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CVS Group PLC on Thursday noted that its UK acquisition plans remain on hold in light of the ongoing CMA investigation into the market for veterinary services for household pets, as it said it was ‘well positioned’ despite ‘ongoing economic uncertainty in the UK.’ The Norfolk, England-based provider of veterinary services said revenue for continuing operations rose 5.4% to £673.2 million in the financial year to June 30 from £638.7 million a year earlier. CVS Group noted that financial 2024’s revenue figure was adjusted from £647.3 million reported at its full-year results in September, owing to the sale of its Crematoria operations earlier this year. Back in May, CVS Group completed the sale of these operations to Anima Care UK Ltd, part of French funerals firm Funecap Group, for £42.4 million in cash. On Thursday, it said the capital proceeds from the disposal ‘provides additional firepower for continued selective investment in the UK and expansion in Australia.’ However, it said acquisition activity in the UK continues to be on hold pending the outcome of the Competition & Markets Authority’s market investigation. Last month, the UK market watchdog decided to extend its investigation of the market for veterinary services for household pets by six months. CVS group said it was ‘disappointed’ by the statutory timetable extension. The CMA started reviewing the overall UK vet services market in September 2023 and launched a formal market investigation in March 2024. It said this was in response to a 60% rise in prices between 2016 and 2023 and limited price transparency. CVS Group anticipates adjusted earnings before interest, tax, depreciation and amortisation for continuing operations in financial 2025 of approximately £134 million, up around 8.9% from £123 million. CVS Group noted that this aligns with its internally complied market consensus of £133.3 million. CVS Group said its adjusted Ebitda margin improved to around 20% from 19.3%, fitting within its guidance of between 19% and 23%. Looking ahead, CVS Group said it has ‘strong’ long-term prospects, noting that the sector fundamentals remain strong. This is attributed to factors such as the increased population of pets following Covid, increasing pet life expectancy and the ‘continued humanisation of pets.’ ‘Notwithstanding the ongoing economic uncertainty in the UK, CVS Group remains well positioned to deliver attractive growth in shareholder value over the medium and long term,’ the company said. It expects to report its full-year results on October 7. Shares in CVS Group rose 5.4% to 1,256.00 pence on Thursday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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