Shares in CVS Group (LSE: CVSG) were in demand after the veterinary services company released its full year results, reporting substantial increases in revenues and operating profit.
The group’s turnover in the year ended 30 June amounted to £76.6 million, up 23.3% year on year from £62.1 million, while EBITDA (earnings before interest, taxes, depreciation and amortisation) hiked 30% to £12.5 million and operating profit jumped 71.9% to £7 million. Adjusted earnings per share increased to 11.5 pence.
Most of the sales growth was due to numerous acquisitions that occurred over the period, as like for like sales increased only 2%. The group has added 17 surgeries to bring the total up to 168 and its bought its first pet crematorium, funding 60% of the acquisition expenses with internally generated cash.
The group offered an upbeat outlook, saying the new financial year had started well and its three operating divisions continued trading profitably, positioning the group to “continue driving the business forward” and expecting better results once the economic environment improves.
“Our track record of achieving improvements in adjusted EBITDA margin together with the growth opportunities available to us, underpins the board's confidence in the group's future. The resilience of the business to the current recession augurs well for the time when more normal economic conditions return,” said Chief Executive Simon Innes.
CVS rallied 14% on the London Stock Exchange today following the release of the report.