CVS Group posts solid rise in revenue, earnings

Veterinary services company CVS announced its preliminary results for the year to 30 June on Friday, with revenue rising 30.4% to £218.1m compared to 2015.

The AIM-traded firm reported a 42.5% rise in adjusted EBITDA, to £32.8m, with adjusted profit before income tax up 36.2% to £24.9m and adjusted earnings per share growing 31.2% to 32.4p.

CVS proposed a dividend of 3.5p per share, up 16.7% from last year’s 3p per share payout.

“I am delighted to report an outstanding performance by CVS with a record year for revenue and operating profits across the group,” said chairman Richard Connell.

“Organic growth was enhanced by further acquisitions in our Veterinary Practice and Crematoria Divisions.

“We increased investment in the development of our services, our staff and our premises, and further improved our customer service in all areas.”

Connell said the group’s exposure to the potential impacts of Brexit appeared to be limited, with the board believing the “characteristics” of the business made it relatively resilient.

“Investment in a number of longer term initiatives will have a slightly negative impact on our profits in the short term before generating positive returns,” he said.

“These include the development of a small number of greenfield sites, the introduction of our own brand insurance and the introduction of an additional layer of management in the Veterinary Practice Division in order to enhance the support of the practices and maximise their potential.”