Increased pet ownership sees demand rise at CVS Group

(Sharecast News) - Veterinary service provider CVS said in a trading update on Thursday that its first half revenue was up 11.4% year-on-year to £273.7m, with underlying revenue growth coming in at 13.2%
The AIM-traded company said adjusted EBITDA for the six months ended 31 December was 15.5% higher than the prior year, at about £52m, while its adjusted EBITDA margin expanded by 0.6 percentage points.

Capital expenditure in the period totalled £10.6m, with "good returns" reported from recent investments in practice relocations and refurbishments.

Around 9% more vets were employed in 2021 when compared to 2020, with the firm's vet vacancy rate stable as iot focussed on recruiting more colleagues to service increased demand.

CVS said its trading was "comfortably in line" with full-year expectations.

"The demand for veterinary services remains strong, with increased ownership levels and the humanisation of pets driving a wider appreciation of quality veterinary care," the CVS board said of the company's outlook.

"To maximise the opportunity from these positive consumer trends, and to drive long-term and sustainable growth, our focus remains on providing the best possible care to animals through our integrated platform, by investing in our people and practices to improve our quality of care and service levels, whilst also pursuing further acquisition opportunities."

CVS' directors said they were "pleased" with the firm's first-half performance, adding that current trading was in line with their full-year expectations.

"The group is well-placed to deliver on further growth opportunities over the longer term."

CVS said it would announce its interim results for the six months ended 31 December on 24 March.

At 1228 GMT, shares in CVS Group were down 0.21% at 1,864p.