CVS Group (LSE:CVSG) reported a 5.9% increase in full-year revenue to £712.8 million for the year ended 30 June 2026, supported by growth in Australia and an improvement in like-for-like sales.
Like-for-like sales increased 2.1%, compared with growth of 0.2% in the previous financial year.
The veterinary group said consumer confidence and extreme heat during May and June affected customer footfall in the fourth quarter.
Adjusted EBITDA Increases 5.1%
Adjusted EBITDA rose 5.1% to £141.5 million, while the adjusted EBITDA margin remained unchanged at 19.9%.
The company recorded the increase despite higher employer National Insurance contributions and wage inflation.
Adjusted earnings per share increased 6.9% to 85.6 pence.
Statutory profit before tax, however, declined to £32 million from £32.6 million. CVS attributed this to factors including higher depreciation following investment, costs associated with the Competition and Markets Authority investigation and expenses related to the group’s move from AIM to the London Stock Exchange’s Main Market in January.
CVS Resumes UK Acquisition Activity
The Competition and Markets Authority published its final remedies order on 22 September, enabling CVS to resume acquisition activity in the UK.
CVS said it has exchanged contracts to acquire a two-site veterinary practice for an initial consideration of £15 million and has identified further potential acquisition opportunities.
In Australia, revenue increased to £79.1 million from £52.1 million.
The number of Australian practices increased to 57 from 43, with the country accounting for approximately 11% of group revenue.
Net Bank Borrowings Rise to £199.6 Million
Net bank borrowings increased to £199.6 million from £131.4 million, while leverage rose to 1.63 times from 1.18 times.
The increase followed expenditure on acquisitions, capital investment and share buybacks.
CVS completed a £20 million share buyback in January 2026 and launched a further £50 million programme in May, which remained in progress at the reporting date.
Final Dividend Increased to 9 Pence
The board recommended a final dividend of 9 pence per share, compared with 8.5 pence for the previous year.
Subject to the applicable approval process, the dividend is due to be paid on 4 December.
CVS is also progressing its search for a successor to chief executive Richard Fairman, who announced in March that he planned to retire. The company said the search process was well underway.
Leave a Reply