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".

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David Woodmansey

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BVA concern at low profits in most practices

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”.

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15% of all practices generated a negative value for net profit. Image: katie_martynova / fotolia.

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”
Other figures showed…

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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