CVS Group (LON:CVSG) reported interim results for the six-month period to December 2025, with management highlighting a return to organic like-for-like growth, continued acquisition momentum—particularly in Australia—and progress on strategic initiatives including a new consumer brand and a move to the London Stock Exchange’s Main Market.
Strategic milestones and market backdrop
Chief Executive Officer Richard Fairman said the company completed its “step up” from AIM to the Main Market on Jan. 29, 2026, and expects benefits including improved liquidity, access to a broader pool of capital, index inclusion from March, and a higher corporate profile.
On trading, Fairman and Chief Financial Officer Robin Alfonso both said performance remained in line with market expectations, while noting “softer market conditions” in the UK and lower visit numbers in small animal practices, offset by strong demand for advanced referral care.
Financial performance: revenue up 5.8%, EBITDA up 3.9%
Alfonso said the company sold its crematoria operations in May 2025 and has restated the prior-year interim numbers to present those operations as discontinued.
For the first half, CVS reported:
- Revenue rose 5.8% to GBP 356.9 million, supported by acquisitions and like-for-like growth of 2.7% (adjusted for working days and on a constant-currency basis).
- Adjusted EBITDA increased 3.9% to GBP 67.7 million.
- Adjusted EBITDA margin was 19%, down 0.3 percentage points year over year but still within the company’s stated 19%–23% ambition.
- Free cash flow increased 16.2% to GBP 34.4 million, with operating cash conversion at 75% (above its stated ambition of more than 70%).
- Net bank borrowings rose to GBP 160.2 million, with leverage at 1.41x, which management said remains well below a 2x target ceiling.
- Adjusted EPS was GBP 0.402, up GBP 0.022, which management attributed to higher EBITDA.
Alfonso said cost efficiencies and synergies “largely offset” wage inflation and higher employment costs, including increases in national living and minimum wage as well as employers’ National Insurance contributions from April 2025. She quantified the annualized impact of those changes at about GBP 4 million and GBP 8 million, respectively. She also noted that the company recognized GBP 7 million of net R&D expenditure tax credits, consistent with the prior-year period.
Divisional performance: labs and practices drive growth
Management said growth was achieved across all divisions.
- Veterinary Practices: Revenue rose 5.4%, aided by acquisitions and a return to like-for-like growth despite weaker UK conditions and fewer small animal visits. EBITDA in the division increased 6.3%. Alfonso said demand for the group’s “most advanced referral care” remained strong.
- Laboratories: Revenue increased 10.3% on improved case volume and more analyzers placed in practices, with EBITDA up 17.8%.
- Online retail: Revenue grew 8.5%, which management attributed to improved visits and conversion after a new website launch in February 2025. However, profitability was pressured by cost-of-living impacts and “price elasticity testing,” leaving the business only breaking even in the first half. Alfonso said profit is expected to return in the second half.
- Head office: Costs increased GBP 1.2 million, driven by higher share option costs, investment in people—“especially in Australia”—and ongoing IT investment.
Australia expansion and acquisition pipeline
Fairman said CVS completed three acquisitions in Australia during the period and completed a further two practice acquisitions early in the second half. Since entering Australia in July 2023, the group has grown to 33 practices operating across 55 sites. Management said Australia now contributes about 10% of group revenue and about 15% of group EBITDA, reflecting a focus on “larger, high-quality” small animal first-opinion practices that tend to deliver higher margins.
Alfonso reported GBP 23.3 million of acquisition consideration in the period and said performance from the Australian deals has been in line with expectations. Both executives described Australia as the company’s short-term expansion focus and said CVS expects to complete more acquisitions there in the remainder of the financial year.
In the UK, Fairman noted corporate consolidation is higher at around 60% and said CVS has less than a 9% market share. He added that the company expects opportunities for further “high-quality acquisitions” after the CMA process concludes.
Brand rollout, investment program, and CMA response
Chief Veterinary Officer Paul Higgs detailed progress on the dual-brand approach, saying it was introduced to colleagues in November, launched digitally via new consumer websites, and is being rolled out through updated signage across UK companion animal sites. Fairman later said around 60 practices have already been rebranded.
Higgs also discussed colleague engagement initiatives, including a clearer employer brand centered on “clinical quality, learning, progression, and support.” He said the employee Net Promoter Score improved to +10 at December, ahead of the company’s FY2026 target of +5, and that attrition was stable and “reduced marginally” during the half.
On investment, management said capital expenditure totaled GBP 17.5 million in the half, including GBP 6.5 million on practice relocations, refurbishments, and associated clinical equipment. Alfonso reiterated the group’s ambition to invest GBP 30 million–GBP 50 million per year in capital investment and more than GBP 50 million on acquisitions. She said investments are appraised against a hurdle rate of greater than 10% IRR.
Regarding the CMA’s provisional decision announced in October 2025, Fairman said CVS does not agree with all proposed remedies—citing a proposed cap on prescription fees as “not justified” by the findings—though he added the company is “comfortable” with the package overall and has already implemented website price lists and started rolling out joint branding.
In closing remarks, Fairman said CVS remains “on course to deliver against market consensus for the full year,” and while acknowledging near-term headwinds in the UK, said management remains confident in delivering further growth.
About CVS Group (LON:CVSG)
CVS Group is an AIM-listed provider of veterinary services with operations in the UK and Australia. CVS is focused on providing high-quality clinical services to its clients and their animals, with outstanding and dedicated clinical teams and support colleagues at the core of its strategy.
The Group now operates c.470 veterinary practices across its two territories, including specialist referral hospitals and dedicated out-of-hours sites. Alongside the core Veterinary Practices division, CVS operates Laboratories (providing diagnostic services to CVS and third-parties) and an online retail business (“Animed Direct”).
The Group employs c.8,900 personnel, including c.2,400 veterinary surgeons and c.3,300 nurses.
