Company Profile

CVS Group (CVS) is a UK veterinary services provider that operates an integrated model across four divisions: (1) Veterinary Practices, which is the core division of the group and accounts for c.90% of group profits; (2) Laboratories, where diagnostic services are provided; (3) Crematoria, which manages vet practice waste disposal and personalised pet cremations; and (4) Animed Direct, its online retail business for animal medicines and food. CVS is the second-largest player in a consolidating UK market. A new leadership team is bringing management best practices to bear across the group's portfolio and leveraging the strength of CVS's integrated model. We think this, coupled with attractive industry fundamentals, could drive double-digit organic earnings growth over the medium term. We also see very material inorganic earnings optionality from further UK market consolidation.