25th Sep 2015 06:46
LONDON (Alliance News) - CVS Group PLC Friday lifted its dividend for its recently ended financial year as it reported a rise in pretax profit, and said its outlook "remains very promising".
For the year to end-June, the veterinary services provider reported a pretax profit of GBP8.5 million, up from GBP6.3 million a year before, as revenue rose to GBP167.3 million from GBP142.9 million.
CVS attributed its growth to a strong organic performance, bolstered by acquisitions in its Veterinary Practice and Crematoria divisions. During the year it acquired and integrated 29 surgeries, and said it has acquired 8 surgeries after the year end. It now operates 298 surgeries.
In its Laboratory Division revenue rose 23%, whilst revenue in its Crematoria Division rose 64%, bolstered primarily by its acquisition of Silvermere Haven.
Its online dispensary and retailer, Animed Direct, saw revenue rise 21%, as a strong first half offset minimal growth in the second half, a slowdown caused by a major internet search engine cutting off its shopping feed without explanation. This was restored just before the year end, CVS said, but it cautioned sales growth will take some time to pick up again.
The company proposed a final and total dividend of 3.0 pence per share, up from 2.5 pence a year before. It noted that it believes shareholder value can be best grown by reinvesting the majority of its operational cash flow back into its business, but the increased scale and growth of its business can support "a meaningful increase" in its dividend level.
"The board is optimistic about the group's future. It estimates that CVS only has a 12% share of the UK small-animal veterinary market and a negligible share of the equine and large-animal veterinary market. This demonstrates the major opportunity for further growth and consolidation and we expect to make further practice acquisitions," the company said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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