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LONDON (Alliance News) - CVS Group PLC on Thursday said sales grew in the four months to the end of October, but it is expecting to suffer a tighter margin for its year due to staffing costs.
Shares in the veterinary services business were down 11% at 650.00 pence on Thursday.
Veterinary nurse and surgeon costs have increased above inflation since January 1, as have market rates for locums. In fact, locum rates were 14% higher in the recent four-month period than a year prior.
Due largely to these increased employment costs, CVS is expecting to post lower earnings before interest, tax, depreciation and amortisation margins for its current financial year, which ends June 30.
At its company's annual general meeting on Thursday, the company will announce a 25% total sales increase in the four months ended October 31 compared to the year-ago period. Like-for-like sales, meanwhile, increased 4.7%.
All of CVS's divisions reported revenue growth for the four month period, most strongly in the Practices division, where sales total grew 25% and 3.8% on a like-for-like basis.
Within its Practices division, CVS said that 375 of its active client base have joined its Healthy Pet Club, membership of which starts at GBP11.99 per month.
The most recent acquisitions by CVS include specialist equine and farm animal veterinary practices as it works to diversify.
In its current financial year-to-date, CVS has acquired 26 surgeries with its total number of practice sits now at 498.
"The group continues to have a strong pipeline of acquisition opportunities and we expect to complete a number of further acquisitions in the remainder of the current financial year and beyond," CVS said.
