Here is a summary of the key points from the trading statement of CVS Group plc for the financial year ended June 30, 2024
Full-year revenue growth for continuing operations was approximately 10% with like-for-like sales increasing by 2.9%.
Revenue growth and like-for-like sales were impacted by a cyber incident, resulting in a decision to accelerate cloud migration, and softer demand due to publicity around the veterinary sector and cost-of-living pressures.
Adjusted EBITDA margin for continuing operations is expected to be at the lower end of the stated range of 19% to 23%.
The Group expects to report Adjusted EBITDA of approximately £127 million for FY24.
CVS made 22 practice acquisitions in Australia during the year, with an additional two-site practice acquisition post-year-end.
Leverage is expected to be approximately 1.5x as of June 30, 2024, with the Group maintaining significant headroom and committed undrawn bank facilities of over £165 million.
Membership in the Groups Healthy Pet Club preventative healthcare scheme increased to 503,000 members, a 2.9% rise during the year.
The Group set out an updated capital allocation strategy, including plans for investment in overseas acquisitions, capital expenditure, and maintaining leverage.
Total capital expenditure for FY24 was approximately £42.0 million, including IT and related infrastructure upgrades.
CVS completed a total of five acquisitions of small animal practices in the UK in FY24, with a focus on maintaining high clinical care standards.
The Group announced strategic disposals of its Netherlands and Republic of Ireland operations due to their sub-scale nature and challenges within those veterinary markets.
CVS is cooperating with the Competition and Markets Authority (CMA) and has responded to detailed information requests as part of their market investigation.
The Board announced changes, including the appointment of Joanne Shaw as Chair of the Groups Audit Committee and the appointment of Paul Higgs, Chief Veterinary Officer, to the Board.
CVS Group plc operates in the UK and Australia, providing veterinary services with a focus on high-quality clinical care and dedicated clinical teams.