CVS Group first half sales grew by 5.8% to £357mn, driven by like-for-like growth of 2.7% and contributions from acquisitions.
Underlying cash profit (EBITDA) grew by 3.9% to £68mn driven by top-line growth, but higher employment costs saw the margin fall from 19.3% to 19.0%.
Free cash flow was up 16.2% to £34mn. Since the year end, net debt has grown £29mn to £158mn largely due to continued investment in acquisitions.
Despite ‘softer’ UK market conditions, CVS Group remains confident of meeting this year’s market expectations for underlying cash profit of £142mn , broadly unchanged since the last trading update.
The shares fell 3.9% in early trading.
Our view
HL view to follow.
CVS Group key facts
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