UK's CVS Group slightly misses FY26 revenue expectations
UK's CVS Group slightly misses FY26 revenue expectations
Overview
UK veterinary services provider's FY26 revenue grew 5.9%, slightly missing analyst expectations
Adjusted EBITDA for FY26 met analyst consensus at £141.5 mln
Company completed £11.7 mln of its £50 mln share buyback in FY26
Outlook
Company says pipeline of acquisition opportunities in Australia remains strong
Company notes UK economic backdrop remains challenging, impacting companion animal practice footfall
CVS expects to return to accretive acquisitions in the UK at appropriate multiples
Result Drivers
AUSTRALIA EXPANSION - Revenue and EBITDA growth were supported by acquisitions and like-for-like growth in Australia, with practices performing ahead of business plans and benefiting from buying synergies
UK ECONOMIC BACKDROP - Like-for-like sales growth in the UK remained modest amid a sustained softer economic environment, impacting footfall in companion animal practices
Company press release: ID:nRSW4828Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Miss* | GBP 712.80 mln | GBP 713.99 mln (10 Analysts) |
FY Adjusted EBITDA | Meet | GBP 141.50 mln | GBP 141.50 mln (10 Analysts) |
FY Adjusted EBITDA Margin |
| 19.90% |
|
FY Like-For-Like Growth |
| 2.10% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for CVS Group PLC is GBp1,600.00, about 22.9% above its July 22 closing price of GBp1,302.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)