LONDON (ShareCast) - (Sharecast News) - Veterinary service provider CVS Group reported a "positive start" to the financial year in an update on Wednesday, with total sales increasing 7.4% in the first four months to 31 October.
The AIM-traded firm, which was holding its annual general meeting, said like-for-like sales increased 7.4% year-on-year in the same period, within its organic revenue ambition of between 4% and 8%.

Its adjusted EBITDA margin for the four months was in line at 19%, within its goal of between 19% and 23%.

The group said it had completed a further two acquisitions, bringing the total to four acquisitions comprising seven practice sites in the financial year to date, for initial consideration of £22.1m.

Further investment was being made under its ambition, as outlined at its recent capital markets day to drive growth and benefits through practice refurbishment, relocations, clinical equipment and technology, with £10.8m total capital expenditure in the year-to-date, compared to £7.1m at the same point last year.

CVS reported "good" operating cash conversion, with leverage remaining "comfortably below" 0.5x as at 31 October, which the board put down to the positive trading performance coupled with continued strong cash generation.

"We continue to focus on our purpose to provide the best possible care to animals through our integrated platform and to invest in our practices and clinical equipment to drive organic growth, whilst continuing to explore acquisition opportunities in both the UK and internationally," the CVS board said in its statement.

"Whilst mindful of the wider macroeconomic uncertainty, the group continues to trade in line with full year market expectations and the Group remains well placed to achieve further growth over the longer term and deliver on our ambitions as set out at the capital markets day."

The board added that it recognised the opportunity to further increase its diversity, and thus started a formal search process to appoint an additional non-executive director in the previous financial year.

"The board is determined to select the most appropriate candidate, and is confident that this search process will be concluded with a suitable appointment in the current financial year."

At 1249 GMT, shares in CVS Group were up 1.99% at 1,965.33p.

Reporting by Josh White for Sharecast.com.

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