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CVS raises funds to get its paws on new surgeries
CVS Group has raised fresh funds and reported soaring first-half revenues but falling profits as the Norfolk-based veterinary outfit kept up the pace of acquisitions.
The AIM-listed company's revenues grew 21.9% to £157.8m for the six month period to 31 December 2017.
A 23% drop in profit before tax to £6.2m can be attributed to acquisition expenses and accounting adjustments and an increase in administrative expenses to £65.2m from £51.4m. Excluding the amortisation of intangible assets, PBT increased 10.8% to £18.3m.
CVS acquired 30 surgeries in the six months period to take its number of surgeries to 457, with the pace of purchases exactly in line with a prior year that saw 60 new additions.
Richard Connell, chairman of CVS, said: "The group has delivered another strong set of results showing further growth in revenue and underlying profit, generated both organically and through acquisitions."
The company said it expected to pay a final dividend per share in December of at least as much as 2017's 4.5p.
Alongside the results, CVS also said it was placing 6.93m new ordinary shares at a price "expected to be not less than 1,050p per share", with the proceeds used to pay down debt and create additional headroom to fund further acquisitions.
Directors have identified a pipeline of approximately £40m worth of deals that the company "expects to conclude in the next six months". The identified pipeline consists of opportunities in the UK and the Netherlands and includes practices specialising in farm animals and companion animals, as well as mixed and equine practices.
As of 0850 GMT, CVS group's shares were down 8.93% at 1,111.00p.