Trading Update and Future Director Change

RNS Number : 3787H

CVS Group plc

11 July 2012

 



For Immediate Release

11 July 2012

CVS Group plc (the "Group")

Trading Update and Future Director Change

Trading Update

The Board is pleased to announce that the results for the year ended 30 June 2012 will be in line with market expectations and will be announced on Tuesday 25 September 2012.

Total like-for-like Group turnover for the year showed growth of approximately 3%, being the aggregate of the performances from the Group's divisions - veterinary practices, e-commerce, laboratory and crematorium activities.

Good organic and acquisitive progress has been made in the core veterinary practices throughout the year. Encouragingly, the period has seen growth of over 100% in the membership of loyalty schemes which now exceed 60,000 pets compared with 28,000 at this time last year. At current run rates loyalty schemes are contributing over 6% of the total revenue from practices.

It is pleasing to report that there has also been significant growth in the e-commerce operations. Animed Direct is currently generating some £3.5 million of annualised revenue, compared with c.£2.0 million at this point last year. In addition, five on-line practice shops were opened during the period; four in the latter part of the year. We continue to see ongoing scope to capitalise on the exciting opportunities in e-commerce.

Further internally funded acquisition activity has continued to play an important part of the Group's strategy. In addition to the two practices acquired in the first half, four practices, Brook House (Southampton), Pines (Maidenhead), Argyll (North Devon) and Nute (Wadebridge) were acquired during the second half. These four sites extend the Group's practice division and are an excellent geographic fit with the Group's existing surgeries. Based on the last full financial year prior to acquisition the aggregate turnover derived from these four additional practices amounted to £3.1 million. All of these acquisitions have been successfully absorbed into the Group.

In total, the Group now operates 231 veterinary practices across the UK, an on-line dispensary and 5 on-line practice shops, 6 diagnostic laboratories and 1 pet crematorium.  CVS continues to be the UK's largest operator in a highly fragmented market.

Net debt at 30 June 2012 was lower at approximately £31 million (2011: £34 million) which, despite having funded the acquisition activity during the year, reflects a year of strong underlying cash flow.

Future Director Change

Paul Coxon has informed the Board of his decision to step down from his role as Finance Director by the end of the current calendar year in order to pursue other business opportunities. Paul has been with the Group for nine years and the Board would like to thank him for his contribution and wish him well in whatever he elects to do next. Paul will be supporting an orderly handover to his successor in due course. Although the process has only just commenced the Board is confident of appointing a suitable high calibre replacement to help CVS deliver the next stages of its exciting future growth plans.

For further enquiries please contact:

CVS Group plc: 01379 644 288

Simon Innes - Chief Executive

Paul Coxon - Finance Director

Buchanan: 020 7466 5000

Richard Oldworth

N+1 Brewin: 020 3201 3710

Aubrey Powell

Graeme Summers

 

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