Advertisement

CVS beats revenue forecasts in first half

Veterinary services provider CVS Group beat revenue forecasts in the first half of its fiscal year, helped by acquisitions and growth in its online platform, Animed Direct.

Veterinary services provider CVS Group beat revenue forecasts in the first half of its fiscal year, helped by acquisitions and growth in its online platform, Animed Direct.

Revenue rose by 8.1% from £54m to £58.3m in the six months to December 31st, ahead of Panmure Gordon's £55.4m estimate. Like-for-like (LFL) sales increased by 4.0% in the first half.

Advertisement - Article continues below

However, this LFL growth has slowed to 3.4% in January and February due to the impact of the snow at the start of the year.

CVS said that Animed Direct continues to grow strongly and its range of pet products has been expanded. While the division mainly sells to UK customers, the company noted that a few sales have been made into Europe.

By the end of the period, the company operated 240 surgeries, up from 225 the year before, giving it an 11% share of the total UK small animal veterinary market.

Furthermore, since the end of the first half, the company acquired two further practices in Chester and Hampshire which have a combined historical revenue of £6.4m per annum.

Chief Executive Simon Innes said: "I am pleased to announce that CVS continues to deliver strong core growth, whilst adding new acquisitions to the business. Our new initiatives in the areas of loyalty schemes and online are driving our like-for-like sales growth and increasing our competitiveness and stability."

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up 5.2% at £8.2m, in line with forecasts, while the EBITDA margin fell from 14.4% to 14.1%, owing to competitive pressures in the laboratory business.

No interim dividend was paid, the same as last year, but the company expects another final payout to be announced with the full-year results.

Shares were up 1.77% at 189.29p in early trading on Wednesday.

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
The end of the bond bull market and the return of inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020