CVS expects 2021 earnings to beat expectations as lockdown eases

(Alliance News) - CVS Group PLC on Friday said revenue for the 2021 financial year will be ahead of its expectations, while adjusted earnings before interest, tax, depreciation and amortisation will be comfortably ahead, as the easing of lockdown restrictions increases demand for veterinary services.

Shares were up 6.2% to 2,110.00 pence in London.

The company, which owns over 480 veterinary surgeries in the UK, Netherlands and Ireland, said it benefited from new guidance towards the end of March allowing surgeries to open for non-essential services.

In addition, vaccine programmes and the easing of restrictions mean CVS is confident that its strong first-half performance will continue for the rest of the financial year ending June 30.

In first-half results announced back in March, CVS had reported 9.4% year-on-year revenue growth and a 38% year-on-year increase in adjusted Ebitda, saying "increasing pet ownership and the humanisation of pets" was boosting demand.

On Friday, the Norfolk-based company also announced the acquisition of a small practice in Hertfordshire, which completed on Thursday.

By Ivan Edwards; ivanedwards@alliancenews.com

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