CVS to float on AIM

Source: Stock Market Digital

Date :09/10/2007 11:54:44

Veterinary services group CVS Group is to float on junior stock market AIM in a move that will value the Diss-based company at £105.7 million.

CVS Group said yesterday it had successfully placed 45.2 million shares in the company at 205p a share with investors, raising £92.7 million.

The company said purpose of the listing is to raise its public profile, help drive new business and to increase awareness of the firm within the veterinary profession.

It says growth in the market for veterinary services in the UK is being driven by a growing and ageing pet population, advances in veterinary medical science, changes in the demographic profile of the human population and growth in the pet insurance industry.

Largest employer

CVS has seen rapid expansion over the past few years with sales rising from £12.8 million in 2005 to £39 million in 2007.

Earnings have risen from £2.3 million to £5 million over the same period.

The group based in Sandy Lane was set up in 1999 and has since spent £32 million on acquiring practices across the country, including sites in Fakenham, Swaffham, Dereham, Gorleston, Lowestoft, Southwold and Diss.

It now owns and operates 128 veterinary surgeries across the UK and three veterinary diagnostic laboratories.

It is now the UK's largest employer of vets - twice the size of its nearest competitor - with 271 on its books, and is aiming to continue acquiring more practices.

Dealing in the company's shares on AIM is expected to begin next Wednesday.

October 9 2007

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