CVS sees full-year earnings ahead of market views

CVS said on Monday that its revenue and adjusted earnings for the year to 30 June are likely to be modestly ahead of market expectations.

The AIM-listed provider of integrated veterinary services said group revenue for the year showed total like-for-like growth of 4.8%, up from a more customary 3% in the first half thanks to strong organic growth in its practice revenues during the second half.

The company said membership of its Healthy Pet Club loyalty schemes grew from 213,000 pets at the start of the year to 253,000 at the year end, contributing 16.3% of the like-for-like revenue from practices, versus 13.5% in 2015.

“The board anticipates further like-for-like growth although this is likely to moderate to more normal levels following the unusually high growth seen over the last six months.

“In addition, the full year impact of the acquisitions made during the year ended 30 June 2016 will add significantly to the profitability of the group. Further acquisitions and general progress across all of the group's divisions are expected.”

The year was a record in terms of acquisition, with 67 surgeries and three crematoria bought, as well as the Vetshare buying group and the VETisco instrumentation business.

At 1355 BST, CVS shares were up 6.4% to 757.25p.