14 Sept 2016
BVA concern at low profits in most practices
The BVA has expressed concern over a survey demonstrating more than half of responding vet practices had below average profitability, while 15% generated "a negative value for net profit".

15% of all practices generated a negative value for net profit.
The BVA has expressed concern over a survey demonstrating more than half of responding vet practices had below average profitability, while 15% generated “a negative value for net profit”.

Figures from the first SPVS Profitability Survey showed a total of 54.5% of responding practices scored “below average” or “poor” on its profit-rating scale.
The SPVS, working in conjunction with Veterinary Insights, based its snapshot figures on survey returns from 9 mixed animal, 4 equine and 88 small animal practices. The practices included 96 independent businesses and 5 joint-venture practices.
Key figures
Practice turnover ranged from more than £10 million to less than £100,000.
Net profit was assessed as:
- greater than 18% – “excellent”
- 15% to 18% – “good”
- 12% to 15% – “average”
- 8 to 12% – “below average”
- below 8% – “poor”
Revenue per vet (full-time equivalent):
- maximum – £776,000
- upper quartile – £254,839
- median – £214,214
- lower quartile – £180,041
- minimum – £51,000
Earnings per vet:
- maximum – £100,000
- upper quartile – £52,651
- median – £45,000
- lower quartile – £38,111
- minimum – £17,000
Almost a third of practices (30.3%) scored “excellent” or “good” and 15.2% scored “average”. However, 54.5% were “below average” or “poor”.
Negative value
The median profit level for all practices was 10.6% and 15% of all practices generated a negative value for net profit.
The survey looked at five parameters:
- transaction volume index – a measure of “busy-ness”
- cost of drugs and supplies as percentage of turnover
- cost of all people as percentage of turnover
- establishment and overhead expenses as percentage of turnover
- net profit margin (after owner’s remuneration) as percentage of turnover
Economic challenge
Responding to the figures, BVA junior vice-president Gudrun Ravetz said: “Although this is a small survey, the figures that suggest more than a half of practices have below average profitability, and 15% have negative profitability, are a concern.
“One of Vet Futures’ ambitions is for ‘thriving, innovative, user-focused businesses’ and it is vital veterinary practices have a sustainable, profitable future so vets can continue to care for and protect the health and welfare of animals.”
- Read the full article in the 19 September edition of Veterinary Times.
- The SPVS Profitability Survey is available to all practices.
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