24th Mar 2022 11:35
(Alliance News) - CVS Group PLC on Thursday reported increased interim revenue and profit on robust organic growth across all its business areas.
In the six months to December 31, the Norfolk, England-based veterinary group generated a pretax profit of GBP22.9 million, up 55% versus GBP14.8 million in the same period a year before.
This was on revenue growth of 11% to GBP273.7 million from GBP245.6 million.
CVS attributed this to good organic growth across all its business areas and robust demand.
CVS did not declare an interim dividend, unchanged from last year.
The company said it continues to work with the UK Competition & Markets Authority to secure an appropriate buyer for Quality Pet Care Ltd to the CMA's satisfaction.
In August, CVS announced its acquisition of Quality Pet Care, which trades as The Vet for GBP20.4 million. However in September, the UK CMA had opened an investigation into the deal, and in February had judged that the acquisition would reduce competition in Bristol, Nottingham, Portsmouth, Southampton and Warrington.
On March 4, the CMA provisionally accepted CVS's undertaking to dispose of Quality Pet Care Ltd and all eight of its sites in order to resolve any potential competition concerns.
CVS said that demand for its veterinary services has remained strong. It noted that the positive performance from its first half has continued into the first two months of the second half. Like-for-like sales growth year-to-date is also up 10% compared to a year earlier, it noted.
Looking ahead, CVS said that it is confident that its full-year results will be in line with expectations.
"I am pleased to report on another strong set of results which reflect the commitment, dedication and professionalism of our colleagues. I would like to take this opportunity to thank them all for their outstanding contribution," Chief Executive Richard Fairman said.
"Demand for our services continues to increase as consumers seek the best possible care for their animals. Our ongoing strategy of investing in our people, in our practice and other facilities, and in our clinical equipment is generating beneficial returns through organic growth. We will continue to augment this organic growth through acquisitions."
Shares were up 2.6% at 1,806.00 pence each on Thursday morning in London.
By Abby Amoakuh; [email protected]
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