Veterinary services company CVS Group’s (GB:CVSG) profits jumped by 33% to £25.7 million in 2022 – driven in part by a pandemic-driven trend for people having more pets.
The company’s total revenues were £554.2 million, 8.6% higher than the last year, supported by higher like-for-like sales growth of 8%. Non-essential services saw increased demand, which had fallen during the lockdowns.
Veterinary practices contributed to 85.5% of the company’s total revenues. Online business, Animal Direct, contributed the second highest amount to the revenues and generated a revenue growth of 12%.
Having closed several acquisitions in the last year, the company is further looking to expand in the UK and new European markets with more acquisitions in the pipeline.
Richard Fairman, CVS Group’s chief executive, said, “The veterinary market remains resilient, with an increasing pet population providing favourable dynamics and a strong platform for sustainable growth across our integrated services.”
What does CVS Group do?
CVS Group is the leading veterinary services provider in the UK. The company has four business segments: veterinary practices, laboratories, crematoria, and online retail.
View from the City
According to TipRanks’ analyst rating consensus, CVS Group stock has a Moderate Buy rating, based on two Buy recommendations.
The CVSG price target is 2,285p with an upside potential of 42.5%. The analyst price targets range from a low of 2,200p to a high of 2,370p.
Looking ahead, the company is well placed to benefit from the growing pet industry in the UK.
The company already started the new financial year with sales for the first 10 weeks in line with expectations. The company also remains confident about rewarding its shareholders.