Premier Veterinary Share Discussion Threads

[hydrus] 12/9/2016 13:22

For what it's worth I am looking for the magic figure of 2,500 actual signed up clinics as a big milestone. That for me would mean this company would be on course to generate annual high margin revenues in excess of £11m (excluding buying group revenues) over a 3/4 year period assuming 250 plans per vet, which is very conservative, and thus 650,000 pets on plan. Profits at that point should surely be in order of at least £4/5m and growing at 30/40% per year still. These are estimated but it's good to have a target I think.

[hydrus] 12/9/2016 13:02

Petlover, I am purely guessing but I imagine it's half a days training or so for each Vet clinic to get them upand running. Therefore a trainer might be able to do say 8 or so sessions a week with a day for organising themselves/reporting etc. This equates to around 350 clinics a year taking into account a few weeks holiday etc. If revisits are involved then the number drops of course. Either way I don't suppose they typically need more than 2/3 trainers in each country to keep up with overall training needs. Now the problem is of course that if they only have a few trainers then there might be a delay in pet plans being launched even when clinics sign up as the trainers will have a schedule of clinics to get round before they get to the new clinic. This would mainly be an issue in a high growth territory. Therefore one would hope that in say the USA in particular they build capacity in the training team and have many more trainers, even if some are 'sitting on the bench' to start with. They can't get paid much more than $30k a year or so as not a very high skilled job so a bit of excess capacity is not a problem. If they had say 6 trainers then that means they can get through around 200 odd clinics a month. I am sure management have thought it through very carefully in the USA and we are getting signed up clinics trained quickly.

[pet lover] 12/9/2016 12:03

HYDRUS. Lunchtime post🍴. If anyone replies I will add this evening after work.
Nothing new more of a background write up on the company. It's clear we still await research from the house broker as I am sure the writer would have included anything of note. Picking up on your post regarding speed of take up of the Premier Pet Health Plans. We know from all the news items that PVG appear to have no issues signing up vet clinics / Hospitals. The rate of growth then falls to the next layer. How fast can those that have signed up start selling. From my previous notes three months is a good guide. The last hurdle to overcome is training the practice staff. This governs how quickly rapid expansion can occur. What's your take on this.? I would be grateful if you or anyone else to have a stab at the number of clinics each trainer can take on in a year including re visits. Its easy to over estimate not allowing for travel sickness holidays and so on. ⭐️

[hydrus] 11/9/2016 21:00

Pet lover I haven't seen it yet, what was the crux of the analysis of PVG?

[pet lover] 09/9/2016 20:23

Home and glad another week is over.I could have sunk 3 pints at lunchtime but with the boss just 3 feet away I would also say goodbye to any chance of a pay rise. ANIMAL MAGIC is a two page job in Thursday's edition of Shares £4.25 at all good newsagents.
""Pets, vets and animal medicines niche offers access to resilient revenue streams."
The article goes on about sector growth high quality earnings strong cash flows and rising dividends.They also point out that over past recessionary periods spending has held up well. 7 companies in all with PVG given 200 words and 3 charts inc PVG, PETS and CVS. PETS is on a PE of 16 while DPH and CVS are on 30. The reason is all to do with growth rates. PVG'S lack of profit means it does not have a PE.Towards the end we read. Though PVG was loss making in the first half to March the news flow is currently positive. Cora Mc Callum explains in a note on CVS not PVG " Vet services are generally economically resilient.While the number of pets in the UK has remained relatively stable,the rising prevalence of insurance is leading to people spending more on each animal as the seek human- style healthcare." My hope has always been to see PVG on a PE of at least 30 in the not to distant future. That requires profit growth of at least 40% over a period of years.Turnover growth of anything over 60% should see shareholders achieve that in my book. I am also not so sure about insurance for pets. My reasoning is this. First the % of cash paid out in claims is about 65% in America I can't find the amount for the UK but compared to health care in America after the reforms of 85% it strikes me as poor value. Insurance Tax also has to be paid of I think 9.5% on each new pet insurance policy.🗑

[pet lover] 09/9/2016 12:06

bigglesbingham :Quick lunchtime post. The hound and i do not work for PVG. When AKT was reversed into PVG a GM was held in December 2014. It was the first time old AKT shareholders got a chance to ask the new directors questions about the new VET business. One director pointed out that it takes around three months after a vet is signed up till the first plans are sold and the reasons why. They were very bullish about growing the company. So far they have delivered although investment has been put before profit. We have been updated each 1/4 on plans sold so you can bet at the end of this month or the start of the next month we will see an update. I would like too see the broker produce some guidance for the next 3 years and had thought it would have been produced by now. Only then will the wider investment community have a chance to evaluate PVG. When I get home this evening I will discuss yet another bit of news flow that has come to light in the last 24 hours.Off for a 🍺 as its Friday.

[bigglesbingham] 09/9/2016 08:03

Do you work at pvg petlover??

[hydrus] 06/9/2016 10:07

No idea but speculating - perhaps it was all finalised yesterday afternoon and they just released it as soon as they could.

[mr dexy] 06/9/2016 09:16

Hi All,

Just one question coz i'm old and dense... why release the news after the martket had closed?

Regards


Mr D

[hydrus] 05/9/2016 19:15

Petlover I have seen the new website but haven't had chance to go through it properly unfortunately as been busy. I did look at the working with 1000 clinics point - you may be right that they are referring to just the plans but the language used is wide enough to incorporate buying group clinics also - either way I'm convinced they will be working with a few thousand clinics in a few years time.For me the only question here is just how quickly they can grow both signed up vets and of course pet plans. The plans themselves are proven to work for vets and importantly large vet chains who seem delighted with the financial benefits they bring. Therefore I'm convinced they will keep growing and growing to a significant level over time. As you point out Petlover, the economics are excellent once they are at scale.

[pet lover] 05/9/2016 17:52

Nice cool day for the hound quick check for ticks none found.🐶
Just got in and read the news.🌞
That means all PVG'S contracts are for 5 years. Did anyone notice that Medi Vet has grown from 114 to 142 vets in the last year. HYDRUS your dead right about that glowing report have you picked up on the new Premier Pet Plan site?

The new Premier Pet Plan site shows 15 members of staff working out of the Bristol office.Assuming 12 are running the UK operation and 3 are doing back office work for foreign sales my thoughts follow. By the end of this month UK plans up and running should exceed 130,000 at @£20.00 a plan pulling in £2.6M in a full year.Taking a stab at the wage bill for those staff £500,000 a year might cover it. 25,000 new plans will need to be sold next in the UK year to equal their wage bill that will not be an issue. What I am trying to get at is: The 12 staff are earning their keep by selling enough plans each year excluding central overheads.Rapid expansion is now taking place around the world.Holland went live from a dead start to 10,000 plans within 15 months. In a full year that's £200,000 of income @£20.00 a plan.That would cover the wages of 4 or 5 staff. 20,000 plans would not only cover wages but deliver a nice lump into the kitty. On that basis each new territory should be standing on its own legs within two years. Ireland, Holland, Denmark, France, Germany and USA. The USA could grow at an astonishing rate with 42 reps calling in on 9,600 potential vet hospitals / clinics on a regular basis from just one of the two large American contracts.

[hydrus] 05/9/2016 17:18

Excellent news - what a reference that is from Medivet CEO:'we have been delighted with the support that we have received over the past three years whilst working closely with PVA. PVA's well implemented and supported service has enabled us to provide an excellent healthcare plan to our clients, and has delivered significant financial benefits to our business'

[pet lover] 03/9/2016 13:57

The hound is wet and smells. Good spot ginger; keep it up. I have not seen this site and am convinced it's brand new and what's more its purely to showcase PVG'S Premier Pet Plans.

;We’re already working with over 1,000 clinics throughout the UK, Ireland, Holland, Denmark, France, Germany and USA. The overwhelming majority of the practices currently operating our plans have managed to grow their business while never losing focus on the most important part of their jobs – the pets in their care.;

This is new we haven't yet to been told about Germany or the 1,000 clinics. The results to March 31st showed a worldwide total of 616 on their Premier Pet Plans plans and over 900 if the clinics contracted to the buying group are included. The 1,000 might include the buying group although that's not how it reads as this is the individual Premier Pet Plan site. Working backwards 400 clinic sign ups across 7 countries in five months would be my expectations. These are actual sign ups as opposed to the large 10,000 US prospects than may or may not be converted.Those 10,000 are starting to be signed up right now and over time I am hopeful a large proportion will come onboard.🐾
28062;

[ginger_ninja1] 03/9/2016 10:07

I'm turning into the link King but the website has been revamped. Looks smart. http://www.premierpetcareplan.com/gb/contact/team

[pet lover] 01/9/2016 12:45

Quick lunch time post.The deferred shares business is just cleaning up the accounts that was approved at the last AGM. This was a left over from the old ARK business pre the RTO by PVG.It will enable PVG to pay dividends in the future. PVG should be in a position to start paying cash back into the form of dividends to shareholders within 3 years. The company will be generating lots of it so long as targets are met and costs are kept under control.The way is also now clear for any corporate action.
It also appears that the PVG is attracting new investors with a 3% plus holder showing his hand a few days ago. Over the last two months PVG'S staff and directors (inc those from the now sold vets) got their first chance to cash in options they were given pre floatation / RTO. For some the temptation to sell would have been to great.I imagine most will hold for the ride but no one can blame them for cashing in a 13 fold gain.The directors have also let a few go into the market to satisfy demand.

[bigglesbingham] 01/9/2016 10:23

Can anyone explain the implications if any of the recent capital reduction?

[hydrus] 27/8/2016 08:15

Thanks ninja

[ginger_ninja1] 27/8/2016 07:23

Some more column inches for PVGHTTP://blog.vet-advantage.com/companion/six-steps-ahead-of-illness

[homebrewruss] 18/8/2016 22:57

Don't think so but it's not untypical for less frequently traded stocks.
That said I don't think the published prices are always accurate. I bought a few for around 136 yesterday and it was 128 to sell - less than the published spread.

I'm topping up when I can at these prices. There may not be a financial update until January but any news before then on positive sales in the US could move the price quickly.

[petersinthemarket] 18/8/2016 09:12

Good solid bet and share price roughly on lower trend line now so I suppose it's a good time to buy but, last time i checked, the spread was huge, 125 to sell 148 to buy. Any special reason for that?

[hydrus] 12/8/2016 08:32

Petlover I agree that doubling pet plans next year is realistic and would be an excellent achievement. As you say based on how quickly they have signed up big US distributors plus made direct sales to vet hospitals in the US, it seems likely that we can expect some more contracts over the next year or two with some large chains. There certainly is scope for a lot of upside here due to the gross margins kicking in.