Veterinary company CVS Group continues to benefit from pet boom By Investing.com

By Samuel Indyk

Investing.com – Shares in CVS Group (LON:CVSG) were trading higher by over 14% on Friday as the veterinary services company raised guidance following a strong month as the UK eases lockdown measures.

The AIM-listed group said momentum has continued following their trading update in March, with sales remaining strong and a steady increase in customer demand from the end of the last quarter.

Towards the end of March, the Royal College of Veterinary Surgeons issued revised guidance, transitioning from essential services only to allowing the full range of veterinary procedures. CVS said this announcement, coupled with the continued delivery of the vaccination programme and further easing of lockdown restrictions means that they are increasingly confident the strong performance will continue for the remaining months of the financial year to June.

With that in mind, the company now expects full year revenue to be ahead of current management expectations and adjusted EBITDA to be comfortably ahead.

Pet Ownership

Since the UK went into lockdown in March 2020, there has been a surge in demand for pet ownership.

In March this year, the Pet Food Manufacturers’ Association (PFMA) estimated that a total of 3.2mln UK households acquired a pet since the start of the pandemic, with the country now having 17mln pet-owning homes.

CVS Group continues to benefit from the boom in pet ownership and at 14:35BST, shares in the company were trading higher by 14.1% at 2,266.5 pence per share.