REG - CVS Group plc - Conclusion of CMA process, acquisition and trading

CVSAnnouncement

01/07/2022 07:00

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RNS Number : 9258Q  CVS Group plc  01 July 2022

1 July 2022

 

CVS Group Plc

("CVS" or the "Company" and, together with its subsidiaries, the "Group")

Conclusion of CMA process through disposal, further acquisition and trading
update

CVS, the AIM-quoted veterinary group and one of the UK's leading providers
of integrated veterinary services, is pleased to announce that the CMA
investigation into its acquisition of Quality Pet Care Limited (trading as The
Vet) is now complete.  The Initial Enforcement Order, imposed by the CMA on
22 September 2021, ceased to be in force on 27 June 2022.  CVS completed the
sale of Quality Pet Care Limited on 30 June 2022 for cash proceeds of c.£9m,
thereby recognising an impairment of c.£12m which will be reported as an
exceptional item.

 

In addition, the Board is also pleased to announce that on 10 June 2022, CVS
acquired the entire share capital of OCVC Limited, trading as Old Courts
Veterinary Centre, a two-site veterinary practice in North Lincolnshire, for
consideration of c.£3m.  The consideration was funded from the Group's cash
balances.  The Group has significant headroom in its bank facilities which,
together with existing cash resources, is available to fund further organic
investments and acquisitions.

 

CVS is pleased to confirm that current trading remains in line with management
expectations for the full financial year.

 

The Group will issue a pre-close trading statement on 28 July 2022.  Full
year results for the financial year to 30 June 2022 are expected to be
released on 22 September 2022.

 

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR"),
encompassing information relating to trading for the Company's current
financial year, and is disclosed in accordance with the Company's obligations
under UK MAR. This announcement is being made on behalf of the Company by the
directors named below.

 

Contacts:

 CVS Group plc                                                        via MHP Communications
 Richard Fairman, CEO
 Jenny Farrer, Company Secretary
 Singer Capital Markets (Nominated Adviser & Broker)                  +44 20 7496 3000
 Aubrey Powell / Jen Boorer / Rachel Hayes
 MHP Communications (Financial PR)                                    +44 20 3128 8549
 Andrew Jaques / Simon Hockridge / Rachel Farrington / Charles Hirst

 

 

About CVS Group plc (www.cvsukltd.co.uk (http://www.cvsukltd.co.uk/) )

CVS Group is an AIM-quoted fully-integrated provider of veterinary services in
the UK, with practices in the Netherlands and the Republic of Ireland. CVS is
focused on providing high quality clinical services to its customers and their
animals, with outstanding and dedicated clinical teams and support colleagues
at the core of its strategy.

The Group has c.500 veterinary practices across its three markets, including
eight specialist referral hospitals and 35 dedicated out-of-hours sites.
Alongside the core Veterinary Practices division, CVS operates Laboratories
(providing diagnostic services to CVS and third-parties), Crematoria
(providing pet cremation and clinical waste disposal for CVS and third-party
practices), Buying Groups and the Group's online retail business ("Animed
Direct").

The Group employs c.7,900 personnel, including c.2,100 veterinary surgeons
and c.2,900 nurses.

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