CVS Group (LSE:CVSG) reported higher revenue for the year ended fiscal 2026, with total group revenue increasing 5.9% to £712.8 million. Like-for-like revenue grew 2.1%, remaining below the company’s medium-term target range of 4% to 8%, although the result reflected an improvement in trading across its core markets.
Australia drives growth while UK performance improves
Revenue from the group’s UK operations rose to £633.7 million, representing growth of approximately 2% and marking an acceleration from the 0.7% increase recorded in fiscal 2025.
The Australian business continued to deliver strong momentum, with revenue climbing 51.8% to £79.1 million. Australia now contributes around 11% of total group revenue, highlighting the increasing importance of the region to CVS Group’s long-term growth strategy.
Margins remain resilient as share buyback continues
Adjusted EBITDA for the year reached £141.5 million, broadly matching market expectations of £141.6 million. The adjusted EBITDA margin was 19.9%, comfortably within the company’s medium-term target range of 19% to 23%.
Net debt, excluding lease liabilities, increased to £199.6 million from £158.3 million at the halfway stage of the financial year. Despite the increase, leverage remained at a conservative 1.63 times net debt to EBITDA, below the company’s stated ceiling of 2.0 times.
CVS Group also continued returning capital to shareholders, completing £11.7 million of share repurchases by the end of fiscal 2026 under the buyback programme launched in May 2026. Approximately £38.3 million remains available for further share buybacks through November.
Capital investment outlook
Looking ahead, CVS Group expects annual capital expenditure to be approximately £30 million, at the lower end of its previously indicated £30 million to £40 million range. The company also reported a strong liquidity position, with £132 million of undrawn borrowing facilities and available liquidity of £18.4 million.
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