CVS Group PLC, a UK-listed veterinary group, has announced the disposal of its non-core operations in the Netherlands and the Republic of Ireland. The decision to divest these operations was made due to their sub-scale nature and the particular challenges within these veterinary markets. The Group has exchanged contracts for the disposal of the Netherlands and ROI subsidiaries to Global Veterinary Excellence Limited, owned by former director James Cahill, a veterinary surgeon with over 30 years of experience in the industry.
The financial effects of the disposals indicate that both the Netherlands and Republic of Ireland operations were loss-making, with combined revenue of £19.4m for the financial year ended 30 June 2023. The forecast for the year to 30 June 2024 is a combined adjusted EBITDA loss of approximately £2.0m and loss before tax of approximately £6.0m. The disposal is expected to free up working capital and management capacity to support the Group's continued expansion, particularly in the UK and Australian markets.
Richard Fairman, CEO of CVS Group PLC, stated, "Our Netherlands and Ireland practices no longer fit with our strategy of focusing on growth in the UK and Australian markets. We have exciting plans to expand in Australia, and this disposal will free up working capital and management capacity to support our continued expansion." The Group aims to allocate more capital to its growth strategy and allow management to focus on its delivery.
CVS Group PLC is an AIM-listed provider of veterinary services with operations in the UK and Australia. The Group operates approximately 460 veterinary practices across its two territories, including specialist referral hospitals and dedicated out-of-hours sites. Alongside the core Veterinary Practices division, CVS operates Laboratories, Crematoria, and an online retail business ("Animed Direct").