CVS Group PLC on Thursday said annual profit rose as revenue improved, prompting it to declare an increased dividend.

The Norfolk, England-based veterinary services provider said pretax profit rose 50% to £53.9 million in the financial year that ended June 30 from £36.0 million in financial 2022.

This was largely because revenue was up 10% to £608.3 million from £554.2 million, although like-for-like sales growth slowed to 7.3% from 8.0%.

Cost of sales rose 9.8% to £346.0 million from £315.1 million, while administrative expenses ticked up 1.9% to £200.0 million from £196.3 million.

Following the improved earnings performance, CVS opted to raise its final and only dividend by 7.1% to 7.5 pence for financial 2023 from 7.0p the year before.

Shares in CVS were up 1.6% to 1,533.25 pence each in London on Thursday morning.

‘I’m pleased that we have delivered another strong set of results, with good growth against all of our six strategic targets announced at our capital markets day in November 2022. Our continued focus on providing the best possible care to animals, led by our passionate and caring colleagues who are committed to high-quality veterinary care, has contributed to the strength of our performance,’ said Chief Executive Officer Richard Fairman.

‘I am delighted to announce we have now completed five acquisitions in Australia (comprising five sites) and a further two acquisitions in the UK (comprising two sites). We are excited by the opportunity Australia presents and delighted to welcome the teams from these Australian and UK practices into the group.’

Looking ahead, CVS said it has started financial 2024 well. It said it is pleased with the momentum in the business and that it continues to trade in line with market expectations.

It noted a ‘strong’ pipeline of additional acquisition opportunities in both the UK and Australia and it remains ‘well positioned’ to continue delivering attractive growth and shareholder value.

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