PVG.L Regulatory News (PVG)

PREMIER VETERINARY GROUP PLC

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

London, UK, 4 May 2020 - Premier Veterinary Group PLC (LSE: PVG)

Business Update

The unaudited consolidated management accounts for the six months ended 31 March 2020 show a 5.2% increase in revenues to £1,965,000 (31 March 2019: £1,867,000) and a significant improvement in the group's loss from operations before interest and tax to £(842,000) (31 March 2019 £(1,390,000)).

For the same period PVG achieved a 22% increase in the number of revenue generating pets on active plans to 336,000 (31 March 2019: 275,000).

As part of the continual development of functionality within its integrated multi-currency platform, PVG launched a home delivery offering in the UK during April 2018 (branded as Post2Pet™). The service has been particularly well received by clinics and pet owners alike following the Government lock-down announced on 23 March 2020. Post2Pet™ has enabled the continued supply of important medicines to pet owners during this period when limitations have been imposed on veterinary clinics and the movement of people.

Notwithstanding the impact of the Coronavirus (Covid-19) pandemic on PVG's business (which may result in slower growth and increased cancellations by pet owners) revenues for the month of April 2020 were 1.8% higher than February (being the last full month prior to the UK lockdown) and the number of pets on plan increased slightly during this period.

In view of the global uncertainties PVG has considered the assistance available from government agencies in the UK, US and France and has accessed that assistance where appropriate including the furloughing of a small number of employees. PVG's remaining employees including the directors have agreed to a Group wide reduction in salaries from April to June and other short-term cost savings have been implemented.

Financing

Bybrook Finance Solutions Limited (BFSL) has provided loan finance to PVG pursuant to a facility agreement dated 25 January 2019 (as amended by a supplemental deed of amendment dated 23 December 2019 and a second supplemental deed of amendment dated 29 January 2020) (the 2019 Facility) and a facility agreement dated 29 January 2020 (the 2020 Facility).

The 2020 Facility provided for loan finance of £1.1m of which £600,000 was drawn down in January 2020 with a repayment date of 30 April 2020. The draw-down of the remaining facility and the extension of the repayment date to 31 July 2021 was subject to the issue by PVG of warrants to subscribe for up to 383,673 new PVG ordinary shares of 10p each at an exercise price of 10p per share within 5 years of the issue of any such warrants (the Warrants). As a result of the occurrence of the Coronavirus (Covid-19) pandemic and the imposition of a lock down by the UK Government PVG's Annual General Meeting due to take place on 31 March 2020 was postponed and the Warrants could not be issued because PVG did not have a valid authority to issue shares. Accordingly the repayment date was not extended and BFSL no longer has an obligation to make any further advances to PVG under the 2020 Facility.On 1 May 2020 PVG and BFSL entered into further deeds of amendment that provide for (i) the waiver of events of default that have occurred under the 2019 Facility and the 2020 Facility as a result of actions taken by PVG in light of the Coronavirus (Covid-19) pandemic and (ii) the extension of the repayment date in the 2020 Facility to 31 July 2021.

Rajan Uppal the sole director and shareholder of BFSL is a director of PVG and has an interest in 5,421,138 Ordinary Shares in PVG representing 35.3% of PVG's issued share capital.

Crossroads Finance limited ("Crossroads"), a company jointly owned and controlled by Dominic Tonner, Chief Executive Officer of PVG, and his spouse has provided funding to BFSL linked to BFSL's loans to PVG.

Dominic Tonner has an interest in 1,799,670 Ordinary Shares in PVG, representing 11.73% of PVG's issued share capital.

Annual General Meeting (AGM)

PVG continues to review options for holding the AGM as soon as is practically and safely possible and we anticipate further guidance from the Department for Business, Energy and Industrial Strategy and the Financial Reporting Council to provide clarity in that regard with new legislation to allow an AGM to proceed.

Outlook

The Coronavirus (Covid-19) pandemic has created uncertainties which make it more difficult for many businesses including PVG 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.

-Ends-

For further information, please contact:

Premier Veterinary Group plc

Dominic Tonner, Chief Executive Officer Tel: +44 (0)117 970 4130

Andrew Paull, Chief Financial Officer

For further details go to: www.premiervetgroup.co.uk