CVS Group

CVS Group  has expanded significantly through the acquisition of independent veterinary practices and now operates hundreds of sites across the UK and Australia. They benefit from several long-term trends such as increasing pet ownership levels, rising demand for animal healthcare services and the increasing humanisation of pets driving demand for more premium products and services.

The UK and Australian veterinary service markets are growing at mid-to-high single digits and there is room for further consolidation within those markets. Revenues have grown consistently over the years alongside profit margins and cash generation being strong.

From an ESG perspective, CVS Group delivers clear positive societal benefits through its commitment to animal welfare, providing veterinary care and support throughout animals’ entire lifespans.

The company also contributes to human wellbeing, as pet illness can be a highly stressful and emotionally challenging experience for owners, and access to quality veterinary care can help alleviate this burden. In addition, by diagnosing, treating, and preventing diseases in animals, CVS Group plays an important role in reducing the risk of zoonotic disease transmission and protecting public health.

CVS Group has introduced a range of initiatives to promote employee mental wellbeing, such as formally training Mental Health First Aiders and promoting work-life balance. However, employee mental health remains a concern due to the stressful and emotive nature of the work. If unmanaged, poor wellbeing can result in reduced productivity, absenteeism and can negatively impact patient care and client satisfaction.  

Concerns regarding pricing and billing transparency in the sector have resulted in increased legal and regulatory scrutiny in jurisdictions in which CVS operates. Pricing and customer trust are important, as customers may be vulnerable due to their relationships with their pets.

The tenure of the external auditors is another opportunity for engagement as we look for auditors to be in place for less than 10 years. Independent auditors ensure unbiased verification of a company's financials and prevent conflicts of interest.