CVS Group's (AIM:CVSG) shares were off 1.3% in early trading after the veterinary services provider reported steady half-year results.
Revenue for the six months to December 31 rose 6.6% to £341.8 million, but like-for-like sales fell 1.1% due to weaker UK market conditions, particularly in online retail and laboratory services.
Adjusted EBITDA increased 4.5% to £67.4 million, with margins in line with targets. The company expects stronger growth in its core Veterinary Practice division in the second half of the year.
CVS said it is focusing investment on Australia due to regulatory uncertainty in the UK, where a market investigation is ongoing.
In early trading, the stock was changing hands for 1,017p, down 13p. Broker Peel Hunt reiterated its 1,500p price target stating the business was in "good shape".