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CVS Group plc – Interim report for the six months ended 31 December 2019

27th March 2020

CVS, one of the UK’s leading provider of integrated veterinary services, is pleased to announce its interim results for the six months’ ended 31 December 2019 (‘H1 2020’), and to provide updates on year-to-date trading and on its response to the COVID-19 pandemic.

Interim Results

 

Six months ended 31 December 2019

Post IFRS 16 (Unaudited)

Six months ended 31 December 2019

Pre IFRS 16 (Unaudited)

Six months ended 31 December 2018

Pre IFRS 16 (Unaudited)

 

Change         %

 

Pre IFRS 16

 

 
Revenue (£m) 224.5 224.5 195.1 15.1%
 
Adjusted EBITDA (£m) 1 37.5 30.1 23.8 26.5%
Adjusted profit before income tax (£m) 2

20.5

22.4 17.4 28.7%
Adjusted basic earnings per share (pence) 3 23.4 25.6 19.7 30.0%
 
Operating profit (£m) 11.1                            10.7 3.4 214.7%
Profit before income tax (£m) 6.7 8.7 1.6 443.8%
Basic earnings per share (pence) 7.0 9.1 1.2 658.3%
       
  • Sales growth of 15.1%
  • Like-for-like sales increase of 8.4%
  • Adjusted EBITDA pre IFRS 16 increased to £30.1m (26.5%)
  • Adjusted EPS pre IFRS 16 increased to 25.6p (30.0%)
  • Statutory net debt as at 31 December 2019 of £96.8m (30 June 2019: £102.0m)
  • Three acquisitions during the period comprising five practice surgeries

 

Impact of IFRS 16

The financial statements for H1 FY20 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 above. This will be presented throughout FY20 until the transition to IFRS 16 is complete. The impact of IFRS 16 on the Group interim financial statements has been to decrease underlying profit before tax by £2.0m, and is shown in further detail in note 3 to the financial statements below.

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

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

4 Percentage increases and decreases have been calculated throughout this document based on the underlying values.

5 Adjusted EBITDA is used as a financial metric that removes the cost of debt, costs relating to assets and one off costs to get a normalised number that is not distorted by irregular items or structural investment.