Aim-traded Venture Life (VLG:92p), a developer, manufacturer and distributor of products for the self-care market, has released another bullish trading update ahead of next month’s interim results. The company also announced this morning that its leading mouthwash, Dentyl, will be involved in a UK clinical trial in partnership with Cardiff University to investigate the use of over-the-counter mouthwashes. The aim is to help reduce the viral load and transmission of COVID-19 in the mouth. A previous review concluded that Cethylpyridinium Chloride, the main ingredient in Venture Life's mouthwash, may be effective in this respect.
In the first half, Venture's revenue soared by 80 per cent to £16.9m, the split being 65 per cent organic growth and 15 per cent from the acquisition of PharmaSource, a distributor of a range of medical device products (for fungal nail infections, wart removal and women's health). That’s already looking a shrewd purchase as house broker Cenkos Securities estimates that PharmaSource contributed £1.4m to sales, representing 43 per cent growth year on year.
Earlier this year, Venture announced its largest ever contract award, an exclusive 15-year agreement worth €168m (£147m) with its existing Chinese distribution partner. This is the minimum amount the partner needs to purchase to retain exclusive distribution rights in China, Macau and Hong Kong for Venture’s Dentyl brand (including mouthwashes, toothpastes, tooth whiteners and fresh breath beads) and some other products. Venture has already received orders from the distribution partner worth well over half the annual commitment after demand surged on the back of a new marketing initiative funded by the partner.