LONDON (ShareCast) - (Sharecast News) - Veterinary services company CVS Group posted a jump in full-year revenue on Friday but a drop in profit amid higher amortisation costs from acquisitions.
In the year to the end of June 2019, revenue rose 24.2% to £406.5m but pre-tax profit fell 17% to £11.7m, with the company pointing to a £3.8m rise in amortisation costs as a result of the full-year impact of acquisitions from last year.

On an adjusted basis, however, pre-tax profit pushed up 15% to £41.4m.

Like-for-like group sales were up 5.2% during the year to £344.3m and the dividend per share was lifted by 10% to 5.5p.

CVS said revenue growth reflected a number of acquisitions in the first half of the year, with 4.3% growth in LFL sales at its veterinary practices.

Chairman Richard Connell said: "The group delivered a significant improvement in financial performance in the second half of the financial year following a disappointing first half. This improvement reflects our actions in addressing the key issues which had impacted performance and I am pleased that the group continues to show positive trends in the early part of the new financial year.

"CVS operates in a sector with favourable market and consumer trends which has proven resilient in past economic downturns. Plans are in place to manage any short-term Brexit impacts and the board is confident that the business is well placed to avoid significant adverse impacts from the UK's decision to exit the EU."

At 0945 BST, the shares were up 8.4% at 986.05p.

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