CVS Group ‘well placed’ despite profit dip

A major veterinary group has claimed it remains “well placed” to secure long-term growth despite currently weak levels of consumer care demand.

The upbeat message was delivered by the CVS Group today (27 February), as it published its results for the six months to 31 December.

The company recorded adjusted pre-tax profits of £39.2 million, down from £45.3 million in the first half of the previous year.

But its preferred EBITDA (earnings before interest, tax, depreciation and amortisation) was up 4.5% to £67.4 million, while overall revenues were up 6.6% to almost £342 million.

Although veterinary performance was described as “flat”, the company said it remained confident of growth in the second half of the year.

Australian acquisitions

The group has also completed five new practice acquisitions in Australia, at a cost of slightly more than £23 million, and more deals are expected.

Chief executive Richard Fairman said: “I am pleased to report that the group has delivered further growth in both revenue and adjusted EBITDA, notwithstanding the current weaker consumer demand for veterinary care in the UK.

“CVS has increased its footprint and delivered growth in Australia, achieving enhanced returns through synergies and increasing scale benefits.

“There is continued demand for high-quality veterinary care and with our focus on clinical excellence and investment in practices and people, CVS is well placed to deliver sustainable long-term growth.”