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CVSG Cvs Group Plc

975.00
-44.00 (-4.32%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cvs Group Plc LSE:CVSG London Ordinary Share GB00B2863827 ORD 0.2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -44.00 -4.32% 975.00 976.00 984.50 1,040.00 980.00 1,040.00 488,057 16:35:27
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Veterinary Svcs-animal Specs 608.3M 41.9M 0.5843 16.81 704.58M
Cvs Group Plc is listed in the Veterinary Svcs-animal Specs sector of the London Stock Exchange with ticker CVSG. The last closing price for Cvs was 1,019p. Over the last year, Cvs shares have traded in a share price range of 950.00p to 2,226.00p.

Cvs currently has 71,712,970 shares in issue. The market capitalisation of Cvs is £704.58 million. Cvs has a price to earnings ratio (PE ratio) of 16.81.

Cvs Share Discussion Threads

Showing 76 to 99 of 950 messages
Chat Pages: Latest  14  13  12  11  10  9  8  7  6  5  4  3  Older
DateSubjectAuthorDiscuss
27/8/2009
09:14
MS have increased
value viper
26/8/2009
11:25
looks like they were dumping at 18p and someone buying at 20p. I bought some more today
serotine
26/8/2009
11:10
someone dumping here it seems at 120p; but someone buying on the other side too; perhaps it can go up now ? seller clearing - NRI
value viper
28/7/2009
06:36
bought some yesterday - its been a long wait! As Lomax pointed out although their debt looks high they can easily cover the capital repayments/interest over the next 4 years so risk is low. I would have no probs if they did a placing to buy some more good practices in the future although if they can do it out of profits then so much the better. I think its going to be a long, slow, steady upward climb in the share price from now on..
serotine
10/7/2009
11:02
Picked up a few more.Trading statement Tuesday....bet its pretty positive :o)
nurdin
18/6/2009
15:01
Some more news on how they intend to cover the Operations Director's departure would also not go amiss!
lomax99
18/6/2009
14:59
Very quite on the acquisition front, hopefully we will get some more news before the end of their financial year, which is at the end of this month.
lomax99
08/6/2009
10:00
Midas tip made a compelling case for me,so I bought a few this morning.

You just have to look at their last interims to see how cash generative the business is....£5.6m from operations which was 41% up on last year.

I dont think they need to increase their debt to fund acquisitions but it would help to strengthen the balance sheet.

nurdin
07/6/2009
10:47
The article above refers to fears over the amount of debt they are carrying, this is not so much a concern to me, more of a frustration!

A recent IC commentary said that the broker suggested that EPS would increase by at least 30% pa for the next three years, that should be achievable with a combination of more acquisitions and margin improvement, and could see adjusted earnings increase steadily to c. £13M by YE 30/6/12.

What will hold the group back is the c. £4M pa they need to make in loan capital repayments, in each of the next financial 3 years (first payment due December 2009). I am not generally an advocate of debt, but the 'virtuous circle' referred to in the article above would be spurred on if that money could be re-directed to earnings enhancing acquisitions.

Indeed, even in the current climate, I would probably be in favour of CVS increasing debt (if that were possible!), or raising more equity (as long as it was not too dilutive!) to provide additional funding (£10-£20M) for their acquisition led growth strategy. In the absense of being able to do this 'Buy and hold' is the right strategy, for those with patience.

lomax99
07/6/2009
10:21
Mail on Sunday tip:

MIDAS: Profits poised to soar at vet practice chain By Joanne Hart and Andy Brough
Last updated at 12:14 AM on 07th June 2009
Comments (0) Add to My Stories We claim to be a nation of animal lovers and we certainly spend serious amounts of money on them, making sure they get the right food and pills for good health.

CVS Group is perfectly placed to benefit as it owns and manages vet practices across the UK. Formed with the purpose of creating a nationwide group of vets, it has 60 practices and 167 surgeries as well as a pet cemetery and four diagnostic laboratories.
Originally backed by private equity, CVS joined the Alternative Investment Market in 2007, since when it has delivered muscular growth, both organically and through acquisition. Sales in the year to June 2007 were £39million and this year turnover is expected to be £77million, rising to more than £90million in 2010. Profits in 2007 were £2.3million and should top £6million this year, increasing to at least £8million next.
Time to care: Pets like CVS because it reduces their administrative burden
Yet the share price has not done well. CVS shares floated at 205p and rose to more than 270p last year. Since then, they have fallen back to just 142p. The decline is largely due to concerns about the group's debt position. Capitalised on the stock market at £73million, CVS owes its banks £44million and some analysts worry this is too much.

These fears are almost certainly overdone. CVS generates plenty of cash and is perfectly capable of paying off its debts as they fall due. Customers pay vets immediately so there is little danger of the company running into cashflow problems.

In fact, chief executive Simon Innes and finance director Paul Coxon are sufficiently confident about the company's position that they believe they can continue to acquire practices out of existing cash.

Innes is an experienced operator. He was chief executive of optician group Vision Express from 2000 to 2004, during which time he transformed the company from a lossmaking business to one of the most profitable optician chains in the UK. Coxon, meanwhile, provides a steady hand on the tiller, having spent 19 years in finance and accounting.

CVS is not completely immune from the forces of recession. Some pet owners are grooming their animals less frequently or buying them fewer toys, but they are still extremely focused on pet health, often spending more money on their animals' wellbeing than their own.

Midas verdict: CVS Group still has less than eight per cent of the vet market for small animals but it is keen to grow and is well positioned to do so. Many vets prefer to devote their time to caring for animals rather than worrying about the administrative burdens associated with running a practice. CVS gives them this freedom and is the largest company in its sector. The more it grows, the more profitable it becomes and the more vets want to be a part of it. This virtuous circle has already begun and should gain momentum over the next few years. Also there is always the possibility of bid interest from overseas. Buy and hold.

lomax99
01/5/2009
10:58
Nice bit of stakebuilding going on.
u813061
06/4/2009
11:58
C2I

I understand your hesitation re the recession, but think that sales will hold up better than you suspect as pets are viewed as members of the family. Your point on hand overs to local charities is noted, this may well happen but I doubt it will have a significant impact.

The level/servicing of debt is an issue, strong cashflow is important and essential to fund expansion. Whilst not being keen on gearing up generally, I do wonder if internally generated cashflow will prove sufficient to take advantage of the opportunities on offer.

I see the real opportunity with CVSG being 1) The lack of corporate penetration into the small animal veterinary market; 2) Existing owners having limited options when coming to exit, hence low exit/YP's paid. 3) Margin improvement post acquisition - which should over time be substantial, given the ability to streamline operations (incl. centralising back-office functions), better purchasing power and the ability to share resources with other practises in a locality.

Focused margin improvement in respect of new/recent acquisitions, and actually realising these potential gains is critical. I would be happier if CVSG had communicated their intention with regards to how they are going to adequately cover/replace the Operations Directors role, which one would imagine should have quite an impact on service delivery/realisation of the anticipated margin improvements.

lomax99
06/4/2009
10:40
Plenty of buys going through. Looks like this one has bottomed out.
u813061
24/3/2009
11:48
Hi all,

Further to my previous post (please see below) I am still on the sidelines inspite CVSG good results on 17/3/09. My reasoning is two fold:
The expected rise in unemployment to 3m
The expected rise in house repossesions.
Both of which will leave the cash-trapped pet owner with little funds to pay for vet bills. So a nation of pet owners will unfortunately start to hand over their pets to local charities such as the PDSA.

Just my humble opinion.

c2i

contrarian2investor - 30 Apr'08 - 18:02 - 43 of 75 edit


serotine and other holders,

post 16 OF 22
"The only negative is they are paying LIBOR + 1.5% on an existing 32 million loan plus the same (I think) for their 12 million drawdown facility so this may impact on profits. However if interest rates do fall (and LIBOR in tandem) then this could be good news for CVS".

I too love the business model and the fact that it is essentially recession proof as pet lovers are left with no choice but to pay if they need to use a vet.

Even if CVSG just matches Dignity's performance since its IPO it will be a serious profit maker for shareholders. IMHO

However I remain on the sidelines for the moment until the LIBOR RATE decreases and their debt repayments do likewise.

Any thoughts??

C2I

contrarian2investor
18/3/2009
16:47
Serotine, I agree with your comments re adequate profits/debt.

I have not had much time to look at the results, but since they were giving out purchase prices for recent acquisitions I thought it would be worthwhile to look at these. The last 5 acquisitions (Cleveland, Surrey, Hampshire, Rossendale & Joel) cost a total of £6.135M (out slightly from the £5.93M quoted). This bought businesses which generated profits of £1.163M on T/0 of £6.736M, an ROT of 17% and an average purchase price of 5.3 YP (which is in their stated range of 4-6 YP).

Perhaps the surprising thing when looking at these individual deals is the range in ROT's being realised before, from Surrey at 8.7% - with a YP of 9.3, to an ROT for Joel of 40%, paying a YP of only 2.9! No doubt there is a story to tell behind these figures, but they do seem strange and present one hell of a range/opportunity to understand and look to narrow the range!

lomax99
18/3/2009
06:42
I really want this share to do well as the basic story is sound but seems to me they are not generating enough profits compared with their debt. I'll keep watching to see if things improve in the future...
serotine
17/3/2009
08:44
Figures look good, surprising no one spotting this little gem bucking market trends with guaranteed clientele!
tooth fairy
13/3/2009
08:42
Found this snippet:

-----------------------

CVS GROUP (AIM:CVSG)
Mkt cap £68m

Veterinary practices and complimentary veterinary diagnostic businesses.
Strong position in UK veterinary market (defensive attributes) and highly cash generative.

The largest UK veterinary group which now includes an animal hospital, 161 surgeries and 6 veterinary laboratories and pet crematorium. Defensive attributes and highly cash generative (customers pay them before they need to pay suppliers). All acquisitions to date have been financed through a combination of existing debt facilities and internally generated cash.

Market growth is a modest 4% - 5% per annum. Apparently 50% of households have a pet and 90% of their revenue is unavoidable surgery; recession proof?
Concerns that veterinary market may be effected by pet owners holding back on expenditure or pet insurance.

Leading position in UK market and excellent long term growth with the potential to fund acquisitions through internal cash flow and ability to generate excellent returns on invested capital.

Debt is high and there is a requirement to repay debt in the current and next 5 years, however, this should be easily be met out of cash flow, but would reduce funds available for acquisitions.

Operations Director stepped down in January 2009 to 'pursue other interests'.

Acquired a further Suffolk based practice in January from cash resources.

Shares were down approx 46% in 2008

-----------------------------

Funding constraints for acquisitions are a concern, as this is the real impetus for growth in terms of the significant post acquisition earnings enhancement which should be realisable from streamlining processes and buying efficiencies.

lomax99
12/3/2009
13:04
Some quite chunky sells today, I hope there are no unpleasant 'surprises' in next week's results!
lomax99
09/3/2009
14:41
I will be interested to see an update on how they intend to cover the Operations Director's role in light of Mr Finn's departure. This is important, as it is the streamlining of operations at a local level, which will drive enhanced productivity/returns and justify the significant increase in investment in central resource we have seen over the last couple of years.
lomax99
05/3/2009
07:59
another acquisition in the bag and self-funded. Results on the 17th March so look forward to seeing what they have to say. They must be saving a bit on interest payments...
serotine
28/1/2009
08:12
Thanks, unfortunately all it's done is to help lower my prospective break even point! Hopefully we will get news of a few more acquisitions before the results date.
lomax99
28/1/2009
07:56
well done on purchase at £1.22 and I hope it works out for you. The next results should be in March if it follows the same pattern as last year.
serotine
27/1/2009
16:03
yes, may be better not to speak too soon, but I was thinking of adding to my last purchase at £1.22 when it started this recent run.
lomax99
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