CVS Group PLC on Thursday said it was confident in its future despite reporting a decline in interim profit amid higher costs.

The Norfolk, England-based veterinary services provider said pretax profit fell 16% to £23.4 million in the six months to December 31, from £28.0 million a year prior.

CVS shares fell 5.2% to 1,508.08 pence each on Thursday afternoon in London.

Revenue rose 11% to £329.9 million from £296.3 million. However, cost of sales also increased 11% to £188.8 million from £169.6 million.

Administrative expenses increased 18% to £112.5 million from £95.2 million.

CVS noted the continued inflationary pressures on its margins, which it expects to continue over the near term, amid a wider macroeconomic backdrop.

Despite the profit fall, the company declared a dividend of 7.5 pence per share, up 7.1% from 7.0p in 2022.

Looking ahead, the company said it is confident in delivering sustainable long-term growth.

Interim Chair Deborah Kemp said: ‘We will continue our investment in our people, technology and our clinical facilities in order to support further organic growth. This will be augmented by investment in our exciting pipeline of selective acquisitions and development of exceptional greenfield sites. In the second half of 2024 to date, we have completed a further small animal practice acquisition in the UK for an initial consideration of £5.2 million.

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