Premier Veterinary Share Discussion Threads

[errollc] 05/5/2016 07:28

Great strategy...this will be huge!

[hydrus] 05/5/2016 07:12

If they get anywhere near 1 million pets over time then this will be a company worth hundreds of millions not a paltry £17m. In fact in the countries they are operating in the opportunity is far greater than that.

[hydrus] 05/5/2016 07:09

Great stuff, entering the biggest market in the world already signing up hospitals. What an opportunity there is in the US as they outline in the RNS.

[bigglesbingham] 30/4/2016 14:45

As I say pet lover that's my own opinion but fact is the share price has increased and he's still been removed. Much more optimistic now he's not at the helm and imho will only be a few months before he's totally out of the picture apart from his nice shareholding. I may be proved wrong but I don't think so. Don't like to bring negativity to a board of a company in which I hold a significant number of shares but I truly think this company is in a better position without him there. Last you will hear of it from me , looking forward to week on Monday to some clarity on expansion. Please keep posts coming as I find them useful .

[pet lover] 30/4/2016 12:10

The shares finished the first day of trading at 28.5P a year ago. They now stand in at £1.30 so clearly something is going the right direction. We will find out more on progress on Monday week from the interim results.Directors will always set themselves up that's fine by me so long as shareholders also do well.

[pet lover] 30/4/2016 11:57

Mr Ross came on board when ARK was in dire need of more funding.The shares were worth a few pence at the time down from pounds. The markets at the time were poor and the institutions had just had enough and would not put yet more cash into ARK. ARK could have handed about £1.4M back to shareholders but the winding down costs would have eaten just about all that up. ARK had a full listing and the existing holders in old ARK have seen the shares rise from 0.29P or 29P after the 100 for one to today's price.
That's all history and Mr Ross has enabled old shareholders to have a chance at getting some of their investment back which to date they have done.Mr Ross is sat on 500,000 shares and some options but will only make real money if the shares do well from here.

[bigglesbingham] 30/4/2016 11:38

The retaining of Iain Ross's services was my main concern with the reverse takeover of AKT. I personally think he's in it for himself who ran AKT into the ground but got a very nice deal out of the takeover. My opinion is that he has been found out and removed as soon a they could. Anyone wanting further clarification research the rns's. This is only my opinion and my be right or wrong. As to pvg comfortable holding as their business plan and product appears sound.

[netcurtains] 27/4/2016 14:44

I think this is the Juliet Roberts.
from bristol area (well degree from there). Health care finance:


From Linked in she appears to have good links in Finland

[hydrus] 26/4/2016 22:20

Actually, worth reflecting on fact Iain Ross is staying as a NED - his experience is still there plus get a new independent person with different experience.

[hydrus] 26/4/2016 22:04

Trying to understand the thinking behind the appointment of the new chair. Iain Ross appears to me to have much more experience on paper. My assumption is its in relation to the new Chair's strategy and capital markets experience and potentially the US angle with her Nasdaq NED role. The US perhaps is a big part of the future here.

[pet lover] 26/4/2016 16:55

Good evening from the hound and I. Well I thought we would get news in two weeks time seems I was wrong on that score. The FD is leaving in September which is a bolt out of the blue.Not sure why he is moving but the fact he is not going till then suggests that all is well between himself and the company. His replacement based on other recent appointments will be of very high calibre.
Juliet Thompson, has joined the company this week. Her track record is impressive to say the least. I don't get why PVG is hiring these types of high quality personal unless they intend to grow the company very fast and very big. It does appear a master plan is being executed. Quote from today's RNS: "Grow the business aggressively." Finally Denmark is back on after I had ruled out any income which is far better than a kick in the pants.

[hydrus] 26/4/2016 07:58

Right on cue

[hydrus] 25/4/2016 21:11

Should be interesting Pet Lover.Should see a good rise in pet plan revenues, albeit from a low base and with a loss for the half year. As you say any insight into their expansion plans will be particularly interesting.

[pet lover] 25/4/2016 19:57

Rather cold outside today but the hound seems to not have a care in the world. I notice the half year results will be out in two weeks today, taken from the investors section of the company. I am particularly keen to learn more on PVG"S expansion plans.

[hydrus] 16/4/2016 14:51

If you believe in the business now is a cracking opportunity to buy. This share is so illiquid that only a few sells or buys shift it significantly. There have been a few sells in last few days and now the company is valued at only £16m. I think that in a couple of years it will be worth many multiples of that.

[ginger_ninja1] 06/4/2016 16:09

Thanks Hydrus and Petlover. Let's hope they get cracking and sell sell sell. Once they hit the magic number of plans, we will watch the profit roll in and into our deep pockets.

[pet lover] 05/4/2016 20:27

Yet another rubbish day at work fun to see the hound eat his meal in under 30 seconds though. This is why each Pet Plan Sale ITRO £19.00 is so valuable. The £19.00 is split into 12 monthly payments and is after VAT has been paid. It is also totally dependent on sales growing at at least 65% / 105% a year for at least the next four years. Overheads must also be strictly kept under control. The current 97% gross margins can't be be eroded in any circumstances. After UK central costs of around £3M a year or 100,000 plans and the buying groups flat profits it starts to look interesting. Each plan sold after that has only the guys on the road selling and training as an overhead outside the UK. Those within the UK are covered by the £3M.If the overhead of the foreign teams was 30% of the first years premiums each pound of sales would yield 66% nett. U.K. Sales would be 97%. Across the board I dear say 75% nett would not be a million miles out.Based on that one extra million of sales over £3M might yield £750,000. The next bit is subjective the PER investors attribute to the quality of those earnings.To obtain a sky high rating and keep it for years and years PVG must do the business and NEVER EVER crash the car. £750,000 of earnings is not a lot of money however if PVG is growing at 50% those earnings after tax could be worth £30M on valuation.Pet Plan Sales have grown 44% in the last six months even if they grow at a slower rate over the next 6 months 75% over the year is definitely on the cards.PVG is going to report plans sold every 3 months which will add checks and balances to prevent unrealistic assumptions on these growth rates. At the start of my rambling this evening I referred to the £19.00 per plan per year. After the £3M has been deducted and foreign sales overheads each new plan sold pulls in a clear £14.50. If growth rates are around 75% and the market awards PVG with a discounted PER of 50 after tax each plan sold is worth £560 on the companies market cap. On that assumption working backwards the 2nd 100,000 of sales (first 100,000) were sold by Dec 15 could value the company at £56M.A great deal depends of market sentiment if profit grow runs at 75% and the general market is poor investors might only value the company on a PER of 25 cutting the above valuation in two. I personally can see this being a stockmarket darling and even possibly paying dividends at a much later stage.😺€570;

[hydrus] 05/4/2016 17:49

I should say Petlover did some good analysis to come up with the £19 figure, which I had previously estimated slightly higher

[hydrus] 05/4/2016 16:33

Happy to be corrected if your analysis is different?

[hydrus] 05/4/2016 16:19

My analysis of the numbers suggests that this is the case. Running costs last year were around £3m from memory. They get about £1.1m in from buying group each year. For pet plans if we assume £18/19 per plan then on a rolling basis current level of pet plans will be bringing in about £2.2m at about 96% gross margin. Therefore could be that running costs are covered by revenue. I expect there are some extra one off expansion costs this year but not huge. There will be a loss overall this year I expect but next year will be different story due to above.

[ginger_ninja1] 05/4/2016 15:31

Hydrus,What do you mean by "very very soon"? You seem to know more than you're letting on............please share.

[hydrus] 04/4/2016 21:03

It's not just Europe Pet Lover, let's see what happens in the rest of the world. I can see this company being many multiples bigger in a few years time if all goes to plan. This company is off radars which is fine by me. I suspect this will all change when there is realisation that at a certain point pretty much all additional pet plans hit the bottom line - we may be at that point very very soon.

[pet lover] 04/4/2016 20:00

The real rewards will not show for 3 years as its then that revenues should be growing at a very substantial rate while overheads will hopefully be falling as a percentage of that income.The market outside the UK has taken to PVG'S offering. In the six months to March 2016 40 new vets have been signed up in the Netherlands.If PVG can get numbers like that from 5 -7 European countries in the next year or two then we should all come out on top.It was and still is the recurring revenues that excite the hound and myself as very little effort is required to keep the client for as long as his or her pet is alive.As PVG grows its growth rate can move from second into sixth gear as profits are reinvested for growth.In the Netherlands PVG has picked up 10% of the total market size in its first year and will hopefully get at least a third of the total market over time.The U.K.has around 5,000 vetenenary clinics and the accounts show PVG sells plans on behalf of 442 of them or about 9%. The Netherlands has about 1,000 clinics and PVG has in just one year signed up 10% of them.PVG started selling the plans in the UK over 3 years ago. It's been faster to sell the plans in the Netherlands than in the UK.This could be due to the lack of Compertition,a top notch sales team or both.