CVS Group plc

Revenue increased 5.4% to GBP 673.2 million. Adjusted EBITDA increased 9.4% to GBP 134.6 million, and adjusted EBITDA margin improved by 70 basis points to 20%. Like-for-like growth was 0.2% across the group and 1% in the core practice division. Adjusted operating cash conversion was 76.9%, and year-end leverage was 1.18x after stronger cash flow and proceeds from the sale of the Crematoria business at a 10x EBITDA multiple. For the new year, management said trading improved into Q1, described consensus as broadly in line, and noted that some analyst models likely include only part of the recently announced acquisitions; they also said the first quarter had seen about GBP 23 million spent on two acquisitions, including one larger six-site deal.

Richard Fairman framed the year as a period of further growth despite softer U.K. conditions in the first half, pointing to a much better fourth quarter and continued improvement into the new financial year. He said CVS is well positioned for growth, citing strong market fundamentals, a disciplined acquisition strategy, and confidence that the CMA process should eventually bring more certainty. On medium-term growth, he reiterated confidence in returning to 4% to 8% like-for-like growth, supported by consumer confidence, pricing, investment in quality, and aging pets from the COVID-era cohort.

Robin Alfonso emphasized the financial quality of the year, including 76.9% operating cash conversion, leverage of 1.18x, and the EBITDA contribution from acquisitions, which he said are typically done at about an 8x multiple on average in Australia. He said the year included cost headwinds from wage and national insurance increases, with an annualized impact of GBP 11 million to GBP 12 million starting from April 2025, but described offsetting actions through headcount efficiency, purchasing savings, and locked-in utility savings. He also noted that Australia’s acquisition structure usually pays 80% upfront and 20% deferred, creating both protection and contingent consideration that runs through the P&L.

Analysts focused heavily on Australia, asking about market consolidation, acquisition economics, and the size of the pipeline. Management said Australia remains under-consolidated at roughly 15% to 20%, that CVS has only about 51 sites there, and that the pipeline is strong with agreed deals and more potential vendors coming inbound after premium acquisitions like the Sydney group. Questions also centered on how CVS gets back to 4% to 8% like-for-like growth; management pointed to better consumer confidence, pricing, the end of CMA uncertainty, and the aging of the COVID-era pet cohort, while Paul Higgs added that client experience, consulting skills, and shared decision-making are key operational levers. On U.K. acquisitions, management said the post-CMA environment should bring more opportunities, especially from independents, and that CVS’s sub-9% market share leaves plenty of room to grow.