Premier Veterinary Share Discussion Threads

[pet lover] 14/3/2015 12:44

The prospectus tell us heaps about the group. It's growth rate in turnover terms is very good £4m to £7.5m in the two years 2011 through to 2013.Within this the pet care plans jump for £450,000 to £755,00 and the buying group from £175,000 to £1M.The cost of doing this has taken its toll on profits.The year end is December 2014 .Thats when the accounts for the old company are drawn up and it's not the same as was the case for PVG (March)Due to the RTO it's always the old companies accounts that are used going forward.The next set of joint accounts has to be published by April 30th 2015.

PVG accounts show huge amounts of cash being spent on interest payments £600,000 in one period of six months for example . The new £2.5M loan at 12% will cost just £150,000 per six months which is a large saving. 12% is still over the top the one thing I don't like.Since last April they say costs have been cut this should come through into the next set of accounts due soon. Very little cash is left over from the old company if any with £400,000 being spent on the paper work for the RTO. PVC had the proceeds of the placing of £1M hitting the bank account just after the 2014 year end.

The picture will be a lot clearer when the accounts for 2014 are published in the next few weeks. I will be on the look out for the rate of turnover growth and with a bit of luck a reduction in the loss compared to last year.

[princeharry] 14/3/2015 09:17

It's on the AKT website Happy reading.

[hibberts] 14/3/2015 08:50

Does anybody have a link to the prospectus?

[hibberts] 13/3/2015 17:59

Will do.
Many thanks.

[princeharry] 13/3/2015 17:50

Hi hibberts, you need to check your supplier then. My shares are in an ISA.

[hibberts] 13/3/2015 16:30

Decided to have a dabble,unfortunately cannot be put in an isa.

[fillipe] 13/3/2015 15:11

Quite a few trades going through on ISDX ( mainly buys), which don't show up on the regular lists.

I've taken a few PVG today - so few in the free float.

f

[pet lover] 12/3/2015 21:16

PVG comes in @ £8m
CVSG comes in @ £280m
Pets At Home comes in @ 1.2 bn.
The above is the valuation not profits.
From the hound and myself goodnight.

[pet lover] 12/3/2015 18:35

CVSG has been listed since 2007 and has done very well over the years in fact the last 18 months have seen a storming run.The veteran long term investor Jim Slater is also invested. They are a pure vets and just keep on buying other vets out and sweating them harder. One has to take ones hat off to CVSG .shareholders have been well rewarded. I have asked for the followers of that stock if they would be kind enough to run the slide rule over PVG.

ginger ninja 1
full marks for beating me on finding out about the directors . It seems Mr Uppal has made a mint in the past let's hope he does the same here. It's great to know he is an accountant they tend to be very good on keeping a tight eye on costs.I see the company says its setting up a new WWW site. Very little to go on at this time. If it had come to the market like PETS AT HOME through an IPO we could read about it in the papers but I have not seen anything .

[joeblogg2] 12/3/2015 14:39

Just noticed 20k shares bought, nice bit of confidence!!

[joeblogg2] 11/3/2015 15:34

yes the guy has good pedigree :)

[ginger_ninja1] 11/3/2015 09:35

I've had a look at the directors and find some interesting stuff.

This was found on hxxp://accountancyage.com/

"A chartered accountant and his scientist partner are to earn £30m after selling their company to bio-tech company, ML Laboratories.

The two, Rajan Uppal and Terrence Chadwick, bought Quadrant Technologies in 2003 and own a 64% controlling stake in the private company.
It has developed a method of stabilising drugs so they can be administered to asthmatics via their inhalers, the technique understood to have prompted the £46m offer from ML.

Uppal, 42, specialises in corporate finance and is understood to be the business brains behind Quadrant. Chadwick, a former physician who develops new formulations for drugs, is the creative force.

The two have accepted the offer from ML, which is likely to use Quadrant as a basis of rebuilding its loss making business."

I'm backing this guy and I've added to my holding. He has 50% of the shares at present as well.

PVG is going places!

[pet lover] 10/3/2015 17:53

First day of dealing under the new company name and closed at 28 pence the very day the market slumps.
Picked up a few on a buy and hold basis.

The prospectus is rather long and way over the top.
The poor dog gave up and went to sleep by page 5.
My trained eye led me to the gross margins of the non vet side of the group.
At 97% it's an area I want to be in.
The vets themselves seem like a great deal of hard work to me.
Others in the same field are Pets At Home and CVC
They are on high pe's ITRO 20
On the downside is £2.5M of debt at 12%
The company talks about going global in yesterday's Rns.
Going to check out the directors when I have time.

No other posts so far looks like it's off the radar.

[pet lover] 10/3/2015 12:05

It's the buying group and pet plans that have me and the hound sniffing around.





2014 June 22
RECURRING REVENUE COUNTS IN INDUSTRIES FAR BEYOND SOFTWARE
Posted by Alan Fullerton in Advice for Entrepreneurs, Government/Defense/Aero, Healthcare, Industrial, Mergers and Acquisitions, Selling a Business, Strategic Advisory, Telecom & Networking, Valuation Services

The recurring revenue (“RR”) business model gets a lot of attention in software M&A and growth investment, and for good reason. Most growing subscription/ software-as-a-service (SaaS)-based software companies trade in the public markets for north of 6x revenue and many of those fortunate few with annual revenue growth over 40% trade for over 10x revenue. The value of the recurring revenue service model in the software industry is indisputable. But what about other industries? Telecom, healthcare, distribution, banking, music and video, even large capital businesses such as jet engines, have all incorporated recurring revenue in their “business-as-a-service” model.

The predictability of revenues and earnings is inherently better in a business with recurring revenues. Subscriptions, razor / razor-blade models, rentals, leases, monthly fees, ongoing maintenance and support contracts, customized consumable products, etc. all drive more predictable revenues than, say, capital equipment sales. The RR business starts each year with a set of returning customers, purchasing a contracted or otherwise predictable level of products or services. These customers return for reasons well beyond mere convenience – they rely on the RR business for their own operations and cannot easily switch to another vendor or service provider, or are contractually obligated to continue with the vendor for a period of time. For virtually all elements of competitive advantage that relate to customers, the recurring revenue business model enhances that advantage, creating more value for the RR business’s shareholders.

Examples of recurring revenue models outside software include:

contracts for IP phone services,
healthcare regulatory-driven services and products consumed in GMP environments,
vendor managed inventory,
wealth management,
Spotify and Netflix, and
GE Aviation’s parts, maintenance, financing and service contracts.
These are all examples of recurring revenue business models applied to industries beyond software.

It’s our experience that businesses incorporating recurring revenue in a significant way can trade for multiples well above those in their respective industries that do not. While the software industry may trade on multiple of revenues, much of the rest of the word focuses on some combination of EBITDA, free cash flow, and growth (and cost of growth). The value from a RR model can be seen in the more modest sales effort necessary to maintain and grow the business, and the better margins that can be achieved for the same level of growth. The company with little in the way of recurring revenue starts each year at $0 and builds from there; 100% of the sales effort is aimed at bringing in new customers and perhaps the first 11 months of the year are spent getting to the same revenues as the prior year, so that the last month generates 8% annual growth. The RR business starts with a base of business. For some of our clients that has meant zero or negative churn – the expansion of returning customers – with a modest sales effort aimed at those clients – more than makes up for any customer attrition. It’s our experience that these companies grow faster with less sales effort, and therefore drive more profit margin, than companies lacking a recurring revenue component. For closely-held companies, this can mean achieving double-digit revenue growth while maintaining 20%+ EBITDA margins, something only about one in sixteen public companies has managed (without acquisitions) in non-tech, non-financial industries this past year.

[pet lover] 10/3/2015 07:58

US version





10/03/15
New to the stock market after an RTO. 28P close on first day of dealing.
PVG is a small group of vets.😺ԅ70;
For investors it's the other parts of the group that sets this company apart.
PVG runs both a buying group and pet health plans on behalf of other vets.

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17/10/16
Since joining the stockmarket with a full listing the company has sold its vets in December 2015.
The finincial year now runs from 1/10/16, a trading statement was issued in mid October 2016 showing rapid growth in the sales of its Pet Health Plans.
A large % of the company is owned by the directors who have a proven track record. Margins are extremely high and revenues are recurring as the plans roll over each year and are paid monthly by direct debit.
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01/12/16 Investor presentation.


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First broker comment to be issued since listing on the market: (March 2015)

Premier Veterinary Group Plc – Pets win prizes, Zeus Capital comment

Posted by: giles.arbor 29th November 2016

Premier Veterinary Group Plc (LON:PVG) is a leading provider of preventative healthcare programmes in UK, Denmark, France, Germany, the Netherlands and the US to the veterinary sector. We believe the company has a highly scalable business model with a solid recurring revenue base, providing a good platform for growth, which the company is pursuing throughout Europe and the US.
Business model overview: Premier Veterinary Group enables veterinary clinics and hospitals to provide preventative healthcare plans for companion animals. PVG is involved in all aspects of preventative healthcare plans and provides IT infrastructure, administrative and sales support to veterinary practices to allow the sale of the company’s monthly subscription product, Premier Pet Care Plan (“PPCP”). This is a recurring revenue stream that is highly scalable with a low investment required for growth.
Key attractions: PVG has a diverse, sticky customer base with a churn rate of just 1.8% in 2016A, providing good visibility on revenue. The company benefits from a strong recurring revenue base with compounding growth potential. Significant investment in IT has been made, developing a bespoke, highly scalable IT platform which underpins international operations, allowing the company to pursue an aggressive rollout of its PPCP product internationally. The company has no bad debt exposure, collecting the full amount of direct debit fees due before passing the remaining cash on to the veterinary practices.
Forecast assumptions: We forecast a 3-year revenue CAGR of 68% out to 2019E, driven by continued growth in the company’s existing territories, with expansion into new geographies generating further incremental growth as the company progresses the international rollout of the PPCP product. Through the forecast period revenue from the US grows faster than other territories. In the US, the company achieves a significantly higher gross profit per transaction which delivers a superior contribution to the bottom line.
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 valuations.
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01/12/16 Broker Profit Forecast

2016 2017 -2.2M

2017 2018 0.3

2018 2019 Large Profit.

16/02/17



3/03/17 AGM and trading update.



Inc the proposed sale of PVG'S UK vet wholesaler division.

10/03/17 Directors sell shares to institutions.







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