Voyager Life PLC - Trading Update
RNS Number : 3440I
Voyager Life PLC
14 April 2022
 

 

 

14 April 2022

 

Voyager Life plc

 

("Voyager" or the "Company") 

 

Trading Update

 

Voyager, the health and wellness company supplying high-quality Cannabidiol (CBD), hemp seed oil and hemp-related products, is pleased to provide the following trading update as at its financial year end of 31 March 2022.

 

Highlights of the year include:

·    Successfully opening three stores (St Andrews, Edinburgh and Dundee)

·    Relaunched e-commerce website (VoyagerCBD.com)

·    Second brand launched: Ascend Skincare (AscendSkincare.co.uk)

·    Acquisition of manufacturing capability and establishment of VoyagerCann (VoyagerCann.com)

·    Over 30 formulated products and, in its own stores, over 150 SKUs (stock-keeping units)

·    Distribution partnership with CLF, one of the largest distributors of healthcare products in the UK

·    Hemp Shampoo for Pets awarded best pet grooming product at PATS Sandown

·    Listing on the Aquis Stock Exchange

 

Review of trading

 

In a year that began with four employees (two of whom were part time) and an online-only business model of 16 products, the Company has grown substantially in a rapid period of time, now employing 20 people and selling a range of over 30 formulated products and over 150 SKUs wide enough not only to support its own stores but also to attract an increasing number of trade customers.

 

Today, Voyager has four revenue streams:

·    E-commerce from its own websites and third-party websites (including online marketplaces such as Amazon and eBay)

·    Sales through its three own physical stores

·    Sales to third party distributors and third-party stores

·    Manufacturing products for other CBD and skincare companies

 

As at 31 March 2022, cash at bank was £1.43 million giving the Company the balance sheet strength to continue developing its business model without the need to raise new funds.  In anticipation of supply shortages, rising prices and its expansion plans, management took the decision near the end of 2021 to considerably increase its inventory which amounted to over £140,000 at year end.  Voyager has no debt and the cash balance reflects a pre-payment of rent in its Edinburgh store through to December 2022 and its St Andrews store to May 2022.  Voyager's monthly overheads during the year averaged just under £50,000, of which payroll and rent make up the majority.

 

Unaudited revenue for the 16-month period to 31 March 2022 was approximately £178,000 with revenue in the last 12 months representing an increase of over 28x revenue generated in the financial period to 31 March 2021.  Importantly our revenue in the second six months of the financial year increased by 88 per cent. compared with the first half of the year.  Given the inconsistent nature of trade sales, analysing a monthly run rate of revenues can be misleading but, with the exception of the early part of the 2022 calendar that was impeded by Covid restrictions, revenues have been steadily growing and the Directors expect to see further improvements throughout the current financial year.

 

By their nature, Voyager's products are personal - taste, scent and texture as well as packaging are key determinants of a customer's decision to buy.  Consequently, and with regard to trade sales which the Directors continue to believe will be the largest driver of revenue, the ability of the Voyager team to meet in person its prospective customers is very often definitive in closing a sale.  As with many businesses, Covid restrictions were a limiting factor in 2021, particularly with many trade fairs being curtailed or postponed, and the Company has also found recruitment of salespeople to be slower than expected. Nevertheless, with Covid restrictions largely dropped across the United Kingdom, the Company has taken the opportunity to book into more trade fairs (with three attended in 2022 already) and organise more face-to-face meetings.  The effects of this have been immediate with a growing order book and rising number of distributors.  Winning the prestigious award for its Hemp Shampoo for Pets at PATS Sandown, an award which is judged by industry experts, is a further reminder of the popularity and quality of Voyager's range.

 

Following its acquisition of the business and assets of Cannafull in December 2021 for £9,000, Voyager has added a fourth business line of manufacturing to its already established lines of online sales, own stores and third-party stores. Cannafull was rebranded as VoyagerCann in February 2022 and is already proving to be a meaningful part of the Company.  The potential order book currently stands at around £100,000 spread across 15 customers and the Company has already secured and delivered three orders, both to well-known CBD companies.

 

The Cannafull acquisition also added a second brand to Voyager. Ascend Skincare has been relaunched with its range of three face oils being the first products made by Voyager since the addition of its manufacturing capabilities.

 

Novel Foods

 

On 31 March 2022, the Food Standards Agency ("FSA") published its initial list of ingestible CBD products permitted for sale in England and Wales until such time as they are either authorised or rejected.  Currently, no CBD products have been authorised for sale by the FSA. At present, Voyager's ingestible CBD products are not included on the list however, from what the Directors understand, the only impediment to the Company's inclusion is that, initially, the FSA has assessed brands that were on the market on 13 February 2020, being the date of the FSA's original announcement of its policy on CBD products and prior to Voyager's incorporation. The Directors are aware of other products already on the list that were launched after that date; accordingly, the Company is not expecting that limitation to be permanent.

 

In particular:

 

1.    products and ingredients from Voyager's manufacturing partner appear multiple times throughout the list, thereby implying that the Company's products are likely to be approved in due course;

2.    the vast majority of products on the list are not yet validated but instead are marked "awaiting evidence"; and

3.    the FSA has said to expect further updates to the list in due course.

 

Voyager is in contact with the FSA about its inclusion on the list.

 

Finally, the FSA's list only applies to ingestible CBD products and these are a minority part of Voyager's business - the Company has nine ingestible products out of over 30 formulated products and some 150 SKUs in its shops. 

 

Nick Tulloch, Chief Executive Officer and Founder of Voyager, said: "Our first full year of operations was always going to be about developing the platform for our business to grow.  In that regard we can look back on the last 12 months with a considerable degree of satisfaction.  Measured on product range, distribution channels and our own stores, Voyager has taken significant steps forward and, most importantly, has assembled a highly capable and committed team.

 

"But of course our business is about far more than positioning for the future and it is right that we should and will be judged on our financial performance.  In this, and in spite of our rapid expansion, we have kept a tight rein on costs as we promised and we have seen revenue develop considerably over the year.  There is a great deal more to do for the Company to break even but we have a strong balance sheet, a growing distribution capability across a number of different categories and a wide product range to attract different customers.  There is every reason to look forward to our 2022-23 financial year with confidence and optimism.

 

"We are under no illusions about the competitive nature of our industry, but we set out in our second full year of operations with several differentiating factors - our own stores, our product range, our well-funded business - and the onus is on us now to make that count. Our application to be included in the FSA's list of ingestible products is under review; encouragingly, we have examined the products already on the list, including those of our own manufacturing partner, and we believe that Voyager's products will be validated by the FSA in due course.

 

"It is also appropriate for us to comment on our share price which, since our IPO on Aquis in June 2021, has been disappointing.  In many respects we have fallen in line with others in the cannabis sector as investors react to disappointments elsewhere.  The lack of liquidity in our shares, which is perhaps a function of a large number of our investors being long term EIS holders as well as (to date) limited broker involvement in Aquis, has also contributed to our share price and is perhaps responsible for the occasional sharp movements in our share price.  We continue to develop our investor relations profile but, from the Directors' point of view, our share price performance does not mirror the progress made in our business which has developed very much in line with our expectations.  As mentioned above, we expect to be judged on our financial performance and therefore, as our efforts to date translate into revenue growth, we remain confident that the investor community will reflect that in our share price in the future."

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

ENDS

 

Enquiries:

Voyager

Nick Tulloch - nick@voyagerlife.uk / 01738 505 130

http://voyagerlife.uk

 

Cairn Financial Advisers LLP (AQSE Corporate Adviser)

Ludovico Lazzaretti or Liam Murray +44 (0) 20 72130 880

 

 

 

 

Notes to Editors:

 

About Voyager

Voyager was founded in 2020 and is based in Perth, Scotland.  The Company's primary objective is the formulation and supply of high quality CBD and hemp seed oil products although it also produces several other complementary products, the majority of which are manufactured from the hemp plant.  Its product categories include a pet range which has rapidly developed into one of the Company's best sellers.   The Company sells online, through third party stores and in its own stores which are located in St Andrews, Edinburgh and Dundee.  Voyager products are currently available from Cornwall to Shetland in over 100 online and brick-and-mortar outlets.

 

The Company's philosophy of plant-based health and wellness is embodied in its mission statement and hashtag of "Choose you". With an experienced team and a product line created in line with the UK's regulatory regime, Voyager aims to become the trusted brand in this increasingly popular health and wellness space.

 

Through Voyager's bespoke skincare product creation and development division, voyagerCann, the Company also offers a full turnkey service to other CBD and cosmetics companies assisting them in developing and launching new products.

 

Website and social media links:

Voyager:

https://voyagercbd.com/

https://www.instagram.com/voyagercbd/

https://twitter.com/voyagercbd

https://www.linkedin.com/company/voyager-cbd/

https://www.facebook.com/voyagercbd/

 

voyagerCann:

https://voyagercann.com/

https://www.instagram.com/voyagercann/

https://twitter.com/voyagercann/

https://www.linkedin.com/company/voyagercann/

https://www.facebook.com/voyagercann/

 

Forward Looking Statements

These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

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