CVS Group (LON:CVSG) Posts Earnings Results

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

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 Down 4.1%

CVSG stock traded down GBX 56 during mid-day trading on Thursday, hitting GBX 1,314. 705,214 shares of the company were exchanged, compared to its average volume of 1,146,767. The company has a debt-to-equity ratio of 110.52, a quick ratio of 0.90 and a current ratio of 1.09. CVS Group has a 1-year low of GBX 885 and a 1-year high of GBX 1,648. The firm’s 50 day simple moving average is GBX 1,334.43 and its 200 day simple moving average is GBX 1,280.46. The firm has a market cap of £921.85 million, a P/E ratio of 17.85, a P/E/G ratio of 1.77 and a beta of 1.02.

Insider Activity at CVS Group

In other news, insider David Wilton acquired 2,500 shares of CVS Group stock in a transaction dated Tuesday, December 2nd. The stock was bought at an average cost of GBX 1,219 per share, with a total value of £30,475. Also, insider Richard Gray purchased 2,000 shares of CVS Group stock in a transaction on Monday, January 5th. The shares were purchased at an average cost of £1,276.96 per share, with a total value of £2,553,920. Over the last 90 days, insiders acquired 6,560 shares of company stock valued at $260,937,865. 1.42% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CVSG. Peel Hunt restated a “buy” rating and set a GBX 1,600 target price on shares of CVS Group in a research report on Tuesday, November 18th. Berenberg Bank restated a “buy” rating and set a GBX 2,000 price objective on shares of CVS Group in a report on Tuesday, November 18th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price 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.