The CVS Group Plc Board is recommending the payment of a final dividend of 9.0p per Ordinary share (2025: 8.5p), maintaining our progressive approach to the dividend. The ex-dividend date is 7 November 2026 and the dividend payment date is 4 December 2026.
Other Financial Highlights:
- Full year revenue growth of 5.9% to £712.8m with like-for-like sales increasing by +2.1% (FY25: £673.2m, like-for-like +0.2%) underpinned by the strong market fundamentals and established position in two large markets, notwithstanding the sustained softer UK economic backdrop.
- Australian revenue increased to £79.1m (2025: £52.1m), benefitting from growth from acquisitions and now represents c.11% of Group revenue (2025: c.7%), across 57 practice sites (2025: 43 practice sites).
- Adjusted EBITDA increased to £141.5m from £134.6m, broadly in line with revenue growth, with margins stable at 19.9% (2025: 20.0%) within their stated guidance of 19% to 23%, despite an increase in National Insurance contributions and wage inflation.
- The Group recognised net Research and Development Expenditure Credits of £15.7m (2025: £15.1m), in line with the prior year, including a provision release of £6.6m (2025: £3.0m) that was expected following another year’s history of making claims.
- Adjusted EPS increased 6.9% to 85.6p from 80.1p benefitting from the increase in adjusted EBITDA.
- Profit before tax of £32.0m (2025: £32.6m) was impacted by an increase in depreciation and amortisation following capital investments and acquisitions in recent years, and costs related to both the Competition and Markets Authority (“CMA”) market investigation and the move to the Main Market of the London Stock Exchange that are exceptional by nature.
- The Group continued to benefit from favourable cash flow dynamics with operating cash conversion in the year of 70.6% (2025: 76.9%) and free cash flow of £69.2m (2025: £72.2m).
- Focus remains on long-term sustainable returns for shareholders through disciplined capital allocation with investment in capital expenditure of £36.4m (2025: £34.2m, £33.2m continuing operations) and acquisitions of £43.3m (2025: £29.2m) during the year.
- Completion of a £20m share buyback programme in January 2026. Continued strong cashflows and a strengthened balance sheet led to announcement of a further £50m programme in May 2026 of which £11.7m was completed by 30 June 2026 and is expected to conclude over the coming months. Therefore, £70m will have been returned to shareholders through share buybacks in just over 12 months.
- They have successfully refinanced their £350.0m loan facilities on improved terms, extending the term to May 2030 with an option for a further one year’s extension.
- Net bank borrowings increased to £199.6m from £131.4m and leverage increased to 1.63x (2025: 1.18x), below the <2.0x threshold.
