13th July 2024
Some say that VetPartners are making losses not profits, but here is the truth.
(All data is publicly available and has been collated by Unite Forensic Accountants)
VetPartners generated £339.4 million in cash from operations over the last five years and their preferred measure of profitability (adjusted EBITDA) hit a 5 year high in of £130.1 million (2023). In 2023, they reported gross profits of £553 million. VP’s strategy is to rapidly expand by acquiring practices (89 in Europe & 12 in the UK in the last 12 months) using debt. It appears there was a corporate decision to load the Group with debt to fund its acquisitions rather than using its cash. The Group had a healthy net cash flow from financing activities of £187.5 million which it could have used in 2023, but instead decided to take out a further £132 million in long-term debt in the same year. The highest paid director at VP earned £451k in 2023, not including share options or bonuses. That’s 15.5x higher than the average VP employee.The VP group is ultimately owned by the private equity fund ‘BC Partners’, who manage a worldwide £138 billion portfolio. Their strategy is to add value by acquiring practices through debt before selling at a premium price, generating enormous shareholder returns. Meanwhile, VP have offered lowest paid workers at Valley Vets a pay rise which would take them just pennies above the legal minimum wage. We think workers are worth MORE!
VP should be looking after the employees and clients that they already have:
Fair Fees, Fair Pay and Smaller Profits. And that is what we are fighting for.