UK's CVS Group full-year revenue rises on Australia expansion

By Reuters News


Overview

  • UK veterinary services provider's full-year revenue grew 5.9% yr/yr, supported by Australia expansion

  • Adjusted EPS for the year rose 6.9%, reflecting resilient earnings growth

  • Company completed £20 mln share buyback and began £50 mln programme, £11.7 mln completed by year-end


Outlook

  • Company expects to perform in line with market expectations for FY27

  • CVS targets medium-term organic like-for-like revenue growth of 4-8%

  • Company sees continued growth opportunities in Australia and UK, with ongoing acquisition pipeline


Result Drivers

  • AUSTRALIA EXPANSION - Revenue growth benefited from acquisitions and increased scale in Australia, now representing about 11% of group revenue

  • COST PRESSURES - Margins were maintained despite higher National Insurance contributions, wage inflation and IT costs through efficiency savings and cost control

  • UK DEMAND WEAKNESS - Like-for-like growth was held back by weak UK consumer confidence, higher personal taxation, and political uncertainty

  • WEATHER IMPACT - Extreme hot weather in the UK in May and June reduced revenue growth in the final quarter


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Basic EPS

GBP 0.24

FY EBIT

GBP 47.60 mln

FY Pretax Profit

GBP 32 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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 GBp1,615.00, about 24% above its September 23 closing price of GBp1,302.00

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Sept 23 - JD Sports first-half profit hit by North American weakness

  • Sept 22 - M&C Saatchi drops Australia, New Zealand sale after talks fail


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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