Correction: In the original article, it was inaccurately stated that revenues had declined by 7.3%. However, the company’s revenues experienced positive growth of 7.3% during period, rather than a decline. We apologise for any confusion this may have caused.
CVS, the UK-listed veterinary group and provider of integrated veterinary services, has revealed that its like-for-like sales increased 7.3% in FY23.
In a trading update for the financial year ended 30 June 2023, it also confirmed its adjusted EBITDA was in line with the market expectations, with adjusted EBITDA margins being between 19% to 23% of its stated margin ambitions .
With a total capital expenditure of £46m (FY22: £24.5m), the group boosted investment in its facilities and equipment to enable growth in accordance with its five-year strategy and in keeping with the £30m to £50m per year target.
It also invested £55m in 11 practice acquisitions (comprising 16 practice sites) during the same period.
Additionally, the veterinary industry showed resilience as membership in its Healthy Pet Club preventative healthcare programme rose by 19,000 members (a gain of 4.0%) in the year to 489,000 (30 June 2022: 470,000 members).
CVS also highlighted its entry into the Australian veterinary market following deals for the purchase of four independent small animal first opinion veterinary practices.
Richard Fairman, CEO of CVS, said: “I am delighted to announce the continued growth of CVS in the financial year ended 30 June 2023 and our entry into the Australian veterinary services market. At our Capital Markets Day in November 2022, we set out our plans and ambition to double Adjusted EBITDA over the next five years through a continued focus on organic growth and through acquisitions in the UK and overseas.
“Our entry into the Australian market is consistent with these plans and we are excited by the opportunity. I am delighted to welcome the teams at McDowall Vets, Northgate Veterinary Surgery and St Vincent Vets, Warner Vet and Southside Animal Hospital in Australia, and those of East of England Veterinary Specialists, Brunswick Place Veterinary Clinic and Riverside Veterinary Practice in the UK to the CVS Group.”