20th Nov 2024 11:17
(Alliance News) - CVS Group PLC on Wednesday ahead of its annual general meeting said it expects annual results to meet market expectations, as it is set to offset rising employment costs.
The Norfolk, England-based provider of veterinary services said sales in the four months to October 31 rose 7.6% on-year. Like-for-like sales were flat, however, amid "soft demand in the UK".
Adjusted earnings before interest, tax, depreciation and amortisation rose 5.5%.
"The board continues to expect to deliver full year 2025 results in line with market expectations, with the impact of recently announced UK government budget changes to employment costs offset with growth, efficiencies and purchasing synergies in Australia," CVS said.
The company's financial year ends on June 30.
"Whilst the board remains mindful of headwinds in the UK, the fundamental need for high-quality veterinary care remains strong, the expansion into Australia is progressing well, and CVS remains well positioned to deliver attractive growth in shareholder value over the medium term."
CVS warned that measures announced in last month's UK government budget will "result in a significant increase in employment costs with effect from April 2025".
It added: "Whilst these increases will only apply in the final quarter of this financial year, the annualised impact to the year ending 30 June 2026 is estimated to be GBP8 million from the national insurance scheme changes. The group expects to substantially mitigate these through growth, efficiencies and purchasing synergies in Australia."
CVS shares were up 3.9% to 853.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.