Business
New investment in CVS Group plc
Kelso Group Holdings Plc has invested in CVS Group plc, acquiring 130,000 shares at an average price of 1,387p, with CVS Group having a market capitalization of £971.0 million. Kelso highlights CVS Group's consistent long-term growth, with revenue increasing from £39 million to £673 million and EBITDA from £5.1 million to approximately £134 million since its 2007 IPO, alongside expansion to around 470 veterinary practices. Despite comparable companies trading at higher valuation multiples, CVS Group currently trades at approximately half the rating, with a P/E ratio of around 16x and an EV/EBITDA multiple of about 8.0x. Kelso believes CVS Group's strong balance sheet, with net debt of approximately £160 million as of December 31, 2025, and forecast EBITDA of around £140 million for the year ending June 30, 2026, presents a compelling investment opportunity, especially with the Competition and Markets Authority review nearing conclusion and potential FTSE 250 Index inclusion anticipated. Disclaimer*
About this update from Kelso Group Holdings Plc
[{"type":"text","content":"\n\n17 February 2026\nKelso Group Holdings Plc\n(\"Kelso\" or the \"Company\")\nNew investment in CVS Group plc and rationale for investment\nKelso, the main market listed acquisition vehicle, today announces a new investment in CVS Group plc (\"CVS\") following the purchase of 130,000 shares at an average price of 1,387p in recent weeks. CVS's market capitalisation was £971.0 million as at close of business on 16 February 2026.\nKelso provides its shareholders with the following background to its investment decision:\nSummary\nCVS is a leading integrated veterinary service provider in the UK and Australia, having listed on AIM in October 2007 with a market capitalisation of £105 million. Since then, its market capitalisation has grown to just under £1 billion, representing one of the LSE's most consistent long-term growth stories.\nFollowing its recent transition to the Main Market of the London Stock Exchange in January 2026, and now with potential for inclusion in the FTSE 250 Index, CVS joins a select group of UK-listed companies with structural compounding growth over 20 years. Diploma plc, Halma plc and Games Workshop Group plc have each delivered near-unbroken revenue and EBITDA growth over the past 20 years. Kelso believes that CVS's near 20-year record of uninterrupted revenue and EBITDA growth places it amongst the most successful and consistent growth companies listed on the UK markets.\nThe three long-term structural compounders above currently trade on average forward valuation multiples of 30.4x P/E and c.20.3x EV/EBITDA, as per S&P Capital IQ. Despite having comparable historic performance and similar long-term growth characteristics, albeit at a smaller scale, CVS currently trades at approximately half this rating, with a current year P/E ratio of c.16x and an EV/EBITDA multiple of c.8.0x.\nGiven CVS's strong balance sheet, with net debt of c.£160m as at 31 December 2025, alongside forecast EBITDA of c.£140m for the year to 30 June 2026 and robust cash generation, Kelso believes the current valuation presents a compelling opportunity. In our view, a consistent and disciplined share buyback programme should form a core element of CVS's capital allocation policy while the shares continue to trade at a material discount to both these comparable companies and the Group's historic valuation levels. Kelso also reco...