CVS Group Revenue Rises 5.9% to £712.8 Million, Boosted by Australian Expansion

CVS Group announced a 5.9% increase in revenue to £712.8 million for the fiscal year 2026, according to a company trading update. The growth was largely propelled by a significant expansion of its Australian operations, while like-for-like sales growth missed the company's stated goals.

Performance Metrics

While total revenue grew, like-for-like growth, a key indicator of organic performance, was 2.1%. This figure is below the company’s medium-term target range of 4% to 8%.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached £141.5 million, which was in line with market expectations of £141.6 million. The company's adjusted EBITDA margin stood at 19.9%, remaining within its target range of 19% to 23%.

Regional Breakdown

The UK, CVS Group's primary market, generated revenue of £633.7 million, representing a modest growth of approximately 2%. This marks an improvement from the 0.7% growth reported in fiscal 2025.

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In contrast, the company's Australian operations saw revenue surge by 51.8% to £79.1 million. This division now accounts for 11% of the total group revenue, highlighting its increasing importance as a growth driver.

Balance Sheet and Outlook

CVS Group's net debt, excluding leases, increased to £199.6 million from £158.3 million at the half-year point. Leverage remains below the company's target ceiling, at 1.63 times net debt to EBITDA.

The company also reported it had completed £11.7 million in share buybacks and has approximately £38.3 million remaining under its current program. Looking ahead, CVS Group expects annual capital expenditure to be around £30 million, at the lower end of its previous guidance.