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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
  20.00 0.87% 2,320.00 2,310.00 2,315.00 2,345.00 2,270.00 2,345.00 321,905 16:35:27
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 427.8 9.9 8.1 286.4 1,641

Cvs Share Discussion Threads

Showing 451 to 475 of 675 messages
Chat Pages: 27  26  25  24  23  22  21  20  19  18  17  16  Older
DateSubjectAuthorDiscuss
03/7/2018
09:55
Long overdue.....
lomax99
03/7/2018
08:37
Closing in on 1200p
its the oxman
18/6/2018
13:49
The Times today: Global giants see profit in all creatures great and small Mars is among several multinationals looking to consolidate the veterinary industry Alf Wight’s tales of life as a country vet in Yorkshire, written under the nom de plume James Herriot, could not be further from the corporatisation consuming the veterinary market, yet proposals by CVS Group to open a pet hospital a stone’s throw from the author’s former surgery suggest the gap is closing. CVS, which wants to convert a former pub in Thirsk into a 24-hour animal hospital, is one of a gaggle of groups consolidating the independent market, although this month’s assault by Mars, the confectioner, on the European veterinary market has led to speculation that CVS could become a target for the American company. In the past fortnight Mars, which owns Whiskas cat food, has made two incursions into the European veterinary market, acquiring Anicura, a Swedish provider, from Nordic Capital for about €2 billion (£1.75 billion), and Linnaeus, a British company, for an undisclosed sum — estimated at £450 million — from Sovereign Capital. Mars Petcare said that Europe was the “next natural step” because it was home to about 200 million pets. Poul Weihrauch, president of Mars Petcare (and owner of Twixie the labrador), said: “As the second largest region in the world for petcare, European petcare is expected to grow significantly.”; Anicura has 200 animal hospitals and sales of SwKr4 billion (£345 million) last year. Linnaeus runs 87 pet centres and employs about 1,400 people, including 360 vets. Although Mars, which is still owned by the founding family, is best known as a confectionery and food group, it has owned a pet-food business since 1935, with brands such as Iams, Pedigree and Royal Canin. Charles Hall, an analyst at Peel Hunt, said: “We would expect Mars to aim to be No 1 in Europe and see these two deals as the first steps. Mars will probably continue to add individual businesses to add scale to Linnaeus, and having bought Anicura will probably look to acquire another of the majors to achieve its overall ambitions. Mars is not afraid of paying up, having paid $7.7 billion for VCA Antech, the largest US vet care business, last year.” Mars is tipped to consider making an approach to Vet Partners, controlled by August Equity. The group has more than 2,900 staff at more than 260 sites. In 2016 Mars looked at Independent Vetcare (IVC), then the third largest veterinary group in the UK with almost 300 sites, when it was put up for sale by Summit Partners, but it was taken over in an estimated £580 million deal by EQT, a Scandinavian private equity firm, which merged IVC with its existing Evidensia business, operating across Northern Europe. According to analysts, pet owners are forming stronger ties with animals, to some extent because of the trend towards later marriages, having children later in life and higher divorce rates. Owners are also opting for more complex medical treatment to prolong the lives of their cats and dogs. Mars has launched a $100 million venture capital fund aimed at backing start-ups focusing on areas from nutrition to genetics. Figures suggest that British pet owners spent £4.2 billion last year on veterinary and pet services, roughly twice as much as in 2005. This has transformed UK veterinary practice ownership, such that by the end of this year half of Britain’s practices could be in corporate hands, rising to 70 per cent in five years. Another company seeking to capitalise on these trends is Pets at Home, Group, which as well as selling pet products at its 448 stores, has vet practices and grooming salons at many of them. Last month the group said that it had 461 practices, of which 309 were in its stores and 152 in standalone locations run by joint venture veterinary partners, as well as four referral centres. Its hybrid concept has yet to convince, however, with its shares still languishing at half its 245p flotation price four years ago. One problem on the horizon for the industry is finding enough vets to cope with expansion. In November CVS said that it needed to increase salaries to attract vets and nurses, particularly in the light of Brexit, leading it put up charges and potentially hitting volumes.
lomax99
12/6/2018
14:41
Move gaining momentum, long overdue.
lomax99
09/6/2018
13:58
Mars clearly paid up(big time)for Linnaeus. Hence CVS creep up last week. CVS should be at 12 quid within a month.
elway1
08/6/2018
10:17
Here is a link re the Mars acquisition of Linnaeus Https://www.vettimes.co.uk/news/mars-set-to-buy-linnaeus-group/ Https://www.insidermedia.com/insider/midlands/veterinary-group-sold-by-private-equity-firm A bite sized morsel, the FD at Linnaeus knows CVSG well, having held the same position there.
lomax99
07/6/2018
23:30
This now looks cheap believe it or not. Mars just bought biggest competitor for record sums it looks like.
elway1
04/6/2018
15:50
What's with today?!? Surprised this is still below the recent placing price.
lomax99
04/5/2018
14:35
What's with today?!?
rob762243
02/5/2018
17:43
Risk more to the upside I suspect, should see full year contributions from the 62 surgeries acquired/integrated throughout FY ending June 2017. If this breaks below 800 I am doubling my holding!
lomax99
02/5/2018
12:46
It seems the rate of cvs practice aquisition has already slowed right down which is a tad worrying given the 40 million raised by their options in Feb. I’m guessing July will be a mixed bag. Improved profit but down on growth due to slower acquisitions compared to last year. A similar report to pre Christmas. Hopefully not as I guess the above scenario would sent it down to <800
hkre3
02/5/2018
09:00
Interesting article on the consolidation/corporatisation of the profession: Http://news.vin.com/VINNews.aspx?articleId=48559 C. 30% (1650, out of c. 5,500) practices are in the hands of the 4 largest players. I wonder if CVSG will give an interim update on acquisition progress before their usual trading update in late July.
lomax99
29/4/2018
18:23
Personally happy to stick with it.
lomax99
29/4/2018
18:19
Down on placing price. Avoid
r ball
29/4/2018
16:43
BlackRock Smaller Companies Trust has just released their annual report, CVS is their 4th largest holding and they comment: 'Earnings growth has been strong for several years and we expect this to continue.'Https://www.oilandgas360.com/blackrock-smaller-companies-trust-plc-annual-financial-report/
lomax99
03/4/2018
16:21
Adding here, see BlackRock have added another c 2.6m shares at a healthy discount to the recent placing price.
lomax99
02/4/2018
12:36
Article in Times today about a vet drug supplier , vetplus , being blackballed and unable to supply IVC, the largest vet practice owner in UK. Doesn't read too well for CVS as they seem to slaughter their model for profit and more profit.
wilsonst1
23/3/2018
14:30
Adding a few here.
lomax99
20/3/2018
15:37
Yes, but largely by the non-exec. The CEO sold a small amount of his options, and kept the rest, increasing his overall holding.
lomax99
20/3/2018
15:30
Directors share sales so close to fundraising. Mmmmmmmmm
wilsonst1
20/3/2018
15:26
Don't think so, market jittery and memories of the recent plunge to c. 830's. They got the recent placing away at 10.75, so not convinced this has much further to go before it bounces, but who knows! Tempted to add around here.
lomax99
20/3/2018
15:10
Is there any indication as to why it’s happening? There’s no pending financial updates unless my timeline is wrong. recently acquired two more practices. Doesn’t seem to be a reason for ~6% drop in a couple of weeks?
hkre3
20/3/2018
14:19
Well that was quick, think I will leave it a tad longer!
lomax99
20/3/2018
11:21
Drifting, looking to add sub £10.
lomax99
20/2/2018
13:40
iii Stockwatch Stockwatch: A 'buy' signal, or screaming 'sell' Does a drop in the AIM-listed shares of £700 million veterinary services group CVS Group (CVSG) merit buying into? Or is a softer trading statement, followed by a placing to prop up the show, more likely a 'sell' signal? There's also a wider question about whether a plethora of "buy-to-build" groups now reflect risks similar to the late 1980s when acquisitions were in vogue. Most analysts say the 1987 stockmarket crash did not reflect the real economy; it was down to "portfolio insurance"trading. But it was also a timely reaction against 1980s excesses, which caused plenty of over-stretched companies to fall apart come the early 1990s recession. True, accounting reforms have closed some loopholes encouraging aggressive practice, and non-executive chairmen counter a focus of power in CEOs. But there's a similarity in the way balance sheets show strain and highly-valued stocks are exposed to any slowdown in the underlying business. This time around, interest rates have been much lower and for longer, guaranteeing pain when they do rise, given corporate/personal debt levels are higher even than 2007. Specifically, regarding CVS Group, it appears dependent on acquisitions, at least to deliver anywhere near the growth rates investors look for. When "buy-to-build" works, and eventually doesn't The modern aim is typically to "rationalise a fragmented industry", achieving economies of scale from buying inputs for example, hence avoiding the risks of over-stretched conglomerates. "Focused diversification" has, however, met its own strains recently, with outsourcers feeling the pressure of government spending and FTSE 250-listed Dignity (DTY) becoming complacent towards online rivals. On the face of it, there isn't a lot of benefit to sweeping vets' practices into a listed group. Pet-owners appreciate quality of care, more likely seen to derive from a private clinic than a plc. CVS has introduced cross-selling of pet insurance, food, drugs and even funerals, though, in due respect, it operates seven referral centres across the UK - hospitals offering top-quality care - a competitive advantage. But the biggest financial driver is exploiting a valuation gap on which it can acquire vet practices - in recent years, on about 8 times annual cash flow up to 10 times currently -helped by relatively cheap long-term debt and, more recently, share placings. While the latest one at 1,075p was a discount to recent market prices, it represents 23 times projected earnings for the year to June 2018, assuming they do double (see table). Management cites a £40 million pipeline of acquisitions and, indeed, the music could continue a few more years given CVS's modest 14% share of the UK small animals' veterinary market. Attractions in acquiring vet practices Pre-1999, vets had to own their practices, but de-regulation has seen the emergence of corporate buying. There is inherent motivation to sell out for a lump sum: while vets can earn decent salaries, it's far less easy to sell/pass on the business - younger vets nowadays loaded with student/mortgage debt and vets' offspring may be seeking a fresh career. Secondly, vet practices ought to offer relatively good quality earnings. Pet owners often want the best for their animals; supposedly a third of British people are in single households, likewise older people may appreciate the company that pets offer. Animal shelters do tend to report influxes during hard times, but checking CVS's annual reports over 2008-10 the group's organic progress was good. Disappointment last November The AGM was told of July to October total sales up 20.6% (after acquisitions) but like-for-like up only 4.3%, "reflecting greater general uncertainty in the UK economy and some shortage of clinicians in the UK." Like-for-like sales were only 1.5% without the contribution from Animed Direct, the UK's biggest online seller of drugs which is high-growth albeit low-margin. CVS plans to attract more clinicians by raising salaries, hence prices, which assumes overall demand proves sticky. Time will tell. The stock thus fell 44% from its 2017 high, to 830p, as classic "ex-growth" fears deflated a forward price/earnings (PE) ratio near 32 times. The latest £60 million placing at 1,075p bolsters prospects, but CVS's financial balancing act will get trickier if Brexit and inflation/interest rates hurt consumers. Should underlying trading continue to lack vigour, the stock is exposed to drop again, a prospective yield of 0.5% offering no prop. In fairness, the placings are relatively recent CVS has evolved progressively: founded in 1999 and floated in 2007 at 205p, its shares rising seven-fold by last November. In due respect, high prices relate also to a modest 64.1 million shares issued, a healthy sign affirming strong cash flow profile (see table) and mitigating the need to issue shares for development, at least until the acquisitions rate has quickened. At end-2016, £30 million was raised via a placing at £10 a share. The market has lapped up the story, a positive bias in its stock reflected by an annual average historic PE well over 50 times (see table). Fine, so long as the music continues. Last Friday's interims reported earnings per share (EPS) down 25% to 7.8p due to intangible assets amortisation, deferred considerations and costs of acquisitions, weighing. Writing back amortisation, however, operational cash flow rose 37% to £26.5 million. A dichotomy of "normalised versus reported" earnings tends to get tolerated for so long as an acquirer's story is overall strong. If not, then this can also weigh on sentiment. As vets realise they are in demand and practices get dearer, CVS is diversifying into equine treatment where there is lower competition to buy practices, also into the Netherlands. Beware balance sheet issues At end-2017, intangibles represented 203% of net assets, quite inevitable anyway for an acquirer of "people businesses". I'm more concerned by a lack of explanation in the accounts, where trade payables (money owed to suppliers etc) exceed trade receivables (money due in) by £20 million or 58%. Thus, despite cash-at-bank rising to £10.3 million, the company's debtors can't promptly be settled. Such an acid test may be harsh but begs the question also whether profits are being enhanced by delayed payments. By way of comparison at Carillion, its end-June 2017 trade payables were 69% in excess of receivables, and suppliers complained bitterly about 120 days payment practices once the company entered liquidation. Not to suggest CVS is built on sand, rather that all companies should justify such a material imbalance, in notes to the accounts. Of £127 million debt at end-2017, 97% was long-term, the £1.7 million interest charge clipping 21% off operating profit. There was also a £200,000 "amortisation of debt arrangement fee" within £1.9 million interim finance expenses. Deferred income tax liabilities edged up 8% to £16.6 million. Thus, a placing looks as if it was prudent anyway, to bolster finances. Potentially more a'short' than a'long' Call me cautious, but I think all this adds up to investors reckoning CVS shares have had their best run. If the UK economy doesn't weaken, then spending on pets and further acquisitions may prop up the show, but the market will see through this if like-for-like trading remains stalled. Yes, the chairman bought £91,150 worth of shares last December at 911.5p, taking his holding to 110,000 shares, but in a mass of detail on the 1,075p placing, it's not clear if any directors/managers bought at all. I would not touch CVS until at least another update, and despite no disclosed short positions, it's one to watch for further downside if Brexit and interest rates disrupt consumer spending. Avoid.
lomax99
Chat Pages: 27  26  25  24  23  22  21  20  19  18  17  16  Older
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