Last checked at 8 Dec 2011 07:00
For Immediate Release | 8 December 2011 |
CVS Group plc
("CVS" or the "Company")
Annual General Meeting Statement
CVS, one of the UK's leading providers of veterinary services, is holding its AGM at 11:00am today at which Richard Connell, Chairman, will provide the following update to shareholders:
"The Board is pleased to announce that like for like sales for the period 1 July to 4 December 2011 showed growth of +1.2%, reflecting a continuation of the positive trend that we noted at the time of our Preliminary Results in September. Profitability for that trading period is in line with the Board's expectation.
In addition, the Group signed improved banking arrangements with its long-term bankers, the Royal Bank of Scotland plc, on 6 December 2011. These comprise a new five year term loan facility of £36m to replace existing credit lines and a £4m overdraft. Capital repayments under the term loan commence in December 2013. The Directors believe that the substantial cash generated from operations together with this funding package gives the Group ample resources and flexibility to continue the successful strategy of acquisition-led growth.
In this context, it is pleasing to report further acquisition activity since 30 June 2011, with The Woolpack and Birch Heath veterinary clinics being added to the Group's practice division.
The Woolpack Veterinary Surgery is a single site practice in Hertfordshire acquired in August 2011. The turnover of the practice for the year ended 31 August 2010 was in the region of £1.2m.
Birch Heath Veterinary Clinic is a single site practice in Cheshire acquired in October 2011. The turnover of the practice for the year ended 31 December 2010 was in the region of £0.5m.
Both acquisitions provide a good geographical fit with the Group's existing surgery locations.
In total the Group now operates 225 surgeries, 6 diagnostic laboratories, and a pet crematorium across the UK, together with an online dispensary and remains the largest operator in a highly fragmented market."
Contacts:
CVS Group plc
Simon Innes, Chief Executive
Paul Coxon, Finance Director
01379 644 288
Buchanan
Richard Oldworth
Suzanne Brocks
Christian Goodbody
020 7466 5000
Brewin Dolphin
Matt Davis
Alex Wright
020 7246 1000