CVS Group (AIM:CVSG), the veterinary service provider, will be hoping the ongoing Competition and Markets Authority (CMA) probe into the industry doesn’t overshadow its trading update on Wednesday.
Britain's competition authority said in September it is investigating “how veterinary services are bought and sold amid concerns that pet owners may not be getting a good deal”.
Shares in CVS dropped close to 30% following the announcement and have struggled to rebound, lifting around 3% since.
Nevertheless, like-for-like revenue growth is expected to comfortably meet targets of 4-7%, with analysts at Peel Hunt predicting £666 million in sales for the full year.
Last year, the number of vets employed by CVS rose by 6.5% and this trend has continued into the new financial year, offering up the chance for volume growth.
Analysts are interested to see whether the vet group will provide any details on its acquisition and organic investment plans.
Peel Hunt experts said: “The company is delivering on its strategy to step up both organic and acquisition spend on greenfield sites, premises and equipment, which are key drivers of the target to increase EBITDA to >£200m by 2027.”
CVS shares were flat on Friday, having opened at 1,530p.