Full year trading update

CVS Group plc

23 July 2026

 

For Immediate Release                                                                                                                                              23 July 2026

CVS Group plc

("CVS", the "Company" or the "Group")

Full year trading update

FY26 Adjusted EBITDA³ in line with market consensus

Continued growth in the Australian market

CVS, the UK listed veterinary group and a leading provider of veterinary services is pleased to issue the following update on trading for the financial year ended 30 June 2026 ("FY26")¹ and will also provide an Investor Presentation at 14.00 BST today on Capital Allocation and Returns.

CVS expects to announce its FY26 preliminary results on 24 September 2026.

FY26 Highlights¹

·    Full year revenue growth of 5.9% to £712.8m (unaudited) with like-for-like² sales increasing by +2.1% (FY25: £673.2m, like-for-like +0.2%) notwithstanding the sustained softer UK economic backdrop.

·     Australia revenue increased £27.0m to £79.1m from £52.1m benefitting from acquisitions in the current and prior year, and like-for-like growth.  Australia now represents c. 11% of Group revenue and c. 16% of Group EBITDA before central costs.

·    The Group expects to report FY26 Adjusted EBITDA³ of approximately £141.5m, in line with market consensus⁴ (unaudited) (FY25: £134.6m).

·      Adjusted EBITDA³ margin has been maintained at 19.9% for the full year (FY25: 20.0%), within our stated guidance of 19% to 23%.

·     Expansion in Australia continues, with six practice acquisitions⁷ (comprising 14 practice sites) in the year in addition to buying out a minority interest, for an aggregate initial consideration of A$91.0m / £45.6m bringing the footprint to 35 practices comprising 57 practice sites.

·      The Group continues to adopt a disciplined approach to capital expenditure, investing £36.4m in the year representing c.5.0% of revenue. The Group expects ongoing capital expenditure spend of c.£30m and hence capex will reduce as a percentage of revenue.

·     Net bank borrowings⁵ increased to £199.6m (31 December 2025: £160.2m, 30 June 2025: £131.4m) with leverage⁶ expected to be c.1.63x as at 30 June 2026 (31 December 2025: 1.41x, 30 June 2025: 1.18x).

·   As announced on 26 May 2026, CVS is undertaking a £50m share buyback programme of which £11.7m was completed in FY26. The share buyback programme is expected to run until November 2026 and the programme will result in the Group's leverage increasing towards the stated ceiling of 2.0x. The Group continues to maintain headroom for acquisitions with committed undrawn bank facilities of £132.0m and cash of £18.4m. Furthermore, management will consider temporarily increasing leverage beyond 2.0x for attractive acquisitions.

Acquisitions:

Australia

The Group has increased its presence in Australia, successfully building on its established platform, completing six acquisitions of small animal first opinion practices comprising 14 practice sites in the financial year in addition to buying out a minority interest, for initial consideration, net of cash acquired of A$91.0m / £45.6m (see note 7 for details).

The Group now operates across 35 practices, comprising 57 practice sites. The Board is pleased with the performance in Australia, with the practices collectively performing ahead of the Group's business plans, partly driven by buying synergies.

The Group has also exchanged contracts on two further practice acquisitions in South Australia, comprising four sites, for an initial consideration of approximately A$9.3m / £4.6m which will complete in the coming weeks. The Group has a strong pipeline of potential acquisition opportunities.

Competition and Markets Authority ('CMA')

The Group welcomes the certainty following the publication by the CMA of its Final Decision on 24 March 2026.  CVS already complies with many of the remedies and is well advanced in complying with others, with price lists published on our practice websites in late 2025 and over 80% of CVS's UK companion animal practices jointly branded.

CEO succession

Further to the announcement on 30 March 2026 of Richard Fairman's intention to retire, the Board is undertaking a thorough search to appoint a successor. The Company will provide an update when appropriate.  Richard remains committed to leading CVS until a successor takes up the role. 

Capital allocation and returns webcast

The Group is hosting an investor presentation at 14.00 BST today, where the Group will provide a more detailed update on its capital allocation priorities as well as more information on past and anticipated returns from its investments. To access a live streaming of the event, please click on the following link https://brrmedia.news/CVS_2026. A recording of the webcast alongside the presentation will be available on the Company's website https://www.cvsukltd.co.uk/investor-centre/ following the event.

Outlook

The Group has a strong balance sheet and free cash flows to support its capital allocation priorities. The pipeline of acquisition opportunities in Australia remains strong, and the Board is confident in returning to accretive acquisitions in the UK, at appropriate multiples.

The economic backdrop in the UK remains challenging with low consumer confidence impacting footfall in companion animal practices. However, with the expansion in Australia progressing well, the UK CMA process drawing to an end, and the structurally favourable dynamics of the sector, CVS remains well positioned to deliver attractive growth in shareholder value over the medium and long-term.

The Board reiterates its thanks to CVS colleagues for their contribution over the past financial year and looks forward to delivering further growth in the year ahead.

Richard Fairman, Chief Executive Officer commented:

"I am pleased that, despite the challenging UK economic backdrop, we delivered further growth in revenue and earnings.

"Our Australia practices continue to perform well and we have increased our market share through accretive acquisitions. Australia now represents around 11 per cent of Group revenue, with acquisitions performing ahead of plan and benefiting from buying synergies. We have a strong pipeline of further acquisition opportunities in Australia.

"With the CMA process now concluded, our £50m buyback underway and a robust balance sheet with  £150m in undrawn facilities and cash, we are well positioned to deliver attractive growth and shareholder returns."

Notes:

1. Numbers included are unaudited

2. Like-for-like sales shows revenue generated from continuing like-for-like operations compared to the prior year, adjusted for the number of working days and on a constant currency basis. For example, for a practice acquired in September 2024, revenue is included from September 2025 in the like-for-like calculations

3. Adjusted EBITDA is calculated by reference to profit before tax for continuing operations, adjusted for interest (net finance expense), depreciation, profit or loss on disposal of property, plant and equipment, amortisation, costs relating to business combinations and exceptional items. Adjusted EBITDA is an alternative performance measure and is defined in the APM glossary of the 2025 Annual Report. Adjusted EBITDA margin is Adjusted EBITDA dividend by revenue

4. The company compiled consensus range and averages for FY26 adjusted EBITDA of £140.4m to £142.3m with an average of £141.6m. This is based on ten analyst estimates

5. Net bank borrowings is drawn bank debt less cash and cash equivalents

6. Leverage on a bank test basis is net bank borrowings divided by Adjusted EBITDA³, annualised for the effect of acquisitions,  adding back share option costs, on an accounting basis prior to the adoption of IFRS 16

7. FY26 Practices Acquired:

Practice name	% acquired	Date of acquisition
Toorak Road Vet Clinic & Caulfield Veterinary Hospital	100%	02 July 2025
Sydney Animal Hospital incorporating: Avalon Vet Pty Ltd, Sydney Animal Hospitals - Northern Beaches Pty Ltd, Inner West Veterinary Hospital Pty Ltd, Sydney Animal Hospitals Pty Ltd, Sydney Animal Hospitals - Norwest Pty Ltd AND Sydney Animal Hospitals - Kellyville Pty Ltd	75%	01 September 2025
Sydney Animal Hospital incorporating: Baulkham Hill Pty Ltd	75%	07 October 2025
Highview Vets Pty Ltd t/a Austinmer Veterinary Hospital & Helensburgh Veterinary Clinic	100%	19 January 2026
PPAH Vets Pty Ltd t/a Port Phillip Animal Hospital	100%	24 February 2026
Pittwater Animal Hospital Pty Ltd	100%	28 April 2026
Animal Medical Centre Veterinary Hospital Pty Ltd	65%	25 June 2026

Contacts CVS Group plc Richard Fairman, Chief Executive Officer Robin Alfonso, Chief Financial Officer Paul Higgs, Chief Veterinary Officer Charlotte Page, Head of Investor Relations	via FGS Global
FGS Global Faeth Birch Charlie Chichester Hannah Ratcliff	[phone]                                            [e-mail]

About CVS Group plc (www.cvsukltd.co.uk)

CVS Group is a leading provider of veterinary services, operating in the UK and Australia, listed on the Main Market of the London Stock Exchange.  CVS is focused on providing high-quality clinical services to its clients and their animals, with outstanding and dedicated clinical teams and support colleagues at the core of its strategy.

The Group operates over 480 veterinary practices across its two territories, including specialist referral hospitals and dedicated out-of-hours sites. Alongside the core Veterinary Practices division, CVS operates Laboratories (providing diagnostic services to CVS and third-parties) and an online retail business ("Animed Direct").

The Group employs 9,000 personnel, including 2,500 veterinary surgeons and 3,300 nurses.

 

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