CVS Group reports ‘disappointing’ financial results
The CVS group has warned that it expects the first half of its 2019 trading year ‘to be materially below current market expectations.’
In a trading update, the group said that its division into Dutch farm and equine practices had been ‘disappointing’, with financial results falling short of their expectations.
The group reports that while sales for the practice division of the group increased by 23.7 per cent, total sales were 76.2 per cent compared to 79.5 per cent in 2018.
It attributes the fall to an increased mix of farm business for which margins are lower.
CVS also reports that while it continues to see a gradual improvement for clinical vacancy rates, it remains heavily reliant on on locum cover. As such, the Group's employment costs were ‘well above’ those seen in 2018.
“In light of the above and certain other cost increases, the Group expects to announce EBITDA for H1 2019 that is broadly flat compared to H1 2018,” CVS reports. “Given the financial performance in H1 2019, CVS now expects full year EBITA to be materially below current market expectations.
“A number of cost savings have been identified across the Group and these are expected to generate savings both in H2 2019 and in the remainder of the calendar year 2019, with ongoing effect thereafter.”