Cvs Group Stock Earnings Reports

CVS Group delivered a positive full-year performance with group revenue up 5.4% to £673.2m and adjusted EBITDA up 9.4% to £134.6m, lifting adjusted EBITDA margin to 20%. Like‑for‑like growth across the group was modestly positive at 0.2% for the year (1% in core practice division), with a stronger trading trend in Q4 and continuation into the new financial year. Operating cash conversion was strong at 76.9% and net leverage finished the year low at c.1.18x, supported by proceeds from the sale of the Crematoria business. The group continues disciplined M&A: active acquisitive expansion in Australia (now 51 sites) with a strong pipeline and selective approach focused on larger, premium practices; management spent c.£23m year‑to‑date on acquisitions and noted average acquisition multiples in Australia around ~8x, creating accretive EBITDA. Management reiterated the medium‑term like‑for‑like ambition of 4–8% growth, citing drivers including improving consumer confidence, pricing discipline, ageing COVID cohort of pets, investment in client experience, and operational improvements (including a new practice management system). Cost inflation (wage/NIC) has been managed through efficiency, purchasing and energy hedging, and management expects consensus revenue/like‑for‑like to be sufficient to offset remaining inflation. The company is also trialing AI tools (e.g., consultation scribing) to drive clinical efficiencies and record quality. Management remains cautious but confident about further UK M&A once CMA clarity is provided and continues to prioritize disciplined, accretive capital deployment.