CVS Group (CVSG) Investor presentation summary

Favourable market and growth drivers

• Operates in large, resilient markets with strong fundamentals and consistent multi-year growth, driven by pet humanisation, increased pet population, and advances in veterinary care.

• Maintains high-quality clinical care through a skilled team, with a history of growth via acquisitions since 1999 and a diversified business model across veterinary practices, laboratories, and online retail.

• Demonstrates ability to pass on inflationary costs, with scale in the UK and Australia and potential for expansion into new markets.

• Focuses on preventative care and subscription-based healthcare plans, supporting recurring revenue streams.

• EBITDA margins are stable, with expectations for expansion from 19% to 23%.

Financial performance and pre-close update

• FY2026 total revenue grew 5.9% to £712.8m, with like-for-like revenue up 2.1%.

• Adjusted EBITDA reached approximately £141.5m, in line with consensus, and EBITDA margin remained around 20%.

• Net debt increased to £199.6m, with leverage at 1.63x, and a £132m undrawn loan facility provides liquidity.

Capital allocation priorities

• Maintains a disciplined capital allocation hierarchy, prioritising a healthy balance sheet, strong cash generation, and progressive dividends.

• Targets acquisitions in the UK and Australia (~£50m pa) and investment capex (~£30m pa), with flexibility to increase leverage for larger opportunities.

• Operating cash conversion exceeds 70%, supporting consistent shareholder returns.