December 13 2013 Latest news:
Wednesday, October 16, 2013
Diss-based veterinary services firm CVS Group has announced its intent to snap up new veterinary practises after securing a £10m loan with RBS bank.
The EDP Top 100 company is said to be targeting the funds at buying a new practise for larger animals and horses, as well as adding another crematorium to its portfolio.
The move signals the company’s intent to continue growing through acquisition, which has already seen it spend £7.7m on 14 surgeries, seven practises and a pet crematorium this year.
Meanwhile, plans are also afoot to expand its UK online dispensary platform Animed Direct into Europe after mounting strong organic growth, the firm said.
Last month, CVS Group, which employs 2,500 staff, announced that revenues had grown 10.4pc to £120.1m, compared to £108.7m the year before, while like-for-like sales increased by 3.4pc.
But its operating profit fell by £100,000 to £6.7m due to higher acquisition and amortisation costs, the firm said.
Nick Perrin, finance director, said: “We are delighted with the latest funding package RBS CIB has developed, and to continue our strong working relationship with the team. Combined with the cash generated from our operations together with this new facility, we now have ample resources and flexibility to continue the successful strategy of acquisition-led growth.”
As well as seeking new acquisitions, the business recently launched a veterinary locum service – which provides a pool of temporary veterinary staff– and a veterinary buying group, called Mi Vet Club.
In the chairman’s statement for the group’s annual results, Richard Connell, non-executive chairman, said the RBS loan provided a route to buy more practises without putting pressure on the balance sheet.
He said: “I am very pleased to report that CVS has made significant progress in all areas of the business during the year. All divisions delivered organic growth and this was enhanced by further acquisitions. We continued to invest in the development of our services, our staff and our premises, providing improved customer service.
“The additional £10m borrowing facility provides the capacity to develop the group further through acquisitions but is at a level that will not put undue pressure on our balance sheet,” he added.
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