PVG.L Regulatory News (PVG)

21 December 2015

PREMIER VETERINARY GROUP PLC

("PVG" or "the Company")

DISPOSAL OF VETERINARY BUSINESS AND

ACCELERATION OF PET CARE PLAN ROLL-OUT

Premier Veterinary Group plc (LSE: PVG) ("PVG" or the "Company") announces today that following a strategic review it has completed the sale of its Veterinary Business to Independent Vetcare Limited ("IVC") for total cash payments of £6.5m.

As a result, the Company will now focus on the development and rapid growth of the services provided by its wholly-owned subsidiary, Premier Vet Alliance Limited ("PVA"), both in the UK and overseas. PVA provides services to third party veterinary practices, including the administration of a preventative healthcare program for pets branded "Pet Care Plan", and the operation of a buying group (the "PVA Buying Group") which offers enhanced discounts to member practices.

Dominic Tonner, CEO of PVG commented:

"We are very excited that we now have additional resources to expand the PVA business. The Board believes that the Disposal, coupled with the resultant focus on the PVA business, will lead to the enhancement of shareholder value. The Disposal re-enforces our independence in terms of the provision of services to third party veterinary clinics."

Background

Disposal of Veterinary Clinics

Premier Veterinary Group plc has completed the sale of its wholly-owned subsidiaries, Zetland Limited, Thanet One Limited and The Veterinary Clinic (Bearwood) Limited ("the Veterinary Business"), to Independent Vetcare Limited ("IVC") for a cash consideration of £4.1m (the "Disposal") (subject to an adjustment to reflect the sale on a zero net current asset basis). In addition, intercompany loan balances of £2.4m due from the Veterinary Business to other PVG group companies were repaid on completion.

Prior to the Disposal, PVG comprised two distinct businesses; the operation of veterinary practices and the provision of products and services to third party practices via its wholly-owned subsidiary, Premier Vet Alliance Limited ("PVA"). PVA's services to third party veterinary practices include the administration of a preventative healthcare program for pets branded "Pet Care Plan" and the operation of a buying group (the "PVA Buying Group") which offers enhanced discounts to member practices.

The Disposal resulted from a strategic review of the Company's portfolio of assets, their potential and alternative strategies to optimise shareholder value. The Disposal re-enforces our independence in terms of the provision of services to third party veterinary clinics.

The consideration received from the Disposal and repayment of intercompany loans amounting in aggregate to £6.5m will allow PVG to repay all of its debt and, after allowing for transaction costs and acceleration of fees relating to the debt repayment, will increase net assets by £4.0m. It will also enable PVG to accelerate the roll-out of its Pet Care Plan business in multiple overseas territories.

During the year ended 30 September 2015 the Veterinary Business generated revenue of £5.53m (2014: £5.50m) and achieved improved profitability as a result of the implementation of efficiency savings.

At 30 September 2015 the Veterinary Business had estimated net assets excluding intercompany loans of £0.94m (2014: £0.39m).

Pet Care Plan roll-out

Pet Care Plan has proved very successful since it was introduced to third party practices in 2011 and has achieved significant growth. The Pet Care Plan business has been identified as PVG's key long-term value driver.

As at 18 December 2015, PVA has Pet Care Plan agreements with 454 clinics within the UK, generating fees from 99,000 pets:

Pet Care Plan has also been launched in Denmark, Ireland and the Netherlands. As at 18 December 2015, PVA has Pet Care Plan agreements with 120 clinics covering 4,760 pets in those three territories. It is expected that significant growth will be achieved in the number of pets covered by Pet Care Plan in those territories. In addition, the Disposal will allow the Company to adopt a more aggressive roll-out plan in additional territories.

The other aspect of PVA's business, the PVA Buying Group, is now the UK's largest veterinary buying group without group interests in veterinary practices or veterinary wholesalers. The level of PVA Buying Group members has remained in line with figures previously reported. The Company is continuing to enhance the service offered to clinics which it is believed will bring added value to its members.

The Company will announce its results for the year ended 30 September 2015 on 29 January 2016.

For further information, please contact:

NOTES TO EDITORS

PVA Buying Group

As part of the PVA Buying Group, members 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 to deliver greater savings. The specially negotiated discounts on both small and large animal products enable independent practices to compete with larger groups. Membership also gives access to some of the biggest and most trusted names in the industry. For further details: http://www.premiervetalliance.co.uk/

Pet Care Plan

Pet Care Plans are structured, preventative healthcare programs for cats, dogs and rabbits and are available exclusively through veterinary practices. Over the past 20 years, such programs have become a common service available to veterinary clients across the UK and US. The programs are seen as a way of providing gold standard care for pets at an affordable price for the client, by way of fixed monthly payments.

PVA works with practice owners to design, implement and run their own successful preventative healthcare program which delivers significant improvement in compliance, spend, footfall and loyalty from clients. PVA's Pet Care Plan has become one of the leading providers of preventative healthcare programs in the UK. PVA uses all of its experience to design a fully managed program, tailored to each practice and which is proven to add value to the practice and its clients. For further details: http://www.premiervetalliance.co.uk/

Independent Vet Care

Independent Vetcare Limited ("IVC") is a group of leading veterinary practices across the UK who have come together to pool resources, skills and knowledge. IVC is run by and for vets, so clinical excellence drives its business. Pet and client needs always come first because every practice in the group is run by its local veterinary team.

IVC was established in September 2011, and over 190 practices have already joined the group. For further details: http://www.independentvetcare.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.