Veterinary group CVS (CVSG:AIM) has ambitions to double EBITDA (earnings before interest, tax, depreciation, and amortisation) over the next five years.

The goal is expected to be achieved through a combination of higher organic growth and improved margins through investment in facilities and equipment.

This will involve a £30 million-to-£50 million annual investment to refurbish and relocate practices aimed at improving workflow
and efficiencies.

Continued investment in people and its leading training programme is intended to increase staff retention.

The company is also planning to open three new greenfield sites in the current fiscal year and further sites over the next few years.

The planned actions are intended to drive organic sales growth of between 4% and 8% a year while adjusted EBITDA margins are expected to see a step up to between 19% and 23% compared with a five-year average of around 17%.

Acquisitions remain a key part of the growth strategy with management seeing continued opportunities in the UK and consolidation opportunities internationally.

The company expects to invest upwards of £50 million in acquisitions over the next five years. Investment bank Berenberg sees the building of a presence outside the UK as the ‘next chapter’ of CVS’s equity story.

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