CVS Group (LSE:CVSG), the UK-listed veterinary services provider, reported full-year revenue up 5.9% to £712.8m for the year ended 30 June, with like-for-like sales rising 2.1% against 0.2% growth the prior year.
Adjusted EBITDA rose to £141.5m from £134.6m, keeping margins stable at 19.9% despite higher National Insurance costs and wage inflation.
Australia was the standout growth driver, with revenue there climbing to £79.1m from £52.1m and now accounting for roughly 11% of group revenue, up from 7%, after the addition of 14 new practice sites through six acquisitions costing £43.3m. Adjusted earnings per share increased 6.9% to 85.6p, while free cash flow eased slightly to £69.2m from £72.2m.
Net bank borrowings rose to £199.6m from £131.4m, pushing leverage to 1.63 times EBITDA, still below the company's 2.0 times threshold, after CVS returned £70m to shareholders via buybacks over the past 12 months and refinanced its £350m loan facilities to May 2030.
The board recommended a final dividend of 9.0p per share, up from 8.5p.
Chief executive Richard Fairman said the group was "confident in the essential nature of the services we provide" and that conclusion of the Competition and Markets Authority's market investigation, with its final remedies order published on 22 September, allows CVS to focus on client care.
The group said it continues to expect to perform in line with market expectations for the 2027 financial year, targeting a return to like-for-like growth of 4-8% over the medium term, and has already exchanged contracts on further Australian acquisitions and a UK practice for £15m initial consideration.