Cvs Share Discussion Threads

[lomax99] 12/3/2024 07:49

CMA



'12 March 2024: The Competition and Markets Authority (CMA) has published an update report and is consulting on whether to launch a market investigation into veterinary services for household pets in the UK.

The consultation will close at 5pm on 11 April 2024.'

[lomax99] 12/3/2024 07:45

It depends on what they find.

Sky News



t follows a review into the UK's £2bn veterinary industry by the Competition and Markets Authority (CMA) after concerns pet owners are not getting value for money.

The CMA said it had identified several concerns in the vet market - with the review prompting more than 56,000 responses from pet owners and professionals in the industry.

The watchdog found:

• Consumers may not be given enough information to enable them to choose the best veterinary practice or the right treatment for their needs

• Concentrated local markets, in part driven by sector consolidation, may be leading to weak competition in some areas

• Large corporate groups may have incentives to act in ways which reduce choice and weaken competition

• Pet owners might be overpaying for medicines or prescriptions

• The regulatory framework is outdated and may no longer be fit for purpose

The CMA said it has provisionally decided it should launch a formal market investigation focused on its provisional analysis of the issues in the sector and is now consulting on this proposal.

CMA chief executive Sarah Cardell said: "We launched our review of the veterinary sector last September because this is a critical market for the UK's 16 million pet owners.

[robertball] 12/3/2024 07:38

Yes and it's bad news

[lomax99] 12/3/2024 07:08

CMA apparently being published today.

[lomax99] 05/3/2024 08:25

Added a few.

[1c3479z] 29/2/2024 14:45

it's tricky, wage inflation, start-up costs at BVS, rising interest costs on borrowings and attitude of CMA are risks, they could make comment about the profitable laboratory, cremation divisions.
On the other hand, it churns out cash under normal circumstances.

[wad collector] 29/2/2024 14:07

So everything is good except borrowing costs. Not sure how the management can be sure that FY results will be in line unless they have some pretty reliable data on the next 6 months costs. Presumably they do.
Market not liking the numbers not surprisingly.
The dividend is a bit of an irrelevance , whether it will be 8p or 20p it is a piffling yield and not where
we will make any money here.
Obviously the CMA's slow processes continue to hang over CVS, but decided to add a few here. Bit of a punt at 1443p

[ariane] 29/2/2024 08:32

Dividends

A dividend of 7.5p (December 2022: 7.0p) per share was paid in December 2023 in respect of the financial year ended 30 June 2023. The Board will continue to review its dividend policy and anticipates the payment of a final dividend in respect of the current financial year, which will be payable in December 2024. In line with our customary practice, the amount of this dividend will be dependent on the outcome of the full year results and the growth capital needs of the business.



Current trading & Outlook

We remain confident of delivering sustainable long-term growth and delivery of our strategic goals.



We continue to execute on the strategy outlined at our Capital Markets Day in November 2022 and we extended our bank facilities in January 2024 so that we have committed bank facilities through to February 2028.



We continue to be mindful of the wider macroeconomic backdrop and the potential impact on demand as well as continued inflationary pressures on margins over the near term. However, the Board remains confident that full year results will be in line with market expectations and the strategy remains appropriate to deliver longer term sustainable growth in value.



We will continue our investment in our people, technology and our clinical facilities in order to support further organic growth. This will be augmented by investment in our exciting pipeline of selective acquisitions and development of exceptional Greenfield sites. In H2 2024 to date, we have completed a further small animal practice acquisition in the UK for initial consideration of £5.2m.



The Board would like to acknowledge and thank all members of the CVS team for their efforts to provide the very best care for animals, and with their support, we look forward to sharing continued success in the future.



Deborah Kemp

Interim Chair

29 February 2024

[dogwalker] 29/2/2024 08:07

Can't be faulted for profiteering then exactly.

[bulltradept] 29/2/2024 07:49

Profits have fallen, bank borrowings up..

[1c3479z] 28/2/2024 15:12

presuming the companies have made reasonably quick and full replies to the CMA queries, it seems to me that it's incumbent on the CMA to get on rapidly with their response- if they stipulated 'early 2024' then that's what they should mean, (and not Spring2024) otherwise the companies are disadvantaged and the whole market is in limbo. I don't believe in bureaucratic long-winded process unless it's a complicated situation or the industry hasn't been cooperating.

[disc0dave46] 25/2/2024 17:49

"We continue to support the CMA with their market review and look forward to a further update from the CMA in line with their current guidance of early 2024"Who knows!!

[1c3479z] 25/2/2024 16:06

when does the cma report?

[florenceorbis] 26/1/2024 11:37

Outlook

The Board is pleased with H1 2024 performance and, whilst it continues to be mindful of the weak economic backdrop, expects to deliver full year results in line with market expectations.



The Group remains excited by the growth opportunity in Australia with acquisitions made to date performing in line with its business case and a strong pipeline of acquisition opportunities in place.



The Group remains on track to deliver further growth over the longer term and the Board would like to thank all members of the CVS team for their continued dedication and support.

[iamnotanumber6] 26/1/2024 11:31

Berenberg believes CVS can deliver double-digit earnings growth
Veterinary services provider CVS Group (CVSG) is on track with its plan to grow, invest and acquire, a story that remains ‘highly attractive’, says Berenberg.

Analyst Calum Battersby retained his ‘buy’ recommendation and target price of £23.70 on the stock, which was trading at £16.73 on Thursday.

A first-half trading update for the six months to the end of 2023 showed the group’s ‘strong performance’ has continued, Battersby said, with 6% like-for-like revenue growth, stable year-on-year margins and a further 5.4% revenue contribution from acquisitions.

Battersby said the company’s growth strategy is ‘clearly working’ as it enjoyed a ‘combination of strong organic growth, investments in practice refurbishments and relocations, acquisitions in the UK and acquisitions in Australia’.

Although the market is currently focusing on the next update from the Competition and Markets Authority which is looking into value for money offered by vets, Battersby said the ‘underlying CVS story remains highly attractive’ and said investors ‘can expect double-digit compounding earnings growth for the foreseeable future’.

[babbler] 25/1/2024 07:53

Decent update.

[1jat] 06/12/2023 08:48

I have some Decra that is being taken over…..I can get 250 of these for every 100 DPH. With the current CMA investigation that looks like a good deal to stay with the Vet world a little longer.

[travis2] 30/11/2023 16:12

Agreed. I have been a long term observer of CVSG. They not only own a large number of Vet practices but the killer blow is that they also own one of the biggest online vet medicine outlets. Hence they profit twice, when selling to the practices as well as to the general public who have paid the vet for their animal's prescription. It's a win win for them. The regulator will make some token changes to make it look like they have done their job, but ultimately this business is solid and profitability will only increase in the long term.

[1jat] 30/11/2023 15:54

I think the market has over reacted to the CMA work.
I am expecting 20-30% rise in the share price when the report with some minor remedies is produced. In the meantime it is a reason not to buy for fund managers, hence the drift….

[ariane] 29/11/2023 07:44

Upcoming events on CVS Group plc



2024-March-28 Q2 2024 Earnings Release (Projected)

[la forge] 29/11/2023 07:14

Outlook

We continue to focus on the delivery of our well-defined strategy, with our purpose to give the best possible care to animals and our vision to be the veterinary company people most want to work for. We remain committed to investing in our practices and clinical equipment in order to drive quality services and organic growth.

We are delighted with the progress made in Australia in both completed acquisitions and in developing a strong pipeline of opportunities.

Whilst mindful of the wider macro-economic uncertainty, the Group continues to trade in line with full year market expectations and the Group remains well placed to achieve further growth over the longer term and to deliver on our five-year plan.

The Board would like to thank all members of the CVS team for their continued dedication and support.

[wad collector] 13/11/2023 14:30

Err, most businesses do...from Lawyers to Builders.

[wad collector] 09/11/2023 17:27

Who really wants to see the online pharmacies prosper over the veterinary ones? If the system changes to encourage taking prescriptions away ,then the vets will be forced to put up the fees for other services ; they still need to pay the bills and make a reasonable income. And with the chronic shortage in vets, they are in a strong bargaining position.
It is an interesting concept about monopolies, the CMA would have to tease out some complex data. What if you charge more in London? Is that allowed?