A record year for acquisitions administered a shot of adrenalin to veterinary practice business CVS (CVSG) in the reported period. Organic turnover growth, while still strong, fell below the level of the prior year. Total sales rose 30 per cent to £218m, with like-for-like sales up 4.8 per cent, down from 6.8 per cent in the previous year.
This slower growth in part reflects the reversal of fortunes in its Animed Direct division. The online dispensary and retailer had a tough year, with turnover down 4.6 per cent to £9.8m. This was a big swing given sales rose a fifth in the respective period last year. Management said the top line had suffered due to the poor performance of its website on mobile phones and tablets.
But revenue in its other three divisions - laboratory, crematoria and its major area of operations, veterinary practices - all rose. This was partly thanks to the acquisition of 67 surgeries, three crematoria and VetShare, a buying group for independent vets, which taken together represented its busiest year yet. Its own-brand label, MiPet, continued to help push the gross margin higher in its veterinary division.
Analysts at Berenberg expect pre-tax profit of £27m for the year to June 2017, leading to EPS of 35.6p, up from £24.9m and 32.4p in FY2016.
| CVS (CVSG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 938p | MARKET VALUE: | £563m | |
| TOUCH: | 937.5-938p | 12-MONTH HIGH: | 980p | LOW: 621p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 81 | |
| NET ASSET VALUE: | 78p* | NET DEBT: | 200% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 109 | 3.8 | 5.1 | 1.5 |
| 2013 | 120 | 5.5 | 7.1 | 2.0 |
| 2014 | 143 | 6.3 | 8.3 | 2.5 |
| 2015 | 167 | 8.5 | 11.6 | 3.0 |
| 2016 | 218 | 9.1 | 11.6 | 3.5 |
| % change | +30 | +7 | - | +17 |
Ex-div: 24 Nov Payment: 9 Dec *Includes intangible assets of £132m, or 219p a share | ||||
