(Alliance News) - CVS Group PLC on Thursday said that it would continue to "proactively" support the UK Competition & Markets Authority, as an 18-month investigation begins into the supply of veterinary services for household pets.
Earlier in the year, the CMA announced a planned investigation into veterinary practices, after an initial review highlighted "multiple concerns", including weak competition in certain areas, actions by large corporate groups to reduce choice, and fears pet owners might be overcharged.
Responding to the start of the investigation on Thursday, CVS Group - a Norfolk, England-based veterinary services provider - emphasised its desire "to give the best possible care to animals", as well as "its vision to be the veterinary company people most want to work for".
Expanding on this strategy, CVS noted that it launched a new clinical governance framework in November last year, placing "contextualised care at the heart of the group's approach to providing clients and their pets with appropriate care".
In March, AJ Bell analyst Russ Mould commented that some of the problems noted in the CMA's investigation stemmed from "a lack of qualified workers", which has led to existing employees working longer hours, and a larger number of overseas and locum staff, thus pushing up costs.
According to UCAS figures from February last year, 2,370 students enrolled on to veterinary science degree programmes in the UK in 2022, down 11% from 2,660 the previous year.
Worse still, four of the nine institutions in the Veterinary Schools Council saw larger percentage drops than this. Enrolment was down 46% at the University of Bristol, and 39% at the University of Liverpool.
Fewer appointments have also impacted takings for some centres.
The need to have staff on site for longer, and to hire workers from abroad, "might have led some vets to push hard on prices to make up for any disruption to how their practices are run," Mould suggested.
Shares in CVS Group were up 3.3% at 1,070.23 pence each in London on Thursday afternoon.
By Holly Beveridge, Alliance News reporter
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