The veterinary services giant CVS Group maintains its forecasts for the entire year

CVS Group has maintained its full-year outlook despite weak demand in Britain, where the veterinary services industry is the subject of a major competition investigation.

The Norfolk-based company, which operates around 460 practices, revealed its total revenue rose 7.6 per cent year-on-year in the four months ending in October.

It also stated that adjusted earnings before the unpleasantries were up 5.5 percent, and its margins were up 19.5 percent.

CVS has been steadily expanding its presence in Australia since the summer of last year, making multiple acquisitions, including three deals involving four sites since July for a total of £9.5 million.

The company recently sold its operations in the Netherlands and the Republic of Ireland, citing “significant investment opportunities” in Australia and capital expenditure in its UK operations.

While warning that the upcoming increase in National Insurance rates will increase staff costs, the group expects this to be offset by “growth, efficiencies and purchasing synergies in Australia”.

Chancellor Rachel Reeves announced in her first budget last month that employers’ NI rates will rise by 1.2 percentage points to 15 per cent from April. CVS expects the change to cost it around £8 million in the next financial year.

“While the board remains aware of headwinds in the UK, the fundamental need for high-quality veterinary care remains strong, expansion in Australia is progressing well and CVS remains well positioned for attractive growth.” , the company stated.

CVS’ trading update comes amid a Competition and Markets Authority investigation into the UK veterinary sector.

The CMA is concerned that pet owners may be paying too much for medicines or prescriptions and that sector consolidation may be stifling competition in some areas.

Six companies – CVS, IVC, Linnaeus, Medivet, Pets at Home and VetPartners – have bought almost a third of Britain’s 5,000 veterinary practices since 2013, according to the CMA.

It warned these companies that they could be forced to sell off segments of their business, cap prescription fees and offer mandatory information to pet owners.

Derren Nathan, head of equity research at Hargreaves Lansdown, said CVS “has been severely damaged” by the investigation, but under the hood, the company offers exposure to some strong long-term growth drivers.

“However, until there is certainty next year about the extent of possible changes imposed on business practices in the industry, shares could remain under pressure.”

CVS Group Stock rose 2.7 per cent to 843 pence on Wednesday afternoon, but the CMA investigation has contributed to its value falling around 49 per cent since the start of the year.