Premier Veterinary Group PLC AGM Update (0517U)

TIDMPVG

RNS Number : 0517U

Premier Veterinary Group PLC

27 March 2019

PREMIER VETERINARY GROUP PLC

("PVG", the "Company" or the "Group")

AGM Update

London, UK, 27 March 2019 - Premier Veterinary Group plc (LSE: PVG) provides the following update in advance of its Annual General Meeting being held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH on 27 March 2019 at 11.00 am. All references in this statement refer to the continuing operations of the business.

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 half of its 2019 financial year, and in the preceding four quarters was as follows:

 
000's                            As at    As at    As at    As at    As at 
                                 Mar-18   Jun-18   Sep-18   Dec-18   Mar-19 
United Kingdom                    171      181      193      206      214 
Europe                            35       38       42       45       47 
US                                 6        7        9       11       14 
                                -------  -------  -------  -------  ------- 
 
  Total no. of fee generating 
  pets on plan                     212      226      244      262      275

The number of revenue generating pets on plan at the end of March 2019 has increased by 30% in the last 12 months to 275,000 (March 2018: 212,000).

Overview of PPCP developments in each region

The number of pets on plan increased to 14,000 as at 31 March 2019 (31 March 2018: 6,000). We have begun the 6-month launch of PPCP across the PetVet Care Centers LLC (PVCC) hospital estate and will then move into their newly acquired clinics. We are seeing strong performance in the 32 clinics launched as of mid-March.

The US remains a significant growth opportunity and the business is focussed on delivering success in that market. The PVCC relationship and progress gives us encouragement that our plans for FY19 and beyond are achievable.

United Kingdom

In the United Kingdom, the number of pets on PPCP has grown by 25% to 214,000 (31 March 2018: 171,000). The UK PPCP business is well established, cash generative and continues to see opportunities for growth from its existing customer base and new customer opportunities.

Europe

In Europe, the number of pets on PPCP at 31 March 2019 has grown by 34% to 47,000 (31 March 2018: 35,000).

The Group's most significant territory in Europe is the Netherlands which remains on course to become profitable in the financial year ending 30 September 2019. The number of pets on plan has grown by 29% to 36,000 as at 31 March 2019 (31 March 2018: 28,000).

In France, at 31 March 2019, there were 10,000 pets on plan (31 March 2018: 4,000). The agreement with MSD Animal Health (a wholly owned subsidiary of Merck & Co., Inc.), who are the second largest global manufacturer serving this market, was extended in February 2019 and will continue to support the planned growth in the territory. This agreement involves their representatives identifying and supporting practices who are interested in launching the Group's plans.

Financing

The Group entered into a secured loan of GBP3.85m with Bybrook Finance Solutions Limited (BFSL) a company of which Rajan Uppal, a director of PVG, is the sole director and shareholder as announced on 29 January 2019. The loan is repayable on 25 April 2019 with an option for PVG to extend the repayment date to 25 January 2021 by issuing warrants.

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

Note to Editors:

PVG's services to third party veterinary clinics, 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, where veterinary clinics are known as veterinary hospitals, 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 clinics/hospitals. 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 clinic/hospital, which has been proven to work extremely well. PVA works alongside clinics/hospitals to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves clinic/hospital performance.

For further details:

http://www.premiervetgroup.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.

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