CVS goes from strength-to-strength as pet ownership rises, DFS scrambles to satisfy the boom in demand for furniture, Civitas Social Housing fights back against a brief seller, Royal Mail’s profits are set to soar despite challenges, and Playtech returns to profit.
CVS Group restarted dividend payouts this morning because it posted strong sales growth over its recently-ended fiscal year , stating that growth has accelerated and margins have improved since the beginning of the New Year .
CVS shares were up 7.7% in early trade this morning, sending the stock to a replacement all-time high.
The company, which provides veterinary services across the united kingdom , said revenue rose over 19% during the year to the top of June to £510.1 million from £427.8 million, with like-for-like sales growth accelerating to 17.4% from just 0.7% the year before when the pandemic weighed on its practices.
That, twinned with better margins of 19.1% versus 16.6% last year, led to a 37.2% increase in adjusted Ebitda to £97.5 million.
CVS Group said it experienced topline growth across all areas of the business while margins benefited from its effective management of costs, and noted that it had continued to deliver strong organic growth whilst new acquisitions boost its performance.
‘We still expand and develop our business, and, alongside our ongoing investments in top quality facilities and practices, we’ve welcomed variety of latest vets and nurses to the group, as demand for veterinary services continues to extend in light of rising pet ownership,’ said CEO Richard Fairman.
Adjusted pretax profit surged 73% higher to £66.2 million while reported pretax profit at the bottom-line rose to £33.1 million from just £9.9 million.
CVS Group reinstated its progressive dividend policy this morning with a final dividend of 6.5p.
CVS Group said sales growth had maintained momentum within the new fiscal year , growing 17.5% within the two months to the top of August, with like-for-likes up 14.4%. This acceleration was right down to price increases introduced in July combined with the very fact it decided to delay introducing price hikes the year before. Adjusted Ebitda margins have also improved further to 19.5%.
The company also highlighted the strong performance of its preventative membership programme named the Healthy Pet Club. there have been 455,000 members at the top of August, up 7.9% from the year before.
‘We see variety of opportunities to grow the business, through favourable consumer trends, further improving our specialist offering and by continuing to form investment in support. Although management expectations for the complete year aren’t supported attaining annual growth at the high levels of the primary two months, the very positive start to the new fiscal year is encouraging. We remain focused on providing first-class veterinary care and appearance forward confidently ,’ said Fairman.Where next for the CVS Group share price?
The CVS share price has been trending higher since early October later year. The share price has been trading within an ascending channel since late March and has hit an all-time high of 2700p.
The share price trades above its 50 & 100 sma whilst the bullish MACD is keeping buyers optimistic of further gains.
A potential area of resistance might be 2750p the upper band of the rising channel.
It would take a move below 2400p the lower band of the channel, the 50 sma and therefore the weekly low to negate the near-term uptrend and for sellers to realize traction. this might be a troublesome a nut to crack.