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RNS Number : 6674M
Premier Veterinary Group PLC
09 January 2019
Premier Veterinary Group PLC
("PVG PLC", the "Company" or the "Group")
Trading Update
London, UK, 9 January 2019 - Premier Veterinary Group PLC (LSE:
PVG) provides the following trading update.
Trading update to 31 December 2018
Growth in Pets on plan
The Group's recurring revenue streams are driven by the number
of pets that are signed up to Premier Pet Care Plan ("PPCP"), a
preventative healthcare programme for pets. The number of revenue
generating pets on active plans for the first quarter of its 2018
financial year, and in the preceding four quarters was as
follows:
000's As at As at As at As at As at
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
United Kingdom 164 171 181 193 206
Europe 32 35 38 42 45
US 5 6 7 9 11
------- ------- ------- ------- -------
Total no. of fee generating
pets on plan 201 212 226 244 262
The number of revenue generating pets on plan at the end of
December 2018 has increased by 30% in the last 12 months to 262,000
(31 December 2017: 201,000).
Update on UK business
PVG is no longer in discussions with the UK corporate group to
provide collection, administration and support services to
facilitate the provision of animal health plans as reported on 24
October 2018.
Discussions continue with a number of leading veterinary
businesses in relation to significant potential developments,
which, if successful, will enable the company to deliver its 2019
planned growth.
Update on US business
PVG announces that it has commenced a full roll out of the
contract signed with the previously mentioned "Customer", PetVet
Care Centers LLC (PVCC), a major corporate veterinary consolidator
in the US.
PVCC has over 170 hospitals across 25 States. Of these hospitals
in excess of 130 are companion animal, the target market for PVG,
with a Full Time Vet Equivalents ("FTVE") compliment of over 500.
The average size of PVCC's hospitals is in the region of 5 FTVE
which is approximately twice the average size of UK and US
practices currently served by PVG.
The contract was initially to introduce PVA's preventative
healthcare programme for pets, branded "Premier Pet Care Plan"
("PPCP"), to 18 of PVCC's companion animal hospitals. After
successful completion of the initial pilot, the contract, which is
for a period of 3 years, has now been extended to cover all of
PVCC's companion animal hospitals and will see PPCP launched in all
PVCC's existing sites over a 6-month period. Furthermore, PPCP will
be launched in hospitals acquired or opened by PVCC in the future
throughout the contract period. As the fourth largest corporate
consolidator in the US, this represents a significant opportunity
to grow PVA's existing market share in this key territory.
Steve Youd, Vice President Operations, PVCC, commented:
"PVCC is very familiar with preventative healthcare plans, but
PVA is the first to come to us with a model that delivers a product
led programme with a comprehensive support package and delivering
an end-to-end solution. We have been particularly impressed with
the service that our hospitals have received from the field-based
trainers and we see PVA as a great strategic technology partner
moving forward. We are a customer focused company and believe that
the Premier Pet Care Plan will deliver real added value to our
hospitals."
Dominic Tonner, Chief Executive Officer of PVG, added:
"I am delighted that, following a hugely successful pilot,
agreement has been reached to proceed to a full roll out of PPCP
throughout PVCC's estate. This deal will help propel the business
forward with this large and well respected US corporate
consolidator. It is clear vindication and reward for the unswerving
focus the team have for the business and the changes we have
implemented to satisfy the US market. Its contribution will drive
our US business forward to profitability "
Financing
As at 31 December 2018, the Group held cash balances of
approximately GBP0.4m and has drawn down GBP1.5m of its GBP2.25m
unsecured loan note facility with Bybrook Finance Solutions Limited
("BFSL"). Rajan Uppal, a director of PVG, is the sole shareholder
and director of BFSL.
PVG requires additional funding to support the directors' going
concern assessment, maximise the growth opportunities referred to
and to reach overall profitability. The non-conflicted directors of
PVG are confident of imminently agreeing terms with BFSL for a
secured loan facility of GBP2.0m in addition to the GBP1.5m
previously drawn. Crossroads Finance Limited, a company jointly
owned and controlled by Dominic Tonner, Chief Executive Officer of
PVG, and his spouse, is expected to partake in the PVG funding by
entering into direct arrangements with BFSL.
Outlook
The outlook for continued growth for the Group remains positive.
The PVCC roll out significantly underpins PVG's existing US growth
expectations and profitability for 2019. Together with the ongoing
discussions in the UK in relation to further significant
developments, the Board is confident of future prospects for the
Group.
Full year results for year ended 30th September 2018 will be
released on 21st January 2019.
For further information, please contact:
Premier Veterinary Group plc Tel: +44 (0)117 970 4130
Dominic Tonner, Chief Executive
Officer
Andy Paull, Chief Financial
Officer
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Note to Editors:
PVG's services to third party veterinary practices, through its
wholly owned subsidiary, Premier Vet Alliance Limited ("PVA"),
include the administration and support of a preventative healthcare
programme for pets branded "Premier Pet Care Plan" ("PPCP"). In the
US, PPCP is marketed through the Company's wholly owned subsidiary,
Premier Vet Alliance (US) Limited.
PPCP is a structured, preventative healthcare programme for
cats, dogs and rabbits and is available only through veterinary
practices. The programme is seen as a way of providing gold
standard care for pets at an affordable price for the client, by
way of fixed monthly payments.
PPCP uses a clinical approach to prevention, as this is the most
effective method of ensuring illnesses are diagnosed more quickly
and not given a chance to advance. What truly sets PPCP apart is
its unique approach of offering an end-to-end solution and support
to the practice, which has been proven to work extremely well. PVA
works alongside practices to create a tailor-made, cost-effective
service for clients, one that delivers excellent care to their
patients and significantly improves practice performance.
For further details: http://www.premiervetalliance.co.uk/
This announcement includes "forward-looking statements" which
include all statements other than statements of historical facts,
including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of
management for future operations, and any statements preceded by,
followed by or that include forward-looking terminology such as the
words "targets", "believes", "estimates", "expects", "aims",
"intends", "will", "can", "may", "anticipates", "would", "should",
"could" or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Company's
control that could cause the actual results, performance or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding the Company's present and
future business strategies and the environment in which the Company
will operate in the future. These forward-looking statements speak
only as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or
circumstances on which any such statements are based. As a result
of these factors, readers are cautioned not to rely on any
forward-looking statement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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