7th Oct 2025 10:58
(Alliance News) - CVS Group PLC on Tuesday said improved revenue and like-for-like growth in the final quarter has continued into the new financial year, which has got off to a "strong start."
In response, shares in the Norfolk, England-based provider of veterinary services rose 9.1% to 1,364.00 pence each in London on Tuesday morning.
Pretax profit, from continuing operations, decreased 7.4% to GBP32.6 million in the financial year to June 30 from GBP35.2 million the year prior.
This was mainly due to an increase in finance expense and depreciation, following an increase in acquisitions and capital investment in recent years, the company explained.
Statutory pretax profit ballooned to GBP53.0 million from GBP6.4 million last year, after recognising a gain of GBP33.5 million on disposal of the Crematoria operations.
Basic earnings per share jumped to 73.7 pence from 8.6p a year ago, but dropped to 80.1p from 83.3p on an adjusted basis.
Revenue rose 5.4% on-year to GBP673.2 million from GBP638.7 million, although like for like sales growth slowed to 0.2% from 2.9% a year prior.
CVS said while full year revenue growth and like-for-like sales were impacted by softer market conditions in the UK, the group saw improved revenue and like-for-like growth in the final quarter, with good momentum through the end of the year.
This momentum has continued into the new financial year, which has got off to a "strong start," CVS said.
As a result, CVS said it remains confident in returning to delivering like-for-like organic growth of between 4% to 8% in the medium term.
The firm highlighted its continued successful entry to the Australia market and flagged a "further strong pipeline of acquisition opportunities."
The group continues to expect to perform in-line with market expectations for financial 2026, it added.
CVS expects the provisional results of the investigation by the UK Competition & Markets Authority into the veterinary market to be published later this month.
"The market and economic uncertainty in the UK including the prolonged CMA market investigation, the increased employers' national insurance contributions and continued weakness around consumer spending have been unhelpful, but the strong fundamentals of the veterinary market remain attractive, and CVS continues to be well positioned to deliver attractive growth in shareholder value," said Chief Executive Officer Richard Fairman.
The final dividend was increased by 6.3% to 8.5 pence from 8.0p. No interim dividend was paid.
By Jeremy Cutler, Alliance News reporter
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