Our Strategy

We continue to focus on providing great clinical client service

• Launched 'the CVS Care Plan', our new sustainability focus encompassing four core pillars: Care for our Planet, Care for our Clients and their Animals, Care for our People and Care for our Communities
• We received a RCVS knowledge champion award for Quality Improvement to lead organisational change
• Launched a new innovative training programme to support all vets: "Confidence in the Consulting Room"
• We continue to enhance our technology with a cloud-based practice management system and online bookings, which has enabled us to improve client engagement through digital products such as prescription reminders. Alongside this, we are trialling AI software to reduce administrative tasks for our clinicians
• Our strong focus on providing great client service saw our client Net Promoter Score increase to 78.9 (2024: 68.0)

Advancing our growth strategy

• Invested A$57.9m / £29.2m to acquire a further seven practices in Australia (fifteen practice sites) in FY25, in line with our inorganic growth strategy
• Continued investment in our facilities and equipment, with total capital expenditure of £34.2m (£33.2m continuing operations, 2024: continuing operations £41.5m), including investment into further technology across our operations
• Divestment of our Crematoria operations generating initial proceeds of £42.3m which represents a 10x adjusted EBITDA multiple and provides additional firepower for expansion in Australia and selected investment in the UK
• Increased number of vets employed by 4.5% (5.8% including acquisitions)
• Healthy Pet Club preventative healthcare scheme increased membership by 3.2% to 519,000 members (2024: 503,000) mainly due to new clients transitioning from legacy schemes linked to historical UK practice acquisitions

• Revenue from continuing operations increased by 5.4%, to £673.2m (2024: £638.7m)
• Group like-for-like sales increased by +0.2% (2024: 2.9%). Like-for-like sales performance across CVS's core Veterinary Practice division was an increase of +1.0% for the year
• Whilst full year revenue growth and like-for-like² sales, as previously announced, were impacted by softer market conditions in the UK, the Group saw improved revenue and like-for-like growth in the final quarter, with good momentum through the end of the year
• Adjusted EBITDA growth of 9.4%, to £134.6m (2024: £123.0m), benefitted from revenue growth, disciplined cost management and a £2.3m increase in net Research and Development Expenditure Tax Credits. Adjusted EBITDA margins for continuing operations improved to 20.0% for the full year (2024: 19.3%), which is within our medium-term guidance of 19% to 23%
• Profit before tax on continuing operations decreased by 7.4%, to £32.6m (2024: £35.2m) mainly due to an increase in finance expense and depreciation, following an increase in acquisitions and continued disciplined capital investment in recent years, in line with our growth strategy.
• Statutory profit for the year increased to £53.0m (2024: £6.4m) after recognising a gain of £33.5m on disposal of the Crematoria operations which were treated as discontinued during the year
• Leverage decreased to 1.18x (2024: 1.54x) due to strong cash generation coupled with proceeds received from the Crematoria divestment; partially offset by investment in acquisitions and existing practices
• Adjusted operating cash conversion increased 6.8ppts to 76.9% (2024: 70.1%) in line with our 70%+ medium term guidance
• The Board is maintaining its progressive dividend policy and recommending the payment of a final dividend of 8.5p per Ordinary share (2024: 8.0p), reflecting the Board's confidence in the long-term outlook for the Group

Footnotes

^{1. Financial measures are defined in the 2025 Annual report.}