CVS Group (LON:CVSG) Posts Earnings Results

CVS Group (LON:CVSG) posted its earnings results on Thursday. The company reported GBX 40.20 EPS for the quarter, Digital Look Earnings reports. CVS Group had a net margin of 3.20% and a return on equity of 7.86%.

Here are the key takeaways from CVS Group’s conference call:

• Revenue rose 5.8% to £356.9m and adjusted EBITDA increased 3.9% to £67.7m, with a 19% EBITDA margin, 75% operating cash conversion and net leverage of 1.41x.
• Management said Animed Direct’s replatforming drove higher visits and conversion, but earlier price-elasticity tests damaged H1 margins; they have reversed cuts and expect Animed to be profitable in H2.
• Expansion in Australia is delivering strong, accretive performance — the group now has 33 practices across 55 sites, practice-level margins above ~25% and attractive acquisition multiples (c.7–8x), with a continued M&A pipeline.
• Regulatory risk from the CMA remedies and potential Veterinary Surgeons Act reform remains, prompting group-wide changes (joint branding, published price lists) and an estimated rebranding cost of c.£6m; a final CMA decision is expected by May.
• Like‑for‑like growth improved to 2.7% (driven largely by pricing in U.K. companion animal), while volumes remain flat; management is prioritising client engagement, online booking and rebranding to rebuild demand.

CVS Group Stock Performance

CVSG stock opened at GBX 1,312 on Friday. The company has a quick ratio of 0.90, a current ratio of 1.09 and a debt-to-equity ratio of 110.52. The firm has a market cap of £920.45 million, a PE ratio of 17.83, a P/E/G ratio of 1.77 and a beta of 1.02. The business has a 50 day moving average of GBX 1,335.56 and a 200-day moving average of GBX 1,280.70. CVS Group has a 12-month low of GBX 885 and a 12-month high of GBX 1,648.

Insiders Place Their Bets

In other CVS Group news, insider Richard Gray bought 2,000 shares of the stock in a transaction dated Monday, January 5th. The shares were bought at an average cost of £1,276.96 per share, for a total transaction of £2,553,920. Also, insider Joanne Shaw purchased 825 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The stock was bought at an average cost of GBX 1,211 per share, for a total transaction of £9,990.75. Over the last three months, insiders have acquired 6,560 shares of company stock valued at $260,937,865. 1.42% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CVSG. Peel Hunt reissued a “buy” rating and set a GBX 1,600 price objective on shares of CVS Group in a report on Tuesday, November 18th. Berenberg Bank reaffirmed a “buy” rating and set a GBX 2,000 target price on shares of CVS Group in a research report on Tuesday, November 18th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,724.

CVS Group Company Profile

CVS Group is an AIM-listed provider of veterinary services with operations in the UK and Australia. CVS is focused on providing high-quality clinical services to its clients and their animals, with outstanding and dedicated clinical teams and support colleagues at the core of its strategy.

The Group now operates c.470 veterinary practices across its two territories, including specialist referral hospitals and dedicated out-of-hours sites. Alongside the core Veterinary Practices division, CVS operates Laboratories (providing diagnostic services to CVS and third-parties) and an online retail business (“Animed Direct”).

The Group employs c.8,900 personnel, including c.2,400 veterinary surgeons and c.3,300 nurses.