AUS
NZ
UK
CA
USA
IND
Highlights
- In H1 FY24, CVSG’s revenue grew 11.3%, and adjusted EBITDA rose 9%
- The company’s net bank borrowings increased by a notable 124% reflecting substantial capital investment in the business
- The company raised its dividend payment to GBX 7.5 per share in FY23, up from GBX 7 per share in FY22.
CVS Group PLC (LSE: CVSG) is an FTSE AIM UK 50 index-listed company. It is one of the biggest integrated veterinary services providers in the United Kingdom. It has a market cap of GBP 772.06 million.
In the first half of FY24, the company experienced a noteworthy 11.3% increase in revenue to GBP 329.90 million compared to the prior corresponding period (pcp). It was driven by a 6% surge in like-for-like sales falling within the projected target range of 4% to 8%. Additionally, adjusted EBITDA in the first half grew by 9%, supported by robust demand for companion pet veterinary care services, underscored by a 4% rise in membership of the company's healthy pet club and other healthcare schemes. Meanwhile, a 124.3% rise in net bank borrowings in the period reflects the company's commitment to expansion through substantial capital investment and strategic M&A activities.
In terms of shareholder returns, CVSG raised its dividend payment to GBX 7.5 per share in FY23, up from GBX 7 per share in FY22.
Recent business update
Earlier this month, the company appointed David Wilton as non-executive chairman effective from 01 May 2024.
Company outlook
Looking ahead to FY24, CVSG is poised to maintain its momentum by investing in technology, personnel, and clinical facilities. This investment strategy will be executed through the development of Greenfield sites and strategic acquisitions. To date, the company has executed the acquisition of a small animal practice in the UK for GBP 5.2 million.
Top 10 Shareholders
The top 10 shareholders of the company collectively hold ~48.50% of the total shareholdings. BlackRock Investment Management (UK) holds the maximum number of shares with ~6.93% shareholding, followed by Global Alpha Capital Management Ltd. with ~6.75% shareholding, as depicted in the chart below:
Image source: © 2024 Krish Capital Pty. Ltd., Data Source: EODHD/Others, Analysis: Kalkine Group
Stock performance
The stock price of CVSG has experienced a surge of approximately 10.93% in the past month, while over the preceding 6 months, it has declined by roughly 27.11%. With a 52-week low and high of GBX 902.41 & GBX 2,226.00, respectively, it is currently trading below the average of its 52-week high low.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 29 May 2024. The reference data in this report has been partly sourced from EODHD/Others.
