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Final results for the year ended 30 June 2021

23rd September 2021

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 2021.

Financial Highlights


£m except where stated 2021 2020 Change %5
Revenue 510.1 427.8 19.2%
Group like-for-like (“LFL”) sales growth (%)1  17.4 % 0.7% + 16.7 ppts
Adjusted EBITDA2 97.5 71.0 37.3%
Adjusted EBITDA2 margin (%)  19.1% 16.6% +2.5 ppts
Adjusted profit before tax3 66.2 38.2 73.3%
Adjusted earnings per share4 (p) 75.1 42.0 78.8%
Operating profit 40.1 18.5 116.8%
Profit before tax 33.1 9.9 234.3%
Basic earnings per share (p) 27.3 8.1 237.0%


Financial Highlights

  • Revenue increased by 19.2%, to £510.1m from £427.8m, with strong group like-for-like1 growth of 17.4% benefitting from favourable market dynamics and a continued focus on providing high quality care to our clients and their animals
  • The Group delivered adjusted EBITDA2 growth of 37.3%, to £97.5m from £71.0m, through an increase in revenue across all divisions and effective management of costs
  • Profit before income tax increased by 234.3% to £33.1m from £9.9m
  • Leverage5 fell to 0.68x from 1.14x as a result of strong EBITDA growth and reduction in net debt
  • Cash generated from operations decreased to £80.3m from £94.8m despite the increase in adjusted EBITDA, due to VAT and taxes deferred in the prior year due to COVID-19, paid in the current year

Operational Highlights

  • The last year has provided many challenges across our industry, but our people have demonstrated resilience and continued excellence throughout
  • As well as offering first class care to sick or injured animals we are continually improving the levels of preventative health care through our Healthy Pet Club
  • Our annual Quality Improvement report reflects our commitment to patient safety and consistent clinical improvement, and has gained us significant recognition in the profession, not least by our regulator the Royal College of Veterinary Surgeons (“RCVS”)
  • We are committed to enhancing the clinical services we offer, particularly in the quality of our facilities and as such we have completed 13 refurbishments and relocations in FY21
  • We have continued to organically grow our revenues, supplementing this with nine synergistic acquisitions during the year

Current trading & Outlook

  • Total sales growth of 17.5% (31 August 2020: 3.5%) in the first two months of the new financial year (vs same period in previous year) with like-for-like sales1 of 14.4% (prior year: 3.9%) benefitting from a further price increase put through in July 2021 in addition to the delayed price increase implemented in January 2021
  • Strong adjusted EBITDA2 margin of 19.5% for the two month period (Prior year equivalent period: 18.7%)
  • Stable vet vacancy rate, averaging 8.8% for the last twelve months (LTM) to the end of August 2021 (Prior year LTM: 6.8%) with continued initiatives to attract and retain our talent including:
    • Acceleration of annual pay increase with effect from 1 July 2021 to align with the start of our financial year;
    • Remuneration changed in line with feedback focusing more on fixed income for clinicians and introducing bonus schemes that reward collaboration across the Group; and
    • Additional day’s holiday for every year worked at CVS, up to a maximum of 5 years
  • Continued growth in Healthy Pet Club scheme to 455,000 members at 31 August 2021 (+7.9% compared to 31 August 2020)
  • One new acquisition made since the year end
  • Leverage5 flat at 0.7x (31 August 2020: 0.8x)

Richard Fairman, Chief Executive Officer commented:

“We have delivered a very strong performance for the year with credit to every single one of our colleagues for their extraordinary efforts to provide the best possible service to our customers and their animals, against a difficult backdrop of restrictions and evolving regulatory guidance. These results demonstrate the resilience of our fully integrated veterinary model and our commitment to providing the very highest standards of clinical care.

We continue to expand and develop our business, and, alongside our ongoing investments in high quality facilities and practices, we have welcomed a number of new vets and nurses to the Group, as demand for veterinary services continues to increase in light of rising pet ownership.

We see a number of opportunities to grow the business, through favourable consumer trends, further improving our specialist offering and by continuing to make investment in support. Although management expectations for the full year are not based on attaining annual growth at the high levels of the first two months, the very positive start to the new financial year is encouraging.  We remain focused on providing first class veterinary care and look forward with confidence.”


1. 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 2019, revenue is included in the like-for-like calculations from September 2020.
2. Adjusted Earnings Before Interest, Tax, Amortisation and Depreciation (“adjusted EBITDA”) is profit before income tax adjusted for interest (net finance expense), depreciation, amortisation, costs relating to business combinations and exceptional items. Adjusted EBITDA is used as a financial metric that removes the cost of debt, costs relating to depreciation and amortisation and one-off costs to get a normalised earnings figure that is not distorted by irregular items or structural investment.
3. Adjusted profit before income tax is calculated as profit before amortisation, taxation, costs relating to business combinations and exceptional items.
4. 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.
5. Leverage on a bank test basis is drawn bank debt less cash at bank; divided by adjusted EBITDA annualised for the effect of acquisitions, including costs relating to business combinations and excluding share option costs and exceptional items, prior to the adoption of IFRS 16.