CVS Group (CVSG) H1 2025 earnings summary

Executive summary

• Revenue grew 6.6% year-over-year to £341.8m in H1 2025, driven by Australian acquisitions and ongoing investment, while UK performance was flat amid softer market conditions.

• Adjusted EBITDA rose 4.5% to £67.4m, with a margin of 19.7%, despite inflationary and employment cost pressures.

• Expansion in Australia continued with five new practice acquisitions in H1 2025, bringing the total to 36 sites and annualised revenue of c.£55m.

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

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

Financial highlights

• H1 2025 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); profit before tax: £17.4m (-35.1% YoY); operating cash conversion: 72.0%.

• Net bank borrowings: £182.9m; leverage at 1.66x (up from 1.15x YoY), below 2.0x target.

• Free cash flow: £31.4m (down £2.3m YoY); dividend paid: 8.0p per share.

Outlook and guidance

• Board expects full-year 2025 results in line with market expectations.

• 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 in November 2025; focus remains on Australian expansion.

• Targeting 23% EBITDA margin by 2027, with Australia expected to be margin accretive.

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