Premier Veterinary Group PLC Trading update (7984D)

TIDMPVG

RNS Number : 7984D

Premier Veterinary Group PLC

02 May 2017

PREMIER VETERINARY GROUP PLC

("PVG", the "Company" or the "Group")

Trading update following disposal of PVG's Buying Group

London, UK, 02 May 2017 - Premier Veterinary Group plc (LSE: PVG) provides the following trading update following the disposal of its Buying Group.

The Group's recurring revenue streams are driven by the number of pets that are signed up to Premier Pet Care Plan ("PPCP"), a preventative healthcare programme for pets. The number of revenue generating pets on active plans for the second quarter of its 2017 financial year, and in the preceding four quarters was as follows:

 
000's                                         As at    As at     As at    As at    As at 
                                             Mar-16   Jun-16   Sept-16   Dec-16   Mar-17 
United Kingdom                                  107      115       121      132      137 
Europe                                           10       14        18       21       22 
US                                                -        -         -        1        2 
 
  Total no of fee generating pets on plan       117      129       139      154      161 
 

Overall, the number of pets on plan has increased by 38% over the corresponding quarter in the previous year and 5% on a quarter by quarter basis.

On 3(rd) March 2017 the Company provided an update on its activities in the US conducted through its wholly owned subsidiary, Premier Vet Alliance (US) Limited and expressed its confidence in the prospects for the US business and an intent to significantly increase its investment in sales, launch and business infrastructure to take the opportunity to build market share in future periods. This investment was to be funded by the proposed disposal of the Groups Buying Group.

On 30 April 2017, PVG announced the agreed disposal of its Buying Group. The additional investment in the US is being made and the number of hospital sign ups and pets on plan continues to increase. During this period of increased activity the Company has identified a number of differences between the UK and US markets necessitating a different approach to certain elements of the provision of preventative healthcare plans in the US. Changes to the business model have been identified and are being actioned and as a consequence it is estimated that a further period of six months may be required until critical mass is achieved in the US.

Given the strong pipeline of sales, the Board of PVG remains confident that the opportunity to access a significant segment of the available US market still exists. The total number of dogs and cats across the US is estimated at 70 million and 74 million respectively (U.S. Pet Ownership & Demographics Sourcebook 2012).

Trading in the UK and Europe remain in line with expectations.

PVG expects to release its results for the six months ended 31 March 2017 on 23 May 2017.

For further information, please contact:

 
 Premier Veterinary Group      Tel: [phone] 
  plc 
 Dominic Tonner, Chief 
  Executive Officer 
 Will Evans, Chief Financial 
  Officer 
 

Note to Editors:

PVG's services to third party veterinary practices, through its wholly-owned subsidiary, Premier Vet Alliance Limited ("PVA"), include the administration and support of a preventative healthcare programme for pets branded "Premier Pet Care Plan" ("PPCP"). In the US, where veterinary practices are known as veterinary hospitals, PPCP is marketed through the Company's wholly-owned subsidiary, Premier Vet Alliance (US) Limited.

PPCP is a structured, preventative healthcare programme for cats, dogs and rabbits and is available only through veterinary practices/hospitals. The programme is seen as a way of providing gold standard care for pets at an affordable price for the client, by way of fixed monthly payments.

PPCP uses a clinical approach to prevention, as this is the most effective method of ensuring illnesses are diagnosed more quickly and not given a chance to advance. What truly sets PPCP apart is its unique approach of offering an end-to-end solution and support to the practice/hospital, which has been proven to work extremely well. PVA works alongside practices/hospitals to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves practice/hospital performance.

For further details:

http://www.premiervetgroup.co.uk/

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations, and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward- looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors readers are cautioned not to rely on any forward-looking statement.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 02, 2017 02:01 ET (06:01 GMT)