The Group said its US operations are taking longer than expected to grow.
Companies: Premier Veterinary Group PLC
Premier Veterinary (LON: PVG) has seen 55% wiped off its share price after a Trading Update announced some not-so-good news for the Group.
The Group launched its US operations earlier this year, but it seems it hasn't quite gone as planned.
The updated said "a number of differences exist" between the UK and US markets, the key difference relating "to the sensitivity to working capital in US veterinary hospitals."
"This sensitivity had resulted in both the rate of clinic sign up reducing and a reduction in the rate of pet sign-ups after the initial launch."
A number of initiatives were implemented, but these are taking longer than expected to reverse the slowdown in sign-ups.
"As a result, it is estimated that a further period of twelve months may be required to achieve the volumes previously envisaged in the US and accordingly the Board expect the Group's sales and profits for the next financial year to be materially below the Board's previous expectations."
Shares were trading at 39p early this morning versus yesterday's closing price of 83p. The Group's market cap is currently c. £13m.