Shares in CVS Group (AIM:CVSG) nudged less than 1% higher after the veterinary services company said trading was in line with expectations, with early-year momentum holding up despite a tougher backdrop in the UK.
At its annual meeting, the group reported sales up 5.7% in the four months to the end of October and a 6.2% rise in adjusted earnings.
Like-for-like growth of about 2.5% suggests the business is still bringing in new customers and keeping existing ones spending, even as households continue to watch their budgets.
Its Healthy Pet Club subscription scheme, a key driver of recurring revenue, climbed to 520,000 members, helped by clients shifting over from older plans inherited through past acquisitions.
CVS has been investing heavily in refurbishments, relocations and new clinical kit, spending £11.5 million so far this year, while keeping leverage at 1.27 times earnings, comfortably below its 2.0 times ceiling.
Australia remains a bright spot. CVS has bought two more businesses representing nine practice sites for £23.6 million, taking its footprint there to 52 sites. Management says the scale is now sufficient to start unlocking purchasing efficiencies, with more deals in the pipeline.
The shares rose 0.6p to 78.41p.