Updates

CVS Group

April 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The acquisitive veterinary practice group’s interim results showed double-digit top line growth with revenues up 11% (6% organic) and EBITDA increasing 9%. Below that, a range of headwinds - depreciation, interest and tax - dragged on pretax profit (+4% to £42.7m) and eps (-2% to 44.5p). The main news is the more bullish noises on the company’s deal pipeline; it’s spent £54.4m on 15 practice sites in Australia in H1 and is expecting 10 more acquisitions down under in H2, plus one more in the UK. Net debt / EBITDA rose from 0.6x to 1.15x year on year in H1 but remains conservative. Tempering things was a more cautious outlook statement, with macro-economic pressures weighing on consumer demand. EBITDA margins were 0.4% lowe ...

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CVS Group - CMD unveils new target to double EBITDA (December 2022)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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