CVS on course for longer-term growth despite profit dip, boss claims

A major veterinary company has claimed it remains on track to deliver “sustainable” growth despite a fall in pre-tax and operating profits.

The confident message came as the CVS Group published its interim results for the six months to the end of December today, 26 February.

The figures showed pre-tax profits were down 4.4% from the previous year to £15.2 million, while operating profits dropped by 11.2% to £22.1 million.

Bosses linked those falls to factors including exceptional costs arising from the CompetItion and Markets Authority (CMA) investigation and the move to the main market of the London Stock Exchange.

But they also reported a 3.9% rise in adjusted EBITDA to £67.7 million, while operating revenues rose by 5.8% to £356.9 million.

‘Well placed’

Chief executive Richard Fairman said he was pleased with the results which had been achieved despite a “softer consumer backdrop” that had affected companion animal practice footfall.

He added: “With our focus on clinical excellence and investment in practices and people, CVS is well placed to deliver sustainable growth in the medium and longer term.”

The group revealed it had completed deals for two new practice acquisitions in Australia since the end of the period and a third is ongoing.

The company said it was confident that further UK acquisitions could be made within “appropriate multiples” once the CMA process is complete.

The firm also confirmed it expects to be included in the FTSE250 index from next month, following the completion of its move to the main LSE market last month.