29th May 2015 07:28
LONDON (Alliance News) - Premier Veterinary Group PLC Friday expressed confidence in its prospects for the remainder of the year and said it is trading in line with expectations as it posted a narrowed pretax loss for its first half, though it warned it will require "a significant investment" in connection to its plans to expand in Europe which will hit its profitability.
For the half year to end-March Premier Veterinary posted a pretax loss of GBP371,000, narrowed from a pretax loss of GBP916,000 a year before, as revenue rose to GBP3.8 million from GBP3.6 million, and it saw a reduction in cost of sales.
The company attributed this to initiatives it put in place during 2014. Revenue growth was driven by a strong performance from the company's veterinary practices. At the end of the period the company sold the trade and assets of its subsidiary WVS Ltd for GBP200,000, which it expects to boost cash and net assets.
Revenue from its subsidiary Premier Vet Alliance Ltd rose 18% to GBP1.1 million from GBP910,000, as the number of pets covered by its pet care plan on behalf of third party practices increased 72%.
The company was formerly known as Ark Therapeutics, but changed its name after it agreed a reverse acquisition of Premier Veterinary Group Ltd earlier this year. It has moved its year-end from the end of the calendar year to the end of September to bring it in line with its subsidiaries.
Premier Veterinary said the pet care market outlook remains positive. It expects to produce revenues from its pet care plan in the rest of Europe for the first time in its second half, as it begins the roll out of the pet care plan into the Nordic Region, and recognises revenues from launches in the Netherlands and Ireland.
Shares in Premier Veterinary are trading down 13.4% at 81.87 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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