Premier Veterinary Group PLC Trading Update (8633X)

TIDMPVG

RNS Number : 8633X

Premier Veterinary Group PLC

23 December 2019

Premier Veterinary Group PLC

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

Trading Update

London, UK, 23 December 2019 - Premier Veterinary Group PLC (LSE: PVG) provides the following trading update in respect of its year ended 30 September 2019.

Trading update to 30 September 2019

Expected outturn

The Group has continued to see significant growth in revenue and a resulting decrease in its operating loss. For the financial year ended 30 September 2019 the comparison of headline financials (unaudited) to the previous year is as follows:

 
GBPm              As at    As at 
                   Sep-19   Sep-18 
Revenue           3.9      3.2 
Operating costs   (6.3)    (6.7) 
Operating loss    (2.4)    (3.5) 
Loss before tax   (2.9)    (3.6) 
 

Group revenue has grown by 22% in the last 12 months to GBP3.9m primarily driven by growth in the number of fee generating pets on plan. The growth in revenue has been delivered whilst there has also been a reduction in costs of 6%. As a result operating losses have been reduced by 31% to GBP2.4 million (30 September 2018: GBP3.5 million).

Growth in Pets on plan

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 as at the end of the financial year, and at the end of the previous year was as follows:

 
000's            As at    As at 
                  Sep-19   Sep-18 
United Kingdom   240      193 
Europe           52       42 
US               19       9 
                 -------  ------- 
Total            311      244 
                 -------  ------- 
 

The number of revenue generating pets on plan at the end of September 2019 had increased by 27% to 311,000 (30 September 2018: 244,000).

There has been significant growth in the number of pets on plan across all geographic regions. In the UK, numbers increased by 24% to 240,000 as at 30 September 2019 (30 September 2018: 193,000).

In the US, the number of pets on plan more than doubled to 19,000 as at 30 September 2018 (30 September 2018: 9,000).

In Europe, the number of pets on plan in Europe increased by 24% to 52,000 (30 September 2019: 42,000).

Our continued long-term investment in our operating platform both in terms of technology and high quality people has established a best-in-class global multi-currency platform which delivers strong user functionality and has enabled the Group to grow pets on plan by 65% over the last 2 years whilst also reducing absolute operating costs.

Outlook

The Group expects our platform to continue to provide efficient growth in the coming years and as a result the UK, US and Netherlands regions, and subsequently the whole Group is expected to become profitable at operating profit level on a monthly basis during the course of the current financial year.

Financing

PVG are in negotiations with Bybrook Finance Solutions Limited (a company of which Rajan Uppal, a director of PVG, is the sole director and Shareholder) to extend the repayment date of the existing loan of GBP3.85m which is due for repayment on 25 January 2021, to roll up the monthly interest and to provide a further facility of up to GBP1m which is expected to provide sufficient working capital for PVG for the foreseeable future.

Notice of Results

The Group will release its results for the year ended 30 September 2019 on 31 January 2020.

For further information, please contact:

   Premier Veterinary Group plc                                 Tel: [phone] 

Dominic Tonner, Chief Executive Officer

Andy Paull, Chief Financial Officer

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

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, 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. 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, which has been proven to work extremely well. PVA works alongside practices to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves practice performance.

For further details: http://www.premiervetalliance.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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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December 23, 2019 08:01 ET (13:01 GMT)