Cvs Share Discussion Threads

[5dma] 26/9/2009 14:05

Im long from £1.22 and added yesterday. The share price held up even with the director sale which is the important thing, the price action looks great as long as it dosent close below £1.57, the rest is irelevant only price pays.

[undervaluedassets] 26/9/2009 11:44

I worry about that mr Innes. He strikes me as very greedy

directors pay has jumped from 452,000 to 821000 (2008 report)

and mr Innes' pay jumped from 252,000 to 360,000

now he sells 500k shares

he wants that big mansion too quickly!

I also think that there should be at least one vet amongst the directors. I find it a concern that there is not.

the growth prospects look startling though I will give you that.

just do not want to see the directors kill the golden goose with greed (especially as this is a vetinary business and thus geese should maintained in perfect health)

[eburne1960] 25/9/2009 19:28

Pity the Chief Exec doesn't share your enthusiasm - he's sold a third of his shares!

[hootster] 25/9/2009 10:50

Seems to be coming back to Life, profit takers out the way and next leg up IMHO ;-))


REGARDS

THE HOOT.........

[ian77] 24/9/2009 09:33

Seems to be on the back burner now, still holding although with hindsight should have taken profits on spike.

[hootster] 23/9/2009 08:04

Off and Running ;-)


REGARDS THE HOOT...

[hootster] 22/9/2009 22:23

Positive Press another Up day tomorrow me thinks ;-))





From Times

CVS Group

CVS Group, Britain's biggest owner of veterinary practices, bears more than a passing resemblance to Dignity, the quoted undertaker. Most immediately, they share the same chairman and financial adviser.

But CVS has also borrowed its business model, reaping the benefits of scale from consolidating a highly fragmented sector that is dominated by small private companies. So it might come as no surprise that CVS has now also entered Dignity's niche, albeit the animal version. This year, it bought its first pet crematorium and has plans to pick up more. Given that vets dispose of about 50 per cent of cats and dogs, that move makes sense and enables CVS to capture some of the margin that previously it had given away.

But if the shares rose 17 per cent yesterday, that was because full-year results show that trading has got no worse. Having been up between 4 per cent and 5 per cent before the downturn, like-for-like sales have stabilised at 2 per cent. That indicates the pressure on CVS's revenues (largely from pet owners cutting back on discretionary treatments for worming and fleas) has abated and may even start to reverse. In the interim, its scope to acquire practices, which can be funded from cashflow, is undiminished. At 167p, or 11 times earnings, HOLD ON.

[hootster] 22/9/2009 16:56

Well Done for all those that Managed to jump on the ride when I was first Alerted around the 1.30 Level to this Little Gem, IMHO the ride has Only just Started and a re-rating short term to IPO level of £2.00 is not out the Question.

Certain to get Good Press Coverage tomorrow and see further Leg up IMHO.


BEST REGARDS THE HOOT...........

[hootster] 22/9/2009 16:02

Here we go Gone 165 Choice ;-))

Only Panmure on the Offer and we go 170

REGARDS THE HOOT......

[hootster] 22/9/2009 15:46

Late Push for Stock Looks like there are Not Many Sellers ;-))

Should expect Good Press 2Moro ;-))


REGARDS THE HOOT...........

[ted32] 22/9/2009 12:42

More than happy with the results. Topped up again

[hootster] 22/9/2009 12:20

Looks Like Next Leg Up .... Panmure Pushing the Bid ;-))



REGARDS THE HOOT......

[hootster] 22/9/2009 12:05

Shares in CVS Group Plc (CVSG.L) rise 13.7 percent after the veterinary services company posts a 72 percent rise in full-year operating profit, aided by growth across all its three operating divisions, and says it is confident of its future.

"We argue that three key features of the CVS model are highly attractive -- making acquisitions at multiples well below its own, increased scale driving enhanced gross margins from improved supply terms, and head office leverage as the overall business grows," says analyst James Wheatcroft of Evolution Securities.

[hootster] 22/9/2009 12:04

LONDON (SHARECAST) - Shares in CVS gained after the vet services supplier reported a 71.9% jump in full-year operating profits and said it is confident in the group's future.

Operating profit rose to £7.01m in the year ended 30 June compared with £4.08m last time. Revenue was up 23.3% to £76.61m, with like for like sales growth of 2%.

The new financial year has also started well, the group said, with all three operating divisions continuing to trade profitably.

'The focus on the delivery of growth, both organically and through acquisition, across all divisions as well as the focus on the generation of cash and profit, will continue,' said chairman Richard Connell.

'Having delivered strong results in a period of general economic uncertainty, we are confident that the group is well positioned to continue driving the business forward,' he added.

[hootster] 22/9/2009 08:42

Beckaroo not Holding Back This Time Onwards and Upwards !!

REGARDS THE HOOT..........

[hootster] 22/9/2009 08:34

Panmure and KBC pushing Hard for Stock ;-))
Chart saying this one is going back to 195-2.00 Level IMHO

DYOR Etc....

REGARDS THE HOOT........

[hootster] 22/9/2009 08:15

Big Boys Joining the Party 80k and 75k at the Offer ;-))

REGARDS THE HOOT......

[beckaroo] 22/9/2009 08:13

Looking good hoot, great results and looks like it would be a chart breakout if it breaks 155, a level its failed at twice before.

[wjccghcc] 22/9/2009 08:12

Although market forecasts were for adjusted EPS of 12.2p and they only delivered 11.5p.

[hootster] 22/9/2009 08:08

Chart Breakout Lots of Blue Sky ;-)))


REGARDS THE HOOT.......

[hootster] 22/9/2009 07:54

Very Strong set of Results Think the Market will take a Very Positive View ;-))

REGARDS THE HOOT............

[hootster] 22/9/2009 07:37

RNS Number : 4275Z
CVS Group plc
22 September 2009

?
+-------------------------------------+-------------------------------------+
| For Immediate Release | 22 September 2009 |
+-------------------------------------+-------------------------------------+


CVS GROUP plc
("CVS", the "Company" or the "Group")


Preliminary Results for the year ended 30 June 2009


CVS, one of the UK's leading providers of veterinary services, is pleased to
announce its preliminary results for the year ended 30 June 2009.


Financial Highlights


+-------------------------------------------+----------+----------+-----------+
| | Year ended | % Change |
+-------------------------------------------+---------------------+-----------+
| | 30.06.09 | 30.06.08 | |
| | GBP'000 | GBP'000 | |
+-------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------+----------+----------+-----------+
| Revenue | 76,605 | 62,150 | +23.3 |
+-------------------------------------------+----------+----------+-----------+
| Adjusted EBITDA¹ | 12,496 | 9,613 | +30.0 |
+-------------------------------------------+----------+----------+-----------+
| Cash generated from operations | 12,380 | 6,504 | +90.3 |
+-------------------------------------------+----------+----------+-----------+
| Operating profit | 7,011 | 4,079 | +71.9 |
+-------------------------------------------+----------+----------+-----------+
| Profit before tax | 4,444 | 124 | N/A |
+-------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------+----------+----------+-----------+
| Earnings/(loss) per share | | | |
+-------------------------------------------+----------+----------+-----------+
| Adjusted ² | 11.5p | 8.0p* | +43.7 |
+-------------------------------------------+----------+----------+-----------+
| Basic | 5.9p | (0.7p)* | N/A |
+-------------------------------------------+----------+----------+-----------+


¹ - See page 8 of the financial information for a reconciliation of profit
before income tax for the period to adjusted earnings before income tax, net
finance expenses, depreciation, amortisation, other gains, share option expense
and exceptional items ("Adjusted EBITDA").


² - See note 6 of the financial information for a reconciliation of basic and
diluted earnings per share to adjusted earnings per share.
* Restated - see note1 to the financial information for details.


Operating Highlights


* Like for like sales growth of 2%.
* Successfully acquired and integrated 17 surgeries, bringing the total to 168 at
year end.
* First pet crematorium and cemetery acquired during year.
* Over 60% of financialyear's acquisition consideration funded by internally
generated cash.



Commenting on these results, CEO Simon Innes said:


"The Group has delivered significant growth in revenue, profits and operating
cashflows in the year. Our track record of achieving improvements in adjusted
EBITDA margin together with the growth opportunities available to us, underpins
the Board's confidence in the Group's future. The resilience of the business to
the current recession augurs well for the time when more normal economic
conditions return."


Contacts:


+-------------------------------------+-------------------------------------+
| CVS Group plc | 01379 644 288 |
| Simon Innes, Chief Executive | |
| Paul Coxon, Financial Director | |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
| Buchanan Communications | 020 7466 5000 |
| Richard Oldworth/Suzanne Brocks | |
+-------------------------------------+-------------------------------------+


Chairman's statement
Introduction and review of operations
I am pleased to announce the results of CVS Group plc for the year ended 30 June
2009. This is a very strong set of results despite the recent turbulent economic
climate. The Group has continued to grow and deliver significant improvements in
all financial metrics.
CVS is one of the leading providers of veterinary and related services in the UK
with 168 veterinary surgeries, 6 laboratories and a pet crematorium. The Group
is comprised of three operating divisions and a central support function. We
have seen growth across all three operating divisions during the year.
Veterinary services
This is the primary division generating 88.6% (GBP67.88m) of Group revenues. The
division has delivered 20% revenue growth (GBP11.21m) over the prior year, and
includes the impact of the acquisition of 17 new surgeries.
Laboratory services
The laboratory division generated 10.8% (GBP8.29m) of Group revenues. The
laboratory division delivered 51% revenue growth (GBP2.81m), a key factor of
which was the full year impact of the significant expansion of this division
through the acquisition of Axiom Laboratories in the prior year.
Crematorium services
In the current period, the Group expanded into the crematorium market with the
acquisition of its first site near Bolton. The crematorium contributed GBP0.44m
of revenue in the current year, of which 15% was derived from the Group's
veterinary surgeries.
Central administrative function
The central administrative function of the Group provides support to the
operating divisions, relieving them of the majority of their administrative
burden and enabling local staff to focus on clinical care and other value added
services.


Cash flow and funding position
Operating profit for the year amounted to GBP7.01m. Adjusted EBITDA (as defined
on page 1) of GBP12.50m demonstrates the underlying financial performance of the
Group and the ability to turn this into cash is reflected in cash generated from
operations of GBP12.38m. In the first half of the year cash generated was used
in conjunction with bank financing to fund acquisitions. In the second half of
the year the Group has funded all of its acquisitions from cash whilst also
reducing net debt by GBP1.50m. The Group will continue to use cash from
operations to fund acquisitions and will commence making repayments of debt in
December 2009.
The Group has complied with all bank covenants throughout the period.
Dividends
The Board, at this point in time, believes that cash generated from operations
should continue to be reinvested in the business, and as such the Directors
propose that no dividend should be declared for the year ended 30 June 2009. The
Board will continue to review its dividend policy on an ongoing basis.
Profit after tax and earnings per share
Profit after tax was GBP3.04m, a substantial increase from a loss of GBP0.34m
(as restated) in the prior year. The increase is due to organic growth, growth
from acquisitions and exceptional IPO related costs incurred in the prior year.
Earnings per share have increased significantly compared to the prior year.
Basic and diluted earnings per share were 5.9p and 5.8p respectively, compared
to a loss per share of 0.7p (as restated) in the prior year. Adjusted EPS (as
defined on page 1) was 11.5p compared to 8.0p (as restated) in the prior year.
Chairman's statement (continued)
Our people
The Group continues to be the largest employer in the UK veterinary profession
with 1,750 staff. The Group currently employs around 393 vets out of an
estimated total of 12,312 practising vets in the UK, giving further indication
of the significant scope left for expansion in the UK market. Our people
continue to be key to the Group in delivering its strategy. I would like to
thank each of them for their skill and professionalism in providing the best
possible care and service.
Strategy
We will continue our strategy of growth through acquisition in the fragmented UK
veterinary market combined with organic growth of existing surgeries. We aim to
continue to deliver improved returns from the acquisition of veterinary related
businesses by growing and managing them more efficiently, centralising
administration and utilising the buying power of the Group. In addition, the
ability to provide laboratory and crematorium services facilitates vertical
integration and drives further efficiencies.
The Directors believe that CVS has 7-8% of the UK small animal veterinary market
measured by wholesaler spend, which demonstrates the significant opportunity for
further consolidation.
Outlook
The new financial year has started well with all three operating divisions
continuing to trade profitably. In addition there has been a further acquisition
of Falkland Veterinary Clinic, Newbury.
The focus on the delivery of growth, both organically and through acquisition,
across all divisions as well as the focus on the generation of cash and profit,
will continue. The Group has succeeded in establishing a resilient business base
from which it can build and will continue to seek ways to extract operational
efficiency. Having delivered strong results in a period of general economic
uncertainty, we are confident that the Group is well positioned to continue
driving the business forward.


Richard Connell
Chairman


21 September 2009


Business and financial review
The Group has delivered significant growth in revenues, profitability and cash
generation compared to the prior year. Total Group revenue increased by 23% to
GBP76.61m and cash generation increased by 90% to GBP12.38m. The newly acquired
veterinary practices and crematorium contributed revenue of GBP5.72m during the
year.


Divisional performance
Veterinary services
The Group is a leading national veterinary surgery consolidator, operating 168
veterinary surgeries across the UK, primarily focused on the small animal
market. Revenue amounted to GBP67.88m, an increase of 20% over the prior year.
The growth comes from a combination of turnover in relation to the 17 surgeries
acquired in the year, the full year impact of surgeries acquired in the prior
year and like for like sales growth of 2%.
The annualised turnover from these newly acquired surgeries is expected to be in
excess of GBP9m. In addition, a further surgery has been acquired since the year
end and it is expected to contribute an annualised turnover of around GBP1m. The
Group also opened its first Greenfield site within the period, the results of
which have been encouraging.
The increased scale of this division brings significant benefits in purchasing
power on drugs, overheads and equipment. The Directors believe that several
factors are currently contributing to the stability of the market for veterinary
services in the UK, including growing and ageing pet populations, advances in
veterinary medical science, changes in the demographic profile of the human
population and growth in the pet insurance industry.
Furthermore, the veterinary services division provides an increasing base of
surgeries which are a significant contributor to the growth opportunities of the
laboratory and crematorium divisions.
Laboratory services
The Group operates 6 laboratories in the UK which provide laboratory services to
the Group's veterinary surgeries (20% of revenues) and also to non-Group
veterinary surgeries (80% of revenues). Services are generally provided via
postal and courier services allowing complete coverage of the UK.
The laboratory division grew revenues by 51% from GBP5.48m in the prior year to
GBP8.29m in the current year. This has been achieved through like for like sales
growth and the full year impact of Axiom Veterinary Laboratories Limited which
was acquired in the prior year.
Crematorium services
The Group generated GBP0.44m of revenues from its newly acquired crematorium.
The performance of this facility has been ahead of management expectations to
date. This facility provides services to a large number of the Group's
surgeries as well as to non-Group surgeries and to the general public. Since
acquisition, pet crematorium work emanating from CVS veterinary practices in the
Midlands and North of England have been re-routed to this facility on a phased
basis. Of the revenues generated post acquisition, 15% are intra-group.
Central costs
The central administrative costs of the Head Office continue to reduce as a
proportion of Group turnover reflecting the synergies that are being achieved
from centralising this function. There has also been a focus on improving
margins through achieving better procurement deals.


Adjusted EBITDA
The Board considers that adjusted EBITDA and adjusted earnings per share (as
described in the financial highlights on page 1) provide the most meaningful
basis for assessing the underlying performance of the Group, albeit these terms
are not defined by International Financial Reporting Standards and therefore may
not be directly comparable with other companies' adjusted profit measures.
Adjusted EBITDA has grown by 30% from GBP9.61m to GBP12.50m, increasing from
15.5% to 16.3% of revenue.
Business and financial review (continued)
Adjusted EBITDA (continued)
These increases are due to a combination of factors, including:
* acquisitions
* like for like revenue growth
* improved buying terms so that the cost of drugs margin has improved by 1.5%
* productivity improvements (as % of sales)
* central overhead cost reductions (as % of sales)


Other financial highlights
Operating profit has increased by 72% from GBP4.08m to GBP7.01m. The prior year
profit was after charging exceptional costs of GBP1.76m relating to AIM
admission costs.
The Group recorded a profit after income tax for the year of GBP3.04m (2008:
loss of GBP0.34m as restated). There were exceptional administrative and
financial expenses of GBP2.32m in the prior year plus a fair value movement of
GBP0.35m on financial liabilities that did not qualify for hedge accounting.
After adjusting for these items profit after tax grew by 30.5%.
Cash generated from operations increased by 90% to GBP12.38m from GBP6.50m
(increase of 50% after taking into account exceptional items in the prior
period). The increased cash generation has allowed the Group to partly fund
acquisitions made in the first half of the year and to completely fund
acquisitions in the second half. The conversion ratio of profit to cash is
nearly 100%, evidenced by an adjusted EBITDA of GBP12.50m generating GBP12.38m
of cash from operations.
Adjusted earnings per share was 11.5p, 44% up from 8.0p in the prior year (as
restated). Basic and diluted earnings per share were 5.9p and 5.8p respectively
(2008: basic and diluted: loss of (0.7p) per share (as restated)). A
reconciliation of the two numbers is provided in note 6 to the financial
information.
Key performance indicators ('KPIs')
The Directors monitor progress against the Group strategy by reference to the
following financial KPIs. Performance during the year, together with the
historical trend data, is set out in the table below:


+------------+-----------+----------+------------------------------------------+
| | 2009 | 2008 | Definition, method of calculation and |
| | | | analysis |
+------------+-----------+----------+------------------------------------------+
| Adjusted |GBP12.50m |GBP9.61m | Adjusted EBITDA represents earnings |
| EBITDA | | | before income tax, net finance |
| | | | expense, depreciation, amortisation, |
| | | | other gains, share option expense and |
| | | | exceptional items. The increase is |
| | | | attributable to acquisitions and |
| | | | improvements in like for like sales |
| | | | and is in line with expectations. |
+------------+-----------+----------+------------------------------------------+
| Adjusted | 16.3% | 15.5% | Adjusted EBITDA margin is the ratio of |
| EBITDA | | | adjusted EBITDA to revenue expressed |
| margin % | | | as a percentage. The improvements in |
| | | | this margin demonstrate the ability of |
| | | | the Group to derive value from |
| | | | acquisitions as well as on-going |
| | | | operational improvements. |
+------------+-----------+----------+------------------------------------------+
| Adjusted | 11.5p | 8.0p* | Earnings, adjusted for amortisation, |
| EPS | | | share option expense, exceptional |
| | | | items and fair value adjustments, net |
| | | | of the notional tax impact of the |
| | | | above, divided by the number of issued |
| | | | shares. The increase reflects the |
| | | | factors outlined above. |
+------------+-----------+----------+------------------------------------------+
| Cash |GBP12.38m |GBP6.50m | Cash generated from operations has |
| generated | | | increased in line with the improvement |
| from | | | in adjusted EBITDA. |
| operations | | | |
+------------+-----------+----------+------------------------------------------+
*Restated as per note 1 to the financial information.
Business and financial review (continued)
Funding and treasury management
As at 30 June 2009, the Group had net debt of GBP40.78m (2008: GBP40.02m)
comprising debt of GBP43.57m (net of issue costs) and cash of GBP2.79m.
Borrowings have increased by GBP3.11m to fund acquisitions and cash has
increased by GBP2.40m due to positive cash generation.
The Board considers that maintaining a leveraged balance sheet is appropriate
for the Group, given the stable and predictable nature of its cash flows.
Net finance expenses of GBP2.57m represent a decrease of GBP1.39m (35%) compared
to the previous year, reflecting a number of one-off costs in the prior year
relating to the pre-flotation debt structure and the write-off of issue costs on
bank debt refinanced at flotation. The Group benefitted from interest rate
reductions on its floating rate debt but the benefit of these was offset by
higher average borrowings in the current year compared to the prior year.
The Group has a centralised treasury function to manage interest rate risk.
Derivative instruments are used solely to mitigate these risks. Interest rate
collar arrangements are used to generate the desired interest profile and to
manage exposure to interest fluctuations, whilst allowing some benefit of
reductions in interest rates. At the year end, the Group had interest hedging
arrangements in place covering GBP32m of debt. The Group sweeps funds daily from
its various bank accounts into deposit accounts to optimise interest generation.
The above has the benefit of maximising shareholder returns, whilst leaving
sufficient flexibility to invest in the growth of the business.
The Board anticipates that borrowings will reduce on the commencement of bank
loan repayments in December 2009.


Business environment
The Group has seen some impact from the current economic climate with like for
like sales falling from 4-5% in previous years down to 2% in the current year.
The achievement of growth, albeit reduced on the prior year, is regarded by the
Board as being an indicator of the resilience of the business and the veterinary
market.


Principal risks and uncertainties
The Group's operations are subject to a number of risks that include the impact
of competition, availability of practices for acquisition, continued employment
and recruitment of key personnel and the maintenance of clinical standards.
Competition
The Group is exposed to a degree of risk through the actions of competitors.
However, the geographic spread of the Group's businesses and the fragmented
nature of the market mean that the Directors do not consider this to be a
significant risk.
Availability of businesses for acquisition
The Group's acquisition strategy is subject to the availability of suitable
businesses. The Directors believe that corporate-owned veterinary practices
represent 18% of the UK small animal market measured by number of surgeries and,
accordingly, that there is significant potential for further consolidation of
the sector. In support of this, the Group maintains a significant pipeline of
potential acquisitions. There are approximately 140 pet crematoria in the UK, of
which CVS owns only 1, again demonstrating the potential for further
acquisitions. There are also opportunities to acquire further diagnostic
laboratories in the UK.
Key personnel
The Group has limited risk in relation to the ability to attract and retain
appropriately qualified veterinary surgeons. The Group is committed to the
development of its employees and will continue to recruit specialist and
qualified professionals to promote its services. The involvement of senior
personnel is encouraged through the operation of the Group's LTIP scheme. In
addition, the SAYE scheme, available to all staff, was initiated in the current
year.


Business and financial review (continued)
Clinical standards
It is of the utmost importance to the Group that the clinical care delivered to
our patients is at the standard expected by customers, industry forums and
regulatory authorities. The Group has established a formal organisation
structure that allows clinical policies and procedures to be developed and
ensure day-to-day compliance monitoring. The Group has further mitigated any
risk by ensuring that suitable insurance policies are taken out at both an
individual and corporate level.
Economic environment
The current economic environment potentially poses a risk to the Group through
reduced consumer spending on veterinary, laboratory and crematorium services. In
the year under review, the Group has shown resilience to the challenging
economic conditions with like for like sales continuing to grow. As part of its
mitigation of this risk, the Group has established a payment plan "loyalty"
scheme within its veterinary services division which has in excess of 9,000
members, the principal benefits of which are customer loyalty, greater clinical
compliance and more regular visits to the surgery.


Key contractual arrangements
The directors consider that the Group has only one significant third party
supplier contract which is for the supply of veterinary drugs. In the event that
this supplier ceased trading the Group would easily continue in business by
purchasing from alternative suppliers.


Future developments
We will continue our strategy of growth through acquisition in the fragmented UK
veterinary and crematoria market combined with organic growth of existing
practices, laboratories and crematoria. We aim to continue to deliver post
acquisition improved returns from the acquired veterinary businesses by growing
and managing them more efficiently, centralising administration, stronger
purchasing and leveraging the synergies of the augmented Group. The Group will
also continue to seek to strengthen its geographical presence in the UK.






Simon Innes
Chief Executive
21 September 2009
















Forward-looking statements
Certain statements in these preliminary results are forward-looking. Although
the Board believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these expectations will
prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.


Consolidated income statement for the year ended 30 June 2009
+------------------------------------------------+------+-----------+-----------+
| |
+------------------------------------------------+
| |Note | 2009 | 2008* |
| | | GBP'000 | GBP'000 |
+------------------------------------------------+------+-----------+-----------+
| Revenue | 2 | 76,605 | 62,150 |
+------------------------------------------------+------+-----------+-----------+
| Cost of sales | | (45,657) | (38,121) |
+------------------------------------------------+------+-----------+-----------+
| Gross profit | | 30,948 | 24,029 |
+------------------------------------------------+------+-----------+-----------+
| Exceptional administrative expenses | 3 | - | (1,764) |
+------------------------------------------------+------+-----------+-----------+
| Other administrative expenses | | (23,937) | (18,502) |
+------------------------------------------------+------+-----------+-----------+
| Total administrative expenses | | (23,937) | (20,266) |
+------------------------------------------------+------+-----------+-----------+
| Other gains | | - | 316 |
+------------------------------------------------+------+-----------+-----------+
| Operating profit | | 7,011 | 4,079 |
+------------------------------------------------+------+-----------+-----------+
| Fair value adjustments in respect of financial | 4 | (48) | (347) |
| assets and liabilities | | | |
+------------------------------------------------+------+-----------+-----------+
| Exceptional finance expense | 4 | - | (556) |
+------------------------------------------------+------+-----------+-----------+
| Other finance expense | 4 | (2,580) | (3,184) |
+------------------------------------------------+------+-----------+-----------+
| Finance income | 4 | 61 | 132 |
+------------------------------------------------+------+-----------+-----------+
| Net finance expense | | (2,567) | (3,955) |
+------------------------------------------------+------+-----------+-----------+
| Profit before income tax | 2 | 4,444 | 124 |
+------------------------------------------------+------+-----------+-----------+
| Income tax expense | 5 | (1,406) | (463) |
+------------------------------------------------+------+-----------+-----------+
| Profit/(loss) for the period attributable to | | 3,038 | (339) |
| equity shareholders | | | |
+------------------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------------------+------+-----------+-----------+
| Earnings/(loss) per ordinary share for profit/(loss) attributable to the |
| equity holders of the Company (expressed in pence per share) ("EPS") |
+-------------------------------------------------------------------------------+
| Basic | 6 | 5.9p | (0.7p) |
+------------------------------------------------+------+-----------+-----------+
| Diluted | 6 | 5.8p | (0.7p) |
+------------------------------------------------+------+-----------+-----------+
*Restated as per note 1 to the financial information.
All amounts relate to continuing operations, including the impact of business
combinations arising during the year.
The following table is provided to show the comparative earnings before
interest, tax, depreciation and amortisation ("EBITDA") after adjusting for
exceptional administrative expenses, other gains and share option expense.


+------------------------------------------------+------+----------+----------+
| |
+------------------------------------------------+
| Non-GAAP measure: Adjusted EBITDA |Note | GBP'000 | GBP'000 |
+------------------------------------------------+------+----------+----------+
| Profit before income tax | 2 | 4,444 | 124 |
+------------------------------------------------+------+----------+----------+
| Adjustments for: | | | |
+------------------------------------------------+------+----------+----------+
| Exceptional administrative expenses | 3 | - | 1,764 |
+------------------------------------------------+------+----------+----------+
| Net finance expense | 4 | 2,567 | 3,955 |
+------------------------------------------------+------+----------+----------+
| Depreciation | | 1,526 | 1,042 |
+------------------------------------------------+------+----------+----------+
| Amortisation | | 3,842 | 2,934 |
+------------------------------------------------+------+----------+----------+
| Other gains | | - | (316) |
+------------------------------------------------+------+----------+----------+
| Share option expense | | 117 | 110 |
+------------------------------------------------+------+----------+----------+
| Adjusted EBITDA | | 12,496 | 9,613 |
+------------------------------------------------+------+----------+----------+


Consolidated balance sheet as at 30 June 2009
+----------------------------------------+--------+------------+------------+
| | Note | 2009 | 2008* |
| | | GBP'000 | GBP'000 |
+----------------------------------------+--------+------------+------------+
| Non-current assets | | | |
+----------------------------------------+--------+------------+------------+
| Intangible assets | | 41,886 | 37,272 |
+----------------------------------------+--------+------------+------------+
| Property, plant and equipment | | 7,467 | 6,757 |
+----------------------------------------+--------+------------+------------+
| Investments | | 67 | 399 |
+----------------------------------------+--------+------------+------------+
| Deferred income tax assets | | 455 | 426 |
+----------------------------------------+--------+------------+------------+
| Derivative financial instruments | | - | 613 |
+----------------------------------------+--------+------------+------------+
| | | 49,875 | 45,467 |
+----------------------------------------+--------+------------+------------+
| Current assets | | | |
+----------------------------------------+--------+------------+------------+
| Inventories | | 1,972 | 1,829 |
+----------------------------------------+--------+------------+------------+
| Trade and other receivables | | 5,431 | 5,108 |
+----------------------------------------+--------+------------+------------+
| Cash and cash equivalents | | 2,792 | 392 |
+----------------------------------------+--------+------------+------------+
| | | 10,195 | 7,329 |
+----------------------------------------+--------+------------+------------+
| Total assets | | 60,070 | 52,796 |
+----------------------------------------+--------+------------+------------+
| Current liabilities | | | |
+----------------------------------------+--------+------------+------------+
| Trade and other payables | | (8,452) | (8,272) |
+----------------------------------------+--------+------------+------------+
| Current income tax liabilities | | (1,169) | (54) |
+----------------------------------------+--------+------------+------------+
| Borrowings | 8 | (1,924) | (50) |
+----------------------------------------+--------+------------+------------+
| | | (11,545) | (8,376) |
+----------------------------------------+--------+------------+------------+
| Non-current liabilities | | | |
+----------------------------------------+--------+------------+------------+
| Borrowings | 8 | (41,644) | (40,410) |
+----------------------------------------+--------+------------+------------+
| Deferred income tax liabilities | | (4,942) | (5,205) |
+----------------------------------------+--------+------------+------------+
| Derivative financial instruments | | (1,463) | - |
+----------------------------------------+--------+------------+------------+
| | | (48,049) | (45,615) |
+----------------------------------------+--------+------------+------------+
| Total liabilities | | (59,594) | (53,991) |
| | | | |
+----------------------------------------+--------+------------+------------+
| Net assets/(liabilities) | | 476 | (1,195) |
+----------------------------------------+--------+------------+------------+
*Restated as per note 1 to the financial information.


Consolidated balance sheet as at 30 June 2009 (continued)
+----------------------------------------+--------+------------+------------+
| | | 2009 | 2008* |
| | | GBP'000 | GBP'000 |
+----------------------------------------+--------+------------+------------+
| Shareholders' equity | | | |
+----------------------------------------+--------+------------+------------+
| Share capital | | 103 | 103 |
+----------------------------------------+--------+------------+------------+
| Capital redemption reserve | | 592 | 592 |
+----------------------------------------+--------+------------+------------+
| Revaluation reserve | | 125 | 125 |
+----------------------------------------+--------+------------+------------+
| Merger reserve | | (61,420) | (61,420) |
+----------------------------------------+--------+------------+------------+
| Retained earnings | | 61,076 | 59,405 |
+----------------------------------------+--------+------------+------------+
| Total shareholders' equity/(deficit) | | 476 | (1,195) |
+----------------------------------------+--------+------------+------------+
*Restated as per note 1 to the financial information.




The financial information comprising the consolidated income statement, the
consolidated balance sheet, the consolidated statement of changes in
shareholders equity, the consolidated cash flow statement and the related notes,
were authorised for issue by the Board of Directors on 21 September 2009 and
were signed on its behalf by:








+------------------------------------+------------------------------------+
| P Coxon | S Innes |
| Director | Director |
+------------------------------------+------------------------------------+






Consolidated statement of changes in shareholders' equity for the year ended 30
June 2009
+---------------------------+---------+-------------+------------+----------+----------+---------+
| |
+---------------------------+
| | | Revaluation | Capital | Merger | Retained | |
| | Share | reserve | redemption | reserve | earnings | Total |
| | capital | | reserve | | | equity |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| At 1 July 2007 as | 103 | 125 | - | (61,420) | 59,648 | (1,544) |
| previously stated | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Prior year adjustment | - | - | - | - | 154 | 154 |
| (see note 1) | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| At 1 July 2007 as | 103 | 125 | - | (61,420) | 59,802 | (1,390) |
| restated | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Fair value movement of | - | - | - | - | 587 | 587 |
| cash flow hedging | | | | | | |
| derivative | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Revaluation of available | - | - | - | - | (7) | (7) |
| for sale investments | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Deferred tax relating to | - | - | - | - | (164) | (164) |
| items charged directly to | | | | | | |
| retained earnings | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Net income recognised | - | - | - | - | 416 | 416 |
| directly in equity | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Transfer to capital | - | - | 592 | - | (592) | - |
| redemption reserve | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Retained loss for the | - | - | - | - | (339) | (339) |
| financial year | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Total recognised income | - | - | 592 | - | (515) | 77 |
| and expenses | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Credit to reserves for | - | - | - | - | 110 | 110 |
| share-based payments | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Deferred tax relating to | - | - | - | - | 8 | 8 |
| share-based payments | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| | - | - | - | - | 118 | 118 |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| At 30 June 2008 as | 103 | 125 | 592 | (61,420) | 58,980 | (1,620) |
| previously stated | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Prior year adjustment | - | - | - | - | 425 | 425 |
| (see note 1) | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| At 30 June 2008 as | 103 | 125 | 592 | (61,420) | 59,405 | (1,195) |
| restated | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Fair value movement of | - | - | - | - | (2,028) | (2,028) |
| cash flow hedging | | | | | | |
| derivative | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Revaluation of available | - | - | - | - | (16) | (16) |
| for sale investments | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Deferred tax relating to | - | - | - | - | 568 | 568 |
| items charged directly to | | | | | | |
| retained earnings | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Net income recognised | - | - | - | - | (1,476) | (1,476) |
| directly in equity | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Retained profit for the | - | - | - | - | 3,038 | 3,038 |
| financial year | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Total recognised income | - | - | - | - | 1,562 | 1,562 |
| and expenses | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Credit to reserves for | - | - | - | - | 117 | 117 |
| share-based payments | | | | | | |
| | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| Deferred tax relating to | - | - | - | - | (8) | (8) |
| share-based payments | | | | | | |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| | - | - | - | - | 109 | 109 |
+---------------------------+---------+-------------+------------+----------+----------+---------+
| At 30 June 2009 | 103 | 125 | 592 | (61,420) | 61,076 | 476 |
+---------------------------+---------+-------------+------------+----------+----------+---------+
Consolidated cash flow statement for the year ended 30 June 2009
+--------------------------------------------+------+-----------+-----------+
| |Note | 2009 | 2008 |
| | | GBP'000 | GBP'000 |
+--------------------------------------------+------+-----------+-----------+
| Cash flows from operating activities | | | |
+--------------------------------------------+------+-----------+-----------+
| Cash generated from operations before | | 12,380 | 8,268 |
| exceptional payments | | | |
+--------------------------------------------+------+-----------+-----------+
| Exceptional administrative expenses* | | - | (1,764) |
+--------------------------------------------+------+-----------+-----------+
| Cash generated from operations | 9 | 12,380 | 6,504 |
+--------------------------------------------+------+-----------+-----------+
| Taxation paid | | (828) | (95) |
+--------------------------------------------+------+-----------+-----------+
| Interest received | | 61 | 132 |
+--------------------------------------------+------+-----------+-----------+
| Interest paid | | (2,658) | (3,418) |
+--------------------------------------------+------+-----------+-----------+
| Net cash generated from operating | | 8,955 | 3,123 |
| activities | | | |
+--------------------------------------------+------+-----------+-----------+
| Cash flows from investing activities | | | |
+--------------------------------------------+------+-----------+-----------+
| Acquisition of businesses | 7 | (5,793) | (5,673) |
+--------------------------------------------+------+-----------+-----------+
| Acquisition of subsidiaries (net of cash | 7 | (2,510) | (6,322) |
| acquired) | | | |
+--------------------------------------------+------+-----------+-----------+
| Purchase of property, plant and equipment | | (1,538) | (2,099) |
+--------------------------------------------+------+-----------+-----------+
| Purchase of intangible assets | | (45) | (23) |
+--------------------------------------------+------+-----------+-----------+
| Proceeds from sale of property, plant and | | 2 | 17 |
| equipment | | | |
+--------------------------------------------+------+-----------+-----------+
| Proceeds from sale of available for sale | | 316 | - |
| investments | | | |
+--------------------------------------------+------+-----------+-----------+
| Net cash used in investing activities | | (9,568) | (14,100) |
+--------------------------------------------+------+-----------+-----------+
| Cash flows from financing activities | | | |
+--------------------------------------------+------+-----------+-----------+
| Finance lease principal payments | | (38) | (13) |
+--------------------------------------------+------+-----------+-----------+
| Repayment of loan stock, preference shares | | - | (11,714) |
| and associated redemption premiums | | | |
+--------------------------------------------+------+-----------+-----------+
| Repayment of bank loan | | (18) | (20,455) |
+--------------------------------------------+------+-----------+-----------+
| Proceeds from long-term borrowings | | 3,069 | 40,929 |
+--------------------------------------------+------+-----------+-----------+
| Net cash from financing activities | | 3,013 | 8,747 |
+--------------------------------------------+------+-----------+-----------+
| Net increase/(decrease) in cash and cash | | 2,400 | (2,230) |
| equivalents | | | |
+--------------------------------------------+------+-----------+-----------+
| Cash and cash equivalents at start of | | 392 | 2,622 |
| period | | | |
+--------------------------------------------+------+-----------+-----------+
| Cash and cash equivalents at end of period | | 2,792 | 392 |
+--------------------------------------------+------+-----------+-----------+
*Cash paid in respect of exceptional administrative expenses incurred in
relation to the Company's admission to the Alternative Investment Market - see
note 3 for further details.


Notes to the consolidated financial information for the year ended 30 June 2009


1. Summary of significant accounting policies
Basis of preparation
The preliminary announcement for the year ended 30 June 2009 has been prepared
in accordance with the EU-adopted International Financial Reporting Standards
("IFRS"). The financial information contained in this preliminary announcement
does not constitute statutory accounts as defined in Section 435 of the
Companies Act 2006. The financial information has been extracted from the
financial statements for the year ended 30 June 2009, which have been approved
by the Board of Directors and on which the auditors have reported without
qualification. The financial statements will be delivered to the Registrar of
Companies after the annual general meeting. The financial statements for the
year ended 30 June 2008, upon which the auditors reported without qualification,
have been delivered to the Registrar of the Companies.
The consolidated financial statements have been prepared on a going concern
basis and under the historical cost convention, except for certain financial
instruments and share-based payments that have been measured at fair value.


The Group has operated within the levels of its current debt facility and
complied with both the financial and non-financial covenants contained in the
facility agreement therein throughout the year under review and to the date of
the approval of the financial statements. The Group is forecasting that it will
continue to operate within the levels of its current facility and comply with
the financial and non-financial covenants contained in the facility agreement.
On this basis the Directors consider it appropriate to prepare the consolidated
financial statements on the going concern basis.


The accounting policies used are consistent with those set out in the annual
report for the year ended 30 June 2008, copies of which are available on
request.
Prior year adjustments
In accordance with IFRS 3 "Business Combinations," provisional goodwill and fair
value adjustments made in the consolidated financial statements for the year
ended 30 June 2008 (in respect of the acquisition of Axiom Veterinary
Laboratories Limited on 9 January 2008) have been finalised in the period under
review and the required adjustments have been reflected in the comparative
financial information. The final adjustments have been to separately reflect
goodwill and deferred tax liabilities amounting to GBP1,032,000. The comparative
income statement has been adjusted to reflect the impact of the above
adjustment, the effect of which is to reduce the income tax charge for the year
(and thereby reduce the reported loss for the year ended 30 June 2008) by
GBP32,000.


Further to the above, in accordance with the provisions of IAS 8 "Accounting
policies, changes in accounting estimates and errors," a prior year adjustment
has been made to recognise deferred tax liabilities (in accordance with the
provisions of IAS 12 "Income taxes") arising on intangibles acquired in certain
business combinations in prior periods that were not previously recognised with
a corresponding adjustment to goodwill. The effect of this adjustment in the
year ended 30 June 2008 is to increase goodwill by GBP2,555,000; increase
deferred tax liabilities by GBP2,162,000; reduce the income tax charge for the
year (and thereby reduce the reported loss for the year ended 30 June 2008) by
GBP239,000 and increase brought forward retained earnings by GBP154,000.


The effect of the above restatements is to increase reported basic and diluted
EPS from (1.2p) to (0.7p) and increase adjusted EPS from 7.2p to 8.0p for the
year ended 30 June 2008.
1. Summary of significant accounting policies (continued)
Use of non-GAAP profit measures


Adjusted EBITDA
The Directors believe that adjusted EBITDA provides additional useful
information for shareholders on underlying trends and performance. These
measures are used for internal performance analysis. Adjusted EBITDA is not
defined by IFRS and therefore may not be directly comparable with other
companies' adjusted profit measures. It is not intended to be a substitute for,
or superior to, IFRS measurements of profit. Adjusted EBITDA is calculated by
reference to profit/(loss) before income tax, adjusted for interest (net finance
expense), depreciation, amortisation, other gains, share option expense and
exceptional items.
2.Segmental reporting
Segment information is presented in respect of the Group's business and
geographical segments. The primary format, business segments, is based on the
Group's management and internal reporting structure. Inter-segment pricing is
determined on an arm's length basis.
Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly interest-bearing borrowings and associated
costs, taxation related assets/liabilities, intangible assets and related
amortisation and head office salary and premises costs. Segment capital
expenditure is the total cost incurred during the period to acquire segment
assets that are expected to be used for more than one period, including
acquisitions through business combinations.
Geographical segments
The business operates predominantly in the UK. It performs a small amount of
laboratory work for European based clients. In accordance with IAS 14 "Segment
reporting", no segmental results are presented for trade with European clients
as the geographical location of the assets generating the revenue is the UK.
Business segments
The Group is split into veterinary practices, laboratories and crematoria for
business segment analysis:
+-------------------------+------------+--------------+--------------+----------+----------+
| Year ended 30 June 2009 | Veterinary | Laboratories | Crematorium | Head | Group |
| | practices | GBP'000 | GBP'000 | office | GBP'000 |
| | GBP'000 | | | GBP'000 | |
+-------------------------+------------+--------------+--------------+----------+----------+
| Revenue1 | 67,879 | 8,286 | 440 | - | 76,605 |
+-------------------------+------------+--------------+--------------+----------+----------+
| Amortisation | (3,443) | (255) | (27) | (117) | (3,842) |
+-------------------------+------------+--------------+--------------+----------+----------+
| Depreciation | (1,159) | (209) | (16) | (142) | (1,526) |
+-------------------------+------------+--------------+--------------+----------+----------+
| Profit before income | 9,801 | 873 | 174 | (6,404) | 4,444 |
| tax | | | | | |
+-------------------------+------------+--------------+--------------+----------+----------+
| Total assets | 49,553 | 8,935 | 1,060 | 522 | 60,070 |
+-------------------------+------------+--------------+--------------+----------+----------+
| Total liabilities | (8,530) | (981) | (110) | (49,973) | (59,594) |
+-------------------------+------------+--------------+--------------+----------+----------+
| Capital expenditure | 1,969 | 105 | 68 | 107 | 2,249 |
| -tangible | | | | | |
+-------------------------+------------+--------------+--------------+----------+----------+
| Capital expenditure | 7,565 | 8 | 847 | 36 | 8,456 |
| -intangible | | | | | |
+-------------------------+------------+--------------+--------------+----------+----------+
1Inter-segment revenue of GBP1,707,000, representing laboratory and crematorium
sales to veterinary practices, has been eliminated


on consolidation.













2. Segmental reporting (continued)


+------------------------------+------------+--------------+-----------+-----------+
| Year ended 30 June 2008 | Veterinary | Laboratories | Head | Group |
| | practices | GBP'000 | office | GBP'000 |
| | GBP'000 | | GBP'000 | |
+------------------------------+------------+--------------+-----------+-----------+
| Revenue1 | 56,674 | 5,476 | - | 62,150 |
+------------------------------+------------+--------------+-----------+-----------+
| Amortisation | (2,784) | (126) | (24) | (2,934) |
+------------------------------+------------+--------------+-----------+-----------+
| Depreciation | (856) | (109) | (77) | (1,042) |
+------------------------------+------------+--------------+------

[hootster] 16/9/2009 13:27

Large Order just Filled at 150 (82,839 + 194,439 + 276,000) Someone wants the Stock Bad !! Brakes Coming Off ;-))

REGARDS

THE HOOT......

[hootster] 16/9/2009 11:29

L2 Bid is being Pushed but as over the last few days no Sellers ;-))


REGARDS

THE HOOT...........

[hootster] 16/9/2009 11:27

Hi Ted

I am Very Very Selective which Companies I Buy !! And a vey good friend of mine on a recent Trip to Germany pointed these out to me and suggested I should pick up a Few ;-)))

Very Undervalued business and one of those that is not too affected by the current recession.

Main reason I am told for recent Slide and Excellent buying Opportunity was Institutional seller, this has been swept up and IMHO we should be back up to levels close to IPO Very Soon.

Results next week will not be negative and should indicate that the Business is Growing.

I have been adding ;-))

As Always DYOR Etc....


BEST REGARDS

THE HOOT...........