Premier Veterinary Group's shares put down after missing out on UK contract

Premier Veterinary Group’s shares dropped on Wednesday as it confirmed that it is no longer in discussions to provide services to a “leading UK corporate group” that would have seen the company gain an extra £1m in annual revenues.

PVG had reported in October that it was in advanced discussions to provide collection, administration and support services to facilitate the provision of animal health plans for the unnamed party and had expected an agreement to be implemented in the second or third quarter of the current year.

Elsewhere, the London-listed company reported that the total number of revenue generating pets on plan across the UK, Europe and the US at the end of December 2018 increased by 30% compared to the same point last year to £0.26m.

Meanwhile, PVG said its US business has commenced a full roll out of the contract signed with PetVet Care Centers, a major corporate veterinary consolidator in the US, after a successful trial period saw the introduction of a preventative healthcare programme for pets, branded "Premier Pet Care Plan" (PPCP), to 18 of PVCC's companion animal hospitals.

Dominic Tonner, chief executive of PVG, said: "I am delighted that, following a hugely successful pilot, agreement has been reached to proceed to a full roll out of PPCP throughout PVCC's estate. This deal will help propel the business forward with this large and well respected US corporate consolidator."

The contract, which is for a period of 3 years, has now been extended to cover all of PVCC's companion animal hospitals and will see PPCP launched in all 170 pf PVCC's existing sites over a 6-month period.

Steve Youd, vice president operations at PVCC, said: "We have been particularly impressed with the service that our hospitals have received from the field-based trainers and we see PVA as a great strategic technology partner moving forward."

Premier Veterinary Group’s shares were down 8.05% at 40.00p at 1644 GMT.