipped in the second half of 2015.

The group also signed a 10-year agreement with a Swiss healthcare company to formulate and manufacture an onychomycosis product.

Another highlight in the company’s achievements for the year included the launch of a new women's health product range under the vonalei brand with the first distribution agreement signed.

Since the start of the year, the firm has bought Periproducts Limited - including the UltraDEX oral care products brand -for an estimated £5.8m. Venture Life also signed the first long-term exclusive distribution deals for the new Benecol once-a-day liquid sachet in Turkey and Jordan.

“As a result, we expect froup revenues in 2016 to increase significantly from 2015 levels, and the acquisition of UltraDEX in particular is expected to accelerate our move to profitability,” Randall said.

“Our key target of becoming sustainably earnings positive is now in sight."

Shares were down 0.85% to 58p at the close on Wednesday.