Cvs Share Discussion Threads

[davr0s] 25/3/2021 10:26

Solid uptrend, great reaction to news and most importantly a dead quiet board - as good as it gets in this game

[whatja] 02/2/2021 16:49

I would add dechra pharmaceuticals to the IC list.
Has grown steadily and consistently.
Doubled my investment over 5 years....never had a serious down in that time.

[energeticbacker] 01/2/2021 12:46

CVS Group announced a strong financial performance for the 6 months to 31 December 2020 with sales up 9.4% to £245.6m, of which like-for-like sales increased by 7.8%.

That is a terrific performance over a very tricky period, highlighting the resilience of this growing sector.

More detail on Investor's Champion's website.

[energeticbacker] 21/12/2020 10:26

The growth in pet ownership over lockdown and owner’s desires to keep their pets fit and healthy has been great news for the pet care sector. However, who are going to be the long-term winners from the current pet boom?

Investor’s Champion’s research highlights some terrific companies which should continue to do well, including a star performer. #ancr #chwy #cvsg #elan #idxx #nesn #pets #zts

[lomax99] 26/11/2020 19:16

Pleased with progress, already a very LTBH for me.

[energeticbacker] 26/11/2020 17:39

Another great update covered by long term supporter Investor's Champion in their latest update

[dogwalker] 26/11/2020 15:08

Oh ok. See what you mean. A different view : a temporary moderating of enthusiasm. On a more usual timeframe, e.g. on a daily basis,the shares look very bullish .

[from8to800] 26/11/2020 14:03

Price reversed rather sharpishly. Not the strong response I was expecting where it'd open up and steadily drift higher throughout the day.

[from8to800] 26/11/2020 13:01

Massive u turn. Bad sign.

[luderitz] 22/11/2020 16:07

Generally true in a lot of cases Diku.

[diku] 21/11/2020 13:19

You know when Private Equity guys bring company to market...the juice has been sucked out...and PI's generally hung up high and dry...

[1jat] 21/11/2020 13:04

I’m sticking with cvsg

[lomax99] 20/11/2020 16:52

FT Lombard today:

IPO for vet services group IVC is likely to test the market’s animal spirits

Lockdown Britain has a puppy shortage and a surfeit of stock market dogs. Veterinary services company IVC Evidensia, a beneficiary of the former, has all the makings of the latter.

Private Equity group EQT and Nestle, IVC’s current owners, are planning a London listing for early next year. They see a business worth up to £12bn at the enterprise value level, at least according to
excitable bankers who have attached themselves to the plan. Investor might ask what exactly has changed since IVC’s funding round in February last year, which set the headline enterprise value at just £3bn.

The answer appears obvious. Homeworking has given time-poor commuters the opportunity of pet ownership. Google Trends data picked up a doubling of UK searches for “vets near me” in the five months after the March lockdown as new owners looked to vaccinate and neuter their new companion.

Pets being for life, the trend is likely to withstand recession. Like-for-like sales at CVS, the UK listed vet owner, hardly budged throughout the downturn of 2007 to 2011. Its shares have surged more than six-fold from March lows on expectations of a repeat performance.

CVS and its private equity-backed rivals take advantage of industry economics that favour buying over building. They buy up independent practices with long customer lists then use scale to squeeze down costs. When the time comes to sell, consolidators such as the US behemoth Mars Petcare have been rapacious customers.

The playbook has limits, however, mandatory services such as 24-hour locums are a cap on cost cutting potential so earnings can flatline soon after acquisition. Analysis from RBC Capital Markets found the between 2009 and 2017 CVS bought £26.1m of ebitda by taking over 255 practices, yet group ebitda rose by just £29.7m.

While not much is known yet about IVC’s finances, a Fitch report from August hints as a roll-up vehicle that is running out of road. The debt rating agency expects sales to grow just 5 per cent by 2024 and records negative fee cash flow for 2019 as net debt ballooned to 9 time ebitda, likely choking the bid pipeline. Perhaps lockdown has transformed these numbers but if that is the case, why would the sellers be selling?

London needs to shake its reputation for overhyped floats, particularly those that give private equity a timely exit. If an IVC arrives anywhere close to its mooted valuation, investors are being served another dog’s dinner.

[whatja] 09/11/2020 17:08

It has been a topsy turvy day.
CVSG has been relatively stable.....So maybe these are sold to chase the Covid shares that might gain.

[dogwalker] 09/11/2020 13:18

Spoke too soon.Today, it looks as if a vaccine for Covid-19 means people will take their pets to the vet less than they have been , or something.

[dogwalker] 06/11/2020 11:19

Nice break-out after yesterday's mid-morning large purchase.

[whatja] 05/10/2020 15:43

Volume stimulated by news. share price has been relatively stable since the July update and sept results.
Good time to be adding regularly.

[from8to800] 05/10/2020 14:13

Volume seems to be drying up. Can sometimes be the predecessor to a big surge which moves the price (hopefully upwards).

[1jat] 24/9/2020 21:16

Lots to like with an excellent update on the first two months.
Anecdotally the vets are very busy, they are operating safely and profitably.

IMHO this is looking like a much stronger business.
I expect there will be a number of small practices that will want to sell up and CVSG will be paying less to acquire them.
One to believe in again.

[waldron] 24/9/2020 16:25

Outlook

Through the actions taken during the COVID-19 pandemic, and the support and professionalism of our colleagues, CVS is well positioned to withstand any future Brexit or COVID-19 disruption and deliver future growth.

We saw a continuing strong recovery from the close of the last financial year, which was faster than expected to reach pre COVID-19 levels. Trading for the first two months of this year are ahead of budget and up 3.5% on the prior year, with LFL sales similarly up 3.9%. Adjusted EBITDA was also comfortably ahead of that seen in the prior year (+6.4%). This primarily reflects continued clinical care and increased referrals. Cash generation remained strong in the first two months and leverage further reduced to 0.8x creating a further buffer against business disruption and the ability to invest in future growth.

I look forward to delivering our new strategy and sharing further success in the future.

Richard Fairman

Chief Executive Officer

24 September 2020

[waldron] 24/9/2020 16:23

Dividends

Having taken advantage of government support during the COVID-19 pandemic, and in line with the approach taken by many other companies, the Board does not intend to recommend the payment of a final dividend.

Shareholder engagement

Prior to COVID-19, the Directors regularly held one-to-one meetings and calls with shareholders. Although the Directors temporarily suspended issuing guidance due to COVID-19, we continue our regular interactions with shareholders.

Outlook

CVS operates in a sector with favourable market and consumer trends, with pet owners who remain willing to spend money on their pets and medical enhancements increasing the range of services we can offer.

COVID-19 severely impacted our business in the last quarter of this financial year, reducing our revenues. CVS was eligible for, and successfully accessed, the Coronavirus Job Retention Scheme and placed over half of all employees on furlough. CVS also accessed support from taxation authorities in the UK and the Netherlands. I am pleased to say that post year-end, all of our employees have now returned from furlough leave.

As described more fully in the CEO's statement, trading in the first two months has been encouraging.

Despite continued uncertainty over Brexit, I am confident that CVS is well positioned to avoid significant adverse impacts from the UK's decision to exit the EU. Pharmaceutical manufacturers and wholesalers are increasing their stock levels in order to reduce the risk of supply shortages and, following the acquisition of Vet Direct in 2018, CVS now controls more directly its equipment and consumables supplies.

Looking ahead, we welcome the positive environment for acquisitions and are well placed to take advantage of growth opportunities.

The pace of growth in the UK economy may be impacted by Brexit and COVID-19 uncertainty, but the veterinary sector has proven to be resilient in past periods of economic downturn and the Board believes that CVS is well-positioned to withstand any potential future downturn.

Richard Connell

Chairman

24 September 2020

[energeticbacker] 24/9/2020 16:18

What a difference a new management team can make, with greater focus on the business rather than a manic acquisition strategy. One of Investor's Champion's favourites reflected in the latest update

[lomax99] 24/9/2020 08:48

Solid set of results, given the impact of COVID, encouraging start to the new financial year bodes well.

[sarkasm] 06/9/2020 09:42

(Investors Chronicle) Britain’s largest veterinary-services company operates more than 500 practices. Levels of pet ownership have risen steadily over the last ten years and “rocketed” under lockdown. The number of insured pets has risen too, which will “help to protect CVS’s income in an economic downturn”. The reopening of its small-animal sites has boosted sales. The forward price/earnings ratio of 23 does not fully reflect the company’s potential. 1,205p