Premier Veterinary Share Discussion Threads

[hydrus] 31/10/2015 08:00

And in English?

[ginger_ninja1] 30/10/2015 10:12

Found this online, maybe the plan is too reverse Medivet into PVG at some stage........... thoughts?



Vet group makes acquisitions – by the dozen
Medivet has become the fourth largest veterinary group in the UK with the acquisition of 12 practices, including AVC Services in Liverpool.

Medivet managing partner Arnold Levy said support from HSBC had allowed the group to buy practices "as and when the right opportunity arises."

The moves bring the total number of practices in the Medivet group to 123.

The company’s acquisition strategy has been made possible by a £25 million revolving credit facility from HSBC, which the bank says has been tailored to meet Medivet’s needs, enabling it to draw down variable levels of funds to purchase practices and meet its monthly cash flow needs.

Medivet managing partner Arnold Levy said as a business it was different to other veterinary consolidators as it was privately owned by veterinary surgeons.

“This helps us to provide a more robust level of care to our patients – tailored to their needs and consolidated across all of our businesses,” he said.

“As a privately owned company, HSBC’s support has been intrinsic to our achievements and has allowed us to buy practices as and when the right opportunity arises.”

[pet lover] 13/10/2015 17:49

Errollc. Can't find anything about this company other than this from the companies page.Premier Vet Alliance is now a thriving network of over 740 independent practices across the UK and Europe.Looking back to the 2014 set of accounts they had 410 practices.CVSG is selling its health plan to around 800 clients per vet.If PVA could over time do half that one is talking very large profits.The buying group also chips in so wherever they can win both buying and pet health plan the numbers ramp up. Might £5,000 gross profit at 95% per vet be a good first short term target growing towards £10,000 ?. £20,000 per vet in 7 years looks to be well within reach. If half of that £20,000 came from the buying side and half from the pet plans 230 or so plans would need to have been sold by 2022 and £10,000 per year from sales of drugs and so on per vet.They do seem to to pulling in the vets which is the key to profits in the years to come.It does take time to grow the revenues but as far as I can work out the cost of sales is static or falling as soon as a new vet or vet group is signed up.On the buying side costs fall as they gain market share drugs can be bought for less and part of the savings passed onto the vet practise.PVG are sweeping through Europe at the speed of the German invasion 🚀
1,000 vets looks to be a near term goal so long as the offering can be sold and is taken up by the locals. The hound has his eye on his master being around all day to take him out and about not just at weekends. If PVG do perform well in the next 3 years his wish may come true.🐶

[errollc] 13/10/2015 09:41

pet lover...you are right, the key to PVG is the pet plan. If PVG can secure more plans from outside their own practices then it is money for old rope (dog chewed at that!).

I reckon this is the way forward...I wouldn't concentrate on the practices themselves, rather marketing to secure more plans. We shall see.

[pet lover] 26/9/2015 13:25

CVGS has just put out its results. It's shares have had a great run and now stand at 22 times forward earnings not cheap by any standard.The are the only true vet group with 250 branches.This is what the IC has to say about them.



CVS is pick of the litter

It's hard to fault the latest figures from veterinary practice business CVS (CVSG). Strong sales growth helped boost adjusted cash profits by more than a quarter to £23m. Most of the top-line growth can be attributed to strong underlying demand - like-for-like sales rose 6.8 per cent - but a series of acquisitions also boosted the numbers.

In the year to June CVS added 29 surgeries to its estate and one more crematorium. In total these businesses should generate more than £24m in annual sales for the group, having added £7.7m to revenues and £1m to cash profits during FY2015. Since the year-end the group has bought an additional eight surgeries, including a new 'referral centre' in Castle Donnington. By referral centre management means a clinic akin to a pet hospital to which vets can refer pets with more serious ailments.

CVS divides its business into four parts: veterinary practices, laboratories, crematoria and Animed Direct – its online retail site for pet medicines. The practices are considered the backbone of the business, and last year like-for-like sales there rose 5.6 per cent. The group’s booming loyalty scheme – Healthy Pet Club – may have helped drive organic growth. Over 51,000 pets were added to the scheme, boosting member numbers 32 per cent to 213,000.

Other parts of the business are keeping pace too. The laboratories and crematoria divisions posted like-for-like sales growth of 11 per cent and 12 per cent respectively.

Bosses admit that last year’s performance included an exceptionally strong first half, and like-for-like growth has slipped since the start of the new financial year. Yet analysts at Peel Hunt have still nudged up their forecasts. The brokerage now expects pre-tax profits of £22.2m (previously £21.5m) for FY 2016, giving EPS of 30.5p (previously 28.8p), compared to £19.4m and 27.1p for the year ended June 2015.

CVS GROUP (CVSG)
ORD PRICE: 679p MARKET VALUE: £402m
TOUCH: 678.5-680p 12-MONTH HIGH: 695p LOW: 347p
DIVIDEND YIELD: 0.4% PE RATIO: 58
NET ASSET VALUE: 66p* NET DEBT: 118%

Year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2011 101 4.3 6.2 1.0
2012 109 3.8 5.1 1.5
2013 120 5.5 7.1 2.0
2014 143 6.3 8.3 2.5
2015 167 8.5 11.6 3.0
% change +17 +35 +40 +20

Ex-div: 26 Nov

Payment: 11 Dec

*Includes intangible assets of £79.2m or 134p a share

IC VIEW:

This isn't the first time analysts have raised their profit expectations for CVS- a point that is clearly reflected in the shares' strong performance over the past year. The stock doesn't come cheap on 22 times forward earnings, but the company's growth story - based on both the nation's love of animals and the opportunity for consolidation within a fragmented sector - is sustainable. We remain buyers.

//////////



The only bit I take an intrest in is its health pet plans that are up to 213,000.Plus 50,000 in the year from 250 vet branches.800 plans per vet is by any standards a great result.They are a very slick outfit.The hound and I now want PVG to do the same.if they do it will be 🎵 to our ears.

[hydrus] 07/8/2015 21:05

The free float here is only 8.7% - that's just over £1m. I'm struggling to understand why it's a public company. It makes the investment riskier as shareholders can just be swatted away.Any views on this?

[hydrus] 05/8/2015 20:26

That's extremely insightful thank you

[errollc] 04/8/2015 14:15

I'm hearing very positive noises about this one. Think it will keep going.

[pet lover] 29/7/2015 11:38

Another bing on the ADVFN email alert the stupid hound looks at the front door. In reply to that posting. PVG vets have seen their margins jump last year agreed they don't have a cat in hells chance of making super profits.I also doubt that the vet that charged you £16.00 will be around for long.That firm needs to get twice or three times as many clients through the door just to hold his income up.They could also pile it on with other services to hide the real cost of going to the vets. I also agree PVG"S vets are not far off a waste of space unless the numbers can hit hundreds that would need bags of cash.Its the soft sold pet care plans that will save you money and keep your pet healthy to the bargain.

[au24] 29/7/2015 11:19

Price is every thing in these days of austerity. Can PVG equal or better it.

[pet lover] 27/7/2015 09:48

Second week off so I can do what I like. As you can see the hound and I keep an eye on the other vets that one can buy shares in. PETS AT HOME CVSG are two of them. CVSG put out a statement today.Group revenue for the year showed total like-for-like growth of 6.8%.Organic growth continues in the core veterinary practices. As indicated at the time of the interim results in March, growth was high during the first half of the year but returned to a more normal level in the second half. Membership of our Healthy Pet Club loyalty schemes grew by 51,000 (32%), from 162,000 pets at the start of the year to 213,000 at the year end. In the previous year membership grew by 50,100. Based on the current run rate these schemes are now contributing 13% of the total revenue from practices (2014: 11%). It's those pet health plans that have lifted revenues a full 25% from 11% of total revenue to 13% and on their way to 15% next year on that trend.From CVGS 290 vets they sold 50,000 plans. That's the same amount PVG might do in a year if all goes to plan. I hope PVG can obtain storming growth from the plans as the company is not saddled with 300 odd vets to slow down that growth.Now the rest of the day the hound and I can go shopping if they don't let us in its their loss not ours.

[au24] 26/7/2015 23:21

Vet savers is a new innovative vet chain,that gave my dog his annual booster for £16.99 together with a free health check up.
My local established vet charges £40,for the same annual booster jab.
Pets at home price came in no where as cheap as Vet Savers did.

[pet lover] 26/7/2015 17:10

What is striking is the margins across the group of about 12%. The margins on items bought in the shops are low it's the services that produce 15% of the profits that PETS AT HOME hope to lift to 40% by 2021 that is the attraction to investors.PETS AT HOME is valued at more than the hound.1.3 billion pounds.On the other hand PVG is valued at ten million pounds.PVG has margins on its pet health plans of 98% PVG has to do far less turnover to get far higher results than PETS AT HOME. Both of them want high margins but PETS AT HOME will only ever have low margins from its shops just like the supermarkets. PVG has harnassed high margins of the buying groups and pet health plans without the low margin stuff. If and only time will tell the directors are up to the job PVG will be one of the very few companies that can grow quality recurring revenues year in year out.Growth in Europe is the key as is the rate of growth in that market.

[pet lover] 26/7/2015 17:02

Thank you again for the poster who showed to how to paste from other sites. The Mail on Sunday tips PETS AT HOME today. This is just part of the article.More than 200 stores have vets on site and chief executive Nick Wood aims to take that figure to 440 over the next few years.
There are 127 veterinary practices operating outside the stores – a number that is expected to double.
The vets are quasi-independent, but provide a fee income to Pets at Home, based on annual revenue.
‘Groom rooms’ are wholly owned by the company and have been a resounding success. There are 179 at present and that number is expected to rise to more than 300 over time.
Vets and grooming services are highly profitable, and revenue has grown more than 30 per cent over the past four years.
Last year, such services accounted for 15 per cent of group profit. By 2021, they are expected to make up almost 40 per cent of overall profit. Such services also encourage customers to spend more on food and accessories.
Most pet owners like to purchase goods in-store but Pets at Home has a comprehensive website for those who prefer to buy online or click and collect. About 8 per cent of sales come via the internet and that percentage is expected to rise steadily.
In 2012, Wood launched a VIP loyalty programme. The initials stand for Very Important Pets, which sounds twee, but the scheme has 3.2 million members.
They spend more than regular consumers and will be offered their own mobile shopping app in the next 12 months.
In the year to March 31, 2015, Pets at Home had a turnover of £729 million and made a profit of £87 million.
Next year, sales are forecast to rise 9 per cent to £794 million with profits rising almost 12 per cent to £97 million. A dividend of 5.4p was declared for 2015, expected


Read more:

[pet lover] 24/7/2015 10:53

Fillipe you have just made my day.Weeks ago I ticked a box to get an alert from ADVFN if anyone posts on this thread. My computer just went bing.This being my week off I can comment on your post right now.The hound wants his walk but he can wait. The vets part of the group is as far as I can see a total bore but at least they have built it up and it's well run. It also plays a roll as a testing ground for other products and services.
I bought in for the recurring revenues that have in the past rewarded the hound and myself.Its unknown as far as I can see.I have yet to find any broker research on PVG so all I know like yourself is what is in the accounts.Your point about the numbers being so small is true and valid.Recurring revenues do not need to be large for a company to see its shares move up.They do need to be growing fast though for investors to buy this stock rather than any other.In stock market terms PVG is off the radar at under £10M in value being on the grown up market not the rubbish AIM. One has to ask can this company grow profits fast. That brings me back to the buying group and the pet health plans. Just one plan should I think bring in around £23.00 per year not a great deal of money. Get a 100,000 sold and it's £2.3M in a full year.Investors jump on any stock that is growing over 18% year on year. Investors don't just value that £2.3M at £2.3M they put a PE on it of 15 times to 25 times that depending on the growth rate going out over the next few years. Plan numbers have hit the 50,000 mark and are growing at 70% or more.So long as costs are kept down and sales targets are hit year in year out investors should be more than ok. The hound might want to go out in this rain but I do not.

[fillipe] 24/7/2015 09:52

I do wonder if this will ever make the ducks fly off the water. The business numbers just look small.

f

[pet lover] 20/7/2015 08:53

A week off just what is required sunshine.PVG has at last got its new Web site up and running.
On the face of it not much to tell but after digging a little deeper the hound and I have found out rather a lot.No dividends are going to paid so if your looking for an income come back in ten years.At the practice log in area we find out about the pet wellness plans.I call them the pet health plans in my posts.The sign up rates are 30% to 40% of active clients. That is much higher than some would think looking at the charts its over two years.Drop out rates are low at under 5%. The income also appears to grow much faster in year two than year one as to why I can only guess. It may be the shock when first offered is to much for some others might be told of the plan by an existing customer over time. The vet could point out the saving that could have been made by the time the second year comes round.Revenues get going in a big way only after plans have run the full 12 months.The charts show each vet selling C; 265 plans each over two years. C; 132 plans per vet per year.So it's all about the number of vets that can be signed up through Europe inc GB.At this stage I don't think large profits can be made this year as cash is required to expand.The goal is the recurring revenues or honey pot where the building blocks are in place.That cash through the letter box each month is worth a great deal to me and the hound. The company owned vets seem to be a dead duck to me only any good for paying some of the groups overheads on the other hand the buying group could be expanded and does bring in worthwhile profits.Off for a long walk with luck he can do his thing in the hedge so I don't have to pick it up.

[fillipe] 10/7/2015 09:56

Sp like a dog's dinner - all over the place.

No clear reason and all on very little happening + no-news, although obviously well dumped today.5k and 3k lots seem popular trades....just like the buys of a short time ago.

Tight spread though... 79p v 81p, as I type.


Hard not to feel that PVG might bite small holders badly.

f

[bigglesbingham] 10/7/2015 09:37

Pump and dump seems to be happening but can't see why because there's no volume.

[joeblogg2] 09/7/2015 09:59

At least one of my shares is going up but a long way to go before I ever break even.

[pet lover] 04/7/2015 15:02

The hound is getting fatter by the day in this hot weather about time he swam across the river.Joe blog.Any funding is going to be for growth in Europe.None of us knows the price but we had an RNS a week or so back that must give some comfort.The director who owns 50% of the shares in PVG sold and bought back some in his ISA at 73P.If the new money was going to be under that price it would be daft to do the sale and buy back at that price when in the months to come he could do it cheaper.PVG have a hell of a good story to tell any potential investor as a large chunk of the work has already been done in signing up vets in the UK and Europe.As is the case with selling the Pet Health Plans it would not need to be a hard sell its also a sector that is very light in numbers on the UK Market.That and the track record of CVSG and PETS AT HOME should also lend to a good take up of stock.It could even be at a premium to the share price on the Day as it's very hard for an institution to buy size in PVG at this time due to the very large director holdings.

[fillipe] 02/7/2015 12:08

Being well wanted today.....some steady buying after the early start to it with the 25k shrs buy bundle.

f

[fillipe] 02/7/2015 12:05

Being well wanted today.....some steady buying after the early start to it with the 25k shrs buy bundle.

f