28 Jun 2016 07:00
PREMIER VETERINARY GROUP PLC
("PVG" or "the Company")
FURTHER MAJOR AGREEMENT SIGNED IN THE US FOR PREMIER PET CARE PLAN
UPDATE ON PREMIER PET CARE PLAN GROWTH
London, UK, 28 June 2016 - Premier Veterinary Group plc (LSE: PVG) announces that its wholly-owned subsidiary, Premier Vet Alliance (US) Limited ("PVA"), has signed another major agreement in the US for its preventative healthcare program for pets, branded as Premier Pet Care Plan ("PPCP").
The latest agreement has been entered into with Merritt Veterinary Supplies Inc. ("MVS"), a leading veterinary supplies distributor founded in 1938, which has 9,000 member hospitals in the south east of the US. MVS is headquartered in Columbia, South Carolina.
The initial 5-year agreement, as exclusive preferred provider of preventative healthcare programs, is to introduce PPCP to MVS' member hospitals, located primarily in South Carolina, North Carolina, Georgia, Alabama, Florida, Mississippi, Louisiana, Tennessee, Kentucky and Indiana. Recruitment of the product launch and training team has already commenced to service this substantial account, and this will be supported by MVS' internal 42-strong sales team. The first pets on plan from this agreement are expected during the second half of the current calendar year.
Bobby Mins, President of MVS, commented:
"I see the Premier Pet Care Plan as a great opportunity for Merritt as a Distributor as this will significantly improve compliance rates on the key healthcare products with a consequent increase in sales."
Dominic Tonner, Chief Executive Officer of PVG, added:
"I am delighted to announce this deal with one of the oldest and most respected distributors in the Southeastern United States. The agreement will very significantly enhance growth and market share. Bobby's team have totally embraced our proposition and we look forward to working with them closely to improve the clinic performance of their customer base."
Premier Pet Care Plan Customer Growth
The number of pets on active plans in the third quarter of 2016, and in the preceding three quarters, are as follows:
| As at | As at | As at | As at |
| Sep-15 | Dec-15 | Mar-16 | Jun-16 |
Rest of World | 3,000 | 5,000 | 10,000 | 14,000 |
United Kingdom | 79,000 | 99,000 | 107,000 | 115,000 |
Total no of pets on plan | 82,000 | 104,000 | 117,000 | 129,000 |
For further information, please contact:
Premier Veterinary Group plc Tel: +44 (0)117 970 4130
Dominic Tonner, Chief Executive Officer
Daniel Smith, Chief Financial Officer
Square1 Consulting Tel: +44 (0)207 929 5599
David Bick/Brian Alexander
Note to Editors:
The available market for preventative healthcare programs for pets across the US is estimated at 70 million dogs and 74 million cats (U.S. Pet Ownership & Demographics Sourcebook 2012).
PVG's services to third party veterinary practices, through its wholly-owned subsidiary Premier Vet Alliance Limited ("PVA"), include the administration and support of a preventative healthcare program for pets branded "Premier Pet Care Plan" ("PPCP"); and the operation of a buying group (the "PVA Buying Group") which offers enhanced discounts to member practices on pharmaceutical and consumable spending. In the US, Premier Pet Care Plan is marketed through the Company's wholly-owned subsidiary, Premier Vet Alliance (US) Limited.
PPCP is a structured, preventative healthcare program for cats, dogs and rabbits and is available only through veterinary practices. The program 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 practice, which has been proven to work extremely well. PVA works alongside practices to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves practice performance.
The PVA Buying Group, is now the UK's largest veterinary buying group without group interests in veterinary practices or veterinary wholesalers offering its members the best discounts across the industry on pharmaceutical and consumable spend.
For further details:
http://www.premiervetalliance.co.uk/;
http://www.merrittvet.com/home.aspx
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.