Institutional investors back Apiam Animal Health Limited (AHX.AX) to accelerate growth amid regional boom

Apiam Animal Health Limited (ASX: AHX)

Institutional investors back Apiam Animal Health Limited (AHX.AX) to accelerate growth amid regional boom

Bendigo, Australia, May 30, 2022 – (ABN Newswire) – While it is now abundantly clear that Australians who moved away from capital cities at the start of the pandemic have no intention of returning to traffic jams and boxed apartments In shoes, institutional investors saw the light in backing regional veterinary operator Apiam Animal Health Limited (ASX: AHX) to implement its ambitious regional expansion strategy.

Over the past 12 months, Apiam has acquired 14 veterinary clinics across Australia in regional cities, bringing their national footprint to 72, employing over 1,000 people.

What started as a small network has now grown to the point where Apiam is Australia’s largest animal health service provider in regional Australia, where new clinics entering the network benefit from their hub-and-spoke infrastructure. and their organic growth initiatives.

For the six months ended December 31, 2021, Apiam Animal Health recorded revenue of $75.1 million, representing a 22.7% increase over the prior year. This generated gross profit of $46.2 million, an increase of 32.5%.

In his presentation of the results, Apiam’s chief executive, Dr. Chris Richards, announced plans to generate $300 million in annual revenue by 2024, which would require doubling its current operating pace in the space. only 2 years old. Such ambitions, however, have become much more feasible with the population of regional cities that began at the start of the pandemic – now two years later, with many of these new residents showing no intention of returning to capitals.

“Our clinics have never been busier than they are today, reflecting not only the increase in pet numbers that has occurred during the pandemic, but also the demand for care. throughout all stages of our pets’ lives,” said Dr. Richards.

According to REIV data – with Victoria being the state where Apiam has its largest presence – the median property price in metropolitan Melbourne over the past 12 months has risen from $1.01 million to $1.12 million. in March 2022, an increase of 10.8%.

Compared to Greater Victoria over the same period, the median home price rose from $470,000 to $595,000, an increase of 26.6%. This reflected faster population growth and higher demand for housing in regional towns where Apiam is strategically located with its central hubs in peri-urban towns.

Keen for a share of this action, as part of Apiam’s $20.25 million fully-secured offering, an accelerated institutional offering saw investors back Apiam’s latest capital raise to the tune of 11 $.9 million which will be applied to their latest acquisition of Victorian Equine Group, and other clinics targeted by Dr. Richards. The fully subscribed retail rights offering begins on June 2, 2022 to bring these funds from the raise to $20.25 million, which together with strong cash flow and debt facilities, allows Apiam to execute its accelerated growth strategy.

Included in the capital raise where Shaw and Partners and Morgans Corporate acted as co-lead managers, Dr. Richards himself participated with $4.5 million himself in a clear show of confidence behind Apiam’s ambitious growth prospects.

“We are very pleased with the strong support for the institutional component of the rights offering from existing and new institutional shareholders who endorse our planned growth strategy,” added Dr. Richards.

“We look forward to further growth opportunities and business initiatives in the months ahead.”

Prior to the pandemic, Apiam’s large regional presence meant that the majority of its revenue came from the food producing animal segments, but over the past three years its revenue mix has changed significantly.

About Apiam Animal Health Limited:

Apiam Animal Health Limited (ASX: AHX) comprises Australia’s leading veterinary practices for production animals and mixed animals.

Apiam Animal Health comprises over 150 highly experienced, industry-leading veterinarians with expertise in the swine, dairy, feedlot, sheep, poultry, horse and pet sectors, supported by an experienced administration, nursing, technical services and support team.

Apiam Animal Health is fully vertically integrated, including veterinary wholesale, diagnostic laboratories, custom vaccines, logistics and other ancillary services.

Contact:

Dr Chris Richards
General director
Apiam Animal Health Limited
Email: [email protected]

Catherine Ross
Investor Relations
Email: [email protected]
T: 0421 997 481

Source:
Apiam Animal Health Limited

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Boyd S. Abbott