Trading Update

RNS Number : 0621U

CVS Group plc

27 July 2015

 

27 July 2015

CVS Group plc ("CVS" or the "Group")

Trading Update

CVS, the UK's leading provider of integrated veterinary services, is pleased to provide the following trading update in respect of the financial year ended 30 June 2015.  Comparative data relates to the year ended 30 June 2014 unless otherwise stated. The Group will announce its full year results on Friday 25 September 2015 and these are expected to be in line with market expectations.

Group revenue for the year showed total like-for-like growth of 6.8%.

Organic growth continues in the core veterinary practices. As indicated at the time of the interim results in March, growth was high during the first half of the year but returned to a more normal level in the second half. Membership of our Healthy Pet Club loyalty schemes grew by 51,000 (32%), from 162,000 pets at the start of the year to 213,000 at the year end. In the previous year membership grew by 50,100. Based on the current run rate these schemes are now contributing 13% of the total revenue from practices (2014: 11%). 

Good growth has continued in our referrals business and our new Lumbry Park referral centre is expected to open in September 2015.

Acquisition activity during the year showed a significant increase with 29 surgeries, in 13 Veterinary Practices, being acquired during the year and the Dovecote referral practice in Castle Donington being acquired subsequent to the year end. Since the last update at the time of the acquisition of YourVets the following practices have been acquired: Crooks & Partners (2 sites in May 2015), Petherton (2 sites in May 2015) and Marlborough Road (2 sites in May 2015).

Whitley Brook Pet crematorium, in Runcorn, was acquired in April 2015. The Crematoria Division now performs virtually all the crematoria work for our Practice Division. The acquisition of Whitley Brook helps to achieve our geographic coverage and will therefore allow that work to be performed more efficiently as well as relieving some capacity pressures at the Rossendale crematorium.

All of these acquisitions have been successfully integrated into the Group. The aggregate turnover of acquisitions in their last financial year prior to acquisition totalled £24m. The actual post acquisition turnover of businesses acquired during the year ended 30 June 2015 was £7.8m.

The Group now operates a total of 291 veterinary surgeries across the UK, an on-line dispensary, five diagnostic laboratories and four pet crematoria. 

The Board anticipates further like-for-like growth over the coming year, albeit at more normal levels. Further acquisitions and general progress in all of the Group's divisions are expected.

For further enquiries please contact:

CVS Group plc:                                               01379 644 288

Simon Innes - Chief Executive

Nick Perrin - Finance Director

N+1 Singer (Nominated Adviser & Broker)     020 7496 3000

Aubrey Powell / Alex Wright

Nick Owen

 

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