18 Oct 2017 07:00
PREMIER VETERINARY GROUP PLC
("PVG", the "Company" or the "Group")
Further re Trading update
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014
London, UK, 18 October 2017 - Premier Veterinary Group plc (LSE: PVG) provides the following update on trading, following its previous update on 22 September 2017.
Update on US
The Board is pleased to announce that it has signed a further cooperation agreement with The Veterinary Cooperative ('TVC'). TVC is a Group Purchasing Organisation with over 3,000 member clinics.
The Board has decided to focus the Group's US resources in the mid-west and south-eastern states, where it has its largest presence, until such time that the changes the Group is implementing to improve sign up rates take effect and are sustained. The business will continue to service existing customers in all regions. The decision to focus the Group's resources will be reflected in a lower and slower growing cost base than previously envisaged.
Financing
As at 30 September 2017, the Group had in excess of £3 million of cash. Additional funds may be required towards the end of the current financial year. The Board is exploring a number of funding options and the directors are confident of being able to raise any additional finance required.
Pets on plan
The Group's recurring revenue streams are driven by the number of pets that are signed up to Premier Pet Care Plan ("PPCP"), a preventative healthcare programme for pets. The number of revenue generating pets on active plans for the fourth quarter of its 2017 financial year, and in the preceding four quarters was as follows:
000's | As at Sept-16 | As at Dec-16 | As at Mar-17 | As at Jun-17 | As at Sept-17 |
United Kingdom | 121 | 132 | 137 | 145 | 156 |
Europe | 18 | 21 | 22 | 25 | 28 |
US | - | 1 | 2 | 3 | 4 |
Total no. of fee generating pets on plan |
139 |
154 |
161 |
173 |
188 |
The number of revenue generating pets on plan at the end of the financial year represents growth of 35% for the year.
In the United Kingdom, the number of pets on PPCP has grown by 29% on last year. The UK PPCP business is well established, cash generative and continues to see opportunities for growth from its existing customer base and new customer opportunities.
In Europe, the number of pets on PPCP at 30 September 2017 has grown by 56% on last year. Our most significant territory in Europe is the Netherlands. PPCP is branded as Huisdieren Zorg Plan ("HZP") in the Netherlands. The number of pets on HZP has grown by 46% in the last year to 24,000 pets on PPCP at 30 September 2017. HZP is expected to become profitable in the financial year ending 30 September 2018.
For further information, please contact:
Premier Veterinary Group plc Tel: +44 (0)117 970 4130
Dominic Tonner, Chief Executive Officer
Will Evans, Chief Financial Officer
Note to Editors:
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 programme for pets branded "Premier Pet Care Plan" ("PPCP"). In the US, where veterinary practices are known as veterinary hospitals, PPCP is marketed through the Company's wholly-owned subsidiary, Premier Vet Alliance (US) Limited.
PPCP is a structured, preventative healthcare programme for cats, dogs and rabbits and is available only through veterinary practices/hospitals. The programme 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/hospital, which has been proven to work extremely well. PVA works alongside practices/hospitals to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves practice/hospital performance.
For further details:
http://www.premiervetgroup.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.