CVS Group (CVSG) H2 2026 earnings summary

Executive summary

• Revenue grew 5.9% year-over-year to £712.8 million, with all divisions contributing despite softer UK market conditions and extreme weather in the final quarter.

• Adjusted EBITDA rose 5.1% to £141.5 million, and adjusted EPS increased 6.9% to 85.6p, supported by share buybacks and improved financial performance.

• Strategic expansion continued with six acquisitions in Australia (14 sites, £43.3 million) and resumed UK M&A after CMA process conclusion, with a strong pipeline in both regions.

• Trading in line with expectations, supported by a scalable business model and strong market fundamentals.

• Extended loan facilities to May 2030 and returned £31.7m to shareholders via buybacks, with up to £38m more planned in FY27.

Financial highlights

• Like-for-like revenue growth was 2.1% for the year, with a stronger first half than second half, impacted by extreme weather.

• Adjusted EBITDA margin stable at 19.9%; adjusted operating cash conversion at 70.6% (down from 76.9%).

• Free cash flow was £69.2m, down from £72.2m, mainly due to one-off negative working capital movements.

• Net bank borrowings rose to £199.6m, reflecting investment in capex, acquisitions, and shareholder returns.

• Laboratory business EBITDA grew 25% year-over-year, reflecting strong demand for advanced care.

Outlook and guidance

• FY 2027 expected to be in line with market consensus: adjusted EBITDA £149.0m–£151.7m, adjusted EPS 89.3p–99.6p.

• Confidence in returning to 4%-8% medium-term like-for-like growth, though timing is uncertain.

• Further growth anticipated in labs and Animed, though repeating last year’s lab EBITDA growth rate will be challenging.

• RDEC income expected to remain stable at ~£15 million annually.

• Healthy balance sheet and strong cash generation support continued capital deployment for growth and shareholder returns.