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CVS Group plc – Final results for the year ended 30 June 2020

24th September 2020

CVS, one of the UK’s leading providers of integrated veterinary services, is pleased to announce its final results for the year ended 30 June 2020.  The financial statements have been prepared under the requirements of IFRS 16 – ‘Leases’ for the first time. To aid comparability with the prior period, adjusted financial information (which is shown before the impact of IFRS 16) is also shown in the table below. The impact of IFRS 16 on the Group financial statements has been to decrease underlying profit before tax by £1.8m.

 

Financial Highlights

 

2020
Post- IFRS 16
2020
Pre- IFRS 16
2019
Pre-IFRS 16
Change
%4
Pre-IFRS 16
Revenue (£m) 427.8 427.8 406.5 5.2%
 
Adjusted EBITDA1 (£m) 71.0 55.3 54.5 1.5%
Adjusted profit before tax2 (£m) 38.2 40.1 41.4 (3.1%)
Adjusted earnings per share3 (p) 42.0 44.1 46.7 (5.6%)
 
Operating profit (£m) 18.5 16.2 15.6 3.8%
Profit before tax (£m) 9.9 11.7 11.7
Basic earnings per share (p) 8.1 10.0 11.6 (13.8%)

 

  • Revenue up 5.2% to £427.8m
  • Like-for-like sales5 growth for the Group in the first 8 months was 7.9%, reducing to 0.7% for the full year due to a       significant reduction in revenue during the Covid-19 pandemic
  • Healthy Pet Club members up 3.5% to 415,000
  • Pre-IFRS 16 Adjusted EBITDA up 1.5% to £55.3m
  • Pre-IFRS 16 Operating profit up 3.8% to £16.2m and post-IFRS 16 up 18.6% to £18.5m
  • Pre-IFRS 16 Adjusted earnings per share decreased 5.6% to 44.1 pence per share
  • Pre-IFRS 16 Cash generated from operations up 46.8% to £76.5m
  • Leverage of 1.14x at 30 June 2020

 

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

2     Adjusted profit before tax is calculated as profit on ordinary activities 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 defined as revenue generated from like-for-like operations compared to the prior year, adjusted for the number of working days. For example, for a practice acquired in September 2018, revenue is included in the like-for-like calculations in September 2019. This shows the underlying growth in revenue across all divisions, excluding the impact of current year acquisitions.

 

The annual report and accounts will be made available on the Group’s website, www.cvsukltd.co.uk, together with this announcement from 24 September 2020 and will be posted to shareholders 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.