Business remains ‘resilient’ despite profit dip, says CVS boss

The CVS Group has seen a sharp fall in profits, despite increasing revenues, in its latest half-year results published yesterday (29 February).

Bosses say the picture is largely due to inflationary pressures and continuing investment in both new staff and practices.

During the six months to the end of December 2023, group revenues rose by 11.4%, compared with the previous year, to £329.9 million, with like-for-like sales up by 6%.

However, pre-tax profits fell by 16.4% to £23.4 million, while operating profits were down 9.2% to £28.6 million.

But adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by a similar margin to £63 million.

‘Challenging backdrop’

Chief executive Richard Fairman said: “Our interim results reflect the continued resilience of our business despite the challenging macroeconomic backdrop affecting household incomes and inflationary pressures seen across [the] UK and Europe.

“With the continued commitment of our colleagues and our focused investment in their welfare and their working conditions, we look forward to reporting further growth in the future.”

The group has also highlighted the development of new practices in the UK, such as the recently opened Bristol Vet Specialists hospital site, and its continuing investment in practice acquisitions at home and abroad.

Australian acquisitions

A total of 17 practice acquisitions were completed during the first half of the year, with a total investment of slightly more than £63 million.

Thirteen of those practices were in Australia, where the group expects to complete at least 10 further deals in the coming months, with the remainder in the UK.

The number of vets and veterinary nurses employed by the company rose by 8.4% and 8.5% respectively on average during 2023 compared to the previous year, and deputy chief executive Ben Jacklin said its rate of attrition had fallen to a record low.

He said: “We’re really pleased we’ve grown the number of vets and nurses for us well ahead of the rate of growth in the profession.”