Home Estate Planning CVS revenue shoots up 11.4 per cent following international expansion

CVS revenue shoots up 11.4 per cent following international expansion

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Veterinary services group CVS saw revenues shoot up 11.4 per cent over the last six months, as the group made its first international acquisitions.

In the group’s interim results covering the second half of 2023, it revealed that like-for-like sales growth had come in at six per cent.

During the six months, the vet provider entered the Australian market for the first time, making 13 acquisitions consisting of 15 practice sites for £54.4m.

The group cited a “strong pipeline of further acquisition opportunities with a continued focus on major cities such as Sydney, Melbourne, Brisbane, and Perth”.

Peel Hunt analysts Charles Hall and Andrew Ford praised the “strong pipeline” for Australian acquisitions, and reiterated their Buy rating on CVS.

“The multiples remain lower than those paid in the UK and we expect more to come given the fertile landscape,” they explained.

CVS also made four acquisitions in the UK throughout the second half of 2023, while also opening a new practice in January 2024.

Membership of CVS’ preventative healthcare scheme, The Healthy Pet Club, also increased to 500,000, up four per cent from 2022 and 2.2 per cent throughout the six months.

The group currently employs over 9,000 people, including 2,400 vets and 3,400 nurses, increasing its number of vets by 8.4 per cent throughout the year.

In September, the group’s shares plunged after the Competition and Market Authorities said it would be launching a review into the market due to concerns that pet owners may be getting charged too much.

Richard Fairman, CEO of CVS, said the firm’s interim results reflected “the continued resilience of our business despite the challenging macroeconomic backdrop affecting household incomes and inflationary pressures”.

Fairman said the group was continuing to focus on its growth strategy, revealed in November 2022, and had extended its bank facilities meaning that it has “committed funds in place for the next four years to help fund our investment plans”.

He added: “Our purpose is to give the best possible care to animals and our highly skilled team of colleagues are essential to the delivery of this care. I would like to take this opportunity to thank all CVS colleagues for their continued professionalism and dedication in providing high-quality care to our clients and their animals.

“With the continued commitment of our colleagues and our focused investment in their welfare and their working conditions, we look forward to reporting further growth in the future.”

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