26 Jan 2023
Like-for-like sales growth in six months to 31 December 2022 is up by 7.5%, with six practice acquisitions and a new site in Southport opening in the same period.
Paul Imrie
Job Title
CVS Group has announced its revenues are up 8.2% to £296.3 million and like-for-like sales are up 7.5% in the half year to 31 December 2022.
In a half-year trading update released today (26 January), CVS also said a further two practice acquisitions had taken its total for the financial year to date to six, covering nine practice sites. A greenfield site opened in Southport and two further openings are expected in the the second half of the financial year.
The revenue for six months to end of December 2022 – a period termed as H1 2023 – was up from £273.7 million in the same period the preceding year, with the group saying it was continuing to see “strong demand across our integrated veterinary services”.
Also in the trading update, capital expenditure on practice relocations, refurbishments and technology was shown to be £19.9 million to 31 December 2022 – up from £10.6 million at the end of December 2021.
The year-on-year number of vets was also up 5%, with attrition continuing to fall, while group-adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of around 19% remained in line with the prior year. Net bank borrowings increased to £57.6 million (this was £36 million on 30 June 2022) and CVS said it was trading in line with market expectations for the full year.
CVS’ preventive health scheme, Healthy Pet Club, saw an increase in membership of 4.3% to 481,000 at 31 December 2022 – up from 461,000 a year earlier.
The company said it planned to announce its H1 2023 interim results – for the six months ending 31 December 2022 – on 24 February.
In the report, CVS said: “While the group remains mindful of the challenging economic backdrop, demand for veterinary care remains resilient. We continue to focus on our purpose to provide the best possible care to animals through our integrated platform, and to invest in our practices and clinical equipment to drive organic growth, while continuing to explore acquisition opportunities in both the UK and internationally.
“The board is pleased with H1 2023 performance and considers that current trading remains in line with market expectations for the full year. The group remains well placed to deliver on further growth opportunities over the longer term. The board would like to acknowledge and thank all members of the CVS team for their continued dedication and support.”
