CVS shares jump after 'strong start' to new year

(Sharecast News) - Full-year results from CVS Group were well received by the market on Tuesday as the veterinary services group announced a "strong start" to the new financial year, helped by its continued expansion strategy in Australia. The company, which flagged the headline figures for the 12 months to 30 June in a trading update in July, said it was looking forward to the conclusion of the "prolonged" veterinary market investigation by the Competition and Markets Authority, expected in mid-October.

"I am delighted to report on another successful year of growth across our group with improved UK operations and the establishment of a meaningful platform in Australia," said chief executive Richard Fairman.

"We have successfully navigated some significant challenges over the past twelve months, and we enter the new financial year with a strengthened group, which is well positioned for further success."

Group revenues were 5.4% higher at £673.2m during the period. Like-for-like sales rose by just 0.2%, but core veterinary practices LFL sales were 1% higher, with improved revenue and LFL growth seen in the fourth quarter.

Adjusted pre-tax profit was flat at £78.9m due to higher finance expenses and depreciation from continued acquisitions and capital investments.

Nevertheless, the company still raised its final dividend to 8.5p per share, up from 8.0p previously, "reflecting the board's confidence in the long-term outlook for the group".

CVS reiterated its guidance of like-for-like organic growth of between 4-8% over the medium term, saying that the positive momentum in underlying sales seen in the fourth quarter has continued into the new financial year. The company said it was expects to hit market expectations for FY26 adjusted EBITDA of £138.9m-143.2m.

Shares were up around 10% at 1,370p by 1134 BST.