(Alliance News) - Premier Veterinary Group PLC on Monday said revenue was up in the first half of its financial year and it has amended its loan agreement with Bybrook Finance Solutions Ltd.
Shares in Premier Veterinary closed 10% higher at 37.00 pence in London.
The pet care services firm reported a 5.3% rise in revenue for the six months ended March 31 to GBP2.0 million from GBP1.9 million and said its pretax loss from operations before interest narrowed to GBP842,000 from GBP1.4 million.
Premier Veterinary said that - notwithstanding the impact of Covid-19 on its business, which may lead to slowed growth and increase cancellations - April revenue was up 1.8% over February, the last month before lockdown. The number of pets on plan rose slightly in the period.
The company said it has considered assistance from government agencies in the US, UK, and France, assessing assistance where appropriate and furloughing a small number of its employees. Employees and directors agreed a salary reduction and short-term cost savings have been introduced.
In terms of financing, Bybrook Finance Solutions Ltd has provided Premier Veterinary with loan finance providing GBP1.1 mill, of which GBP600,000 was drawn down in January 2020, due for repayment April 2020.
Drawdown of the remaining loan amount, and an extension of the repayment date to July 2021, was subject to Premier Veterinary issuing warrants to subscribe for up to 383,673 new shares at an exercise price of 10p per share within 5 years.
As a consequence of the Covid-19 pandemic, and the UK government lockdown, Premier Veterinary had to postpone its annual general meeting and thus could not obtain authority to issue the warrants. This the repayment date was not extended and Bybrook's obligation to make further advances under the facility has ended.
An amendment was signed on Friday last week agreeing the waiver of events of default under the facility due to the pandemic and the extension of the repayment date to July 2021.
Rajan Uppal, Bybrook's sole director and shareholder, is also a director at Premier Veterinary, with a 35% stake in Premier Veterinary. Crossroads Finance Ltd, jointly owned by Premier Veterinary Chief Executive Dominic Tonner and his spouse, has provided funding to Bybrook. Tonner holds a 12% stake in Premier Veterinary.
An annual general meeting will take place "as soon as is practically and safely possible".
"The coronavirus pandemic has created uncertainties which make it more difficult for many businesses including [Premier Veterinary] to forecast with any degree of certainty. However the directors of PVG believe that the nature of PVG's business and its continued willingness to invest in its technology platform and people even in these difficult times will lead to continued albeit slower growth and that PVG has sufficient working capital for the foreseeable future," said Premier Veterinary.
By Anna Farley; annafarley@alliancenews.com
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