VLG is showing signs of recovery, with mitigations clawing back lost margin. It has also successfully integrated and locked in planned synergies from the recent acquisitions, which are clearly enhancing the portfolio and earnings quality. Although delayed by lock-down, growth potential remains significant in China from its new distribution partner. VLG is therefore returning to profitable growth as forecast. The platform is highly scalable and trades on just 4.9x EV/EBITDA falling to 3.6x, and offers a 13% FCF yield. Our target price remains at 65p
