Last checked at 23 Jul 2013 08:09
23 July 2013
CVS Group plc (the "Group")
Trading Update
The Board is pleased to announce that the results for the year ended 30 June 2013 will be in line with market expectations and will be released on Tuesday 24 September 2013.
Total like-for-like Group turnover for the year showed growth of 3.4%. This growth was achieved despite sales being moderately impacted by snow during January (0.2% impact) and there being one fewer trading days in the second half of 2013 compared to 2012 (0.3% impact).
Good organic growth has been achieved in the core veterinary practices throughout the year. The period has seen growth of over 70% in the membership of loyalty schemes which now exceed 111,900 pets compared to 65,500 at this time last year. At current run rates loyalty schemes are contributing over 9% of the total revenue from practices.
It is pleasing to report that there has been significant growth in the e-commerce operations. Animed Direct is currently generating some £6.7 million of annualised revenue, compared with £3.5 million at 30 June 2012 and continues to show significant growth opportunities. In addition, five on-line practice shops were opened during the year.
Internally funded acquisition activity has continued to play an important part in the Group's strategy. In addition to the three practices and the pet crematorium acquired in the first half of the year, four practices, Cranmore (two sites in Chester), Archway (Petersfield), Alver (three sites in and around Gosport) and Filham Park (Ivy Bridge, Devon) were acquired during the second half. These four acquisitions extend the Group's practice division's operations and the sites are an excellent geographic fit with the Group's existing surgeries. All of the acquisitions have been successfully integrated into the Group. Subsequent to the year end on 15 July 2013, Crescent (Melton Mowbray) was acquired. Based on the last financial year prior to acquisition the aggregate turnover derived from these five additional practices amounted to £8.3 million.
As well as small animal services, the Filham Park and Crescent practices both include some equine activities, extending our offering in this area. The Cranmore acquisition includes a referrals centre and on 1 July 2013 Professor John Innes joined us as a Referrals Director to run and expand our referrals business. John has been a leading figure in the academic and animal orthopaedic worlds for many years; most recently he has been closely involved in developing clinical services at the University of Liverpool. Not only will John bring world class experience in orthopaedics to the Group, but he will also bring experience and expertise in the development of referral services.
In total the Group now operates 248 veterinary practices across the UK, an on-line dispensary and 11 on-line practice shops, 5 diagnostic laboratories and 2 pet crematoria. CVS continues to be the UK's largest operator in a highly fragmented market.
For further enquiries please contact:
CVS Group plc: 01379 644 288
Simon Innes - Chief Executive
Nick Perrin - Finance Director
N+1 Singer 020 7496 3000
Aubrey Powell
Graeme Summers