Premier Veterinary Share Discussion Threads

[pet lover] 12/10/2016 17:43

Hibberts good evening from the hound and myself.No I don't but HYDRUS thinks it's £18.00 after VAT and my numbers come in at £24.00 : less the VAT £20.00. Your plan is costing you £217.56 a year so a commission of around 12% to the company that runs it seems right and fair. That's the reason why it's best to look at vet sign up rates and plans sold rather than cash turnover. You know the revenue will jump in the following years. In short if PVG hit my target then starting this time next year they should have 300,000 plans @£20.00 a time plus £1M from the buying group.Total £7M.
This financial year that started two weeks ago should produce the fruit.Its going to be exciting with the worldwide sales teams firing on all cylinders.Each year sets up the following year with recurring revenues.PVG is completely off the radar something that will not last for ever.In three months time we will get feedback on America where sign up rates are running at 5 a week and with new staff should excellerate,the 🗝 to future profits.

[hibberts] 12/10/2016 13:48

homebrewruss,many thanks.

My dog is on a pet plan and it cost me £18.13p per month.

[homebrewruss] 12/10/2016 13:31

@hibberts see pet lover's previous posts #287 & #289

[hibberts] 12/10/2016 13:21

Pet Lover.

Do you know how much the average plan is sold for and what net profit PVG makes from each plan?

[errollc] 12/10/2016 12:32

They are doing everything right....everything seems headed in the right direction along with sterling's fall which will help earnings. The market will wake up to this at some stage!

[pet lover] 12/10/2016 12:05

Lunchtime ramble after this mornings upbeat trading update. My prediction of 150,000 plans for the full year was in the event, not that far out if you add the lost 5,500 onto the 139,000. The trend is very good indeed with no less than 11,500 UK plans sold in the last 3 months. Total growth worldwide of 29% in the last quarter is fabulous. Sooner or later this type of growth will register within the square mile. It is looking increasingly likely my target of 300,000 plans sold by this time next year could be on the cards. If the UK produces the European current growth rate your looking at these numbers over the next 4 quarters. 13,000 15,000 17,500 20,000 (66,000). The Netherlands should bring in 20,000 helped by Zoetis. That's 86,000 leaving the rest of Europe and the States to pick up the remaining 74,000. Not sure if today's update will see some broker research or forecast. How many UK companies would love to grow sales at 29% a year? let alone 29% a quarter. 🌞🌞🌞🌞
Factor in the pounds recent 15% fall and PVG'S recurring revenues ones looking at a lovely quality business at the right price before the herd arrives.

[hydrus] 12/10/2016 08:09

Yes they signed up ten US clinics just in the last two weeks of September. That bodes well for substantial growth in the US over the coming months.

[battlebus2] 12/10/2016 08:07

Thought it was a good statement......growth in all areas...

[joeblogg2] 12/10/2016 08:06

Surprised we are down considering statement:

"We continue to see significant growth in our established market for preventative healthcare programs in the UK. The board is delighted with the initial progress the Group has made in the US and our progress in Europe continues to gather momentum from our success in the Netherlands. The investment we have made in our global transaction IT platform and our business development resources leave us well positioned to grow rapidly in the year ahead."

[pet lover] 18/9/2016 20:56

Forecasting is difficult at the best of times. One day the hound produces nothing others three black bags are required that don't smell of 🌹🌹.The food intake and meal times remain the same.The most important information will be the quarterly updates particularly foreign sales growth. If growth stalls questions will have to be asked. We have been told it takes around three months to launch the first plans after contracts have been signed with a clinic / hospital. What I've failed to allow for is the time it takes for a clinic / vet to sign up after the first contact with the PVG sales team.Some may have to have 2 or 3 internal meetings while others might sign within a week. This week we were informed that the software was up and running and I am wondering if this needed to upgraded prior to American sales going live.I have a suspicion extra trainers are required for contracts about to signed. Of the big US contract 9,600 I guess their are some chunky corporates. They will go over PVG with a fine tooth comb prior to signing up as they don't want an outside foreign company screwing up their business model in any circumstances.Any big group also wants immediate action if they decide to sign across all their clinics / hospitals. They will demand resources are in place. PVG and for that matter its shareholders want rapid growth and you can be pretty sure demanding targets have been set by management, after all PVG is at the end of the day is a sales organisation. The house broker has as far as I can see not issued anything to date. The next two chances we have of seeing anything are after the fourth 1/4 numbers that I hope we will see in about a fortnight or at results time in January. Any numbers produced by the broker will have the blessing of the company as PVG will not want to let the market down within months of its first coverage by the city club. Revenues are growing and starting next month new sign ups in Europe and America start to come on stream. 1 October 2016 should start with about £2.8M of ongoing revenue from the Pet Plans and £1.1M from the buying group a tad under £4M in all.Another million should arrive in late December from the sale of the vets. Assuming HYDRUS 'S 100,000 plans get sold in 2016 - 17 the part income would be another £650,000. That's £5.650,000.

[hydrus] 18/9/2016 10:36

It takes a bit of time for hospitals to get signed up, trained and pet plans launched. We can see that from latest USA figures. It's quite hard to work out how quickly the USA will grow taking this into account. This coming year will no doubt see significant growth in USA but could it be that the Dutch and Scandinavian business contribute more as they are more established? No doubt in my mind that in year after the USA will start to dominate.Is it reasonable to expect 100,000 plus plans to be sold in the next financial year? If we assume 30,000 to 40,000 from continued UK growth based on existing growth patterns, perhaps 15,000 to 20,000 from Holland we would then need 40,000 to 55,000 plans from USA, Scandinavia and France. That is possible I think but not certain?

[ginger_ninja1] 16/9/2016 14:06

I'm super happy with the RNS as well, this is great news. Onwards and upwards for my 2016 share of the year!

[hydrus] 16/9/2016 12:29

Great find Pet Lover thank you for sharing

[hydrus] 16/9/2016 09:47

The company is investing for the long term. I agree that non-dilution is a big positive, which is why having Directors own a large part of the company is an advantage. They don't want to get diluted either.The company will lose money this year and I'm pretty sure same again next year. Anyone looking for profitability quickly should think again. The revenue growth however will give some insight into where things are heading. This year might be 40% plus growth. Next year we shall see but with this years plans sold fully kicking in plus some growth it could be 50-100% revenue growth. I think we should be between 140,000 and 150,000 plans by end of September. This might increase to 250,000 by end of September next year if USA kicks in well. In terms of the share price - If the business performs well the share price will follow. The shares might not do that much over the next year or so until it becomes clear that profits are not far away. Alternatively investors may realise that with the high revenue growth there is something exciting here and buy in. I do not worry about the share price though.

[homebrewruss] 16/9/2016 09:24

I wonder if we will get much price action until we see actual figures for pet plans. I'm happy as I still have some more topping up to do :)

[meganxmas] 16/9/2016 09:04

That is a superb RNS ! ... looks like USA expansion going very well and a very shareholder friendly way of funding expansion ... non convertible as well.

[joeblogg2] 16/9/2016 08:36

I bought back in around 190 and surprised with today's news we are not anywhere near that?

[hydrus] 16/9/2016 08:14

Oh and plus the Directors got a bonus at the time of sale which was not unreasonable

[hydrus] 16/9/2016 08:08

They got £4m cash after loans repaid with £1m of that due to be paid over in December 2016. The £3m will have been spent on setting up PVA in USA, France, Holland plus probably bit in Scandinavia.

[bigglesbingham] 16/9/2016 07:53

What happened to the capital they got form the sale of the vets?

[hydrus] 16/9/2016 07:16

Well there we go they are recruiting a number of new trainers to create capacity in USA. Small loans so company only has a little debt but seems sensible strategy to capitalise on the opportunity whilst it's there. I was a tad concerned they might not be able to get vet hospitals trained and ready quickly enough but they are dealing with that. The new chairwoman and her husband are prepared to loan significant money to the company which suggests they are very confident in direction company is going.

[pet lover] 14/9/2016 20:23

HOMEBREWRUSS.㈇7;

You may be correct but at some time in the last 18 -24 months shareholders were told in writing plan numbers would be updated on a regular basis. For the life of me I can't find the RNS where I read it. We have had plan numbers updated each of the last 3 quarters so I would expect the trend to continue. I could be wrong though.One other pointer is the sheer number of news items PVG has delivered as the company has grown.I can't believe for one minute that we will have no news for 3 and a half months when we currently get updates ITRO one every 3 weeks.
It also transpires that the Premier Pet Care Plans are being marketed in the USA emphasising cost savings to the client. In my opinion this approach is going to produce a win win situation for all parties.Plus it's a hell of a lot easier to attract clients when they can save money while at the same time improve the health of their beloved animal.PVG are a very small gobal 🌏 Company growing 🌱 fast 🚄

[homebrewruss] 13/9/2016 23:48

Pet lover, you mentioned we might expect some figures around the end of the month. I can't seem to find anything from the same period last year. When I previously questioned the company on when we might next expect an update they said a decision hadn't been made on whether anything would come out before final results so we may need to wait until January.