Top dog at training
ORMEAU-BASED National Veterinary Care does not want to be the biggest player in the pet healthcare sector but it does want to be the best in training vets and nurses.
Chief executive Tomas Steenackers, at the company’s general meeting in Brisbane yesterday, told shareholders the core activity would remain professional services rather than the retail sector, which market leader Greencross moved into when it merged with Petbarn.
“We do not want to be the biggest player in the industry,” Mr Steenackers said.
“We want to be a good business that can deploy our investment cleverly and continue expanding at the right multiples.
“There is no point buying clinics at seven, eight or nine times earnings. We want to continue buying the right clinics and to invest in our people.”
In August, after just 12 months as a listed entity, the company purchased seven clinics in New Zealand for $NZ8.33 million.
Mr Steenackers, questioned as to the wisdom of the New Zealand move, said it was always on the cards once National Veterinary Care achieved a stable position in Australia.
“After the first six months of operation, the business was quite solid,” he said.
“The rationale in terms of cost was it costs less to fly to New Zealand than to South Australia so we are not adding cost to the business.” Mr Steenackers said lower levels of competition in New Zealand enabled the company to purchase clinics at four to five times earnings.
He said the company would accelerate integration of the New Zealand clinics.
“We are looking towards the end of October when we are able to really accelerate that and the management team is able to shoot through the processes really quickly.”
Mr Steenackers said that as chief executive he would en- sure the core activity remained professional services.
The company, at its Ormeau headquarters, has established a training academy that is open to all industry professionals and offers courses in dental, pathology, imaging, and retail and customer service.
“My view is that professional services is the core of the business,” Mr Steenackers said.
National Veterinary Care shares closed yesterday at $1.99, down 4¢ or 1.97 per cent.