|Premier Vet Grp
||EPS - Basic
||Market Cap (m)
|Nonequity Investment Instruments
Premier Vet Grp Share Discussion Threads
Showing 651 to 675 of 675 messages
|Missed post #666.. well done biggy!
Is that the 3rd time recently that the bid has been put up to 230 to attract sellers?
Regards to all
|Thanks very much for those gross margin estimates.|
|Your getting good value as no tax is paid on the policy.
The rate is 10% on most types of insurance, including car, pet and home insurance.|
|Fee per plan estimates are £18-£20 in U.K. with likely significantly higher fees in USA. Gross margins for pet plans are north of 90%|
|We think in the range £18 £20 per plan i.e. taken from your plan in total over a year. ( After VAT)
|So any idea of actual gross margins ?
Fwiw, The 2k trade and the 3k trade are mine .Very hard to get any stock in this one.|
|One off fees to set up each vet plan
12 payments per year from the plan
One off practice set up fee.
Rolling rebates/ cut from manufacturer
So from your plan, your right, they take a fee each month to administer the plan on behalf of Medivet.
The terms they have with Medivet are not in the accounts.
They have however said America has higher margins than the UK, Hence the rapid expansion|
|I'm paying £14 a month for my pet plan at Medivet . Does anyone have an idea , what % PVG of that £14 gets from that ?
From the presentation....
''PVG collects direct debit fee per pet per month plus set up fee per new pet plus practice set up
fee plus manufacturer support fees'' i.e sounds like just an adminstration fee or am I missing something ?|
|The times today and a good read.
PVG RNS MAY 2016
"We have been evaluating the US as a target market for PCP for almost 2 years and feel the time is now right for our entry. We are now pleased to be able to announce our first steps in the south east region of the country. We plan a methodical build-up of our presence with the appointment of additional sales and training personnel to support the product within hospitals."|
|To enable PVG to be extremely profitable massive numbers are not even required.
Let's take the UK
Here income from plans sold in previous periods keeps being delivered through the letter box for years and years BUT COSTS VERY LITTLE TO MAINTAIN.
That's why I just love recurring income streams management have to keep this steady but the real effort can be spent at the front line, going global.
It's no different from how other growth companies have come from nowhere and created fabulous wealth by doing things smarter, quicker and more profitable than the old establishment.
So many investors have been caught out on the stock market that caution takes over, and makes your head look for disaster around each and every corner. They are often proved right,as heaps of companies walk investors up the garden path. The directors at PVG own a very very substantial amount of stock and are driven to success far more than you or I.
How many companies do you see where the directors cough up cash for expansion and in doing so avoid diluting shareholders with a placing, often, at a price lower than in the market the previous day.|
|BANFIELD CORP the biggest chain of vets in America has sold a Million plans.
PVG have pulled a master stroke in the States and in the coming months it will, I hope be borne out by results.
Growth comes in stages.
First PVG proved the concept in the U.K.
Then came the Dutch launch where 10% of the available market was signed in under 18 months.
PVG have only been in America for under one year and have achieved more in that time than I ever in my wildest dreams thought they would.
HYDRUS and myself expect growth of plans sold are growing in the States at 300% in the current quarter.
PVG is now valued at £33M and will make a loss this year which is entirely down to investment for growth.
The risk here is not that the model is not proven, it's more to do with the rate of sales. The downside being it takes the company a tad longer to get to where they are going if sales take more time to materialise.
Right now we have seen absolutely no signs of any hiccups I would go so far to say just about the opposite.
The first, or one of the first vets / hospitals to go live in America has sold 200 plans in 6 months.
10 at that rate = 4,000 in a full year.
100 = 40,000
1000 = 400,000.
1000 is a 4% market share of total clinics in America and a realistic target to start with.
The plans above are just one years sales when each clinic can be expected to grow sales for at least 3 years before the growth tails off due to lack of clients within each clinic.|
|Hydrus - thanks for your thoughts/observations, 'clear blue sky' was probably the wrong analogy. It's all about execution and anticipated significant (US - stratospheric) growth in these plan numbers.Pet lover - no laugh, I see tremendous potential here, but, for me, it needs to be tempered, which I suppose is what the current market cap tells us. As I posted on the CVSG thread, if the market believed Zeus's PBT of £8-£10M in a few years time was 'nailed on', then the share price would be a multiple of what it is today.|
Your having a laugh.
CVSG a share I understand you own, has sold 240,000 plans "in house".
CVSG is valued at £700M with 16% of like for like revenues being delivered from those plans.|
|Iomax99 I am optimistic here but there are risks. Management might fail to execute these contracts and might have taken on too much too soon, for example. However, I have weighed up the risks vs the opportunity of capital growth and believe it's got an excellent shot. Remember it's not blue sky, they are generating revenues which are growing >50% at high margins. The model also enables investors to calculate with a degree of certainty what revenues are likely to be in the current financial year based on pet plan numbers. That visibility is helpful. Estimates for future years are based on more profitable US plans (which the company has confirmed) and projected growth in plan numbers. Those are harder to predict but my estimates are not miles away from Zeus's, although slightly lower revenue.Each investor must weigh up these risks and potential rewards themselves of course. I do believe that due to the existing high margin recurring revenue there is a big safety net here. That is growing without much input from PVG as it's the UK vets selling plans themselves.|
|The big difference between UK website and US website is that "CURRENTLY" the US site has no Facebook or Twitter presence. This is important as if you read the messages on these boards they are quite positive and will help sales.
I suspect the next thing we will notice as this develops is a US facebook and Twitter page.|
|Pet Lover/Hydrus - to what extent is your enthusiasm tempered by risk aversion? I have had stakes in a few of these supposedly 'clear blue sky'/unlimited potential type situations before, only for them, ultimately, not to amount to very much.|
Rapid take requires more trainers and a few managers the systems are in place.
Looking at the USA Facebook site a few weeks ago it appears the UK team was in America.|
|Agree that the product led approach is hugely advantageous for the supplier.One thing is certain - there is no ceiling to limit growth now. If PVG execute these agreements, they will become a hugely profitable company worth multiples of today's Mcap.|
|Midwest 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 are a customer focused company and believe that the Premier Pet Care Plan will deliver real added value to our hospitals."
The key here is the product led programme. The wholesaler now has an incentive to increase his income by a far higher margin than previously.This is a new opportunity for him now the sky is the limit for extra sales.
Extra sales for a wholesaler in a market growing at just 4% can increase profits dramatically for them.
The reps will call into their clients on a regular basis and getting an introduction visit booked for PVG costs nothing extra it's just another daily task of the Rep.
Its clear this is a far better deal for Midwest as they are for the first time part of the chain rather than just an agent.|
|'High growth, High Margins and Recurring revenues' AMEN with the addition of a committed, highly incentivised owner-operator Very hard to find these kind of companies, a constant hunting process. This is one. The land grab is excellent but I do think rapid follow up of leads is essential for these agreements as otherwise the suppliers will not think it's going to make a meaningful, sizeable impact on them and lose interest in prioritising them. I am certain DT et al are conscious of that.|
We are not alone with big lumps of shares changing hands at £2.20.
As you know my reasoning for investment here is based on High growth, High Margins and Recurring revenues. To date in under two years the shares have risen from under 30P to today's £2.20. They still does not reflect anything like true value based on the 22,000 wholesalers who are now in the bag. PVG have a full 5 years to work through the leads provided.
It's like a big house builder buying a land option and having 5 years to get planning permission, but in our case PVG have bought the option for free. The builder pays a fee for the option that is booked as a loss if planning is not obtained.|
|I'm with you, I'm a believer!|
I am a vet rep with a book of 500 vet practices/ Hospitals in the USA.
I work on commission.
I get a chance to talk to the vet (I know) and show him / her the outline proposal.
A year down the line my sales from 250 plans have gone through the roof 200%
That's why it's so very clever for all parties.|
|I agree with you Petlover so far so good. A very good job by management. The agreements with suppliers do not guarantee signed up practices and animals. We think though based on evidence to date they will produce for PVG. When these result in large revenues and profits we will all be rewarded very well, Directors included.|