CVS Group Plc (LON:CVSG) on Tuesday reported a 7.4% decline in profit before tax to £32.6 million for the year ended June 30 2025, down from £35.2 million a year earlier, even as revenue rose 5.4% to £673.2 million.
The veterinary services provider said the fall reflected increased finance expenses and depreciation following recent acquisitions and investment in new facilities.
Adjusted EBITDA increased 9.4% to £134.6 million from £123 million, with margins from continuing operations improving to 20% from 19.3%.
Like-for-like group sales grew 0.2%, compared with 2.9% in 2024. The Veterinary Practices division recorded 1% like-for-like growth for the year.
Statutory profit for the year rose sharply to £53 million from £6.4 million after the disposal of the Group’s UK Crematoria operations, which were treated as discontinued.
Net bank borrowings decreased to £131.4 million from £168 million, reducing leverage to 1.18 times from 1.54 times.
Free cash flow increased 22.2% to £72.2 million, and adjusted operating cash conversion improved to 76.9%, up 6.8 percentage points from 70.1% in the previous year.
The UK-based company proposed a final dividend of 8.5 pence per ordinary share, up from 8 pence in 2024.
Capital expenditure for continuing operations totaled £33.2 million, down from £41.5 million a year earlier, directed toward facility upgrades, equipment and technology.
CVS invested A$57.9 million (£29.2 million) to acquire seven practices in Australia, expanding its network to 31 practices across 51 sites. Two additional acquisitions were completed after the financial year, comprising eight practice sites, for a combined consideration of £23.6 million. The company said its Australian practices performed in line with expectations.
Gross profit rose 6.3% to £285.7 million from £268.7 million, while the gross profit margin increased to 42.4% from 42.1%.
Operating profit advanced 4.2% to £49.8 million from £47.8 million. Adjusted earnings per share decreased 3.8% to 80.1 pence from 83.3 pence.
The group recorded £15.1 million in net Research and Development Expenditure Tax Credit income, up from £12.8 million, and continued to invest in cloud-based management systems and artificial-intelligence tools to streamline clinical operations.
CVS disposed of its UK Crematoria business for £42.3 million on May 15 2025, generating an after-tax gain and contributing to lower debt.
The company’s Healthy Pet Club membership increased to 515,000 from 503,000, primarily due to client transitions from legacy schemes.
Chief executive officer Richard Fairman said the company had navigated a challenging environment marked by the Competition and Markets Authority investigation into the veterinary sector, higher National Insurance Contributions, and softer UK market conditions. He said the group entered the new financial year “well positioned for further success.”
CVS said the new year had started strongly, with like-for-like sales momentum continuing from the final quarter of 2025. The company maintained that it expects to perform in line with market expectations for the 2026 financial year.
