29th Jan 2021 10:02
(Alliance News) - CVS Group PLC on Friday said it expects to report increased earnings for the first half of its financial year, due to a rise in total sales for the period through increased demand.
The Norfolk, England-based veterinary services provider said for the six months to the end of December, sales increased 9.4% year-on-year to GBP245.6 million, and by 7.8% on a like-for-like basis.
CVS attributed the growth to increased new client registrations within its Practices division, as well as higher demand from its online pharmacy and retail business, Animed Direct.
Meanwhile, the group's Healthy Pet Club preventative medicine scheme reported a further rise in membership since the end of the prior financial year to 430,000, up 3.6% from 415,000 at the end of June.
The group's adjusted earnings before interest, tax, depreciation and amortisation margin has improved in the period to 18.4% from 16.9% the prior year. As a result, CVS expects adjusted Ebitda to increase 50% to GBP45.1 million from GBP30.1 million the year before.
"The board is pleased with the group's resilience as shown through the positive performance of the business, despite the challenges experienced from the second half of the prior financial year. Although the Board remains cautious given the current level of macro uncertainty, particularly in light of the recent UK lockdown restrictions, the improved performance has been maintained across all operations during the first half," the group stated.
CVS will publish its interim results on March 25.
Shares in CVS Group were up 3.1% at 1,543.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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