Premier Veterinary Share Discussion Threads

[pauliewonder] 01/2/2017 10:27

Took the hit on the spread and bought in. Long term potential looks excellent

[pauliewonder] 01/2/2017 09:34

The spread on this is awful

[pet lover] 01/2/2017 09:22

Broker valuation potential.

Valuation potential: The Premier Veterinary Group Plc currently trade at an EV/EBITDA of 37.6x and a P/E of 60.3x to FY18, falling quickly to 4.5x and 4.6x respectively in FY19 based on our forecasts. We believe there is potential for the company to reach £10m of EBITDA over the medium term if the US rollout is successful, and we see an increased uptake in Europe. We see no reason why this should not be a £150m+ business if they deliver £8m – £10m EBITDA based on current peer group valuation.

[lomax99] 01/2/2017 08:56

Well I have been in CVSG for a very long time..... ,and also have a holding here.

PVG do however need to substantially increase plan numbers to cover Operating costs, Central Unallocated costs and financing costs. I know there are some one offs in there, but it would be great to see some analysts numbers to see how they see these costs settle/increase & anticipated Revenues scaling up over the next few years (No. of plans/Revenues by location). Obviously markedly, given Zeus's £8 - £10M profits in a few years time.......

[hydrus] 01/2/2017 08:29

Pet lover I would also suggest that potential investors look at some I your earlier posts on this thread which are excellent.

[pet lover] 01/2/2017 08:25

For any potential investor who wants to understand why Pet Health Plans are good for the Pet, the pet owner, the vet, and the clinic.

CVSG is the only pure listed vet chain in the U.K. The share price says a great deal about the plans.

They are extremely keen on them and if you take the time looking at the reports and accounts you will understand why.

CVSG,being a chain, run their own plan. PVG work with independent vets and groups of vets.

😺😺

[netcurtains] 01/2/2017 07:51

more healthy cats does not automatically mean less birds - it can mean less rats (rats eat birds and their eggs and chicks):

[hydrus] 01/2/2017 07:50

For the first point I should have said will they cancel the plans or will growth stall....Final point - they have relatively low revenues moment and haven't made a profit (although solely because they are investing for growth). For balance the positives :)- extremely high growth with good visibility - very high margin revenue - very sticky recurring revenue model- cash paid to them up front- a service that benefits the pet owner, the vet, the drug companies (and PVG) hence the Zoetis agreement - no obvious competition with scale - early signs are USA sales are very good and more profitable - high owner operator stakes and every sign to date that owners don't want to dilute shareholders. Also the unsecured Director loans indicate confidence - extremely attractive sector - barrier to entry in that it's taken years to get so many vets signed up and the IT systems and customer interfaces humming If they continue to grow by 50/60% a year, then very quickly (say 2/3 years) you have a business making profits of multiple millions which will still be be growing very fast. What price would a pet services company put on that? Broker suggests £150m in a few years. That's not crazy IMO.

[hydrus] 01/2/2017 07:20

I would say we don't know how pet owners will act in a recession - will they cancel the plans if things are right? My instinct is no as pets are seen as part of the family but it is an unknown until tested.Secondly the CEO salary last year looked very high. To be fair it included a one off bonus for turning the vets practices around so well deserved. There are posts about it on here but key point is going forward the company have set out very clearly what the limit will be and it's much lower. The Directors own a large part of the business. To me that's a major plus but of course no other shareholder has any significant influence which could be a negative in theory.

[apad] 31/1/2017 20:40

Impressive cash flow.

Do any of you folks who know this company better than I do (which is all of you) have a criticism/worry/concern/negative based on the numbers?

It's obviously a good company that is in a sweet spot.
More reason to look for negatives!

Well done Hydrus.

apad

ps
Beware Confirmatory Bias :-)

[pet lover] 31/1/2017 12:24

11,000 in the U.K that includes the slack period over Christmas is a rather grand result.

[hydrus] 31/1/2017 12:16

Growth rate of pets on plans looks like it is starting to accelerate

[wallywalrus] 28/1/2017 00:59

Going strong, will it break free?

[hydrus] 27/1/2017 17:16

They are very rare - I want high insider ownership also. PVG has that.

[pet lover] 27/1/2017 17:14

At this stage I agree 7Dig has a higher risk. PVG is only getting attention now after just short of two years.
The price of PVG has increased 7 times with the best growth yet to come.
7digital has underperformed prior to my purchase but hidden within that has been a large investment in people and systems, with contracts being won.
IMHO the risk is falling by the day as investors start to factor in what the company could produce within 2 years.
I want recurring revenues high growth and massive margins, with little competition
The plan is to invest in 3 - 5 companies that can do all four.
They are not ten a penny. It took me 18 months to find 7Dig.
If I can get 5 I can afford for one or two to disappoint.

👯👯

[hydrus] 27/1/2017 16:44

Meant to say thanks for highlighting it.

[hydrus] 27/1/2017 16:31

Continued interest and strength here.Petlover I have taken a small position in 7dig at 7p having spent some time researched it following you mentioning the company. I see it as a far riskier prospect than PVG but on balance the reward could be large enough to justify an investment.

[pet lover] 27/1/2017 14:05

You did not have to wait long.

The hound is going to to get an early spring clean tomorrow.😺😺

[bigglesbingham] 27/1/2017 14:02

Can't understand the share price not moving on that!!!

[pet lover] 27/1/2017 13:51

200,000 @ £2.00

[brucie5] 26/1/2017 10:36

Took an initial stake today. Thanks for some great coverage on this bb. So far, the story looks to have been vindicated. Hopefully we'll pop the £2 mark and move onwards from there.

[pet lover] 24/1/2017 08:29

Thanks HYDRUS.

Let's hope your spot on.

[hydrus] 24/1/2017 08:25

I really don't think it is petlover - stocks don't really tend to rise 50% pre any announcement. Plus I am convinced the Directors, who own what circa 75% of the business, would not sell out for £30m when they know how big this could be in a few years. I'm 99% certain it's not bid interest.

[pet lover] 24/1/2017 08:20

Starting to worry it might be a bid. I just pray it's not.