CVS Group (CVSG) shares rose 8 per cent as the veterinary group said that it expects to report full-year revenues that are “comfortably ahead” of last year at its September results announcement. Over CVS’s first eight months, revenues grew 7.9 per cent on a like-for-like basis.
The pandemic prompted CVS to temporarily shutter half of its small animal sites in March. Excluding its ‘Healthy Pet Club’ subscription revenues, average sales in its small animal practices returned to pre-Covid levels earlier this month, and CVS is now able to provide a full range of services here, although there remain restrictions on clients entering practices. The majority of CVS practices are now open although the group has elected to permanently close 33 sites, most of which are smaller branches of larger practices.
At the end of February, group net debt represented 1.61 cash profits, down from a multiple of 2.31 at the same point in 2019. Having received government support during the crisis, CVS will not recommend paying out a final dividend for its most recent financial year.
