CVS targets post-CMA acquisitions as it reports ‘strong position’ in annual results

CVS Group bosses have said the company is “in a strong position” to deliver long-term growth and plans to resume practice acquisitions following the conclusion of the Competition and Markets Authority’s (CMA) investigation into the sector.

The company published its full year results up to 30 June today, 24 September, two days after the CMA published its final orders.

CVS’ revenue increased by 5.9% to £712.8 million with like-for-like sales growth of 2.1% (up from 0.2% last year), while adjusted EBITDA figures climbed 5.1% to £141.5 million.

The group’s profit before tax fell 1.8% to £32 million, which it attributed to an increase in depreciation and amortisation following capital investments and acquisitions in recent years, and costs related to both the CMA and the move to the Main Market of the London Stock Exchange.

CVS reported £10.6 million of “exceptional items”, which included £5.1 million spent on CMA remedy implementation.

Acquisitions

Following the announcement, CVS’ share prices fell by 5.68% in early trading.

The group reported it has exchanged contracts on a two-site practice and has a “growing pipeline of additional opportunities” within the UK, while it is also continuing to expand its operations in Australia.

Australian revenue grew by £27 million as CVS acquired six practices totalling 14 sites. It has completed two further acquisitions in FY2027 and exchanged contracts on another two.

Regarding the UK market, chief executive Richard Fairman said: “It’s the first one [UK acquisition] that we’ve done since the since it became clear that the CMA were going to go to the market investigation.

“I think we did one or two in the process of their market review, but we then decided to stop acquiring in the UK until we had the certainty which we now have.”

‘Solid growth’

Mr Fairman said CVS is “confident in our ability to make further acquisitions” in the UK and hope to report further progress at its AGM in November.

He added: “We have a number of conversations underway. We’re very clear that we are keen to make acquisitions, but we will be selective.”

Reflecting on the results overall, Mr Fairman said: “I am pleased to report a further year of solid growth across our three divisions, driven by the successful integration of our investments in prior years…

“Whilst the macro-economic backdrop remains challenging, we are confident in the essential nature of the services we provide and our ability to drive increased returns for all stakeholders.

“With the CMA investigation concluded, we can now focus all our attention on delivering great care, value and service to our clients and their animals. CVS is in a strong position to deliver growth over the long-term.”