CVS Group (CVSG) Investor Update summary

Financial performance and growth

• Revenue grew 5.4% to £673.2m, with like-for-like sales growth of 0.2% after a strong final quarter and continued momentum into FY26.

• Adjusted EBITDA increased 9.4% to £134.6m, with margin up 70bps to 20%, driven by acquisitions and cost management.

• Free cash flow rose 22.2% to £72.2m, and operating cash conversion reached 76.9%, exceeding the 70% target.

• Net borrowings reduced to £131.4m and leverage to 1.18x, well below the 2x ceiling, providing capacity for further investment.

• Adjusted EPS fell to £80.1, impacted by higher tax, depreciation, and finance costs.

Strategic expansion and acquisitions

• Seven Australian practice acquisitions (15 sites) completed in FY25, plus two more (8 sites) post year-end, bringing the Australian footprint to 51 sites.

• Focus remains on acquiring high-quality, larger practices in urban areas in both Australia and the UK.

• UK acquisition activity expected to resume post-CMA investigation, with significant "white space" for growth.

• No plans to divest clinics; capital from the crematory business sale to be reinvested in organic and inorganic growth.

Operational and market dynamics

• UK operations rebounded after a soft start, with improved trading in the final quarter and into FY26.

• Australian operations deliver strong like-for-like growth and EBITDA margins above 25%.

• Sector remains resilient but not immune to consumer spending pressures; recent improvement in client visits and confidence.

• COVID-19 pet cohort expected to drive increased demand as animals age.