CVS Group plc, a leading provider of veterinary services, has released its half-year trading update for the six months ended 31 December 2023. The company reported positive trading, with total group revenue up 11.4% to £329.9m and like-for-like sales increasing by 6.0%. The Healthy Pet Club preventative care scheme also saw a 4.0% increase in membership, reflecting the company's strong performance in the first half of the year.
The company's adjusted EBITDA margin remains consistent with the prior period at approximately 19%, with continued investment in practice refurbishment, relocations, clinical equipment, and technology. CVS has also completed several strategic acquisitions, including thirteen acquisitions in Australia and four in the United Kingdom, further strengthening its position in the veterinary services market.
The company's net bank borrowings increased to £129.2m at 31 December 2023, partly offset by strong operating cash flows. The Group's leverage on a bank test basis of 1.15x at 31 December 2023 is in line with management expectations. The banking syndicate has agreed to a one-year extension of the bank facilities, providing financial stability for the company.
CVS Group plc continues to support the Competition and Markets Authority (CMA) with their market review and is actively seeking a permanent Chair. The company remains optimistic about its growth opportunities in Australia and is confident in delivering further growth over the longer term. The Board expressed gratitude to all members of the CVS team for their dedication and support.
Overall, the Board is pleased with the H1 2024 performance and expects to deliver full-year results in line with market expectations. The company remains focused on its growth strategy and is committed to capitalizing on acquisition opportunities to drive future expansion.
This comprehensive update provides insight into CVS Group plc's financial performance, strategic acquisitions, and outlook, demonstrating its strong position in the veterinary services industry and its commitment to long-term growth.