Investing.com — reported 5.8% revenue growth for the first half of 2026, meeting market expectations with sales reaching £356.9 million versus consensus estimates of £357 million, according to results released Thursday.
The veterinary services provider posted like-for-like sales growth of approximately 2.7%, an improvement from 2.5% at four months and a recovery from negative 1.1% growth in the first half of 2025. UK revenues totaled £320.6 million, while Australian operations contributed £36.3 million.
Adjusted EBITDA increased 3.9% to £67.7 million, below consensus expectations of £69.6 million. The EBITDA margin stood at 19%, compared to consensus estimates of 19.5%, as the company faced inflationary pressures from wage increases and higher national insurance costs.
The UK market showed mixed performance across practices with lower customer footfall, though this was partially offset by demand in referral services. Australian operations continued to deliver stronger results.
Adjusted earnings per share rose 5.8% to 40.2 pence from 38 pence in the first half of 2025.
Net debt excluding leases increased to £158.3 million from £129.1 million at the end of fiscal 2025, bringing leverage to 1.41 times net debt to EBITDA, compared to 1.18 times previously. The company maintains guidance of keeping leverage below 2.0 times.
Healthy Pet Club memberships declined to 516,000 from 519,000 in fiscal 2025, attributed to impacts from legacy schemes, though underlying membership remained stable.
CVS Group expressed confidence in delivering fiscal 2026 results in line with market expectations, with consensus adjusted EBITDA estimates at £141.9 million.
The company acknowledged ongoing UK headwinds and challenging consumer confidence affecting footfall in the near term, while highlighting progress in Australia and maintaining confidence in medium and long-term prospects.
The Competition and Markets Authority released its Provisional Decision on the UK veterinary sector on October 14. CVS Group indicated confidence in resuming UK mergers and acquisitions activity following the CMA’s conclusion.