PVG.L Regulatory News (PVG)

Premier Veterinary Group PLC

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

Trading Update

London, UK, 9 January 2019 - Premier Veterinary Group PLC (LSE: PVG) provides the following trading update.

Trading update to 31 December 2018

Growth in 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 first quarter of its 2018 financial year, and in the preceding four quarters was as follows:

The number of revenue generating pets on plan at the end of December 2018 has increased by 30% in the last 12 months to 262,000 (31 December 2017: 201,000).

Update on UK business

PVG is no longer in discussions with the UK corporate group to provide collection, administration and support services to facilitate the provision of animal health plans as reported on 24 October 2018.

Discussions continue with a number of leading veterinary businesses in relation to significant potential developments, which, if successful, will enable the company to deliver its 2019 planned growth.

Update on US business

PVG announces that it has commenced a full roll out of the contract signed with the previously mentioned "Customer", PetVet Care Centers LLC (PVCC), a major corporate veterinary consolidator in the US.

PVCC has over 170 hospitals across 25 States. Of these hospitals in excess of 130 are companion animal, the target market for PVG, with a Full Time Vet Equivalents ("FTVE") compliment of over 500. The average size of PVCC's hospitals is in the region of 5 FTVE which is approximately twice the average size of UK and US practices currently served by PVG.

The contract was initially to introduce PVA's preventative healthcare programme for pets, branded "Premier Pet Care Plan" ("PPCP"), to 18 of PVCC's companion animal hospitals. After successful completion of the initial pilot, the contract, which is for a period of 3 years, has now been extended to cover all of PVCC's companion animal hospitals and will see PPCP launched in all PVCC's existing sites over a 6-month period. Furthermore, PPCP will be launched in hospitals acquired or opened by PVCC in the future throughout the contract period. As the fourth largest corporate consolidator in the US, this represents a significant opportunity to grow PVA's existing market share in this key territory.

Steve Youd, Vice President Operations, PVCC, commented:

"PVCC is very familiar with preventative healthcare plans, but PVA is the first to come to us with a model that delivers a product led programme with a comprehensive support package and delivering an end-to-end solution. We have been particularly impressed with the service that our hospitals have received from the field-based trainers and we see PVA as a great strategic technology partner moving forward. We are a customer focused company and believe that the Premier Pet Care Plan will deliver real added value to our hospitals."

Dominic Tonner, Chief Executive Officer of PVG, added:

"I am delighted that, following a hugely successful pilot, agreement has been reached to proceed to a full roll out of PPCP throughout PVCC's estate. This deal will help propel the business forward with this large and well respected US corporate consolidator. It is clear vindication and reward for the unswerving focus the team have for the business and the changes we have implemented to satisfy the US market. Its contribution will drive our US business forward to profitability "

Financing

As at 31 December 2018, the Group held cash balances of approximately £0.4m and has drawn down £1.5m of its £2.25m unsecured loan note facility with Bybrook Finance Solutions Limited ("BFSL"). Rajan Uppal, a director of PVG, is the sole shareholder and director of BFSL.

PVG requires additional funding to support the directors' going concern assessment, maximise the growth opportunities referred to and to reach overall profitability. The non-conflicted directors of PVG are confident of imminently agreeing terms with BFSL for a secured loan facility of £2.0m in addition to the £1.5m previously drawn. Crossroads Finance Limited, a company jointly owned and controlled by Dominic Tonner, Chief Executive Officer of PVG, and his spouse, is expected to partake in the PVG funding by entering into direct arrangements with BFSL.

Outlook

The outlook for continued growth for the Group remains positive. The PVCC roll out significantly underpins PVG's existing US growth expectations and profitability for 2019. Together with the ongoing discussions in the UK in relation to further significant developments, the Board is confident of future prospects for the Group.

Full year results for year ended 30th September 2018 will be released on 21st January 2019.

For further information, please contact:

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

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, 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. 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, 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.

For further details: http://www.premiervetalliance.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.