One of the largest integrated veterinary services providers in the UK is unveiling its results for the year to June on Thursday.

CVS Group's operations in the north-east include six vet practices at Elgin, Macduff, Turriff, Strichen, Fraserburgh and Peterhead.

They are among 500-plus surgeries the business owns in Britain, the Republic of Ireland and the Netherlands.

CVS said in a trading update in the summer that the board was mindful of inflationary pressures and the wider economic backdrop.

But it added: "The group is very well placed for further growth in the next financial year and beyond with a strong balance sheet and committed undrawn bank facilities - which can be used to fund investment in our practice refurbishment and relocation strategy, technology advances, greenfield sites and acquisitions."

Matt Britzman, an equity analyst at Hargreaves Lansdown, said the pet boom during the pandemic was among factors which had helped recent performance at CVS.

Organic sales up

He added: "Back in July, the group announced full-year organic sales up 8% on a like-for-like basis.

"That doesn't mean it's been plain sailing, though. This week's full-year results will shed light on whether cost-saving programmes have been effective at offsetting inflation.

"The group is expecting to deliver underlying cash profits (EBITDA) margin in line with the previous financial year.

"Servicing growing demand has been a bugbear for the entire industry, with it becoming increasingly difficult to attract qualified vets to take up role openings.

"CVS ran at a 10.4% vacancy rate last year - up from 8.3% the year before.

"Commentary from management on how the group expects that trend to play out in the new financial year would be welcome.

Strong balance sheet

"A strong balance sheet supports acquisitions which are a key growth driver for CVS. The group has already made one acquisition this financial year - a vet practice in Peterborough.

"It'll be interesting to hear further news this week, especially relating to overseas expansion."

FTSE 100

The London Stock Exchange market is closed today. The FTSE 100 reopens for trading tomorrow morning. It ended Friday down 45 points at 7,236.

Brent crude futures were 0.80% higher earlier today at $92.08 a barrel.

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