CVS Group plc, a leading UK veterinary services provider, has released its unaudited interim results for the six months ended 31 December 2023. The company's revenue increased by 11.4% to £329.9 million, with a like-for-like sales growth of 6.0%, aligning with its organic revenue growth ambition of 4% to 8%. Adjusted EBITDA rose by 8.9% to £63.0 million, with a margin of 19.1%, in line with the company's full-year margin target of 19% to 23%.
The company's membership of The Healthy Pet Club (HPC) reached 500,000, reflecting sustained demand for companion pet veterinary care services in the UK. CVS Group plc's leverage was 1.15x as of 31 December 2023, indicating a focus on growth through M&A and capital investment strategy, partially offset by strong EBITDA growth and operating cash conversion.
In terms of operational and strategic highlights, CVS Group plc entered the Australian veterinary services market with thirteen small animal acquisitions, completed in H1 2024 for an initial consideration of A$103.8m/£54.4m. The company also completed four small animal practice acquisitions in the UK, following successful submissions to the Competition and Markets Authority (CMA).
Furthermore, CVS Group plc maintained a disciplined approach to investment in facilities and equipment, with total capital expenditure of £17.2 million in H1 2024. The company opened Bristol Vet Specialists (BVS), a state-of-the-art flagship multi-disciplinary referral hospital, in October 2023, offering a range of specialized veterinary services.
Overall, CVS Group plc's interim results and strategic highlights demonstrate its continued focus on growth, both in the UK and internationally, as well as its commitment to delivering high-quality veterinary care and expanding its service offerings.