TIDMPVG
RNS Number : 2805M
Premier Veterinary Group PLC
12 October 2016
PREMIER VETERINARY GROUP plc
("PVG" or "the Group")
Trading update for the year to 30 September 2016
"Number of pets on Premier Pet Care Plan up 70% in the last 12
months"
London, UK, 12 October 2016 - Premier Veterinary Group plc (LSE:
PVG) provides the following update on trading in advance of the
preliminary announcement of its results for the year ended 30
September 2016.
Premier Pet Care Plan Customer Growth
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 program for pets. The number of pets on
active plans at the end of the fourth quarter of 2016, and in the
preceding four quarters, are as follows:
As at As at As at As at As at
Sept-15 Dec-15 Mar-16 Jun-16 Sept-16
United Kingdom 79,000 99,000 107,000 115,000 121,000
Europe 3,000 5,000 10,000 14,000 18,000
Total no of
fee generating
pets on plan 82,000 104,000 117,000 129,000 139,000
Overall, the number of pets on plan has increased by 70% in the
last 12 months.
Overview of PPCP developments in each region
United Kingdom
In the United Kingdom, the number of pets on PPCP has grown by
5% in the last quarter, despite losing approximately 5,500 pets on
plan in the same period as a consequence of the sale of the Group's
veterinary practices. As part of its own integration activities,
the party that acquired the Group's veterinary practices moved
these pets to their existing wellness plan. When adjusted to
reflect only the practices that were not part of the sale, the net
increase in pets on plan in the last quarter on a like for like
basis is 11%.
In the 12 months to September 2016, the number of pets on PPCP
has grown by 53%.
As previously announced, the Group has signed a three-year
contract extension to provide PPCP to all Medivet Group Limited's
("Medivet") new and existing practices in the UK. Medivet currently
operates 143 practices across all areas of the UK and plans to
expand further.
Europe
The number of pets on PPCP has grown by 29% in the last quarter.
The Group is now operating in 5 countries in Europe, namely the
Republic of Ireland, Denmark, the Netherlands, France and
Germany.
The majority of business in Europe is currently in the
Netherlands with approximately 15,000 pets on plan in that country.
PPCP is branded as "Huisdieren Zorg Plan" ("HZP") in the
Netherlands and, since its introduction to the Dutch companion
animal market in March 2015, the Group, through its subsidiary
Premier Vet Alliance Limited, has entered into contracts with over
10% of the available clinic market.
Furthermore, the Group has signed a cooperation agreement for
PPCP with Zoetis, one of the world's largest animal healthcare
companies.
The cooperation agreements signed with this influential global
manufacturer serving this market will result in their
representatives identifying and supporting practices which are
interested in launching HZP in the Netherlands. Working in close
collaboration with Zoetis is expected to accelerate the penetration
of HZP into the wider Dutch market.
In the last quarter, sales teams have been recruited in France
and Germany and 12 clinics have signed agreements with the Group in
these territories. These clinics are scheduled to launch and start
offering PPCP in the first quarter.
United States
As previously announced, the Group has signed agreements with
Veterinary Practices Inc, ("VPI") and Merritt Veterinary Supplies
Inc ("MVS"). Both of these agreements promote the roll out of PPCP
to their respective member hospitals.
As at 30 September 2016, 39 clinics have contracted with the
Group's wholly-owned subsidiary, Premier Vet Alliance (US) Limited
("PVA"). The first 10 clinics have now launched and over 200 pets
are already signed up to PPCP.
The initial volume of clinics signing up to PPCP has exceeded
internal expectations. A team of 8 sales and training staff has
been recruited and the Group is operating in 7 states, all in the
South East of the United States.
Buying Group
Members of the buying group operated by the Group's subsidiary,
Premier Vet Alliance Limited (the "PVA Buying Group") enjoy access
to a range of services designed to encourage clinical compliance,
the highest standards of pet care and business growth. The PVA
Buying Group is primarily designed to provide more autonomy,
flexibility and deliver greater savings. The specially negotiated
discounts on both small and large animal products enable
independent practices to compete with larger groups.
Currently over 500 clinics throughout UK, Northern Ireland and
the Republic of Ireland are members of the PVA Buying Group
Loan Note issue
As previously announced, the Group has recently raised
GBP900,000 through the first tranche of loan notes, with a further
GBP350,000 committed for drawdown by the end of the year. These
funds were raised to support the investment in business development
resources in the US and Europe to fuel expansion in these
areas.
Outlook
Early indications in the new geographic markets are positive as
the number of clinics signing up to PPCP is exceeding initial
expectations. The Group will continue to make significant
investment in technology and business development resource to
maximize opportunities in both the UK and these new
territories.
Dominic Tonner, Chief Executive Officer of PVG, added:
"We continue to see significant growth in our established market
for preventative healthcare programs in the UK. The board is
delighted with the initial progress the Group has made in the US
and our progress in Europe continues to gather momentum from our
success in the Netherlands. The investment we have made in our
global transaction IT platform and our business development
resources leave us well positioned to grow rapidly in the year
ahead."
For further information, please contact:
Premier Veterinary Group plc Tel: +44 (0)117 970 4130
Dominic Tonner, Chief Executive Officer
Will Evans, Chief Financial Officer
Square1 Consulting Tel: +44 (0)207 929 5599
David Bick/Brian Alexander
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
program for pets branded "Premier Pet Care Plan" ("PPCP"); and the
operation of a buying group (the "PVA Buying Group") which offers
enhanced discounts to member practices on pharmaceutical and
consumable spending. In the US, Premier Pet Care Plan is marketed
through the Company's wholly-owned subsidiary, Premier Vet Alliance
(US) Limited.
PPCP is a structured, preventative healthcare program for cats,
dogs and rabbits and is available only through veterinary
practices. The program 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.
The PVA Buying Group, is now the UK's largest veterinary buying
group without group interests in veterinary practices or veterinary
wholesalers offering its members the best discounts across the
industry on pharmaceutical and consumable spend.
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 company news service from the London Stock Exchange
END
TSTVFLFFQBFFFBE
(END) Dow Jones Newswires
October 12, 2016 02:00 ET (06:00 GMT)
Premier Veterinary (LSE:PVG)
Historical Stock Chart
From Apr 2024 to May 2024
Premier Veterinary (LSE:PVG)
Historical Stock Chart
From May 2023 to May 2024