CVS Group (CVSG) H2 2026 Pre recorded earnings summary

Executive summary

• Achieved another year of growth and strategic progress, with revenue up 5.9% to GBP 712.8 million and adjusted EBITDA up 5.1% to GBP 141.5 million.

• Like-for-like revenue growth improved to 2.1% despite softer demand in the final quarter due to weak U.K. consumer confidence and extreme weather.

• Expanded presence in Australia with six acquisitions (14 sites) for GBP 43.3 million initial consideration.

• Successfully refinanced bank facilities through May 2030 on improved terms, with a one-year extension option.

• Returned £31.7m to shareholders via buybacks in FY26, with up to £38m more planned in FY27 and a GBP 50 million buyback announced in May.

Financial highlights

• Revenue increased by 5.9% year-over-year to GBP 712.8 million, with growth across all divisions.

• Adjusted EBITDA rose 5.1% to GBP 141.5 million, maintaining a 19.9% margin despite inflationary pressures.

• Adjusted EPS increased by 6.9% to GBP 0.856, aided by profit growth and share buybacks.

• Free cash flow was GBP 69.2 million, down due to adverse working capital movements.

• Net bank borrowings rose to GBP 199.6 million, reflecting investment in capex, acquisitions, and shareholder returns.

Outlook and guidance

• Confident in delivering further growth in shareholder value, with a solid start to the new financial year and expectations to perform in line with market expectations.

• FY 2027 expected to be in line with market consensus: adjusted EBITDA GBP 149.0m–GBP 151.7m, adjusted EPS 89.3p–99.6p.

• Continued focus on accretive acquisitions in the U.K. and Australia, with a disciplined approach to capital allocation.

• Anticipates investing GBP 50 million per annum in acquisitions, with flexibility for additional opportunities.

• Expects total capital expenditure, including maintenance, to reduce to GBP 30 million per annum.