Trading Update

RNS Number : 5983V

CVS Group plc

14 July 2009

 



For Immediate Release

14 July 2009

CVS Group plc

('CVS' or the 'Company')

Trading Update 

The Board of CVS issues the following update ahead of the publication of the Company's Preliminary Results for the year ended 30 June 2009 which will be announced on Tuesday 22 September 2009.

Trading update

We are pleased to announce that, in spite of the challenging economic conditions, like for like sales growth stabilised, performing in line with the first half and finishing at +2% for the full year. Total sales increased significantly by approximately 23%, with £6 million of additional sales delivered by businesses acquired during the financial year. EBITDA is expected to be broadly in line with market expectations. The net debt position has improved since the half year.

Acquisitions

The Company has successfully integrated the businesses which were acquired during the financial year. These comprised 7 veterinary practices operating from 17 surgeries together with a pet crematorium and cemetery (Rossendale). Rossendale has performed well above expectations for the first 9 months of ownership. In addition, we have successfully completed the integration of the Axiom laboratory operations with those of our existing laboratories.

CVS now operates 59 small animal veterinary practices from 167 surgeries, one equine veterinary practice, 4 veterinary diagnostic laboratories and a pet crematorium and cemetery.

Outlook

Our strategy is to continue to grow the business both organically and from acquisition. The acquisition pipeline continues to be buoyant and offers opportunities in each of our areas of activity. Market demographics, the fragmented nature of veterinary practice ownership, the availability of laboratories and pet crematoria combined with the cash generative nature of our business are expected to facilitate future growth. 

Contacts

CVS Group plc Simon Innes, Chief Executive Paul Coxon, Finance Director	01379 644 288
Buchanan Communications Richard Oldworth Ben Romney	020 7466 5000
Panmure Gordon Richard Gray Andrew Godber	020 7459 3600

 

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