CVS Group PLC (LON:CVSG) saw its shares drop on Thursday after it said the heavy snowfall earlier this year and a lower-than-expected performance from some acquisitions hit its full-year earnings, although it sees normal in-line growth in the current year.
In a trading update for the year ended 30 June 2018, the AIM-listed veterinary services provider anticipates that adjusted underlying earnings (EBITDA) will be “broadly in line with analysts' consensus expectations”.
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The company said this reflects the impact of the unusually severe snow at the end of February and lower than an anticipated short-term performance from some acquisitions.
The firm added that, following management action, these acquisitions have shown improvement more recently and they are expected to achieve normal performance levels during the current financial year and beyond.
CVS said it is satisfied with ongoing like-for-like growth since the year-end, being at similar levels to the past year.
The group estimated the snow at the start of the year to have reduced sales by approximately £1.0mln, with full-year like-for-like revenue expected to be up 4.9% and total revenue ahead 20.7% to £327mln.
It said the high pace of acquisitions continued in the year to June 30, with a total of 52 surgeries being acquired at a total cost of approximately £50.6m, including net debt.
CVS added that it expects that the further benefit of the acquisitions made during the past year will add significantly to group profitability.
The firm said further acquisitions are expected and it is confident of good progress across all of the group's divisions.
In late afternoon trading, CVS shares were down 18.4% at 916p.