REG - CVS Group plc - AGM Statement and Trading Update

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RNS Number : 8848H  CVS Group plc  18 November 2025

For immediate release
 
                                            18 November
2025

 

CVS Group plc

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

 

AGM Statement and Trading Update

Positive momentum, trading in line with expectations

Australian M&A ongoing

 

CVS, the UK listed veterinary group and a leading provider of veterinary
services, is holding its Annual General Meeting at 11.00 am today and provides
the following update to shareholders ahead of the meeting.

 

Unaudited Business Update

In the four-month period to 31 October 2025, Group sales increased 5.7% and
adjusted EBITDA(1) increased by 6.2%, over the comparable period in FY2025.
Like-for-like(2) sales performance has seen positive momentum with c.2.5%
growth year to date.

The Group's Healthy Pet Club preventative healthcare scheme has seen a further
increase in membership, with 520,000 members as at 31 October 2025 (30 June
2025: 519,000 members, 31 October 2024: 507,000 members) reflecting an
increase of 2.6% over the last twelve months, with the growth mainly due to
new clients transitioning from legacy schemes linked to historical UK practice
acquisitions.

 

In line with CVS' strategy to provide high quality care and modern facilities
and equipment for its colleagues, the Group has invested £11.5m in the
financial year-to-date in practice refurbishment, relocations, clinical
equipment and technology (period to 31 October 2024: £10.6m).

 

CVS continues to deliver strong operating cash conversion(3) to support this
investment, the Group's acquisition strategy and the ongoing £20 million
buyback programme.  As at 31 October 2025 leverage(4) stood at 1.27x (30 June
2025: 1.18x), well below the target of <2.0x.

 

Australia Acquisitions

The Group is making good progress with its acquisition strategy in Australia.
The Group has made two acquisitions comprising nine practice sites for the
financial year to date, for aggregate initial considerations of A$48.8m /
£23.6m.

 

The Group now operates across 31 practices in Australia comprising 52 practice
sites providing sufficient scale to start to deliver benefits from purchasing
synergies.  The Group has a strong pipeline of future acquisition
opportunities.

 

Competition and Markets Authority (CMA)

On 15 October 2025, the CMA published its provisional decision on the
veterinary market investigation, bringing additional certainty to the proposed
remedies and a significant step closer to the final decision due in Spring
2026. The Group is engaging with the CMA on the proposed remedies and remains
committed to implementing the remedies once finalised.

 

Main Market Listing

On 24 October 2025, CVS Group announced its intention to move to the main
market of the London Stock Exchange plc. CVS expects Admission in early Q1 of
calendar year 2026. The Group does not intend to raise funds in connection
with Admission or the publication of the prospectus, and Admission is not
expected to be conditional on shareholder approval.

Dividend

Subject to shareholder approval at this AGM, CVS intends to pay its previously
announced final dividend of 8.5 pence per ordinary share on 5 December 2025 to
holders on the register as at 7 November 2025.  The ex-dividend date was 6
November 2025.

 

Outlook

The Board remains mindful of continued headwinds in the UK particularly ahead
of the UK government budget. However, the fundamental need for high-quality
veterinary care remains strong, the growth opportunities in Australia are
abundant and, following the conclusion of the CMA process, the Group is
confident of a return to acquisitions in the UK. CVS remains well positioned
to deliver attractive growth in shareholder value over the medium term.

 

The Board remains confident in the Group's ability to deliver full year 2026
results in line with market expectations(5).

 

Notes

1 Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and
Amortisation) is profit before tax adjusted for interest (net finance
expense), depreciation, amortisation, costs relating to business combinations,
and exceptional items. Adjusted EBITDA provides information on the Group's
underlying performance and this measure is aligned to our strategy and KPIs.

2 Like-for-like sales shows revenue generated from like-for-like operations
compared to the prior year, adjusted for the number of working days and on a
constant currency basis. For example, for a practice acquired in September
2024, revenue is included from September 2025 in the like-for-like
calculations.

3 Operating cash conversion is defined as cash flows from operating activities
adjusted for discontinued operations, acquisition fees and contingent
consideration paid, less lease liability repayment and maintenance capital
expenditure; divided by adjusted EBITDA

4 Leverage on a bank test basis is net bank borrowings divided by 'Adjusted
EBITDA', annualised for the effect of acquisitions, deducting cost in relation
to acquisition fees and adding back share option costs, on an accounting basis
prior to the adoption of IFRS 16.

5. The Company compiled consensus estimates of FY2026 adjusted EBITDA, with an
average of £141.6m. This is based upon nine analysts' estimates.

 

Contacts

CVS Group plc
 
 
       via Camarco

Richard Fairman, Chief Executive Officer

Robin Alfonso, Chief Financial Officer

Paul Higgs, Chief Veterinary Officer

Charlotte Page, Head of Investor Relations

 

Peel Hunt LLP (Nominated Adviser & Joint
Broker)
 
                       +44 (0)20 7418 8900

Christopher Golden / James Steel / Andrew Clark

 

Berenberg (Joint
Broker)
 
                          +44 (0)20 3207 7800

Toby Flaux / Michael Burke / Milo Bonser / Brooke Harris-Lowing

 

Camarco (Financial
PR)
 

Ginny Pulbrook
 
 
          cvsg@camarco.co.uk (mailto:cvsg@camarco.co.uk)

Letaba Rimell
 
 
            +44 (0)7961 315 138

Tilly Butcher

 

About CVS Group plc (www.cvsukltd.co.uk)

 

CVS Group is an AIM-listed provider of veterinary services with operations in
the UK and Australia.  CVS is focused on providing high-quality clinical
services to its clients and their animals, with outstanding and dedicated
clinical teams and support colleagues at the core of its strategy.

 

The Group now operates c.470 veterinary practices across its two territories,
including specialist referral hospitals and dedicated out-of-hours sites.
Alongside the core Veterinary Practices division, CVS operates Laboratories
(providing diagnostic services to CVS and third-parties) and an online retail
business ("Animed Direct").

 

The Group employs c.8,900 personnel, including c.2,500 veterinary surgeons and
c.3,300 nurses and patient care assistants.

 

 

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