Business
Trading Update
Trading Update.
About this update from Cvs Group Plc
[{"type":"text","content":"\n \n \n 28 July 2022\n \n \n \n \n \n \n CVS Group plc\n \n \n \n (\"CVS\" or the \"Company\" and, together with its subsidiaries, the \"Group\")\n \n \n \n \n \n Trading Update\n \n \n \n \n \n CVS, the AIM-quoted veterinary group and one of the \n UK's leading providers of integrated veterinary services, is pleased to announce the following update on trading for the financial year ended 30 June 2022 (\"FY22\") 1.\n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n ·\n Continued organic growth with like-for-like2 sales growth for the full year of 8.0% (FY21: 17.4% against a COVID-19 impacted comparator)\n \n \n ·\n Membership of our Healthy Pet Club preventative healthcare scheme increased by 20,000 members to 470,000 members\n \n \n ·\n FY22 adjusted EBITDA3 expected to be marginally ahead of market expectations\n \n \n ·\n \n c.\n \n 6% increase in the average number of vets employed, with the vet vacancy rate stable\n \n \n ·\n Three acquisitions completed in H2 2022 and a further acquisition since the year end with an increased pipeline of opportunities\n \n \n ·\n Strong cash generation with net bank borrowings4 of £45.0m, with leverage5 expected to be significantly below 1.0x for the full year\n \n \n \n \n \n \n FY22 Performance\n \n \n \n \n \n \n The Board is pleased to report the Group delivered strong high single-digit revenue growth for the full year. Like-for-like2 sales for the financial year increased by 8.0% (FY21: 17.4%), notwithstanding increased COVID-19 isolations in March, April and May 2022 as we continue to follow government guidance to protect our colleagues and clients (the prior year like-for-like growth reflects significant severe COVID-19 restrictions in Q4 FY20). Like-for-like2 growth returned to 8.6% in June 2022 against a strong prior year comparator. Our Healthy Pet Club preventative healthcare scheme continues to grow, with membership increasing in the year by 20,000 members (4.4%) to 470,000 members (FY21: 450,000 members).\n \n \n \n \n \n The Group expects to report adjusted EBITDA3 for FY22 marginally ahead of market expectations, following effective management of costs coupled with selective investments to capitalise on opportunities for organic growth.\n \n \n \n \n \n Adjusted EBITDA3 margin remained strong and is expec...