TIDMPVG
RNS Number : 6578J
Premier Veterinary Group PLC
21 December 2015
21 December 2015
PREMIER VETERINARY GROUP PLC
("PVG" or "the Company")
DISPOSAL OF VETERINARY BUSINESS AND
ACCELERATION OF PET CARE PLAN ROLL-OUT
Premier Veterinary Group plc (LSE: PVG) ("PVG" or the "Company")
announces today that following a strategic review it has completed
the sale of its Veterinary Business to Independent Vetcare Limited
("IVC") for total cash payments of GBP6.5m.
As a result, the Company will now focus on the development and
rapid growth of the services provided by its wholly-owned
subsidiary, Premier Vet Alliance Limited ("PVA"), both in the UK
and overseas. PVA provides services to third party veterinary
practices, including the administration of a preventative
healthcare program for pets branded "Pet Care Plan", and the
operation of a buying group (the "PVA Buying Group") which offers
enhanced discounts to member practices.
Dominic Tonner, CEO of PVG commented:
"We are very excited that we now have additional resources to
expand the PVA business. The Board believes that the Disposal,
coupled with the resultant focus on the PVA business, will lead to
the enhancement of shareholder value. The Disposal re-enforces our
independence in terms of the provision of services to third party
veterinary clinics."
Background
Disposal of Veterinary Clinics
Premier Veterinary Group plc has completed the sale of its
wholly-owned subsidiaries, Zetland Limited, Thanet One Limited and
The Veterinary Clinic (Bearwood) Limited ("the Veterinary
Business"), to Independent Vetcare Limited ("IVC") for a cash
consideration of GBP4.1m (the "Disposal") (subject to an adjustment
to reflect the sale on a zero net current asset basis). In
addition, intercompany loan balances of GBP2.4m due from the
Veterinary Business to other PVG group companies were repaid on
completion.
Prior to the Disposal, PVG comprised two distinct businesses;
the operation of veterinary practices and the provision of products
and services to third party practices via its wholly-owned
subsidiary, Premier Vet Alliance Limited ("PVA"). PVA's services to
third party veterinary practices include the administration of a
preventative healthcare program for pets branded "Pet Care Plan"
and the operation of a buying group (the "PVA Buying Group") which
offers enhanced discounts to member practices.
The Disposal resulted from a strategic review of the Company's
portfolio of assets, their potential and alternative strategies to
optimise shareholder value. The Disposal re-enforces our
independence in terms of the provision of services to third party
veterinary clinics.
The consideration received from the Disposal and repayment of
intercompany loans amounting in aggregate to GBP6.5m will allow PVG
to repay all of its debt and, after allowing for transaction costs
and acceleration of fees relating to the debt repayment, will
increase net assets by GBP4.0m. It will also enable PVG to
accelerate the roll-out of its Pet Care Plan business in multiple
overseas territories.
During the year ended 30 September 2015 the Veterinary Business
generated revenue of GBP5.53m (2014: GBP5.50m) and achieved
improved profitability as a result of the implementation of
efficiency savings.
At 30 September 2015 the Veterinary Business had estimated net
assets excluding intercompany loans of GBP0.94m (2014:
GBP0.39m).
Pet Care Plan roll-out
Pet Care Plan has proved very successful since it was introduced
to third party practices in 2011 and has achieved significant
growth. The Pet Care Plan business has been identified as PVG's key
long-term value driver.
As at 18 December 2015, PVA has Pet Care Plan agreements with
454 clinics within the UK, generating fees from 99,000 pets:
September March September March 2015 September December
2013 2014 2014 2015 2015
---------------- ---------- ------- ---------- ----------- ---------- ---------
Fee generating
Pet Care
Plans 26,000 32,000 40,000 57,000 79,000 99,000
---------------- ---------- ------- ---------- ----------- ---------- ---------
Pet Care Plan has also been launched in Denmark, Ireland and the
Netherlands. As at 18 December 2015, PVA has Pet Care Plan
agreements with 120 clinics covering 4,760 pets in those three
territories. It is expected that significant growth will be
achieved in the number of pets covered by Pet Care Plan in those
territories. In addition, the Disposal will allow the Company to
adopt a more aggressive roll-out plan in additional
territories.
The other aspect of PVA's business, the PVA Buying Group, is now
the UK's largest veterinary buying group without group interests in
veterinary practices or veterinary wholesalers. The level of PVA
Buying Group members has remained in line with figures previously
reported. The Company is continuing to enhance the service offered
to clinics which it is believed will bring added value to its
members.
The Company will announce its results for the year ended 30
September 2015 on 29 January 2016.
For further information, please contact:
Premier Veterinary Group plc
Dominic Tonner, Chief Executive Tel: +44 (0)117 970 4130
Officer
Daniel Smith, Chief Financial
Officer Tel: +44 (0)207 929 5599
David Bick/Brian Alexander
Square1 Consulting
NOTES TO EDITORS
PVA Buying Group
As part of the PVA Buying Group, members enjoy access to a range
of services designed to encourage clinical compliance, the highest
standards of pet care and business growth. The PVA Buying Group is
primarily designed to provide more autonomy, flexibility and to
deliver greater savings. The specially negotiated discounts on both
small and large animal products enable independent practices to
compete with larger groups. Membership also gives access to some of
the biggest and most trusted names in the industry. For further
details: http://www.premiervetalliance.co.uk/
Pet Care Plan
Pet Care Plans are structured, preventative healthcare programs
for cats, dogs and rabbits and are available exclusively through
veterinary practices. Over the past 20 years, such programs have
become a common service available to veterinary clients across the
UK and US. The programs are seen as a way of providing gold
standard care for pets at an affordable price for the client, by
way of fixed monthly payments.
PVA works with practice owners to design, implement and run
their own successful preventative healthcare program which delivers
significant improvement in compliance, spend, footfall and loyalty
from clients. PVA's Pet Care Plan has become one of the leading
providers of preventative healthcare programs in the UK. PVA uses
all of its experience to design a fully managed program, tailored
to each practice and which is proven to add value to the practice
and its clients. For further details:
http://www.premiervetalliance.co.uk/
Independent Vet Care
Independent Vetcare Limited ("IVC") is a group of leading
veterinary practices across the UK who have come together to pool
resources, skills and knowledge. IVC is run by and for vets, so
clinical excellence drives its business. Pet and client needs
always come first because every practice in the group is run by its
local veterinary team.
IVC was established in September 2011, and over 190 practices
have already joined the group. For further details:
http://www.independentvetcare.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
END
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