CVS reports 5.9% revenue growth as Australia expansion continues

CVS Group plc (LON:CVSG), the UK listed veterinary group and a leading provider of veterinary services, has announced its final results for the year ended 30 June 2026. The Group has delivered a solid set of results and has further increased its scale in Australia.

Financial Highlights¹

• Full year revenue growth of 5.9% to £712.8m with like-for-like² sales increasing by +2.1% (FY25: £673.2m, like-for-like +0.2%) underpinned by the strong market fundamentals and established position in two large markets, notwithstanding the sustained softer UK economic backdrop.
• Australian revenue increased to £79.1m (2025: £52.1m), benefitting from growth from acquisitions and now represents c.11% of Group revenue (2025: c.7%), across 57 practice sites (2025: 43 practice sites).
• Adjusted EBITDA increased to £141.5m from £134.6m, broadly in line with revenue growth, with margins stable at 19.9% (2025: 20.0%) within our stated guidance of 19% to 23%, despite an increase in National Insurance contributions and wage inflation.

The Group recognised net Research and Development Expenditure Credits of £15.7m (2025: £15.1m), in line with the prior year, including a provision release of £6.6m (2025: £3.0m) that was expected following another year’s history of making  claims.

• Adjusted EPS increased 6.9% to 85.6p from 80.1p benefitting from the increase in adjusted EBITDA.
• Profit before tax of £32.0m (2025: £32.6m) was impacted by an increase in depreciation and amortisation following capital investments and acquisitions in recent years, and costs related to both the Competition and Markets Authority (“CMA”) market investigation and the move to the Main Market of the London Stock Exchange that are exceptional by nature.
• The Group continued to benefit from favourable cash flow dynamics with operating cash conversion in the year of 70.6% (2025: 76.9%) and free cash flow of £69.2m (2025: £72.2m).
• Focus remains on long-term sustainable returns for shareholders through disciplined capital allocation with investment in capital expenditure of £36.4m (2025: £34.2m, £33.2m continuing operations) and acquisitions of £43.3m (2025: £29.2m) during the year.  
• Completion of a £20m share buyback programme in January 2026. Continued strong cashflows and a strengthened balance sheet led to announcement of a further £50m programme in May 2026 of which £11.7m was completed by 30 June 2026 and is expected to conclude over the coming months. Therefore, £70m will have been returned to shareholders through share buybacks in just over 12 months.
• We successfully refinanced our £350.0m loan facilities on improved terms, extending the term to May 2030 with an option for a further one year’s extension.
• Net bank borrowings increased to £199.6m from £131.4m and leverage⁷ increased to 1.63x (2025: 1.18x), below the <2.0x threshold.
• The Board is maintaining its progressive dividend policy and recommends a final dividend of 9.0p per Ordinary Share (2025: 8.5p), representing an estimated £6.1m (2025: £6.1m). This together with the share buyback reflects the Board’s confidence in the Group’s long-term outlook.

Notes

1 2025 numbers include the disposal of the Crematoria operations with profit on discontinued operations of £33.9m impacting basic earnings per share. Basic earnings per share for continuing operations was 26.3p.

2 Like-for-like sales show revenue generated from like-for-like continuing operations compared to the prior year, adjusted for the number of working days and on a constant currency basis. For example, for a practice acquired in September 2024, revenue is included from September 2025 in the like-for-like calculations.

3 Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) is profit before tax adjusted for interest (net finance expense), depreciation, amortisation, costs relating to business combinations, and exceptional items. Adjusted EBITDA provides information on the Group’s normal performance and this measure is aligned to our strategy and KPIs. Adjusted EBITDA margin is adjusted EBITDA divided by revenue.

4 Adjusted profit before tax is calculated as profit before amortisation, taxation, costs relating to business combinations, and exceptional items.

5 Adjusted earnings per share is calculated as adjusted profit before tax less applicable taxation divided by the weighted average number of Ordinary shares in issue in the year.

6 Net bank borrowings is drawn bank debt less cash and cash equivalents

7 Leverage on a bank test basis is net bank borrowings divided by ‘Adjusted EBITDA’, annualised for the effect of acquisitions and adding back share option costs, on an accounting basis prior to the adoption of IFRS 16.

8 Operating cash conversion is defined as cash flows from operating activities adjusted for discontinued operations, acquisition fees and contingent consideration paid, less lease liability repayment and maintenance capital expenditure; divided by adjusted EBITDA.

9. Alternative performance measures (APM) are defined and reconciled in the APM glossary at the end of this report.

10. The company compiled consensus range and averages for FY2027: adjusted EBITDA of £149.0m to £151.7m with an average of £150.4m; and adjusted EPS of 89.3p to 99.6p with an average of 94.9p. This is based upon eleven analyst estimates.

Advancing our growth strategy 

• Acquired a further six practices in Australia (14 practice sites), for a combined initial consideration of £43.3m, which are performing in line with expectations.
• Continued investment in our facilities and equipment, with total capital expenditure of £36.4m (2025: £33.2m), representing c.5.0% of revenue (2025: c.5.0%).
• CMA market investigation concluded, providing clarity and regulatory certainty, with most recommendations implemented or in-hand to be implemented. The final remedies order was published on 22 September 2026 and is in line with our expectations.
• Significant progress made on our Group joint branding, reinforcing the benefits of scale, expertise and resources.
• Moved from AIM to the Main Market of the London Stock Exchange and entered the FTSE 250 index.

We continue to focus on providing Care Value and Service for our clients

• The Group launched the Healthy Pet Club Advanced membership scheme in July 2026 with enhanced benefits including unlimited consultations to support pet wellbeing and lifetime partnership, with an online sign up journey now live.
• Evolving the client experience with digital foundations to unlock the ability to extend the client relationship beyond the consulting room with development underway for two-way client messaging with the vision of “pet health in your pocket”.
• Improved client awareness with a consistent national brand and a focus on being the trusted veterinary partner through content and upweighted digital and marketing presence.
• Our team of outstanding veterinary practitioners continue to deliver great client servicing and the best possible care and treatment, a commitment that is reflected by the increase in our client Net Promoter Score to 80.6 (2025: 78.9).

Outlook 

The new financial year is off to a solid start. The Board remains confident of the Group’s future growth opportunity with continuing demand for high-quality veterinary care. The Board is pleased with the further expansion in Australia, and the return of accretive UK acquisition opportunities. 

• Solid start to the new year with positive like-for-like sales growth. The Board remains confident in returning to delivering like-for-like² organic growth of between 4-8% in the medium term.
• Strategy for growth is unchanged with the fundamentals of the sector remaining strong. We continue to see incremental growth opportunities across Australia and the UK.
• Continued successful Australia expansion with two acquisitions comprising three practice sites completed so far in FY 2027, for consideration of £4.9m. In addition, we have exchanged contracts on a further two practice acquisitions, a three site practice in South Australia and a single site practice in Western Australia for combined initial consideration of £4.0m. We have a further strong pipeline of acquisition opportunities identified.
• Attractive UK M&A opportunities are starting to materialise as expected and we have exchanged contracts on a 9 FTE vet, two site practice for initial consideration of £15.0m, at an attractive multiple which is accretive to the Group, with completion expected in due course. We have a growing pipeline of additional opportunities.
• Our healthy balance sheet, free cash flows and clear capital allocation policy support and guide our further investment in organic and inorganic opportunities or, where appropriate, returns to shareholders.  We provided additional detail on the returns from our past organic and inorganic investments in our July analyst event and remain committed to delivering sustained growth in shareholder value over the long term.
• The Group continues to expect to perform in-line with market expectations¹⁰ for FY27.

Richard Fairman, CVS Group Chief Executive Officer, commented:

“I am pleased to report a further year of solid growth across our three divisions, driven by the successful integration of our investments in prior years. Our Australian business continues to perform well and reinforces our confidence in the significant opportunity that market represents for our business.

During the year, we moved to the Main Market of the London Stock Exchange and are now a constituent of the FTSE 250. We refinanced and extended our loan facilities through to May 2030 on favourable terms, providing us with significant capital to deploy in further accretive acquisitions across Australia and the UK, including the 9 vet, two site practice acquisition in the UK which we expect to complete shortly. We maintain our disciplined approach to capital allocation, investing where we see the most attractive long-term returns.

Whilst the macro-economic backdrop remains challenging, we are confident in the essential nature of the services we provide and our ability to drive increased returns for all stakeholders. With the CMA investigation concluded, we can now focus all our attention on delivering great Care, Value and Service to our clients and their animals. CVS is in a strong position to deliver growth over the long-term.”