CVS Group (CVSG) H1 2026 earnings summary

Executive summary

• Revenue grew 5.8% year-over-year to £356.9m, with like-for-like growth of 2.7% despite softer UK market conditions and continued expansion in Australia.

• Adjusted EBITDA rose 3.9% to £67.7m, maintaining a 19.0% margin, while profit before tax fell 4.4% due to higher depreciation, business combination, and exceptional costs.

• Strategic steps included new joint branding, Main Market listing, and ongoing investment in facilities, equipment, and technology.

• Expansion in Australia continued with acquisitions, and further UK consolidation opportunities are anticipated post-CMA process.

• Trading remains in line with market expectations, with FTSE250 inclusion expected in March 2026.

Financial highlights

• Gross profit increased 9.7% to £157.6m, with gross margin up to 44.2%.

• Adjusted operating cash conversion improved to 75.0%, and free cash flow increased 16.2% to £34.4m.

• Leverage stood at 1.41x at period end, well below the 2.0x ceiling.

• Adjusted EPS grew 5.8% to 40.2p; basic EPS for continuing operations dropped 23.2% to 10.9p.

• Capital expenditure was £17.5m in H1 2026, focused on practice upgrades and technology.

Outlook and guidance

• FY2026 expected to be in line with market consensus for adjusted EBITDA (£141.2m–£142.5m), supported by a strong acquisition pipeline in Australia and renewed UK opportunities post-CMA.

• Confident in medium to long-term growth, maintaining EBITDA margin guidance of 19%-23%.

• Ongoing investment in facilities, technology, and clinical equipment, with focus on operational efficiencies and client experience.

• Profitability in online retail expected to recover in the second half as pricing normalizes.

• Well-positioned for future growth entering 2026.