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CVS Group plc – Preliminary results for the year ended 30 June 2019

27th September 2019

CVS, the UK’s leading provider of integrated veterinary services, is pleased to announce its preliminary results for the year ended 30 June 2019.

 

Financial Highlights

 

  Year ended Year ended  
  30 June 30 June Change4
  2019 2018 %
       
Revenue (£m) 406.5 327.3 +24.2
Adjusted EBITDA (£m)1 54.5 47.6 +14.5
Adjusted profit before income tax (£m)2 41.4 36.0 +15.0
Adjusted earnings per share (pence)3 46.7 42.4 +10.1
Cash generated from operations (£m) 52.1 46.7 +11.6
Profit before income tax (£m) 11.7 14.1 -17.0
Basic earnings per share (pence)

 

 

11.6 16.0 -27.5
Proposed dividend (pence) 5.5 5.0 +10.0

 

  • Revenue up 24.2% to £406.5m
  • Like-for-like sales growth for the Group of +5.2% 5
  • Healthy Pet Club members up 10.8% to 401,000
  • Adjusted EBITDA up 14.5% to £54.5m
  • Adjusted earnings per share increased 10.1% to 46.7 pence per share
  • Cash generated from operations up 11.6% to £52.1m
  • Profit before income tax down 17.0% to £11.7m due to amortisation costs in relation to acquisitions
  • Leverage reduced to 2.08x at 30 June 2019
  • Significant improvement in second half
  • Now operate 510 surgeries across the UK, the Netherlands and the Republic of Ireland

 

1 Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is profit before income tax, net finance expense, depreciation, amortisation, costs relating to business combinations and exceptional items.

 2 Adjusted profit before income tax is calculated before amortisation, taxation, costs relating to business combinations and exceptional items.

3 Adjusted earnings per share is calculated as adjusted profit before income tax less applicable taxation divided by the weighted average number of ordinary shares in issue in the year.

4 Percentage changes have been calculated throughout this document based on the unrounded values.

5 Like for like sales are as defined in the Summary of significant accounting policies

 

Richard Connell, Chairman of CVS commented:

“The Group delivered a significant improvement in financial performance in the second half of the financial year following a disappointing first half.  This improvement reflects our actions in addressing the key issues which had impacted performance and I am pleased that the Group continues to show positive trends in the early part of the new financial year.

CVS operates in a sector with favourable market and consumer trends which has proven resilient in past economic downturns.  Plans are in place to manage any short-term Brexit impacts and the Board is confident that the business is well placed to avoid significant adverse impacts from the UK’s decision to exit the EU.

Multiple initiatives are being pursued to drive further organic growth and the Group continues to generate strong operating cashflow. This positions the business well for further investment in our people and facilities and a continued focus on delivering the highest standards of clinical care.  We will explore selective acquisitions where the Board is confident that they generate appropriate returns.

I am pleased with the improvements made and am confident that CVS is well positioned for future growth and a further restoration of shareholder value.”

The annual report and accounts will be available on the Group’s website www.cvsukltd.co.uk together with this announcement from 27 September 2019 and will be posted to shareholders who have requested a hard copy in due course.

This announcement is released by CVS Group plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (“MAR”), encompassing information relating to trading for the Company’s current financial year, and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by the directors named below.