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.

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


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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).