CVS Group (CVSG) H1 2026 earnings summary

Executive summary

• Revenue grew 5.8% year-over-year to £356.9 million for H1 2026, with like-for-like sales growth of 2.7% despite weak UK consumer confidence and softer market conditions.

• Adjusted EBITDA rose 3.9% to £67.7 million, maintaining a 19.0% margin, reflecting resilience amid inflationary pressures.

• Strategic initiatives included a new joint branding (CVS Vets), a move to the Main Market, and continued expansion in Australia.

• Trading in line with market expectations, with continued growth in Australia and positive like-for-like sales growth.

• Profit before tax fell 4.4% to £15.2m due to higher depreciation, business combination, and exceptional costs.

Financial highlights

• Like-for-like growth improved to 2.7%, achieved across all divisions.

• Adjusted operating cash conversion was 75.0%, and leverage stood at 1.41x at December end.

• Free cash flow increased to £34.4m, up from £29.6m, and gross profit rose 9.7% to £157.6m.

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

• Two Australian veterinary practice acquisitions completed in the period, with further deals post-period end.

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, maintaining medium-term EBITDA margin guidance of 19–23%.

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

• UK acquisitions expected to resume later in the year, but only for high-quality practices at attractive multiples.

• Strong pipeline for further acquisitions in Australia and the UK, with disciplined approach to M&A.