CVS had a very good year in 2015, achieving a cumulative return for the year of 70.94%. This is particularly notable as it is one of the lowest risk stocks in the AIM portfolio, with a standard deviation of 18.42%.
CVS operates in veterinary practices, veterinary diagnostic business, pet crematoria and online pharmacy business. The company has reported increases in revenue, net profit, and total assets for the past 4 years, and recently enjoyed another record year for financial success in all divisions as of September 2015. The company continues to increase earnings per share, which was reported as being 13.30% in the 2015 report. (CVS, 2015)
The company continues its strong focus on growth through acquisition of both veterinary practices and Crematoriums. As of the September report, CVS reported an impressive annual acquisition confirmation of 29 surgeries, and 1 crematorium. It also noted the further 8 surgeries it planned to acquire shortly after the year end. CVS’s current financials are remarkable considering the level of growth the company is experiencing. On the 4th December, it was reported that CVS has reached a deal to acquire Albavet Ltd and The Pet Crematorium Ltd, and has secured a new financing facility as the company continues to expand and build its business through acquisition. It is expected that each of these businesses will be complementary to the group’s existing businesses. The acquisition of The Pet Crematorium particularly is expected to boost CVS’ geographical coverage in that particular sector. The new financing deal signals that more growth for the company is on the horizon.
This year, CVS has launched initiatives such as the opening of a multi-disciplinary referral centre, whose benefits are expected to be observed in 2016. At the moment, it is estimated that the company holds a 12% share of the UK small animal veterinary market, and small share of the large animal veterinary market. With continued growth on the horizon, and an already solid balance sheet, the outlook for CVS is promising.
Opinions constitute our judgment as of this date and are subject to change without warning. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. Past performance is not a reliable indicator of future results and forecasts are not a reliable indicator of future performance. The information in this document was correct as of 11/01/2016.