CVS Group (CVSG) H1 2025 earnings summary

Executive summary

• Revenue grew 6.6% year-over-year to £341.8m in H1, driven by Australian acquisitions and ongoing investment, offsetting flat UK performance and softer conditions in online retail and laboratories.

• Adjusted EBITDA rose 4.5% to £67.4m, with a margin of 19.7%, despite wage inflation and increased employment costs.

• Five Australian acquisitions completed in H1 2025, expanding presence to 36 sites and annualised revenue of c.£55m.

• Healthy Pet Club membership grew to 507,000, supporting recurring revenue streams.

• Reported profit before tax fell 35.1% to £17.4m due to higher finance expenses, depreciation/amortisation, and exceptional costs related to the UK CMA investigation.

Financial highlights

• Revenue: £341.8m (+6.6% YoY); like-for-like sales -1.1% due to softer UK market.

• Adjusted EBITDA: £67.4m (+4.5% YoY); margin 19.7% (down 0.4ppts).

• Adjusted EPS: 40.0p (down 8.3p YoY) due to higher tax, depreciation, and finance costs.

• Net bank borrowings: £182.9m; leverage 1.66x (up from 1.15x YoY), below 2x target and 3.25x covenant.

• Operating cash conversion: 72.0% (up from 64.8% YoY); free cash flow: £31.4m.

Outlook and guidance

• Board expects full-year 2025 results in line with market expectations, with sequential EPS growth expected in H2.

• Like-for-like growth expected to improve in H2, supported by new website launches and annualization of acquisitions.

• UK investment to remain selective until CMA investigation concludes; focus on Australian expansion and technology enhancements.

• Targeting 23% EBITDA margin by 2027, supported by margin-accretive Australian acquisitions and operational synergies.

• Confident in delivering sustainable long-term growth, supported by strong sector fundamentals and a healthy balance sheet.