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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
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Proactive UK has moved.
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CVS Group on the mend as vet shortage eases

The vet group has recovered since last year's profit warning due to a shortage of vets

CVS Group PLC (LON:CVSG) has bounced back from a profit warning a year ago sparked by a shortage of vets, which pushed up staffing costs.

The AIM-listed pet care firm expects underlying earnings (EBITDA) this year to be “materially ahead” of the previous year helped by easier comparatives.

In the six months to 31 December, like-for-like sales rose 8% while total sales were up 15% over the half-year.

Gross margins dipped by 0.2% to 76% due to higher revenue from the low-margin online dispensary segment though employment costs as a percentage of sales eased slightly to 51%.

Net debt narrowed 5% to £97mln.

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