CVS Group disappoints again, but is the sell-off overdone?
Having reassured with a more positive trading update in January, shares in the UK’s leading veterinary group took another beating this week after a disappointing trading update. Is it time to give up on this hitherto high-flying cash machine, or keep the faith?
CVS Group (AIM:CVSG) now operates a total of 482 veterinary surgeries - 458 in the UK, 21 in the Netherlands and 3 in the Republic of Ireland - an online dispensary, four diagnostic laboratories and seven pet crematoria. It’s therefore a substantial player in what remains a highly fragmented market. - So, what ‘s gone wrong? The latest trading update covered results for the financial year ending 30 June 2018. Total Group revenue for the year was up 20.7% to £327m. CVS is a highly acquisitive business and much of that growth came from acquisitions, however, like-for-like growth was still…