National Vet Care Ltd (NVL) Purrs Revenue Growth, Update
This morning Queensland’s National Veterinary Care Ltd (ASX: NVL) released a trading update to investors providing details on its forthcoming financial results for the year to 30 June 2018.
National Vet Care is a provider of veterinary services in Australia and New Zealand with around 66 vet clinics.
With strong revenue growth, National Vet Care said it expects to report underlying revenue between $81.5 million and $82.3 million for its 2018 financial year (FY18). However, tough trading conditions in the final two months of the financial year has dampened its profit margin expectations.
The company’s EBITDA margin is expected to narrow from prior guidance between 16% and 17% to between 15% and 16%. A 5% reduction on the previous range provided to the market.
“To ensure we are building a business able to scale up significantly, we have continued planned strategic investment in the business, focusing on system efficiencies and enhanced support office resources,” Managing Director Tomas Steenackers said.
National Vet Care’s statutory revenue for FY18 is anticipated to be 25% higher than FY17, thanks in part to acquisitions.
“The business has continued to deliver good top line growth and we are optimistic about the range of opportunities for the business over the next 12 months,” Steenackers added.
In FY19, National Vet Care is forecasting another 25% increase in underlying revenue. The company said mergers and acquisitions and growth in its loyalty program, which has 18,500 members, are keys areas of focus.
National Vet Care expects to report its results by 27 August 2018.
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