23rd Sep 2021 09:22
(Alliance News) -Â CVS Group PLC on Thursday reported a surge in full-year profit and said its strong performance has continued into its new financial year.
Revenue for the financial year ended June 30 rose 19% to GBP510.1 million, with like-for-like sales growth of 17% marking a sharp acceleration on the 0.7% rise posted the year prior.
The veterinary services provider put down the sales performance to "favourable market dynamics" and a continued focus on high quality care.
The growth in revenue, alongside cost of sales only rising 12%, saw pretax profit rocket to GBP33.1 million from just GBP9.9 million the year before.
"We have delivered strong underlying financial performance over the past year from a focus on organic growth through the delivery of first class clinical care. We continue to invest in improving our practice facilities and clinical equipment, completing 13 practice refurbishment and relocation projects in the past financial year," said CVS.
The strong performance has continued into the new financial year, with sales growth in the first two months 18% and like-for-like sales up 14%. Sales have benefited from a further price increase put through in July following a delayed one implemented in January.
The adjusted earnings before interest, tax, depreciation and amortisation margin in the two month period was 19.5%, up from 18.7% a year ago. For the recently ended financial year, the margin stood at 19.1%.
"With our improved financial performance in the past year, continued strong cash flow and strengthened balance sheet, CVS is well positioned for further growth and to benefit from the favourable market and consumer trends," the company said.
In light of the strong full-year performance, CVA recommended a return to its progressive dividend policy with a final payout of 6.5 pence per share, after no dividend a year ago.
Separately, CVS said Senior Independent Non-Executive Director Mike McCollum has decided to step down from the board at the end of his current term. He has served as a director for eight and a half years and his service agreement expires on Thursday.
Deborah Kemp has been promoted to senior independent non-executive director in McColllum's place, and CVS also has appointed David Wilton, chief financial officer of Sumo Group PLC, as a new non-executive director.
"[Wilton] joins at an exciting time in the company's evolution and his skills and experience, particularly in people based businesses, will be welcome in support of the finance function but also more broadly as we capitalise on the growth opportunities before us," said Non-Executive Chair Richard Connell.
Shares in CVS were up 4.2% at 2,600.00p in London on Thursday.
By Lucy Heming;Â [email protected]
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