TIDMVOY
RNS Number : 8023Z
Voyager Life PLC
18 May 2023
18 May 2023
Voyager Life plc
("Voyager" or the "Company")
Operations 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 update on its operations.
Highlights:
-- Integration of Polish CBD extraction and manufacturing facility proceeding well
-- Several prospective new customers following the Company's
pan-European vertical integration model
-- UK revenue up c. 73% to c. GBP307,000 (unaudited) in the year to 31 March 2023
-- Approximately 68% average gross margin across all UK business lines
-- GBP125,000 UK inventory at cost at 31 March 2023
-- Approximately GBP1 million gross cash at 31 March 2023
(including GBP500,000 held in escrow for completion of the Polish
acquisition)
-- One of the largest ranges of CBD products in the UK - over 70
formulated products and, in its own stores, over 400 stock-keeping
units (SKUs)
On 1 January 2023, Voyager assumed operational control of the
extraction and manufacturing facility in Poland, which was acquired
from Goodbody Health Limited as announced on 16 December 2022. The
Company is pleased to report that the integration of its Polish
operations with the rest of the business is proceeding well,
demonstrated by the enhancement of its manufacturing capabilities.
The Polish team has begun developing a new range of CBD oils for
the Voyager brand as well as fulfilling a substantial order of pet
products for a major UK national retailer.
Even more significant are the potential new customers that
Voyager is currently engaging in negotiations with. The Company's
vertical integration has enabled it to offer a wide range of
products and services in both the UK and EU and potentially service
orders of considerably higher volumes. This has opened up a bigger
market opportunity for the Company and examples of some of the
larger orders on which Voyager is currently finalising terms are
the following:
-- Supplying a range of products to a prominent CBD brand that distributes throughout the UK
-- Single product manufacturing under licence for European distribution
-- Fulfilling monthly recurring orders for bulk supply of CBD isolate to a European market
-- Engaging in licensed manufacturing of multiple products to
support expansion into European markets by a US brand
-- Collaborating with a European partner to support high-profile brand
Although there can be no guarantee that any or all of these
negotiations will materialise into firm contracts, based on the
depth of conversations to date management are optimistic that
several will move into the production phase shortly. To provide
perspective on the importance of these opportunities, it is worth
noting that each individual opportunity holds the potential to
exceed Voyager's revenue from last year.
In anticipation of a successful outcome, the Company has begun
the process of sourcing additional staff and machinery to
facilitate the increase in volumes, if and when the time comes. If
the above contracts proceed, then management expects production to
take place over the summer months.
With contract manufacturing driving Voyager's growth, the
Company continues to make progress across its other business
lines:
Retail: Work is underway to update the Company's social media
strategy and customer website and Voyager is working with a
renowned CBD commentator in this regard. Treatment rooms and
outdoor seating have been added to some of its stores to boost
footfall. The rewards app launched earlier in the year continues to
be popular with customers. Ascend Skincare has recently been
recommended in the Independent newspaper.
Wholesale: The sales team has been enhanced and Voyager is
currently exploring direct sales models for its branded products.
As referred to above, several products in its pet range will
shortly be stocked by a national retailer in the UK.
Raw materials: Voyager continues to extend its presence on
broker websites and marketplaces and offer competitive pricing and
innovative solutions. Work has been done on the facility in Poland
to reduce operating costs, particularly by implementing a recovery
and reuse of certain solvents and a more efficient cooling
process.
With greater control over the supply chain and its own
manufacturing, Voyager has also been able to balance many of the
price rises of materials that are prevalent at the moment.
Furthermore, both with its own brand and also in respect of trade
customer orders, the Company continues to offer competitive and, in
some instances, lower pricing.
Planning for the audit is well underway and, noting the Group's
increased complexity (particularly given the addition of the
operations in Poland), Voyager expects to conclude its accounts for
the year to 31 March 2023 on a similar timetable to last year, with
an announcement of its final results in August 2023 and the
Company's annual general meeting in September 2023.
Nick Tulloch, Chief Executive Officer and Founder of Voyager,
said: "Voyager's objectives for the Polish CBD extraction &
manufacturing facility were to extend the Company's business in
Europe and complete our vertical integration. In a little over four
months of operations, it is apparent that the enlarged business is
well positioned for success. Not only have the number of customer
enquiries increased but the prospective order size is materially
larger. As Voyager continues to focus on service provision and
expand contract manufacturing to others in the CBD sector, order
volumes will be a key determinant of success and the group's
ability to win and fulfil repeat orders from larger customers is
our fastest route to profitability.
"Voyager is one of very few CBD companies worldwide that is
truly vertically integrated with extraction, manufacturing and
retail operations within the group. To date, we have spent around
GBP2.5 million building our business, considerably less than many
others in the sector have committed. Despite this, we believe we
have a business that is more advanced and more comprehensive in its
capabilities than the majority of our peer group. It is our belief
that this diversified business model will continue to create
further opportunities for us to derive revenue from the rapidly
growing CBD sector."
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.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
S
Enquiries:
Voyager Life plc Tel: +44 (0) 1738 317
693
Nick Tulloch, CEO
http://voyagerlife.uk
nick@voyagerlife.uk
Cairn Financial Advisers LLP (AQSE Tel: +44 (0) 20 7213
Corporate Adviser) 0880
Ludovico Lazzaretti/Liam Murray
Stanford Capital Partners LLP (Broker)
Patrick Claridge +44 (0) 203 3650 3650
Bob Pountney +44 (0) 203 3650 3651
John Howes +44 (0) 203 3650 3652
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. The Company has two principal retail brands: Voyager,
focused on health & wellness and petcare, and Ascend Skincare,
its beauty range. Voyager products are currently available from
Cornwall to Shetland in over 150 online and brick-and-mortar
outlets. In December 2022, with the aim of expanding its
manufacturing capability for EU markets, Voyager purchased a
state-of-the-art CBD extraction and manufacturing facility in
Poland.
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, skincare and cosmetics brands
assisting them in developing and launching new products with
manufacturing and distribution facilities in Scotland and
Poland.
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/
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END
NEXFFFIIEEIDLIV
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