5 Oct 2022
One of the UK’s biggest veterinary providers has published its annual results, which showed a big increase in pre-tax profits.
Allister Webb
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Image: © ipopba / Adobe Stock
The CVS Group has recorded a near 9% rise in annual pre-tax profits, as bosses reported continuing confidence in future growth prospects.
The company, which employs around 5,000 vets and nurses, has released its results for the year to the end of June.
The report showed annual revenues were up by 8.6% to £554.2 million, while pre-tax profits increased by 8.8% to £36 million.
Chief executive Richard Fairman said: “I’m pleased that we have delivered a strong set of results, with good growth against all of our key financial metrics, despite a challenging macro-economic backdrop.
“Our continued focus on providing the best possible clinical standards, led by our fantastic colleagues who are committed to high quality veterinary care, has contributed to the strength of our performance.”
Sales were also up 8% year on year, and the report said a similar pattern had continued, with 7.2% growth recorded in the first 10 weeks of the present financial year.
But the company’s taxation payments fell by £3.5 million to £10.8 million, which meant profits after tax jumped from £19.3 million in 2020-21 to £25.7 million in 2021-22.
The report said the lower payment was largely due to additional expenses in 2021 associated with the anticipated rise in corporation tax and a £2.3 million loss incurred through its sale of Quality Pet Care.
The business was sold following an investigation by the Competition and Markets Authority, which concluded the CVS purchase would result in a significant lessening of competition.
The report said that finding was “disappointing”, but gives the group “a clear guideline” for future acquisitions.
The group also said it is encouraged by the findings of an internal owners’ survey that suggested just 5.2% would reduce spending on their pets despite the current cost of living crisis.
Mr Fairman added: “The veterinary market remains resilient, with an increasing pet population providing favourable dynamics and a strong platform for sustainable growth across our integrated services.
“Continued investment in our facilities, clinical equipment and our people support this growth; significant enhancements to our pay and benefits ensure we remain an attractive employer, and we are recruiting more graduates than ever before.
“Our pipeline for acquisitions also continues to build, supplementing the organic growth opportunities in the business. With a positive start to the new financial year, we remain confident in our ability to deliver value for all our stakeholders.”
