CVS fit as a butcher's dog as Irish expansion begins

Revenue stood at £327.3m for the 12 months ended 30 June, driving a 2.8% rise in operating profit to £17.7m over the period and an increased proposed dividend of 5p per share, up from 4.5p the year before.

The group now has a total of 491 surgeries, having also acquired 16 more since the year-end, and has expanded into the Republic of Ireland with the acquisitions of Troytown GreyAbbey Equine Veterinary Services and Gilabbey Veterinary Hospital.

Like-for-like sales growth dipped from 6.3% to 4.9% but the AIM traded company reported that all divisions experienced growth.

Online dispensary and retailer Animed Direct performed “exceptionally” with the division’s revenue increasing by 45% to £18.8m and expected to grow further in 2019.

Simon Innes, chief executive of CVS, said: “The new website was launched late in the year and this will allow the business more flexibility in providing a range of offers to customers and is expected to provide the opportunity for further growth.”

The company reported cash and cash equivalents of £15m at 30 June, up from £6.8m on the same date last year, and had net debt of £69m, down from £100m last year.

Richard Connell, non-executive chairman of CVS, said: “Initiatives such as the introduction of own brand products, the expansion of dedicated out-of-hours sites and the development of our referrals business are expected to continue to deliver benefits in 2019. We expect our Healthy Pet Club to continue to increase its membership and our MiPet Cover business to grow steadily.”

Connell added that the board was cautious about Brexit but believed the company to be sufficiently “resilient”, leaving the overall outlook to be “very promising”.

CVS’ shares were up 1.56% at 1,039.00p at 0849 BST.