Business
Trading update, AU expansion and UK acquisitions
Trading update, AU expansion and UK acquisitions.
About this update from Cvs Group Plc
[{"type":"text","content":"\n\n27 July 2023\n \nCVS Group plc\n(\"CVS\" or the \"Company\" and, together with its subsidiaries, the \"Group\")\n \nFull year Trading Update, Expansion into Australia and UK acquisitions\n \nCVS, the UK quoted veterinary group and a leading provider of integrated veterinary services, is pleased to issue the following update on trading for the financial year ended 30 June 2023 (\"FY23\")1. The Group expects to announce its FY23 preliminary results on 21 September 2023.\n \nThe Group is also pleased to announce its entry into the Australian veterinary services market. CVS's expansion into Australia is in accordance with its growth objectives, outlined in the five-year plan at the Group's Capital Markets Day in November 2022, to execute on scalable international consolidation opportunities, subject to maintaining its disciplined acquisition criteria. Having explored a number of new potential markets, the Board has identified Australia as particularly attractive given the relatively low levels of corporate consolidation, favourable market dynamics and strong similarities with the UK, including highly trained veterinary surgeons, shared language and culture, and the Group's experience with UK vets working between Australia and the UK.\n \nFY23 Financial Highlights\n \n· Continued organic revenue growth with a 7.3% increase in like-for-like sales2 (FY22: 8.0%), consistent with the Group's organic revenue growth ambition of between 4% and 8%;\n· Adjusted EBITDA3 margins also expected to be within our stated ambition of margins between 19% to 23%;\n· FY23 adjusted EBITDA3 expected to be comfortably in line with market expectations;\n· Continued investment in our facilities and equipment to support growth, with total capital expenditure of c.£46m (FY22: £24.5m), within the Group's capital expenditure ambition of £30m to £50m investment per annum;\n· Investment of c.£55m in 11 practice acquisitions (comprising 16 practice sites) (FY22: £8.4m in three practice acquisitions (comprising three practice sites)), in line with the guidance of £50m+ investment per annum;\n· Leverage5 comfortably less than 1.0x at 30 June 2023 (30 June 2022: 0.40x) well below our stated target of less than 2...