28th Nov 2019 10:11
(Alliance News) - Veterinary services company CVS Group PLC on Thursday said that trading performance in the first four months of financial 2020 has been slightly ahead of management's expectations due to continuation of a positive trading momentum.
CVS shares in London were up 3.2% at 1,066.00 pence each on Thursday morning.
"The board is pleased to announce that the improved trading performance delivered in the second half of the financial year to 30 June 2019 and the encouraging start to the first two months of the new financial year, as announced at the time of our preliminary results on 27 September 2019, has continued in September and October 2019," Chair Richard Connell said in his annual general meeting statement.
In the four month period to October 31, the company's total sales grew by 17% and like-for-like sales increased by 8.0% compared to the same period last year.
Within the company's core Practices division, comparable sales increased by 7.4% over the four month period.
"These LFL growth rates primarily reflect a continued focus on high quality clinical work, including increased volume and value of referrals within the group, in addition to a price increase in our Healthy Pet Club preventative medicine scheme in February 2019 and a modest price increase applied to veterinary fees in our UK small animal business on 1 July 2019," Connell said.
CVS said its gross margins, employment costs and vet vacancy rates have all continued at a similar level to those reported at the time of financial 2019 results in September.
"The directors recognise that the comparatives become more challenging in the second half of the current financial year, given the improved second half performance seen in the previous financial year. Nevertheless, the board is naturally pleased with the core Practices division like-for-like sales performance in the financial year to date and with the trading performance of the group being slightly ahead of management's expectations for the first four months." Connell added.
By Tapan Panchal; [email protected]
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