CVS Group (CVSG) H1 2026 earnings summary

Executive summary

• Revenue increased 5.8% year-over-year to £356.9m, with like-for-like sales growth of 2.7% and growth across all divisions despite softer UK market conditions.

• Adjusted EBITDA rose 3.9% to £67.7m, maintaining a 19.0% margin, while profit before tax fell 4.4% to £15.2m due to higher depreciation, business combination, and exceptional costs.

• Strategic steps included new joint branding, Main Market listing, and ongoing expansion in Australia through acquisitions.

• Trading in line with market expectations, with continued investment in facilities, equipment, and technology.

• Completed move to the Main Market of the London Stock Exchange, with FTSE250 inclusion expected.

Financial highlights

• H1 2026 revenue £356.9m (+5.8%); like-for-like sales growth 2.7%; adjusted EBITDA £67.7m (+3.9%) with a 19.0% margin.

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

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

• Leverage at 1.41x, well below the 2.0x ceiling, with net debt at £158.3m.

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

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 potential for renewed UK acquisitions post-CMA process.

• Confident in medium to long-term growth, supported by strong balance sheet and free cash flows.

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

• UK market remains challenging, but sector fundamentals are strong, with growth expected as the COVID pet cohort ages.

• Market fundamentals remain attractive, with clear growth strategy into 2026.