Description of CVS’ business

CVS Group Plc is one of the Leading veterinary services provider in the UK. The Group has four main business areas: veterinary practices, diagnostic laboratories, pet crematoria and Animed Direct, our online business. The passion of our people for animals and for making your pets our priority is at the heart of our work every day. CVS operates 256 surgeries, usually trading under local business names. These surgeries include three locations which are wholly referral practices providing first class specialist treatment. We have also launched Pet Medic Recruitment business which recruits locums and permanent staff for both our own and third party practices and a buying group known as Mi Vet Club. During the 2013 we began the development of our own brand, MiPet, products. The first two products, Pro-bind (a gut protective) and Active+ (a joint supplement), were launched in July 2013. The own brand label will protect our market as well as our margins and, whilst the initiative is currently limited in scale, further products will be developed during 2014.

CVS(UK)Limited was established in August 1999 to acquire and operate veterinary practices which were well established within their local communities and had a reputation for high quality service. The Company strategy recognises that the value of veterinary businesses lies in the quality of their staff and the relationship they enjoy with their existing clients.




Professional management expertise and other services are therefore provided centrally to all Group practices, relieving them of their administrative burden and enabling local staff to concentrate on clinical care.

The Directors believe that several factors are currently contributing to a growth in the market for veterinary services in the UK, based on growing and ageing pet populations, advances in veterinary medical science, changes in the demographic profile of the human population and a growth in the pet insurance industry.

Building on these underlying growth prospects, and capitalising on other drivers that are encouraging vets to sell their practices to corporate operators, CVS has expanded by acquisition into the market and established a leading position as a national consolidator and operator of veterinary practices and laboratories.

CVS is incorporated in England and currently operates in England, Wales and Scotland.

CVS Group will report its annual results on Tuesday, and I think it's worth investigating for a number of reasons. Firstly, its share price has gained around 50% over the past 12 months to stand at 142p today, and that's usually a sign of something good. And secondly, it's a quoted veterinary services provider, and there are precious few of those, in a very profitable business that should surely have a good long-term future.

Back in July, CVS told us that full-year results should be in line with expectations, so we should be hearing of earnings of around 14p per share, putting the company currently on a P/E of 10 -- and 2013 forecasts have that falling to under 9. There's not a much in the way of dividends yet, but CVS is a growing company.

We do need to watch out for debt, but at the interim stage it was falling, and was down to £31.6m. We should hopefully see further reduction.

CVS GROUP plc

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



Preliminary Results for the year ended 30 June 2012



http://www.moneyam.com/action/news/showArticle?id=4451114

CVS proves pet care pays with second dividend
Tue 25 Sep 2012

CVSG - CVS Group

Latest Prices
Name Price %
CVS Group 147.00p +3.52%

FTSE AIM All-Share 709 -0.27%
General Retailers 1,823 +0.02%

LONDON (SHARECAST) - CVS Group, the rapidly expanding veterinary surgery chain, has reported growing revenues and its second ever dividend as pet owners have continued to splash the cash during the dog days of the recession.

In the 12 months to the end of June CVS grew revenue by 7.1% to £108.7m while like-for-like sales increased by 2.9%.

Adjusted earnings before interest, tax depreciation and amortisation have increased by 7.9% to £15.7m (2011: £14.5m).

Cash generated amounted to £15.5m down from the 2011 figure of £17.6m; reflecting a one-off improvement in supplier payment terms in the prior year.

Profits before tax decreased by 11.3% to £3.8m after a one off charge related to new financing terms agreed at the end of 2011.

In December last year CVS paid its maiden dividend of 1p per share, and it’s now announced a further dividend of 1.5p per share.

CVS does appear to be going places. The stock price has risen 62% in the last year and the number of surgeries now absorbed into the chain has reached 231. CVS is the biggest employer in the UK veterinary profession with approximately 2,300 staff, including around 550 vets.

To counter the recession the group is focusing on its loyalty programme, which aims to improve customers purchases of vaccination and drug sales (which are migrating online).

The Chief Executive Simon Innes said of the results: “The progress made in growing the membership of our loyalty schemes and the expansion of our e-commerce activities have been notable achievements in the year. We continue to focus on organic growth whilst also developing new revenue streams and continuing to grow through selective strategic acquisitions."

One person who won’t be around much longer at the firm is Chief Financial Officer, Paul Coxon, who will leave at the end of the calendar year.

Panmure Gordon reiterated its "buy" rating, saying "CVS has exceeded our expectations on most measures, reflecting a strong performance across the board. LFL [like-for-like] revenue progress has been pleasing and continues to deliver positive momentum into the current year."

The broker has maintained its forecasts at this juncture, but believes there could be "some upside potential from a variety of sources (organic, M&A, e-commerce) as we progress through the year."

CVS shares were up 4.9% at 11am.

At 29 times forecast earnings for 2013-14,cvs shares look highly rated. With profit margins set to continue improving and the dividend growing usefully, the shares still have long-term merit. A buy in this weeks IC.

CVS: Panmure Gordon raises target from 160p to 188p, buy rating unchanged.

Moving up nice, not a dog this one. lol

:-))

CVS adjusted earnings up 5.2%

13 March 2013 | 08:45am

StockMarketWire.com - Veterinary services provider CVS Group reports strong first half results with further growth in revenue and underlying profit in line with the board's forecasts.

Revenue for the six months to the end of December rose to £58.3m (2011: £54.0m) and like-for-like sales increased by 4.0%.

The group said this continued the trend of sustained improvement that is particularly pleasing in an economic environment where consumer spending remains under considerable pressure.

Adjusted earnings before interest, tax, depreciation and amortisation rose by 5.2% to £8.2m but adjusted EBITDA margins fell slightly to 14.1% (2011 full year: 14.4%, 2011 half year: 14.5%), primarily reflecting the competitive pressures in the group's laboratory business.

Operating profit increased to £3.6m (2011: £3.5m) and adjusted profit before tax increased to £3.0m (2011: £2.7m after adding back the exceptional interest expense of £1.6m).

Basic earnings per share increased from 1.7p to 3.7p and adjusted earnings per share rose from 7.8p to 8.3p.

At 8:45am: [LON:CVSG] share price was +2p at 188p

------------------------------------------------------------------------------------------------

CVS Group: Panmure Gordon shifts target price from 200p to 208p and leaves its hold recommendation unaltered. Investec moves target price from 163p to 201p, while downgrading from buy to add.

For anyone interested a buy in this weeks Shares mag.

The 3 analysts offering 12 month price targets for CVS Group Plc have a median target of 205.00, with a high estimate of 208.00 and a low estimate of 185.00. The median estimate represents a 7.05% increase from the last price of 191.50.

One of eight small caps in this weeks Shares mag set to soar.

Conservatively-pitched estimates from broker N+1 Singer for the year to June point to 9% growth in adjusted taxable profits to£12.2 million and earnings up 8% to 15.5p, ahead of £12.9 million and 16.5p by June 2014, to put the stock on just 11.5 times earnings.

Tuesday -
CVS Group: Investec reiterates add and lifts target price to 216p from 205p.

CVS hits target. A buy in this weeks IC - Veterinary services company CVS (CVSG) seems to be reaping the benefits from its turnaround programme after bad weather in the first half barely dented its operational performance. The popularity of its membership scheme for pets helped the company record like-for-like sales growth of 3.4% for the year so far. The impact of the loyalty schemes is such that they now contribute over 9% to CVS's overall sales. Meanwhile the lower-margin Animed Direct, which supplies medicines and treatments over the internet, also showed good progress, with revenues doubling to £6.7m compared with this time last year. There were also four more acquisitions of vet practices during the half.

CVS looks likely to hit targets for this year, but with even the re-rating, the shares are still attractively priced at a forward PE ratio of 13.

Shares -The rally should have further to run, as market share gains and forecast upgrades sustain the rating.

Interims Fri 21 March

Interim Results

Revenue growth of 18.0%

· Like-for-like sales increase of +4.6%

· Adjusted EBITDA up at £9.5m (+15.3%)

· Adjusted EPS 9.8p (+22.5%)

· Net debt £32.1 (June 2013: £30.0)

· Seven practice acquisitions during the period

· Our third Crematorium, Silvermere Haven, acquired after the period end

· Loyalty scheme membership increased by over 24% to 139,000



http://www.moneyam.com/action/news/showArticle?id=4776858

CVS: Panmure Gordon increases target price from 245p to 323p and reiterates a hold recommendation.

Been a steady climber.

Woof, woof. :-))

------------------------------------------

Trading Update

RNS


RNS Number : 7799M

CVS Group plc

21 July 2014






21 July 2014



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 2014. Comparative data relates to the year ended 30 June 2013 unless otherwise stated. The Group will announce its full year results on Friday 19 September 2014 and these are expected to be in line with market expectations.



Group revenue for the year showed total like-for-like growth of 6.9%. This figure benefitted from good weather throughout the winter months and is stated after adjusting for one extra day's trading in the year to 30 June 2013. Like-for-like sales performance was strong in all the main businesses, particularly in Animed Direct. CVS continues to see opportunities for organic growth across all of its activities and continues to invest in the estate to capitalise on this potential.



Strong organic growth has been achieved in the core veterinary practices especially in the second half of the year. Membership of our Healthy Pet Club loyalty schemes grew by 50,100 (44.8%), from 111,900 pets at the start of the year to 162,000 at the year end. In the previous year membership grew by 46,400. Based on the current run rate these schemes are now contributing over 11% of the total revenue from practices (2013: 9%).



The scale and increasing density of our practice network has enabled the Group to open four emergency out-of-hours centres during the year, bringing work previously performed by third parties into the Group. Further opportunities for similar changes will be sought during 2015.



Good progress has been made in developing our referrals business with organic growth continuing in the centres that we already operate. In July 2014 we purchased the freehold of Lumbry Park, Alton, Hampshire for £800,000 and we are now developing plans for fitting it out as a first-class multi-disciplinary referral centre. This centre is expected to open in the summer of 2015.



It is pleasing to report that significant growth has continued in Animed Direct, our online dispensary. It is currently generating some £10.4 million of annualised revenue, based on revenue for June 2014, compared with £6.7 million based on June 2013. The varying regulatory requirements in Europe have led to a slight delay in launching our planned local language European websites and the first is now expected to be launched within the next few months.



Acquisition activity has continued to play an important part in the Group's strategy. In addition to the seven practices acquired in the first half of the year, three practices - 3 Mile (Glasgow), Ashfield (3 sites around Halifax) and Castle (3 sites in Barnard Castle, County Durham) - and a pet crematorium (Silvermere Haven in Cobham) were acquired during the second half. These acquisitions extend the Practice Division's operations and the practices are an excellent geographic fit with the Group's existing surgeries. The acquisition of Silvermere Haven is an important step in the geographic development of our Crematoria Division and will allow almost all of our practices to be serviced internally.



All of the acquisitions have been successfully integrated into the Group. The aggregate turnover of acquisitions in their last financial year prior to acquisition totalled £13.3 million. The actual post acquisition turnover of businesses acquired during the year ended 30 June 2014 was £6.6m.



The Group now operates a total of 262 veterinary practices across the UK, an on-line dispensary, 5 diagnostic laboratories and 3 pet crematoria.





The Board is encouraged by the recent improvement in like-for-like sales performance, the continuing potential for further acquisitions and the general progress in all divisions of the Group.

1 Aug Berenberg 410.00 Buy

Final Results


· Revenue up 19.0% to £142.9m

· Like-for-like5 sales growth for the Group of +6.9%

· Animed Direct revenue up 74.3% to £8.5m

· Healthy Pet Club members up over 45% to 162,000

· Adjusted EBITDA up 19.7% to £19.7m

· Adjusted earnings per share up 17.3% to 19.0 pence per share

· Acquired and integrated 18 surgeries during the year

· 6 surgeries acquired after the year end

· Now operate 268 surgeries

· Acquired Silvermere Haven Crematorium


http://www.moneyam.com/action/news/showArticle?id=4888522

Sharecast -


CVS Group non-exec more than doubles stake

Mon, 27 October 2014

CVS Group non-exec more than doubles stake

CVS Group said on Monday that one of its non-executive directors, Mike McCollum, more than doubled his stake in the veterinary services provider.
McCollum bought 30,000 shares at 370p apiece, taking his holding to 50,000.

The £111,000 purchase comes around a month after the group posted a 17.8% year-on-year rise in pre-tax profits to £14.3m.

Revenues were up 19% at £142.9m and adjusted earnings before interest, tax, depreciation and amortisation rose by 19.7% to £19.7m.

The share price has risen almost 7% since the publication of the results.

The group proposed a dividend payment of 2.5p, up 0.5p from a year earlier.

The good news has helped shares rise almost 7% in the period since their release. They are up more than 42% in the year-to-date.

Signal Update

Our system’s recommendation today is to BUY. The BULLISH STOP LOSS pattern finally received a confirmation because the prices crossed above the Stop Loss level which was at 374.7500, and our valid average buying price stands now at 390.5000. The previous SELL signal was issued on 15/10/2014, 20 days ago, when the stock price was 370.5000. Since then CVSG.L has risen by +5.40%.

Market Outlook

A rally after a bear setup can occasionally turn into an explosive long trade. We may be on the verge of catching one of them. There is now a strong positive sentiment in the market despite the absence of a bullish pattern. The bullish stop loss is finally confirmed and a BUY signal is generated. Market wants to reward the bulls. It may be now the right time to be part of this boost and bullish market sentiment by joining the growing bullish crowd.



http://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=CVSG.L

Ex dividend Thurs 4 Dec 2.5p

CVS Group: PeelHunt ups target price from 400p to 475p and maintains a 'buy' recommendation

10 Dec Investec 510.00 Buy

Final dividend
The directors are recommending a final dividend for the year ended 30 June 2014 of two and a half pence per ordinary share. If approved, the final dividend will be paid on 22 December 2014 to shareholders whose names appear on the register at the close of business on 5 December 2014.

CVS Group: Berenberg raises target price from 410p to 560p and maintains a 'buy' recommendation

Jim Slater -


Jim Slater has a substantial holding in CVS, which operates vets’ practices and pet cemeteries

My family has a substantial shareholding in CVS Group, which at 472p has a market value of £280m. Yet another of Peel Hunt’s 17 top growth picks, the company operates veterinary practices and diagnostic businesses, pet crematoria and an online pharmacy. In Britain 46pc of households have pets and the pet population is continuing to grow rapidly. CVS has excellent free cash flow and frequently uses it to make acquisitions to increase its network of surgeries across the country. The shares are on a high prospective p/e ratio of 21, but with forecasts of strong growth which are likely to be revised upwards because “like-for-like” sales, which strip out the effects of new surgeries, were up by 8.7pc in the first four months of the firm’s financial year



http://www.telegraph.co.uk/finance/personalfinance/investing/shares-and-stock-tips/11376838/Jim-Slater-two-more-IHT-free-Aim-shares-to-add-to-your-portfolio.html

3 Feb Investec 571.00 Buy

Shares - CVS (CVSG:AIM) 467.25p
The second-largesT veterinary services
business in the UK has 272 vet practices
across the country. We’d argue cVs has
attractive defensive qualities as pet owners
will always shell out the cash for any
treatment as pets are generally considered
as family members. The pet insurance
market continues to expand and consumer
confidence is also growing – adding up to
an attractive backdrop for the small cap
business as spending increases on pet
healthcare. cVs has bought 20 new vet
practices annually since 2007 and intends
to keep consolidating the industry. It is expanding in the large animal
market, so expect horses and farm animals to play a bigger role for
revenue generation – handy as they account for nearly half the £2.9
billion UK vet services markets, says Berenberg. The bank forecasts
£17 million pre-tax profit for 2015, rising to £19 million in 2016. The
dividend isn’t overly generous on a prospective 0.6% yield, but 7.7%
compound annual growth rate in eBITda forecast for the next three
years is attractive.

Interim results


Sales growth of 19.0%

· Like-for-like sales increase of +10.0%

· Adjusted EBITDA up at £11.8m (+30.4%)

· Adjusted EPS 12.9p (+34.5%)

· Net debt £28.7m (June 2014: £31.3m)

· Ten practice surgeries acquired during the period

· Five surgeries acquired after the period end

· Loyalty scheme membership increased by almost 39% since December 2013 to 192,000


///////////////////////////////////////////////////////////////////////////////////////////////////


20 Mar Investec 600.00 Buy
20 Mar N+1 Singer N/A Corporate

CVS Group PLC (CVSG:LSE) set a new 52-week high during Friday's trading session when it reached 536.00. Over this period, the share price is up 76.09%.

IC - Analysts have again raised profit forecasts for CVS Group following a bullish set of half year results. Charles Hall of Peel Hunt said the upgrade marked the fourth for the veterinary service group in the past year alone.

Acquisition of your vets and new banking facility


30 Mar Berenberg 560.00 Buy
30 Mar Investec N/A Buy
30 Mar N+1 Singer N/A Corporate

CVS Group plc has announced the agreement to acquire Your Vets, a provider of small animal veterinary services in the West Midlands and Essex comprising seven surgeries. This is being facilitated through new debt facilities also announced today. The recent results were excellent and the bankers certainly seem to like them.

New research note at http://tinyurl.com/oxynt27

CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 597.00. Over this period, the share price is up 95.90%.

Shares - stick with CVS. CVS has enviable defensive qualities and is well placed to consolidate the fragmented UK veterinary market .

CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 651.50. Over this period, the share price is up 117.3%

Trading Update
RNS
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.

CVS Group issued the now customary positive trading update ahead of its full year results which are due out in September.

Results for the year ending 30th June 2015 are expected to be in line with market expectations – pre-tax profit £17.9m and earnings per share of 23.60p – with Group revenue for the year showing total like-for-like growth of 6.8%.

Read more at http://www.investorschampion.com/blog/

CVS Group featured in our weekly round-up of announcements from AIM.

More at http://tinyurl.com/nfr2eks

Four new arrivals on AIM in July. The newcomers included a fascinating social media business from Myanmar which already boasts 1m users.

Other new arrivals included an estate agency and professional fee funding business. Our Blog offers more information on this interesting bunch.
See more at: http://www.investorschampion.com/blog/

Remember to use our updated AIMsearch search tool to discover which AIM companies benefit from the valuable tax benefits at http://aimsearch.investorschampion.com/

Jim Slater - CVS Group

CVS operates veterinary practices and diagnostic businesses throughout the country. Britain’s pet population continues to grow rapidly, as do the profits of CVS. The interim results for the six months ended December 31 were excellent and for the full year ended June 30 the consensus forecast for earnings per share is 23.6p, against 8.7p last year.

I took profits on CVS when to my mind the forward p/e ratio became too demanding in relation to the then forecast 2016 earnings per share growth rate of 12pc. This was a mistake as since then the shares have risen and so has the consensus forecast growth rate.

At 650p the prospective p/e ratio is still lofty at 23 so I am tempted to rate the shares as a sell. However, a trading update on July 27 indicated that like-for-like sales were up by 6.8pc and the company’s broker, Singer, says “expansion is accelerating”.

I believe that CVS is a great growth stock and although the price has run ahead of itself the shares should be held for the longer term.

I should point out here that for IHT purposes it is not necessary to hold the same share for the entire two-year qualifying period.

Relief from death duties is not lost if investors dispose of qualifying shares and replace them with other qualifying shares (certain types of firm, such as investment companies, do not qualify for the IHT relief).

However, to qualify for continuing relief the whole of the sale proceeds must be used to purchase the replacement shares. HMRC is generous with the time allowed for reinvestment – sale and purchase only have to take place within three years of each other.

So, for example, if you decided to sell some of your shares in CVS, you could replace them with more Restore shares or any other qualifying Aim stock.

An attractive bonus – in addition to the capital gains from my suggested IHT portfolio (hopefully tax free in an Isa) – there is exemption from 40pc death duties on the value of the shares.

Preliminary results

· Revenue up 17.0% to £167.3m

· Like-for-like sales growth for the Group of +6.8%

· Animed Direct revenue up 21.0% to £10.3m

· Healthy Pet Club members up over 32% to 213,000

· Adjusted EBITDA up 25.9% to £23.0m

· Adjusted earnings per share up 30.0% to 24.7 pence per share

· Acquired and integrated 29 surgeries during the year

· 8 surgeries acquired after the year end

· Now operate 298 surgeries

· Acquired Whitley Brook Crematorium for Pets Limited

Acquisition of Alnorthumbria Veterinary Practice
RNS
RNS Number : 8156A
CVS Group plc
01 October 2015

1 October 2015



CVS Group plc

(the "Company" or the "Group")



Acquisition of Alnorthumbria Veterinary Practice Limited ('Alnorthumbria')



CVS, the UK's leading provider of integrated veterinary services, is pleased to announce that on 30 September 2015 it acquired the entire issued share capital of Alnorthumbria, a provider of veterinary services in the North East of England comprising nine surgeries (the "Acquisition").



Alnorthumbria was founded in 2007 by the merger of two well established Northumberland practices, the Aln Veterinary Group and The Northumbria Veterinary Partnership. It operates nine sites across Northumberland at Amble, Fairmoor (two sites), Rothbury, Seahouses, Alnwick, Wooler, Ashington and Ponteland. Alnorthumbria employs 24 professional vets and over 100 staff in total.



In the year to 31 March 2015, Alnorthumbria generated turnover of approximately £5.7 million. Approximately 50% of turnover is from small animal work, 35% from large animal work and 15% from equine business. For the same period, Alnorthumbria generated an adjusted earnings before interest, tax and depreciation and amortisation of approximately £0.9 million and an adjusted profit before tax of approximately £0.8 million. Alnorthumbria's reported profit before tax for the year ended 31 March 2015 was £1.2 million, excluding dividends paid to the owner managers.



The maximum total consideration for the Acquisition is £7.7 million including costs. This figure is subject to adjustment based on the working capital and indebtedness of Alnorthumbria as at 30 September 2015.



£6.6 million of the consideration was paid in cash on completion. £0.9 million of the consideration is deferred and will be paid in two equal annual tranches, provided that turnover for the large animal and equine business acquired with Alnorthumbria remains above the level achieved for the year ended 31st March 2015. Further deferred consideration of up to £0.2 million will be payable if the total turnover of Alnorthumbria in the two years following the Acquisition is more than 111% above that for the year ended 31st March 2015. The consideration for the Acquisition will be paid using the Group's existing bank facilities.



Intangible assets and goodwill of approximately £6.7 million are expected to arise on acquisition.



Commenting, Simon Innes, Chief Executive Officer of the Group, said:

"Alnorthumbria is a strong fit with the Group's existing operations, significantly increasing the Group's presence in the North East and enhancing our large animal and equine business. As part of the CVS Group, Alnorthumbria is expected to benefit substantially from better purchasing power as well as overhead synergies."

IC -

CVS is pick of the litter
It’s hard to fault the latest figures from veterinary practice business CVS (CVSG). Strong sales growth helped boost adjusted cash profits by more than a quarter to £23m. Most of the top-line growth can be attributed to strong underlying demand – like-for-like sales rose 6.8 per cent – but a series of acquisitions also boosted the numbers.
In the year to June CVS added 29 surgeries to its estate and one more crematorium. In total these businesses should generate more than £24m in annual sales for the group, having added £7.7m to revenues and £1m to cash profits during FY2015. Since the year-end the group has bought an additional eight surgeries, including a new ‘referral centre’ in Castle Donnington. By referral centre management means a clinic akin to a pet hospital to which vets can refer pets with more serious ailments.
CVS divides its business into four parts: veterinary practices, laboratories, crematoria and Animed Direct – its online retail site for pet medicines. The practices are considered the backbone of the business, and last year like-for-like sales there rose 5.6 per cent. The group’s booming loyalty scheme – Healthy Pet Club – may have helped drive organic growth. Over 51,000 pets were added to the scheme, boosting member numbers by 32 per cent to 213,000.
The laboratories and crematoria divisions posted like-for-like sales growth of 11 per cent and 12 per cent respectively.
Bosses admit that last year’s performance included an exceptionally strong first half, and like-for-like growth has slipped since the start of the new financial year. Yet analysts at Peel Hunt have still nudged up their forecasts. The brokerage now expects pre-tax profits of £22.2m (previously £21.5m) for FY 2016, giving EPS of 30.5p (previously 28.8p), compared to £19.4m and 27.1p for the year ended June 2015.
This isn’t the first time analysts have raised their profit expectations for CVS – a point that is clearly reflected in the shares’ strong performance over the past year. The stock doesn’t come cheap on 22 times forward earnings, but the company’s growth story – based on both the nation’s love of animals and the opportunity for consolidation within a fragmented sector - is sustainable. We remain buyers. HR
Buy

aims-best-companies-confirmed

Company of the year

CVS

Vet practices consolidator CVS (CVSG) celebrates its eighth anniversary on AIM by winning the coveted AIM company of the year award. The share price has nearly trebled since CVS joined AIM and it has successfully used its share quotation to help finance a consistent stream of acquisitions of vet practices. The sector is still highly fragmented even though CVS has a strong relative market position. The £7.7 million acquisition of Alnorthumbria Veterinary Practice takes the number of surgeries to 307. The acquisitions, development of online operations and the launch of the Healthy Pet Club, which brings in regular revenue, have helped propel profit higher and Peel Hunt forecasts a 2015-16 profit of £22.7 million, rising to £24.5 million in 2016-17. I thought Clinigen, admittedly the newest AIM company on the shortlist, would win, but its chief executive Peter George won entrepreneur of the year instead (see below).

Acquisition of Highcroft Pet Care
RNS
RNS Number : 3316D
CVS Group plc
26 October 2015

26 October 2015



CVS Group plc

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



Acquisition of Highcroft Pet Care Limited ("Highcroft")



CVS, the UK's leading provider of integrated veterinary services, is pleased to announce that has acquired the entire share capital of Highcroft, a provider of small animal veterinary services in the Bristol area comprising 13 surgeries (the "Acquisition"). Completion took place on 23 October 2015.



Highcroft has operated from its main site in Whitchurch, Bristol since 1982, which the Royal College of Veterinary Surgeons has accredited the highest practice standard, and has developed its other sites gradually since then. Highcroft has some 50 professional vets, including 5 diploma holders, and approximately 220 staff in total.



Highcroft is a rapidly growing and strategically important acquisition for the Group, bringing CVS its first significant presence in the Bristol area, a large market where it currently has few surgeries. Highcroft is an integrated practice, already offering out-of-hours and referrals services to which CVS will direct business from other existing CVS practices in the wider area. Recent growth in Highcroft is being driven by the development of a new referral business, which comprises over 20% of turnover, four sites acquired and fully refurbished in 2014 and the establishment of three small sites in 2014 which will act as feeders for the Group's wider service proposition.



Until recently Highcroft operated as two separate legal entities which were brought together as Highcroft Pet Care Limited in February 2015. Based on unaudited pro forma figures for the combined Highcroft group for the year to 31 January 2015, Highcroft generated turnover of approximately £7.3 million, adjusted earnings before interest, tax, depreciation and amortisation ("EBITDA") of approximately £0.5 million and a reported profit before tax of approximately £0.2 million. As at 31 January 2015, net assets of Highcroft were £0.5 million.



The Directors believe that these unaudited pro forma figures do not fully reflect the current performance of Highcroft, which benefits from a high and growing level of referrals business at higher gross margin than first treatment practice revenue. Unaudited sales for the 8 months to September 2015 grew by over 30% against the comparable period last year. This growth is being driven by the development of the referrals business, the full year impact of the sites that were acquired and refurbished in the previous year and the growth of the more recently established, immature sites. These factors will continue to have an on-going impact on Highcroft, with high growth expected to continue in the near term.



The Group intends to continue to develop the Highcroft business to optimise its potential. As part of CVS, Highcroft is also expected to benefit substantially from better purchasing power as well as overhead synergies. These benefits are conservatively estimated to approach £0.6 million within three years. CVS expects the Acquisition to be mildly accretive in the Group's current financial year, reflecting the initial investment in the business, with phasing of synergy benefits and further growth delivering fuller accretive benefit in the first full year of ownership and beyond.



The initial total consideration payable to the shareholders of Highcroft is £7.4 million including costs. This figure is subject to adjustment based on the working capital and indebtedness of Highcroft as at 23 October 2015. In addition CVS will acquire net debt of approximately £4.1 million with Highcroft. Intangible assets and goodwill of approximately £11.0 million are expected to arise on completion of the Acquisition.



Up to £1.0 million of deferred consideration is payable to the vendors of Highcroft in 2017, subject to sales of at least £10.2m being achieved in the Highcroft business year ending 31 January 2017.



The Directors believe that the Acquisition is a particularly strong fit with the Group's existing operations and a further important step in the Group's strategy of growing integrated operations in practices, out-of-hours and referrals centres. The Acquisition follows the opening of the Group's Lumbry Park referral centre earlier this month and the acquisition of the Dovecote referral centre in July 2015.



Simon Innes, Chief Executive of CVS commented, "CVS looks forward to working with the Highcroft team to continue to deliver high levels of expertise and service as we deliver the next phase of growth together."

Annual general meeting statement

CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 760.50. Over this period, the share price is up 87.78%.

Acquisitions and New Bank Facilities
RNS
RNS Number : 9627H
CVS Group plc
04 December 2015

4 December 2015



CVS Group plc

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



Acquisition of Albavet Limited ('Albavet'), The Pet Crematorium Limited ('The Pet Crematorium') and New Bank Facilities



Acquisition of Albavet



CVS (AIM: "CVSG"), the UK's leading provider of integrated veterinary services, is pleased to announce that on 3 December 2015 it acquired the entire share capital of Albavet and its wholly owned subsidiary, VETisco Limited (together the "Albavet Group" and the "Acquisition").



The Albavet Group employs some 34 professional vets and over 150 staff in total across three separate businesses: 11 veterinary surgeries; a veterinary buying group, trading under the name of Vetshare; and an instrumentation business trading under the name of VETisco.



The veterinary surgeries are well established businesses and are based in the Fife area (4 sites), Glasgow (1 site), Nottingham (1 site), the Stoke-on-Trent area (4 sites) and Wallington, Surrey (1 site). The surgeries perform small animal work.



The Vetshare buying group currently has over 400 members operating from over 500 surgeries across the UK. Vetshare negotiates supplier rebates on behalf of its members and generates its revenues based on commission on members' purchases from wholesalers. It also sources and negotiates other veterinary services for its members, including crematoria and laboratory work. In September 2014 members of the London Vet Forum buying group transferred to Vetshare, increasing the number of members by over 20%.



The VETisco instrumentation business is a small distribution business having commenced in 2012. It currently makes a small loss.



In the year to 31 October 2014, the last for which published accounts are available, the Albavet Group had turnover of approximately £6.6 million, of which £5.5 million was generated by the surgeries. Earnings before Interest, Tax and Depreciation and Amortisation ("EBITDA") was c. £0.8m million and profit before tax was £0.6 million (both after adjusting for rent that will be payable on properties owned by the Albavet Group pre acquisition but which will be leased post acquisition). As at 31 October 2014 net liabilities excluding goodwill of Albavet were £0.7 million.



The total consideration payable to the shareholders of Albavet is £11.3 million including costs. This figure is subject to adjustment based on the working capital and indebtedness of Albavet at the date of acquisition. In addition CVS will acquire net debt of approximately £0.1 million with Albavet. Intangible assets and goodwill of approximately £11.6 million are expected to arise on completion of the Acquisition.



The consideration for the Acquisition was paid out of the Group's new bank facilities.



Albavet is a strong fit with the Group's existing operations. Its surgeries fit well into the geographical spread of the Group's existing small animal sites. The acquisition of the Vetshare buying group will provide a significant base for further development of CVS's buying group strategy. As part of the CVS Group, Albavet is expected to benefit substantially from better purchasing power. Many of the benefits within the Albavet surgeries are expected to be generated over the first year post acquisition, while benefits in the enlarged buying group are expected to be achieved over the medium term.



Acquisition of The Pet Crematorium

CVS has also acquired the entire share capital of The Pet Crematorium which consists of two crematoria: the first is located at Witton Gilbert, near Durham and the second is at Larkhall, near Hamilton. It employs about 22 staff. The terms of this transaction are below the threshold requiring further disclosure.



This acquisition significantly improves the geographical coverage of CVS's crematoria network. The Scottish and North East England locations complement the existing CVS sites at Rossendale, Runcorn, Exeter and Cobham.



New Bank Facilities



CVS is also pleased to announce that it has entered into a new bank facility agreement which provides the Group with total facilities of £115 million to support the Group's organic and acquisitive growth initiatives over the coming years. These facilities are provided by a syndicate of three banks: RBS, HSBC and AIB. They replace the existing banking arrangements on more favourable terms, including a lower coupon, and comprise the following elements:

· A fixed term loan of £67.5 million, repayable on 23rd November 2021 via a single bullet repayment; and

· A six year Revolving Credit Facility ("RCF") of £47.5 million that runs to 23rd November 2021.



In addition the Group has a £5.0 million overdraft facility renewable annually.



The two main financial covenants associated with these facilities are based on Group Borrowings to EBITDA and Group EBITDA to interest. The Group Borrowings to EBITDA ratio must not exceed 3.5 for the period up to 31st December 2017 from when it must not exceed 3.0. The Group EBITDA to interest ratio must not be less than 4.5. The facilities require cross guarantees from the most significant of the CVS Group's trading subsidiaries but are not secured on the assets of the Group. EBITDA is based on the last 12 months' performance adjusted for the full year impact of acquisitions made during the period.



Commenting on the Acquisitions and on the new facility agreement, Simon Innes, CVS Chief Executive, said:



"The Albavet Group is a well-established, high quality operation. This acquisition significantly develops our surgeries in central Scotland and in the Midlands. The Vetshare buying group provides a major step forward in our strategy of developing a significant buying group which can benefit from the scale and scope of CVS.



The Pet Crematorium is a great addition to our Crematoria Division with the two locations near Hamilton and Durham ideally complementing our existing crematoria network.



We are delighted to welcome the Albavet and The Pet crematorium staff to CVS.



The new borrowing facility provides CVS with ability to finance the acquisition of Albavet and a number of other acquisitions that we expect to take place in the remainder of the financial year. The Group is comfortable with operating at a Group Borrowings to EBITDA ratio in the region of 3.0 for a period of time and the maximum ratio of 3.5 allows us the flexibility to do so. This level of gearing is a temporary measure, to allow us to complete the unusually large number of significant acquisitions that have taken place this year. The reduction of the maximum ratio to 3.0 from 31 December 2017 underlines our intention to reduce gearing gradually following the current period of higher acquisitive growth, and reflects the strong cash generation in the business which also funds the Group's numerous organic growth initiatives."

Broker Forecast - Peel Hunt issues a broker note on CVS Group PLC
BFN
Peel Hunt today reaffirms its buy investment rating on CVS Group PLC (LON:CVSG) and raised its price target to 850p (from 775p).

Story provided by StockMarketWire.com

17 Dec Berenberg 880.00 Buy

CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 824.00. Over this period, the share price is up 83.11%.

Still 40p short of the broker target. Looks pretty strong going into 2016 as most pet lovers will pay out for vet bills.



CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 840.00. Over this period, the share price is up 86.67%

Notification of Presentation and Interim Results
RNS
RNS Number : 2395M
CVS Group plc
19 January 2016

19 January 2016





CVS Group plc

("CVS")



Notification of Shareholder Presentation and Interim Results



CVS, the UK's leading provider of integrated veterinary services, is today providing analysts and institutional investors with a tour of its new Lumbry Park Major Multi Disciplinary Referral Centre, together with a briefing focussed on the strategy and operations of the group. No new material information will be provided.



CVS also announces that it will be releasing its Interim Results for the six months ended 31 December 2015 on 21 March 2016.

Interim results

· Sales growth of 23%

· Like-for-like sales increase of 3.0%

· Adjusted EBITDA up at £14.6m (23.7%)

· Adjusted EPS 14.7p (14.0%)

· Net debt £84.8m (June 2015: £46.2m) reflecting a significant acceleration in acquisition activity

· 42 practice surgeries acquired during the period and 8 after the period end

· Significant development of the referrals business with the acquisition of Highcroft Veterinary Referrals, Dovecote Veterinary Hospital and the opening on Lumbry Park Veterinary Specialists

21 Mar Peel Hunt 850.00 Buy

31 Mar Berenberg 880.00 Buy

Sunday Midas tip -CVS Group is the largest veterinary company in the UK, with more than 350 surgeries, five laboratories that carry out diagnostic tests for vets and seven pet crematoria. The company also owns Animed Direct, an online store for medicines, pet food and other must-have pet products.

Midas recommended CVS in June 2009, when the shares were 142p. Today the stock is 748½p, down from 806p before the Brexit vote. At current levels, the shares are a buy.

CVS has expanded substantially over the past seven years, both organically and through acquisition, and profits have quadrupled. Brokers expect profits up 25 per cent to £24.4 million for the year to June 30. Further strong growth is pencilled in for the next two years.

Research shows that pets are increasingly regarded as members of the family, so owners spend more on their food, health and wellbeing. This should play to CVS Group’s strengths, whatever the economic outlook.

Midas verdict: CVS shares have been knocked back along with many other consumer-related stocks, but the reaction is overdone. Investors who bought back in 2009 should retain their shares. New investors may also find value at today’s price.

Director Deals - CVS Group PLC (CVSG)

Nick Perrin, Financial Director, bought 2,000 shares in the company on the 7th July 2016 at a price of 688.63p. The Director now holds 12,000 shares. NOTE: Average price Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

16:05 07/07/2016
Director Deals - CVS Group PLC (CVSG)

Richard Connell, Chairman, bought 5,000 shares in the company on the 7th July 2016 at a price of 688.63p. The Director now holds 97,891 shares. NOTE: Average price Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

Trading update

25 Jul Peel Hunt 950.00 Buy

29 Jul Berenberg 910.00 Buy

2 Aug Investec 880.00 Buy

Proactive investor -Profits set to fluff up at CVS Group plc
Share
15:44 22 Sep 2016
Veterinary group is expected to report full-year profits modestly ahead of expectations

CVS treats domestic pets as well as horses and larger animals
Veterinary services provider CVS Group plc (LON:CVSG) will aim to appeal to the City’s animal instincts on Friday.
CVS, which is unveiling full-year results, said in a pre-close update in July that it expected adjusted pre-tax earnings for the year to the end of June to be modestly ahead of market expectations.
The company, which runs a range of veterinary practices and hospitals mainly in southern England, said at the time that annual revenue had risen 4.8% against the first half’s 3%.
Investors are likely to look out for any deal news after a record year in terms of the number of acquisitions.
It acquired 67 surgeries as well as three crematoria, the Vetshare buying group and the VETisco instrumentation business.
“We continue to see a significant number of acquisition opportunities and are able to focus on those that offer the best potential for the group,” it said.
The City is also likely to look for any changes to guidance after the group’s July forecast of further like-for-like growth, albeit more moderate following a strong performance in the previous six months

Preliminary results


 
·      Revenue up 30.4% to £218.1m
·      Like-for-like sales growth for the Group of +4.8%
·      Healthy Pet Club members up 18% to 253,000
·      Adjusted EBITDA up 42.5% to £32.8m
·      Adjusted earnings per share up 31.2% to 32.4 pence per share
·      Acquired and integrated 67 surgeries during the year
·      3 surgeries acquired after the year end
·      Now operate 363 surgeries
·      Acquired 3 crematoria during the year

Broker Forecast - Peel Hunt issues a broker note on CVS Group PLC
BFN
Peel Hunt today downgrades its investment rating on CVS Group PLC (LON:CVSG) to add (from buy) and raised its price target to 1000p (from 950p).

Story provided by StockMarketWire.com

13:50 31/10/2016
Director Deals - CVS Group PLC (CVSG)
Richard Connell, Chairman, bought 2,109 shares in the company on the 28th October 2016 at a price of 878.50p. The Director now holds 100,000 shares. Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

Director Deals - CVS Group PLC (CVSG)
BFN
Simon Innes, Chief Executive Officer, bought 5,750 shares in the company on the 15th November 2016 at a price of 867.00p. The Director now holds 252,225 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

agm statement

24 Nov
Peel Hunt
1,000.00
Buy
24 Nov
N+1 Singer
N/A
Corporate

12 Dec
Berenberg
1,130.00
Buy

Placing

Result of Successful �30.2 million Placing & TVR
RNS
RNS Number : 8584R
CVS Group plc
14 December 2016
 
14 December 2016
 
Capitalised terms used but not defined in this announcement shall have the meanings given to such terms in the announcement of the Proposed Accelerated Bookbuild released earlier today. This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
 
CVS Group plc
("CVS" or the "Company")
 
Result of Successful £30.2 million Placing and Total Voting Rights
  
CVS Group plc (AIM: CVSG), one of the UK's leading providers of integrated veterinary services for small and large animals, is pleased to announce that, following its announcements on 13 December 2016, the Company has successfully raised a total of £30.2 million (before expenses) by means of an accelerated bookbuild with existing and new investors, and will issue 3,019,500 new Ordinary Shares (the "Placing Shares") at a price of 1000 pence each (the "Placing Price").  The issue of the Placing Shares is being made under existing authorities and remains subject to Admission.
 
Key Highlights
 
·     Placing to raise £30.2 million through the issue of 3,019,500 Placing Shares to existing and new investors, at a Placing Price of 1000 pence per Placing Share
·     The Placing was approximately 2.4 times oversubscribed
·     The Placing Price represents a discount of 3.85 per cent. to the Closing Price on 12 December 2016, being the last trading date prior to announcement of the proposed Placing
·     The net proceeds of the Placing, being approximately £29.5 million, will be used primarily to facilitate further acquisitions in the UK and the Netherlands, in line with the Group's existing growth strategy
·     Following Admission, the Placing Shares will represent approximately 4.76 per cent. of the share capital of the Company, as enlarged by the issue of the Placing Shares
 
Simon Innes, Chief Executive of CVS, said:
 
"The Board is pleased to conclude this fundraising with the strong support of shareholders and new investors.  We remain excited by the continuing prospect to build further on our position as a leading provider of integrated veterinary services in the UK, as well as by that in the Netherlands, which we recently entered with our first two acquisitions and which we see as offering a compelling opportunity to develop a business on a similar basis to our UK one.
 
"Our established network and experienced team offers significant opportunities for further growth, and we look forward to building further value in the business, through further acquisitions and continuing organic growth.  We remain focused on delivering excellent customer service and care and on providing high quality training and career opportunities for our staff."
 
Expected Timetable to Admission
 
Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM.  It is expected that Admission and the commencement of dealings in the Placing Shares will take place at 08.00 a.m. on or around 16 December 2016 and that dealings in the Placing Shares on AIM will commence at the same time.
The times and dates above refer to London time and are subject to change by the Company (with the agreement of N+1 Singer), in which case details of the new times and dates will be notified to the London Stock Exchange and the Company will make an appropriate announcement through a Regulatory Information Service.
 
Placing Shares
 
The Placing Shares will, when issued, be subject to the articles of association of the Company and credited as fully paid and will rank pari passu in all respects with the Existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid in respect of such Ordinary Shares after the date of Admission.
 
Total Voting Rights
 
Following Admission on 16 December 2016 the Company's issued share capital will comprise 63,412,323 Ordinary Shares. From Admission, the figure of 63,412,323 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
 
Related Party Transaction
Funds and accounts under management by direct and indirect investment management subsidiaries of BlackRock, Inc. (together "BlackRock") are participating in the Placing, having conditionally agreed to subscribe for 456,004 Placing Shares pursuant to the Placing.  As BlackRock is a Substantial Shareholder in the Company (as defined by the AIM Rules), its participation in the Placing is a related party transaction for the purposes of the AIM Rules.
Following Admission, BlackRock is expected to have a shareholding of 12,173,262 Ordinary Shares, representing approximately 19.20 per cent. of the Enlarged Issued Share Capital.
The Directors, having consulted with the Company's Nominated Adviser, N+1 Singer, consider the terms of BlackRock's participation in the Placing to be fair and reasonable insofar as the Company's shareholders are concerned.
 
Conditions of the Placing
On 13 December 2016, the Company entered into the Placing Agreement with N+1 Singer pursuant to which N+1 Singer agreed to use reasonable endeavours to place the Placing Shares at the Placing Price.  Under the Placing Agreement, the Company has given N+1 Singer customary warranties and indemnities.
The Placing remains conditional upon the Placing Agreement becoming unconditional and not having been terminated in accordance with its terms and Admission of the Placing Shares. 

Proactive investor-

Does bid from Mars set benchmark for vet chains such as CVS Group?
Share
11:56 13 Feb 2017
At the last count CVS owned 378 vets’ surgeries around the UK after splashing out £63mln last year buying 67.

Relax - vet chains are in demand
Last month the chocolate giant Mars made what looked like a rather leftfield acquisition when it agreed to pay US$9.1mln for VCA, America’s largest veterinary chain.
It’s not such an unusual deal when you realise the Snickers and Milky Way maker also owns some of the world’s best known pet food brands.
Even so, there would have to be quite a few cost savings and synergies to make the transaction work – given the take-out multiples involved.
For the confectioner, which also owns Whiskas, Pedigree and IAMS, paid a whopping 19-times last year’s underlying earnings (EBITDA), or 3.8 times revenues.
That’s big bucks but not unusual for the sector, with private equity selling vet chains for anywhere upwards of 15-19 times.
Now, it may be worth just retaining that nugget on valuations (while recognising the fact that private equity is active in the sector) when assessing the investment merits of CVS Group (LON:CVSG).
It is the UK’s only listed pure-play and integrated veterinarian business and second only to Pets at Home in terms of the numbers of outlets (remember PAH is ostensibly a retailer).
At the last count CVS owned 378 vets’ surgeries around the UK after splashing out £63mln last year buying 67.
“People sometimes think we acquire a business and we save lots on the administration. We don’t. The benefits we get are the buying benefits,” says the company’s finance director Nick Perrin.
New additions to the portfolio are also plugged into the company’s crematoria and labs, conferring further savings.
In it last full year, the CVS turned over £218mln, generating adjusted EBITDA £33mln, up 30% and 43% respectively. Like-for-like growth was a more pedestrian but still a respectable 5%.
As well as crematoria and labs, the company also has an online business and last autumn announced plans to provide its own pet insurance. It also runs a Healthy Pet Club preventative medicine scheme with 280,000 members paying £11 a month.
After last year’s flurry of acquisitions, which also included the purchase of three crematoria, the Vetshare buying and the VETisco instrumentation business, the company’s net debt was £93mln at the financial year end.
Last December it raised £30mln from investors, which along with the cash generated by the business will help bring gearing below two-times EBITDA – a level of indebtedness investors are comfortable with.
“It wasn’t that we couldn’t service that debt. The worry was it might limit our opportunities when acquisitions came along,” said Perrin.
With around 5,000 veterinary surgeries around the UK, there’s still plenty of room for growth.
And unlike some of the competition it isn’t limited in what it can acquire.
“We do much more than other people. Pets at Home, for instance, only do small animals. We do farm work and equine; we have labs and referral services and our own out of hours service,” said Perrin.
“The  other industry players might do one or two of those, but not everything.”
The CVS finance director admits there is competition out there for deals, which has driven up prices.
However, the company doesn’t tend to pay more than seven-times EBITDA. And on that basis you see why the sector is attractive to private equity: the buyout companies are able to sell businesses for roughly double the amount they are paying (if not more).
Broker Investec reckons the ‘companion animal services market’ (pet care to you and me) is primed to grow around 5% a year for the foreseeable future as owners spend more on their charges with human-style services. And crucially it is “relatively immune to economic pressure”.
So, the fundamentals of the industry are decent. Of course, there are opportunities to export the model and in fact CVS is looking to push into the Netherlands.
City firm N+1 Singer thinks there is the potential to create a £1bn champion of the sector – although it is two-thirds of the way there already.
The shares aren’t exactly cheap on forward 23-times earnings per share, or just under 15-times forecast EBITDA; however, as we have seen with the Mars deal there are those out there willing to fork out those sums.

08:10 16/02/2017
Broker Forecast - Berenberg issues a broker note on CVS Group PLC
Berenberg today reaffirms its buy investment rating on CVS Group PLC (LON:CVSG) and raised its price target to 1200p (from 1130p). Story provided by StockMarketWire.com

Holding(s) company

Interim results

·     Sales growth of 28.5%
·     Like-for-like sales increase of 7.2%
·     Adjusted EBITDA up at £20.7m (42.4%)
·     Adjusted EPS 21.5p (46.3%)
·     Net debt £68.0m (June 2016: £93.1m)
·     £29.6m (after expenses) raised through an equity placing in December 2016
·     13 practice surgeries acquired during the period and 20 after the period end

15:25 31/03/2017
Director Deals - CVS Group PLC (CVSG)
Nick Perrin, Financial Director, bought 3,714 shares in the company on the 31st March 2017 at a price of 1080.00p. The Director now holds 32,000 shares. Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

Market buzz -CVS Group

Analysts at Berenberg hailed CVS Group's shift in its business mix, with the resulting margin expansion that resulted, reiterating their 'Buy' recommendation on the stock in the process.

However, like-for-like sales were likely to slow towards the sector average in second half of the year, the broker cautioned.

Even so, the broker raised its earnings per share forecasts for 2017 to 2019 by 4% for each year, as a result of which it bumped up its target from 1,200p to 1,220p.

Although investors often focus on the rate of growth in like-for-like sales and M&A when analysing the veterinary group, the most noteworthy aspect of the firm's interims was its improved operating margin at the operating level, it said.

In terms of earnings before interest, taxes, depreciation and amortisation, margins rose to 16.1% from 14.5% in the previous six-month stretch, even as CVS invested significantly on people and equipment.

The key to the fatter margins was nevertheless the "strong improvement" in profitability in the vet practice side of the business, as CVS shifted towards higher-margin services versus drugs even as it moved to use more of its own brand drugs, with the latter having their own benefits.

"We have increased our forecast margins for the business as we believe the business will continue to benefit as the volume of own brand drugs sold in the business continues to grow," Berenberg said.

Analyst Sam England also pointed out that the company's M&A continued to be highly accretive even though in the latest six months it had paid an average price of 7.5 times historical EBITDA, instead of the seven times operating profits seen in fiscal year 2016.

That contributed to England's decision to lift his estimates.

CVS still had between £30m to £40m of firepower for M&A left, assuming it leveraged up the business to 2.5 times profits, he said.

On a slightly more cautious note, England tipped his hat to the company's "exceptionally strong" 7.2% increase in LFL in the first half of 2017 but added that a level of growth closer to the UK veterinary market's average rate of between 3% to 4% was more likely in the second half.

CVS Group PLC (CVSG:LSE) set a new 52-week high during today's trading session when it reached 1,196.00. Over this period, the share price is up 51.40%.

Knocking on the door of £13. :-))

Exercise of Options & TVR
RNS
RNS Number : 7887J
CVS Group plc
30 June 2017
 
30 June 2017
 
CVS Group plc
("CVS" or the "Company")
 
Exercise of Options and Total Voting Rights
                  
CVS, one of the UK's leading providers of integrated veterinary services for small and large animals, announces that 6,277 ordinary shares of 0.2 pence each ("Ordinary Shares") (the "SAYE Shares") were issued on 29 June 2017 as a result of the exercise of employee share options, in connection with the Company's 2013/2016 Save As You Earn Scheme.
 
The SAYE Shares rank pari passu with all existing Ordinary Shares.  The issue of the SAYE Shares has been satisfied via the Company's block listing which was announced on 19 December 2016.
 
Following issue of the SAYE Shares, the Company's total issued share capital consists of 63,903,911 Ordinary Shares with one voting right per share. The Company does not hold any Ordinary Shares in Treasury. Therefore, the total number of voting rights in the Company is 63,903,911. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
 

Trading update

Preliminary results

·      Revenue up 24.6% to £271.8m
·      Like-for-like sales growth for the Group of +6.3%
·      Healthy Pet Club members up 20.9% to 306,000
·      Adjusted EBITDA up 28.2% to £42.1m
·      Adjusted earnings per share up 32.1% to 42.8 pence per share
·      Acquired and integrated 62 surgeries during the year
·      10 surgeries acquired after the year end
·      Now operate 432 surgeries

29 Sep
Peel Hunt
1,350.00
Hold

agm statement

i've read the statement and for the life of me i cannot see why sp should have collapsed so dramatically

A few cost pressures underneath, otherwise a good time to top up.

Director Deals - CVS Group PLC (CVSG)
BFN
Richard Connell, Chairman, bought 10,000 shares in the company on the 7th December 2017 at a price of 0.00p. The Director now holds 110,000 shares.
NOTE: Average price
Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

The sell off clearly overdone. Good top up opportunity.

i got a bit overexcited when sp fell on the figures at the end of november, but i gritted my teeth and have now been very handsomely rewarded
sp has now gone through the roof, and much may be due to a heavy bear squeeze - not sure

anyway, with the puff finally stalling, i have sold my trading position at 1212, but shall continue to hold in sipp

Well done, are you in UAE. :-))

until tomorrow .... it's been quite a hard trip as also went to Israel en route

too many peeps on this BB spend far too long on inconsequential threads instead of share-focused ones
the FAR9 thread on advfn is pretty good and is the only one i really follow

Not spying on you, just seen a few UAE flags come up. :-))

1 Feb
Peel Hunt
1,350.00
Buy

Preliminary results

· Revenue up 20.4% to £327.3m
· Like-for-like sales growth for the Group of +4.9% 5
· Healthy Pet Club members up 18.3% to 362,000
· Adjusted EBITDA up 13.3% to £47.6m
· Adjusted earnings per share down 0.9% to 42.4 pence per share
· Acquired and integrated 52 surgeries during the year
· 16 surgeries acquired after the year end
· Now operate 491 surgeries