AGM Update

PREMIER VETERINARY GROUP PLC

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

AGM update

London, UK, 1 February 2018 - Premier Veterinary Group plc (LSE: PVG) provides the following update in advance of its Annual General Meeting being held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH on 1 February 2018 at 11.30 am. All references in this statement refer to the continuing operations of the business, which excludes the Buying Group business which was sold on 30 April 2017.

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 first quarter of its 2018 financial year, and in the preceding four quarters was as follows:

The number of revenue generating pets on plan at the end of December 2017 has increased by 31% in the last 12 months to 201,000 (31 December 2016: 154,000).

Overview of PPCP developments in each region

US

The number of pets on plan increased to 5,000 as at 31 December 2017 (31 December 2016: 1,000). A total of 215 clinics have now signed contracts to implement PPCP. 107 clinics have been launched with the remainder in the launch pipeline. During the first months of this financial year, the following progress has been made to develop PPCP in the US:
 

·     A cooperation agreement has been entered in to with MWI Animal Health, one of the largest distributors in the US serving companion animal, equine and livestock markets. Through this new partnership, PVA's preventative healthcare program for pets, "Premier Pet Care Plan" ("PPCP"), will be made available to MWI's client hospitals across the Mid West and South East regions of the US ensuring enhanced compliance and pet wellness across independently owned practices.

·      A cooperation agreement has been signed with The Veterinary Cooperative ("TVC"). TVC is a group purchasing organisation with over 3,000 members.

·      Various enhancements have been implemented to improve pet sign up rates.

The US remains a significant growth opportunity and the business continues to invest heavily in the US market. Positive progress has been seen to date though it is still to early to draw any firm conclusions.

United Kingdom

In the United Kingdom, the number of pets on PPCP has grown by 24% to 164,000 (31 December 2016: 132,000). The UK PPCP business is well established, cash generative and continues to see opportunities for growth from its existing customer base and new customer opportunities. 

Europe

In Europe, the number of pets on PPCP at 31 December 2017 has grown by 52% to 32,000 (31 December 2016: 21,000). 

The Group's most significant territory in Europe is the Netherlands which remains on course to become profitable in the financial year ending 30 September 2018. The number of pets on plan has grown by 44% to 26,000 as at 31 December 2017 (31 December 2016: 18,000). As a result of organic growth and the acquisition in September 2017, PVG will have approximately 20% market share in the Netherlands.

In France, at 31 December 2017, there were 3,000 pets on plan (31 December 2016: Nil). The agreement with MSD Animal Health (a wholly owned subsidiary of Merck & Co., Inc.), who are the second largest global manufacturer serving this market, was extended in December 2017 and will help to support the planned growth in the territory. This agreement will result in their representatives identifying and supporting practices who are interested in launching the Group's plans. 71 clinics have contracted to launch and 48 of these have been launched at this stage. 

Financing

The Group held cash balances at the end of December 2017 of approximately £2 million. In addition, PVG has access to up to £1.5million in unsecured loan notes to be drawn down in three equal tranches from 1 June 2018 to 31 May 2019 from Bybrook Finance Solutions Limited ("BFSL"). This arrangement provides PVG with security of funding whilst at the same time being sufficiently flexible to consider alternative sources of funding. Rajan Uppal, a director of PVG, is the sole shareholder and director of BFSL. 

For further information, please contact:

Premier Veterinary Group plc   Tel: +44 (0)117 970 4130

Dominic Tonner, Chief Executive Officer

Will Evans, Chief Financial Officer

Note to Editors:

PVG's services to third party veterinary clinics, 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 clinics 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 clinics/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 clinic/hospital, which has been proven to work extremely well. PVA works alongside clinics/hospitals to create a tailor-made, cost-effective service for clients, one that delivers excellent care to their patients and significantly improves clinic/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.