Full-year results: Gold Coast pet group National Veterinary Care reports 44pc higher revenue in FY19

Revenue surged at an Ormeau-based veterinary group in a year where the company made its largest acquisition since listing four years ago.

Ormreau-based National Veterinary Care has reported a massive boost to revenue in FY19.

REVENUE surged at Ormeau-based National Veterinary Care in a year where the company made its largest acquisition since listing four years ago.

Shareholders responded positively to the news that full-year revenue grew 43.6 per cent in FY19 to $118.4 million, sending the share price nearly 3 per cent higher in intraday trading to $2.47.

NVL said its net profit increased 28.9 per cent to $8 million and underlying pretax earnings — which strip out one-off items — soared 37.7 per cent to $18 million.

It followed a robust 30 per cent revenue boost for the first half.

A note from Shaw and Partners says revenue was 3 per cent above expectations. It has maintained its buy rating with a target price of $3.

National Veterinary Care managing director Tomas Steenackers with Chevy, a one-year-old male, at their Yatala clinic. Picture: Glenn Hampson

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Managing director Tomas Steenackers said the year had been a significant one for the vet practice group with the acquisition of Pet Doctors in New Zealand, including 23 clinics and two education centres for nurses.

“We expect to see strong performance and improved financial results from this business during the 2020 financial year,” he said.

“In addition to Pet Doctors group, we acquired seven veterinary practices across Australia and New Zealand throughout the reporting period.

“Following investment in the business and systems in the previous reporting period, we were able to integrate all acquisitions (including Pet Doctors) faster and more effectively.

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“Integration was a clear focus over the past 12 months given the scale of acquisitions during

the reporting period.”

Organic revenue growth was 1.6 per cent — a figure Mr Steenackers said the company would focus on improving this financial year.

Mr Steenackers said the company’s Best for Pet wellness program continued to drive revenue.

It grew 34 per cent to 25,000 members across the NVL network in Australia and New Zealand for the year.

NVL also opened a third training centre in Christchurch for the 12 months to June 30.

“This is an important initiative to support our growing NZ portfolio of clinics as well as providing professional training opportunities for NZ members of our managed services business,” Mr Steenackers said.

“Complementing the three training facilities are two veterinary nurse education centres in Auckland, which were acquired with the Pet Doctors Group.”

Similar to the Best for Pet program, NVL’s managed services and procurement division also grew to now service 426 independent clinics in Australasia.

The company is targeting a further eight to 10 acquisitions of clinics for the remainder of the financial year.

Guidance has been set at underlying revenue of $140 million with an underlying pretax margin of 15.5 to 16 per cent.