DAVY VIEW

CVS results this morning highlight the group’s excellent revenue growth prospects and pricing power. Following 8% like-for-like (LFL) revenue growth and 30bps of margin expansion in FY 22, the first ten weeks of this financial year are off to a ‘strong’ start. With net debt/EBITDA at just 0.4x, increasing development capex and a ‘healthy’ deal pipeline, the prospects for future organic and inorganic growth remain strong. We expect to hear more about the group’s medium-term capital allocation ambitions at the Capital Markets Day on November 8th.