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Can someone explain why there are so many nominal cells. I don't understand how every day that can be so many small buys and sells. Thank you
Well the SP broke the downtrend last week and going well so far this week. defo change in sentiment and looking good.
So it seems today is the day the "consultation" period closes. I mistakenly thought there were meant to be some results / conclusions today. Oh, so wrong again. No telling when those results will come out, I presume. Probably not for weeks, maybe months.
Unfortunately the investigation is a cloud of uncertainty hanging over this sector until the investigation publishes its results. Imho.
Thanks for posting the Proactive Investors report, DJ.
Sounds sound. Fingers crossed.
Proactive Investors - A competition probe into Britain’s veterinary market is unlikely to hit CVS Group (LON:CVSG) and Pets at Home Group PLC (LON:PETSP) as hard as feared, analysts have reassured.
The Competition and Markets Authority would likely look to enforce more transparency, rather than taking drastic measures such as forcing disposals and capping product prices, Liberum analysts said in a note.
“The main remedies are likely to be around information disclosure and there is nothing to stop the industry adopting those changes ahead of time,” the bank reassured, having interviewed the regulator’s ex-legal head, Tom Smith.
“The read across for CVS is perhaps less significant than one might have thought and contrary to some commentators, we don’t think that CVS is dead money.
“For Pets at Home, the impact is likely to be negligible with its differentiated model insulating it to a large degree.”
Britain’s CMA launched an investigation into the pet medicines and treatment market last month, warning owners were often uninformed on pricing and could be overpaying as a result.
AIM-listed vet service provider CVS Group took a hit on the news, having responded saying it had already proposed a “package of possible remedies” to the CMA.
Pets at Home assured the investigation was unlikely to find it at fault meanwhile, since the retailer’s sites run as joint ventures and are independently responsible for pricing.
Liberum, quoting Smith, argued that competition concerns were likely more a result of consumers not shopping around, given the often stressful nature of seeking pet care.
“If your dog is sick, you just want to get it sorted out,” as per Smith, “you don't want to go and shop around at four different vets to get different prices”.
Remedies are likely to tackle the lack of information on rival services and products, therefore, as per Liberum.
CVS climbed 2.4% to 967p on the news, while Pets at Home gained 1.1% to reach 268.59p.
Looks like the CMA Investigation review finishes on the 11th April. I assume this will hold the price down until results are published, it seems nervous times for holders of Vet related businesses, I wonder if it will revisit the recent lows of 250p? Might be an opportunity to get in it dips below 250p on any negative outcomes one assumes? JMO ADYOR!
Bottom at 250p , me thinks 🤔
Seems like a good timing...I just rushed it a bit , though 272 was the bottom..but definetelly over beaten..Hopeful for a recovery by mid/end April..final YE results will be by end of May..
Topped up on these this morning. Still looks overdone to me. Those dogs everyone bought over lockdown aren't going to die overnight!
Like most things, the things that aren’t stated are more important than those that are - and I’m certainly not savvy enough at reading accounts to read between the lines so I leave that to others. I’m assuming however that the accounts reporting for the veterinary side of things cannot be used to identify profit attributable to prescriptions - so was just wondering if anyone had some general market knowledge on that.
HD
Dont be lazy look in the H1 reports or Annual Reports
Ge0rge123
H1 - RNS November 28th 2023 ... Q3 in Jan 2024
H1 very detailed on margins, costs,expenditure etc .... quarterly mostly just revenue
H1 reveals all the important issues which the market is following up on .... Q3 mostly lots of comment on revenue ..the important line is the statement on FY24 Profit before Tax excl exceptionals ... and it is important to know all the reasons behind the PBT ..because that is what the market is watching ...
2022/3 - Underlying PBT - £136.4m
2023/4 - Underlying PBT - c.£132m (guidance)
last year Full Dividend 8.3p.. so... need to see from the Underlying PBT will actually bring earnings of that on the bottom line after exceptionals, and tax
I think they are working through the headwinds ..not being negative on that ..but the market is working on what they see as the bottom line earnings
Anyone know what proportion of PETS turnover and profit comes from the veterinary side of things?
Of that, any ideas how much profit comes from prescriptions?
Looks well over done to me here. Plenty of viable reasons for mark-ups on prescription charges against on line retailers.
But this is why yesterday happened! What is to come? Hmmm?
Today 09:21
UK's CMA steps up probe into UK veterinary sector
(Alliance News) - The UK's competition watchdog on Tuesday launched a formal investigation into the veterinary sector warning pet owners may be overpaying for medicines and prescriptions.
A reminder: The latest H1 I can find:
Pets at Home announced its FY24 Interim Results for the 28-week period to 12 October 2023.
H1 was the period of highest execution risk in building our Petcare Platform as we relaunched our brand, transitioned our stores to the new Stafford Distribution Centre (DC) and continued to build a new digital platform.
H1 consumer revenue# grew 8.6%, ahead of our 7% ambition, to £1.0bn, with all channels in growth and further progress in retaining and acquiring new customers. Underlying consumer demand was resilient with structural trends underpinning sustained market growth.
Hi Poker
Hope your good
Where are you viewing those H1 Results as I can only see Q4 on 30th Jan 2024 where everything is UP?
Cheers George
Look at H1 Results ...says it all
operating cash income down, margins down, cash levels considerably down, earnings down ...
..various reasons for this though ...H1 tells you that though
The review started in September 2023 has concluded they need to do a review from March 2024 to April 2024 ! You can't make it up.
Sarah Cardell, Chief Executive of the CMA, said: We launched our review of the veterinary sector last September because this is a critical market for the UK’s 16 million pet owners, We have provisionally decided to launch a market investigation because that’s the quickest route to enable us to take direct action, if needed. The CMA has launched a 4-week consultation to seek views from the sector on the proposal to launch a market investigation. The consultation closes on 11 April 2023 at which point it will consider the responses
I was just wondering if someone might be able to explain what is holding the share price down? I believe the sentiment behind the business is actually strong but yet there are so many small cells that seem to impact the share price and hold down. The question is why is somebody selling at such small amounts and so many trades of small amounts.
Buyback tranche must be about done now, 8m shares since end of Nov with pps range 270-320p broadly so assuming a 300p avg maybe £1m ish left to go.
As they are confident on flat PBT and with the weak FCF in H1 it would suggest H2 would have decent cash generation, whilst dividend will eat a chunk, I hope they keep any dividend increase modest in favour of further buybacks at this level.
Mr Picky,
My current share price estimate is 360p in the next 12 months vs your 350p forecast.
Having bought PETS during Covid - I will make sure I get a return on my capital... before moving away from UK shares... and let Jeremy Hunt watch his money go down!!
Currently, the CMA investigation is holding PETS down as well as the shorters.
The CMA said they will provide an update about the next steps in early 2024?!?
In the meantime, let's see PETS grow the eps further - and as the Management know the sp is undervalued .... they keep up the Buy Backs..
Reiterating a Bloomberg view of the Pet market growth expected over next few years.
The pet industry is poised to swell from $320 billion today to almost $500 billion by 2030, growth is driven by an increase in spending on pet-related healthcare — including veterinary care, diagnostics, and pharmaceuticals — that has created longer pet lifespans that require more expensive elderly care.
Alongside this longer pet lifespan comes a larger investment in increasingly complex drugs like monoclonal antibodies, which could make the pet pharmaceutical market top $25 billion by 2030. The analysis predicts that increased animal longevity and healthcare improvements might accelerate the use of preventive-care diagnostics as well, with the potential to become a $30 billion global market. Europe represents that largest growth opportunity with a total addressable market around $12 billion with just 8% penetration.
“We’re seeing a profound increase in consumer spending on pets and expect to see this continue through 2030. Consumers are willing to pay more for items for their pets, with the pet food market having the potential to grow more than 50% from current levels by the end of the decade.”
PETS had a quick +10% rally earlier. I think it is just just a little consolidation. I have put on a limit order at 265p today to buy back the 1/3 I sold earlier. I may not get them because of their 'buy-back' programme but happy to hold the other 2/3 and sell in the mid £3.50's.
Any reason for the gentle decline. Just general trading?