CVS Group Regulatory News (CVSG)

13 Dec 2007 07:01

CVS Group plc13 December 2007 For Immediate Release 13 December 2007 CVS Group plc ("CVS" or "the Group") Acquisitions and Pre-close Trading Update Acquisitions CVS, one of the UK's leading providers of veterinary services, is pleased toannounce three single site practice acquisitions located in Kidsgrove inStaffordshire, Fleet in Hampshire and Doncaster. The practices achieved aggregate EBITDA of £276,000 on turnover of £1.986m fortheir respective latest financial reporting periods. The consideration, which isnot being disclosed for reasons of commercial sensitivity, is being satisfiedwholly in cash. The acquired practices employ a total of 10 vets bringing the Group total toalmost 300. Commenting on the acquisitions, CVS Chief Executive Simon Innes said "Each ofthese three practices enjoys a strong reputation for clinical care and we lookforward to developing an excellent long term relationship with their respectiveteams". Pre-close Trading Update With five months of the current financial year now behind us the Board isdelighted to report continued strong progress on all fronts. We started the financial year with 43 small animal practices operating from 120surgeries and with one equine specialist practice and three veterinarydiagnostic laboratories. In the period up to flotation in early October weacquired a further two small animal practices operating from seven surgerieswhich, together with the significant number of acquisitions made in the secondhalf of last financial year, gave us a substantially higher EBITDA run-rate thanthe actual historic EBITDA of £5.1m achieved for the year ended 30 June 2007. Since flotation we have acquired a further four small animal practices,including the three announced today, operating from six surgeries and employing24 vets. Our pipeline of potential acquisitions remains strong, assisted by thedemographics which have now been prevalent in the sector for a few years. We will remain focused on acquiring well established practices achievingexcellence in terms of clinical care and where each practice employs at leastthree vets. The central services provided by the Group remain very attractive tovets, enabling individual surgeries to focus on clinical care. Our organic growth continues to be firm and we are confident of achievinganother year of significant progress in executing our strategy. Contacts:CVS Group plc 01379 644 288Simon Innes, Chief ExecutivePaul Coxon, Finance Director Buchanan CommunicationsRichard Oldworth 0207 466 5000Suzanne Brocks 07776 234 600 This information is provided by RNS The company news service from the London Stock Exchange