CVS Group (LON:CVSG) Issues Quarterly Earnings Results

CVS Group (LON:CVSG) released its quarterly earnings data on Thursday. The company reported GBX 40.20 earnings per share (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 Price Performance

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

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CVSG. Peel Hunt reaffirmed a “buy” rating and issued a GBX 1,600 price target on shares of CVS Group in a research report on Tuesday, November 18th. Berenberg Bank reiterated a “buy” rating and set a GBX 2,000 price target on shares of CVS Group in a research note on Tuesday, November 18th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of GBX 1,724.

Insider Activity

In other CVS Group news, insider David Wilton bought 2,500 shares of CVS Group stock in a transaction dated Tuesday, December 2nd. The shares were acquired at an average cost of GBX 1,219 per share, with a total value of £30,475. Also, insider Paul Higgs purchased 1,235 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were acquired at an average price of GBX 1,214 per share, for a total transaction of £14,992.90. Over the last three months, insiders have purchased 6,560 shares of company stock worth $260,937,865. 1.42% of the stock is currently owned by insiders.

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.