CVS Group (CVSG) investor relations material

Financial performance and growth

• Revenue increased by 5.4% to £673.2m, with adjusted EBITDA up 9.4% to £134.6m and margin rising to 20%.

• Like-for-like sales growth was 0.2% for the year, rebounding in the second half after a weak start.

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

• Net bank borrowings decreased to £131.4m, with leverage reduced to 1.18x, well below the 2x ceiling.

• Adjusted EPS fell to 80.1p due to higher tax, depreciation, and finance costs.

Strategic initiatives and investments

• Divested crematory business at a 10x EBITDA multiple, freeing capital for further investment.

• Completed seven Australian acquisitions (15 sites) in FY25 and two more (8 sites) post year-end, expanding to 51 sites.

• Capital expenditure totaled £33.2m, focused on facilities, equipment, and IT modernization.

• Ongoing investment strategy targets £30–50m per year in CapEx and over £50m in acquisitions, mainly in Australia.

• New cloud-based practice management system launched to enhance client experience and operational efficiency.

Market conditions and outlook

• UK market saw initial softness but improved in the final quarter, with positive momentum 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; improvement seen as confidence returns.

• Medium-term ambition is to achieve 4–8% like-for-like growth, supported by pricing, volume, and service expansion.

• CMA investigation nearing conclusion, expected to unlock further UK acquisition opportunities.