CVS Group plc

Driving 
Clinical 
Excellence
CVS Group plc  
Annual Report and Financial Statements  
for the year ended 30 June 2022

We are constantly inspired by the dedication and passion of 
our colleagues as they give the best possible care to animals. 
Our vision is to be the veterinary company people most want 
to work for and we continue to look for new ways to 
appropriately recognise and reward our colleagues. 
Thank 
You
3%
As part of our commitment 
to our vision, every 
colleague in employment 
on 1 May 2022 (save for the 
Executive Directors) 
received a 3% out-of-cycle 
pay increase to support 
with rising costs of living, 
and we have committed 
to pay at least 3% above 
National Minimum Wage/
National Living Wage 
to all current and 
future colleagues.
5
Our colleagues can receive 
up to five additional days’ 
holiday under our new 
long-service award scheme 
which grants colleagues an 
additional day of holiday for 
each completed year of 
service, up to five years.
11
The introduction of CVS 
Clinical Research Awards 
encourages innovation and 
supports clinicians to work 
towards improving 
veterinary medicine.  
So far, we have awarded 
grants to 11 CVS colleagues  
for their projects.
£0.7m
Our colleagues can receive 
financial and non-financial 
awards for successfully 
referring their friends to 
work with us, resulting in 
refer-a-friend awards of 
£0.7m paid to our 
colleagues in FY22. We also 
again offered a “holiday of a 
lifetime” draw, enabling 
colleagues to win a holiday 
worth £10,000 for a 
successful referral.


Operational highlights
	> Our colleagues have shown commitment and 
dedication to providing exceptional care to 
animals, with an increasing demand for our 
services as the pet population continues to grow.
	> The introduction of our industry-first CVS 
Clinical Research Awards encourages research 
and quality improvement by providing grants for 
research projects.
	> The quality of our facilities and equipment is of 
key importance to us, and we have increased 
investment in capital projects by £7.9m to 
£24.5m in 2022 vs 2021, including completing 
23 refurbishments and relocations during the 
financial year (2021: 13).
	> Following the introduction of our ESG strategy, 
“Care at our Heart”, in August 2022, we have 
published our first standalone Sustainability 
Report, describing the goals and activities of our 
ESG working groups and reporting sustainability 
data under the Sustainability Accounting 
Standards Board (SASB) standards.
Read this Annual Report and 
our Sustainability Report at 
cvsukltd.co.uk
Care at our heart
CVS Group plc is an AIM-quoted 
veterinary group and one of the UK’s 
leading providers of integrated veterinary 
services, with practices in the UK, the 
Netherlands and the Republic of Ireland. 
The Strategic Report
1	
Highlights
2	
Strategic roadmap
4	
At a glance
5	
Investment case
6	
Chair’s statement
10	
Chief Executive Officer’s review
14	
Market overview
18	
Business model
20	
Our culture
22	
Section 172(1) statement and 
stakeholder engagement
26	
Our strategy
28	
Key performance indicators
32	
Sustainability
45	
Operational review
54	
Financial review
60	
Principal risks and uncertainties
Corporate Governance
69	
Chair’s introduction to governance
70 	 Board of Directors and  
Company Secretary
72	
Corporate governance statement
79	
Audit Committee report
81	
Nomination Committee report
83	
Remuneration Committee report 
– unaudited 
The Directors’ Report
94	
Directors’ report
99	
Streamlined Energy and Carbon  
Reporting (SECR)
Financial Statements
101	 Independent auditor’s report 
107	 Consolidated income statement
108	 Consolidated statement of 
comprehensive income
109	 Consolidated and Company statement 
of financial position
110	 Consolidated statement of changes  
in equity
112	 Company statement of changes 
in equity
113	 Consolidated and Company statement 
of cash flow
114	 Notes to the consolidated  
financial statements
151	 Five-year history – unaudited
152	 Contact details and advisors

Highlights
1.	 Adjusted financial measures (adjusted Earnings Before Interest, Tax, 
Depreciation and Amortisation (“adjusted EBITDA”), adjusted profit before 
tax and adjusted earnings per share) are defined below, and reconciled 
to the financial measures defined by International Financial Reporting 
Standards (IFRS) on pages 114 and 132. IFRS 16 has been applied 
prospectively and, therefore, years 2019 and prior are all stated before 
the impact of IFRS 16.
2.	 Like-for-like sales shows revenue generated from like-for-like operations 
compared to the prior year, adjusted for the number of working days. For 
example, for a practice acquired in September 2020, revenue is included 
from September 2021 in the like-for-like calculations.
3.	 Leverage on a bank test basis is drawn bank debt less cash and cash 
equivalents, divided by adjusted EBITDA annualised for the effect of 
acquisitions, including costs relating to business combinations and 
excluding share option costs, prior to the adoption of IFRS 16.
4.	Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and 
Amortisation) is profit before tax adjusted for interest (net finance 
expense), depreciation, amortisation, costs relating to business 
combinations, and exceptional items. Adjusted EBITDA provides 
information on the Group’s underlying performance and this measure 
is aligned to our strategy and KPIs.
5.	 Adjusted profit before tax is calculated as profit before amortisation, 
taxation, costs relating to business combinations, and exceptional items.
6.	Adjusted earnings per share is calculated as adjusted profit before tax 
less applicable taxation divided by the weighted average number of 
Ordinary shares in issue in the year.
Financial highlights1
	> Revenue increased by 8.6% to £554.2m from 
£510.1m, with strong Group like-for-like sales2 
growth of 8.0% benefitting from favourable market 
trends and the continued focus on delivering 
against our strategy.
	> The Group delivered adjusted EBITDA4 growth of 
10.2% to £107.4m from £97.5m, through strong 
revenue performance and operational efficiencies.
	> Cash generated from operations increased by 
15.9% to £93.1m from £80.3m, primarily as a result 
of the increase in adjusted EBITDA.
	> Profit before tax increased by 8.8% to £36.0m 
from £33.1m, benefitting from the increase in 
adjusted EBITDA and a reduction in costs relating 
to business combinations, partially offset by 
an impairment of investment.
	> Leverage3 fell to 0.40x from 0.68x as a result of 
strong EBITDA growth, continued good operating 
cash generation and reduction in net debt. 
Revenue (£m) 
£554.2m
+8.6%
Adjusted EBITDA4 (£m) 
£107.4m
+10.2%
Adjusted profit 
before tax5 (£m)
£75.5m
+14.0%
2022
510.1
2021
427.8
2020
406.5
2019
327.3
2018
2022
2021
2020
97.5
71.0
54.5
2019
47.6
2018
66.2
38.2
41.4
2021
2020
2022
2019
36.0
2018
554.2
107.4
75.5
Cash generated 
from operations (£m)
£93.1m
+15.9%
Basic earnings per share 
(p)
36.2p
+32.6%
Proposed dividend 
per share (p)
7.0p
+7.7%
Profit before tax (£m) 
£36.0m
+8.8%
n/a
5.5
2022
2021
2020
2019
5.0
2018
80.3
94.8
52.1
2022
2021
2020
2019
46.7
2018
33.1
2022
9.9
2021
11.7
2020
2019
14.1
2018
27.3
8.1
11.6
2022
2021
2020
2019
16.0
2018
Adjusted earnings 
per share6 (p)
85.8p
+14.2%
75.1
42.0
46.7
2022
2021
2020
2019
42.4
2018
6.5
85.8
93.1
36.0
36.2
7.0
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
1

Underpinned by our Environmental, Social and Governance 
(ESG) strategy, “Care at our Heart”
Our ESG strategy articulates why and how we care. Our commitment to sustainability 
is monitored and assessed through our seven working groups: (1) Energy and Carbon; 
(2) Waste; (3) One Health; (4) Wellbeing; (5) People Development; (6) Equity, Diversity 
and Inclusion; and (7) Community.
Strategic roadmap
A clear strategy for 
sustainable growth
Our purpose is to give 
the best possible care  
to animals
Our vision is to be the 
veterinary company 
people most want to 
work for
Our strategic pillars
 
 Discover more about our strategy on pages 26 and 27
We are a great place 
to work and have 
a career
We recommend and  
provide the best  
clinical care  
every time
We provide  
great facilities  
and equipment
We take our 
responsibilities  
seriously
1
2
3
4
CVS Group plc Annual Report and Financial Statements 2022
2

Providing industry-leading Continued 
Professional Development
We are hugely proud of our Learning, Education and 
Development (LED) programme at CVS. The Knowledge 
Hub educational platform offers hundreds of courses 
and webinars covering a wide range of clinical and 
non-clinical education and training.
Improving inclusivity
We want to be as inclusive as possible in our training 
offerings and therefore we use accessibility software to 
ensure that all of our courses work with screen readers 
and are optimised for contrast, fonts and layout so all 
learner needs can be met. 
To improve the accessibility of our video content for 
those who have impaired hearing, or whose devices do 
not conveniently allow audio content, we have embarked 
on a project to transcribe and subtitle all video content. 
We have also created audio versions of many courses 
for colleagues who have impaired vision, or who would 
prefer to listen to content.
The Knowledge Hub: our LED platform
8684 
active users 
261 
courses available
235 
webinars available
Area of focus
Our values
Customer focus
Our dedication to our customers is at the heart of our  
business and we are focused on our customers’ and 
their animals’ needs. 
Commitment to excellence
We constantly strive to achieve the highest possible standards  
in the quality of services and products we provide.
Success through our people
We aim to attract, develop and retain the best people and to  
be the veterinary company people most want to work for.
Honesty and integrity
We treat our colleagues and customers with honesty and 
respect. We strive to achieve long-term relationships with our 
customers and suppliers, and ensure safety and accessibility 
in all areas of our business. 
 Discover more about our culture and values on 
pages 20 to 21
 Read more about our approach to 
Sustainability on pages 32 to 44
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
3

At a glance
Our purpose is to give the 
best possible care to animals
Breakdown of revenue
85.5%*
Veterinary Practices
Our first-opinion and referral 
practices provide specialist 
treatment for companion, 
equine and farm animals. We 
provide high-quality healthcare 
for sick and injured animals, or 
through our preventative 
healthcare schemes: the Healthy 
Pet Club (HPC) and Healthy 
Horse Programme (HHP)**. We 
also operate buying groups and 
a veterinary consumables 
business, “Vet Direct”, and we 
supply a number of own-brand 
medicines and products.
4.7%*
Laboratories
Our laboratories provide 
diagnostic services to CVS 
veterinary practices and third 
parties. We offer an extensive 
range of tests with the ability 
to tailor specific profiles to our 
customers’ needs. Our team 
of pathologists and experts 
specialise in a variety of 
disciplines in all areas of the 
laboratory and their aim is to 
offer a level of service and 
expertise beyond our 
customers’ expectations.
1.7%*
Crematoria
Our crematoria provide pet 
cremation and clinical waste 
services to CVS practices and 
third-party practices, and 
cremations to animal owners. 
We offer a range of services to 
help our clients remember and 
say goodbye to their pets.
8.1%*
Online Retail 
Business
Our online retail 
business, “Animed Direct”, 
sells prescription and 
non‑prescription medicines, 
premium pet foods and an 
ever-increasing range of pet 
care products, which can be 
delivered directly to our 
customers’ doors, saving 
them time as well as money.
Our locations
We have a broad geographical spread across 
the UK and a presence in the Netherlands 
and the Republic of Ireland.
4
13
54
2
2
39
34
38
98
1
1
8
93
1
44
1
27
20
1
Key
Veterinary practices (472)
Laboratories (3)
Crematoria (7)
Discover more about our operations on pages 45 to 53
*	 Revenue share before intercompany sales between Veterinary Practices and 
other divisions.
**	Throughout this report, references to Healthy Pet Club are inclusive of Healthy Pet 	
	
Club and Healthy Horse Programme.
 Discover more about our 
geographical markets opportunities 
on pages 14 to 17
1
CVS Group plc Annual Report and Financial Statements 2022
4

Investment case
Multiple opportunities to build 
on our strong foundations
CVS is an AIM-quoted veterinary group with a fully‑integrated 
model and strengthened balance sheet which positions it well 
for both organic and acquisitive growth.
Market
We continue to operate in a growing market 
with increasing demand for our services. 
Management
Strong management team with a broad 
range of experience and expertise, 
which has a proven track record of 
delivering growth.
 Discover more about our Board of 
Directors on pages 70 and 71
Business model
Fully-integrated veterinary services model, 
with first-opinion practices supported by 
specialist-led multi‑disciplinary referral 
hospitals, laboratories, crematoria and 
an online retail business.
 Discover more about our business model 
on pages 18 and 19
Growth opportunities
Alongside consistent organic growth 
through our fully-integrated veterinary 
model, there are opportunities for further 
acquisitive growth both in the UK as well 
as emerging European markets.
 Discover more about our growth 
opportunities on pages 14 to 17
Sector
A favourable sector with increasing appetite 
for innovation and quality improvement. 
Strategy
We have a clear, people-focused strategy 
of organic growth, supported by investment 
in our facilities and equipment, and 
augmented by inorganic growth through 
investment in greenfield sites 
and acquisitions.
Discover more about our markets 
on pages 14 to 17
Discover more in our Operational 
review on pages 45 to 53
Discover more about our strategy 
on pages 26 and 27
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
5

Richard Connell
Chair
Chair’s statement
Leveraging favourable market 
trends to deliver improved 
financial performance
Introduction
We are committed at CVS to providing the best possible 
care to our clients and their animals. Key to the delivery 
of this care is our people and I would like to take this 
opportunity to thank all our colleagues for their continued 
dedication and professionalism.
We continue to develop CVS through investment in our 
people, in the technology we use, in our practice facilities 
and in new clinical equipment. This is important to both the 
delivery of first-class clinical care and the recruitment and 
retention of clinical resource. We have increased capital 
investment in the past financial year and this has delivered 
favourable returns. Further increases in capital investment 
are planned in the current year and we are confident that 
this will position the Group well for continued growth in the 
years ahead.
Positive financial performance
I am delighted to share another strong set of financial results 
with growth in both revenue and earnings, with continued 
strong operating cash conversion and improved balance 
sheet strength. 
The Group generated revenue growth of 8.6% in the financial 
year, with like-for-like sales increasing by 8.0%, reflecting our 
continued focus on delivering organic growth. We completed 
three acquisitions (comprising four practice sites) in the 
second half of the financial year (2021: nine acquisitions 
across the year). 
In light of the Competition and Markets Authority’s (CMA) 
phase one investigation into our August 2021 acquisition of 
Quality Pet Care Ltd, and the CMA’s view that the merger 
may be expected to result in a substantial lessening of 
competition within a market or markets, we decided to sell 
this business, and the disposal was completed in June 2022. 
We recognised an investment impairment ahead of sale and 
further information is available in note 16. Whilst the CMA’s 
conclusion was disappointing, we now have a clear guideline 
as to how the CMA assesses local competition in veterinary 
care which will be useful in informing our approach to future 
acquisitions in the UK. There are considerable parts of the UK 
where we do not currently own any practices, and hence 
where there cannot be competition issues; we are confident 
that we can acquire further practices in areas of the UK 
where we already operate, provided that our share of vet 
full-time equivalent resource in the vicinity is less than 30%.
CVS Group plc Annual Report and Financial Statements 2022
6

“I am delighted to share another strong set of 
financial results with growth in revenue and 
earnings, continued strong operational cash 
conversion and improved balance sheet strength.” 
Adjusted EBITDA increased by 10.2% to £107.4m (2021: 
£97.5m), through strong revenue growth. Profit before tax 
correspondingly increased by 8.8% to £36.0m (2021: 
£33.1m) with adjusted EPS increasing by 14.2% to 85.8p 
(2021: 75.1p) and basic EPS increasing by 32.6% to 36.2p 
(2021: 27.3p).
The Group remains highly cash-generative, with the increase 
in adjusted EBITDA flowing through to cash generated from 
operations, which increased by 15.9% to £93.1m (2021: 
£80.3m). Net debt correspondingly decreased by £14.9m to 
£35.3m (2021: £50.2m) with leverage reducing to 0.40x 
bank-test EBITDA at 30 June 2022 (2021: 0.68x).
Strategic progress
Our purpose at CVS is to give the best possible care to 
animals and our vision is to be the veterinary company 
people most want to work for. This purpose and vision are 
underpinned by our four strategic pillars: to recommend and 
provide the best clinical care every time; to be a great place 
to work and have a career; to provide great facilities and 
equipment; and to take our responsibilities seriously. 
We are committed to the highest standards of clinical care 
and all of our practices participate in the Royal College of 
Veterinary Surgeons’ voluntary Practice Standards Scheme. 
We have recently published our annual Quality Improvement 
report which outlines our approach to further enhancing 
clinical standards underpinned by evidence-based medicine.
In addition to our ongoing focus on providing learning, 
education and development support to our colleagues, we 
continue to enhance our package of reward and benefits. In 
the past financial year, we increased the holiday entitlement 
for all colleagues through an additional day’s annual leave 
for each completed year of service, up to a maximum of five 
days once colleagues have completed five years’ service. In 
May 2022, we implemented an additional salary review, with 
a salary increase of 3.0% for all colleagues (save for the 
Executive Directors, whose salary review will take place 
under the normal cycle) in advance of our full annual salary 
review in July 2022. We also announced our commitment to 
pay a minimum of 3.0% above National Minimum Wage/
National Living Wage for all current and future colleagues. 
Our continued focus on recruitment, alongside improvements 
in retention, has resulted in a 6.0% increase in the average 
number of vets employed during the financial year to 2,079 
vets (2021: 1,962 vets). Furthermore, the average number of 
nurses we employed in the financial year increased to 2,839 
nurses (2021: 2,548). We also launched a new Equity, 
Diversity and Inclusion (EDI) working group to help attract 
and support colleagues from all backgrounds.
We continue to improve our practice facilities and clinical 
equipment, with £24.5m invested in capital expenditure 
during the year (2021: £16.6m). This investment enables us 
to both enhance the client and colleague experience in our 
practices and, importantly, to further improve the standards 
of clinical care which we can provide.
We outlined our overall approach to sustainability and ESG in 
our 2021 Annual Report and, in August 2022, we published 
our first Sustainability Report, which sets out the foundations 
of our approach to ESG. As part of our commitment in this 
area, we have introduced five new non-financial targets for 
our Executive Directors as a key element of their annual 
bonus for the financial year ending 30 June 2023. Our ESG 
approach has been informed and influenced by globally 
recognised frameworks and sets of principles, including the 
Global Reporting Initiative Standards, the United Nations 
Sustainable Development Goals and the recommendations 
of the Task Force on Climate-Related Financial Disclosures 
(TCFD). We have also disclosed data against standards 
developed by the Sustainability Accounting Standards 
Board. Furthermore, in this Annual Report we have early-
adopted the TCFD recommendations for disclosure of 
climate-related risks and opportunities. 
We remain well-placed to deliver further organic growth 
through the provision of high-quality joined-up care 
throughout our patients’ lives, from our first-opinion 
veterinary practices, specialist-led multidisciplinary referral 
hospitals, diagnostic laboratories, dedicated out-of-hours 
clinics and online retail business, Animed Direct. Our 
crematoria provide a compassionate cremation service 
at the end of an animal’s life and clinical waste disposal 
services. We will augment this growth through further 
acquisitions and the creation of greenfield practices. 
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
7

Did you know?
Chair’s statement continued
Governance and the Board
We are committed to the highest levels of corporate 
governance and, as an AIM-quoted group, we voluntarily 
adopt the UK Corporate Governance Code 2018.
We continue to review the composition of the Board, in 
order to ensure that we have the right balance of skills and 
experience. Mike McCollum, former Senior Independent 
Director and Chair of the Audit Committee, resigned from 
the Board in September 2021 to pursue a full-time opportunity 
outside the Group. In light of his resignation, Deborah Kemp 
was appointed as our Senior Independent Director and the 
Nomination Committee oversaw the appointment of David 
Wilton as the new Chair of the Audit Committee with effect 
from 24 September 2021. 
Dividends
In light of the further improvement in financial performance 
and the Group’s strong cash generation, the Board is 
recommending a continuation of our progressive dividend 
policy, with the payment of a final dividend of 7.0p per Ordinary 
share (2021: 6.5p).
Shareholder engagement
The Board continues its active engagement with existing 
and potential new shareholders, with the Executive Directors 
attending a number of investor conferences and holding 
individual investor meetings throughout the year. In April 2022, 
we conducted a US roadshow in light of the increased 
number of US-based institutions on our share register. 
The Executive Directors have held live webcasts for our 
preliminary and interim results presentations over the past 
year, including question and answer sessions with analysts, 
with a replay facility available on our investor website.
We are holding a capital markets day on 8 November 2022 
in which we will outline our capital allocation priorities and 
the opportunities we have to deliver further sustainable 
growth in shareholder value. 
Outlook
The veterinary sector is seeing favourable market and 
consumer trends with an increased pet population, enhanced 
life expectancy and the continued humanisation of pets, with 
owners willing to spend more on their care. Our approach in 
providing the best possible care through our fully-integrated 
veterinary services model positions CVS well to benefit from 
these favourable trends. Whilst we are mindful of the pressures 
on household incomes through rising inflation, we are 
confident in the resilience of our business model with our 
expectation that clients will continue to seek access to 
high-quality care for their animals.
I look forward to reporting on further successful growth for 
CVS in the future.
Richard Connell
Chair
22 September 2022
CVS Group published its first 
Sustainability Report in 2022
We care about our impact on our 
stakeholders and the environment. 
In our first annual Sustainability 
Report we shared the work of our 
ESG working groups across the 
business, as well as sustainability 
data in line with the Sustainability 
Accounting Standards 
Board framework. 
In this report, we announced that 
20.0% of our Executive bonuses 
for 2023 will be contingent on the 
Group achieving five non-financial 
sustainability targets, namely: 
waste; attrition; eNPS; client NPS; 
and Patient Care Index.
The report is available to read on 
our investor website: www.cvsukltd.
co.uk/investor-centre/sustainability
 Discover more about our 
sustainability on pages 32 to 44
CVS Group plc Annual Report and Financial Statements 2022
8

The ability to deliver high-quality clinical care and ensure 
good outcomes for patients is an essential value driver for us 
as a veterinary care provider. Defining and measuring quality 
of care is an emerging area in which CVS aims to lead. 
Metrics which are commonly used in human healthcare, 
such as excess readmission ratio and length of stay, are not 
commonly used in veterinary medicine.
Patient Reported Outcome Measures (PROMs) are validated 
questionnaires which allow the progress of patients to be 
monitored and compared to a baseline score. In veterinary 
medicine, these are completed by the owner and referred to 
as Client Reported Outcome Measures (CROMs). Similarly, 
Patient/Client Reported Experience Measures (PREMs/
CREMs) can record the experience of the care provided. 
There is increasing evidence that the experience of clients 
and their pets is linked to the outcome of treatment. Whilst 
this is a developing area, in future CVS hopes to be able to 
report on the quality of care provided. 
71.9
Client Net Promoter Score (NPS)
The following are two examples of how we are measuring 
patient satisfaction.
Automated outcomes 
Working with an external provider, CVS has piloted a system 
to automate collection of CROMs from orthopaedic patients 
in our referral hospitals. When a new appointment is booked, 
owners are automatically sent a baseline outcome measure. 
Clinicians, Clinical Directors and the Quality Improvement 
team can monitor theses scores via a dedicated portal. 
Benchmarking across the referral group will allow us to 
share good practice, maximising outcomes and 
minimising complications. 
Client Reported Experience Measures
All clients are sent a survey automatically following 
discharge. We collect data about the experience of the care 
their pets receive, including collecting an NPS score. There is 
increasing evidence that experience of care is a good proxy 
for the quality of care received.
 Discover more in our Operational review on pages 45 to 53
Area of focus
Improving client 
satisfaction
CVS Group plc Annual Report and Financial Statements 2022
9
The Strategic Report

Richard Fairman
Chief Executive Officer
Chief Executive Officer’s review
Small actions add 
up to a big impact 
Introduction
I am delighted to introduce our 2022 Annual Report and 
Financial Statements and to report on another successful 
financial year in which we delivered further improvements 
in performance.
Our purpose at CVS is to provide the best possible care to 
animals and key to the delivery of this is our fantastic team  
of colleagues who are passionate and committed to client 
service and patient care. I would like to thank all CVS 
colleagues for their contribution over the past year and  
for their continued support and dedication.
Increased investment to position CVS for 
further growth
We continue to invest in a number of areas to position CVS 
well for further growth in the future. Our people are the 
heart of everything we do and we continue to develop 
learning, education and development support for all 
colleagues to help them develop their careers. 
We recognise the opportunity to improve our practice 
facilities and install new clinical equipment and this is 
important in both attracting and retaining talent, and also  
in continuing to expand the range of services we can 
provide to our clients and their animals. We are confident 
with the financial returns from this investment and, in light  
of our strengthened balance sheet and continued high level 
of operating cash conversion, we plan to increase this 
investment in the new financial year. We have undertaken  
a number of practice refurbishments and relocations in the 
past financial year and our new state-of-the-art referral 
hospital in Bristol will open its doors in early 2023.
Investment in our people, facilities and clinical equipment 
will position CVS to benefit from the continued favourable 
market and consumer trends. The population of pets in the 
UK has increased in the past two years, with an increasing 
number of puppies and kittens within UK households. Given 
our focus on high-quality clinical care, we expect to see the 
benefit of this increase in population steadily increase over 
the next ten years given that average veterinary spend per pet 
1.	 www.healthforanimals.org/reports/pet-care-report/
global-trends-in-the-pet-population/
CVS Group plc Annual Report and Financial Statements 2022
10

increases with age. Coupled with this, there is evidence of 
increased life expectancy in pets with HealthforAnimals1, the 
global animal health association, recently reporting that life 
expectancy for dogs has increased by 11.4% between 2002 
and 2016. 
Preventative care is an important part of our offering and I 
am delighted that we continue to see growth in our Healthy 
Pet Club and Healthy Horse Programme, with 470,000 
members at 30 June 2022, an increase of 4.4% in the year. 
This scheme provides a helpful way for clients to spread 
the cost of preventative veterinary care through monthly 
instalments and provides discounts on other services 
which may be required. The routine health checks which 
are provided under this scheme are important as they offer 
an early opportunity to identify and treat potential issues, 
avoiding more complex and expensive interventions later.
There are many reported benefits of animal ownership with 
pets in particular proven to improve their owners’ physical 
and mental health. The trend of humanisation of pets 
continues and, notwithstanding inflationary pressures in 
the wider economy, we are confident that our clients will 
continue to access our services in order to ensure their 
animals receive the best possible care.
Our integrated model at CVS enables us to provide care to 
animals at all stages of their life cycle, from puppy and kitten 
health checks and annual vaccinations through to specialist 
interventions where required. Our network of first-opinion 
practices, dedicated out-of-hours clinics, specialist-led 
referral hospitals and diagnostic laboratories deliver 
continuity of treatment, thereby ensuring our clients and 
their animals receive a first-class service. Our crematoria 
provide compassionate cremation services at the end of an 
animal’s life, as well as a clinical waste disposal services to 
enable CVS, and third-party practices, to operate to the 
highest standards. This is a key part of our service offering 
given that most clients who lose a beloved pet subsequently 
purchase another and continue to enjoy access to our services.
Animed Direct, our online retail business, attracts a broader 
range of clients and gives access to a substantial range of 
pet food, pharmaceutical products and accessories.  
We continue to see strong growth in pet food sales as 
customers enjoy the convenience of being able to order 
bulky and heavy pet food and have it delivered directly  
to their door. 
Robust financial performance
We have delivered continued growth in financial performance, 
with revenue for the financial year of £554.2m (2021: £510.1m) 
representing growth of 8.6% over the prior year, and an 
increase in like-for-like sales of 8.0%. Adjusted EBITDA 
increased to £107.4m (2021: £97.5m), a £9.9m (10.2%) 
increase over the prior year. 
This strong financial performance, alongside a reduction 
in net debt, led to a decrease in leverage to 0.40x at 
30 June 2022 (30 June 2021: 0.68x). 
Strategy
Our purpose to provide the best possible care to animals, 
and our vision to be the veterinary company people most 
want to work for, are underpinned by our four clear strategic 
pillars: to recommend and provide the best clinical care 
every time; to be a great place to work and have a career; 
to provide great facilities and equipment; and to take our 
responsibilities seriously.
In order to provide the best possible clinical care, we 
continue to focus on helping to drive increased standards  
in the profession and we recently published our latest annual 
Quality Improvement (QI) report. This sets out our approach 
to learning from clinical issues and using evidence-based 
medicine to inform the care we provide. We also launched 
our CVS Clinical Research Awards programme in the 
financial year, which provides funds for CVS colleagues and 
university academics in collaboration with CVS to facilitate 
the growth of veterinary clinical research.
We are committed to making CVS a great place to work and 
have a career and we continue to develop our reward and 
benefits to ensure we remain well positioned in a 
competitive marketplace. We announced an interim cost-of-
living pay review in May 2022, in addition to our annual pay 
review in July 2021, and we have expanded our reward and 
benefits package, including the introduction of enhanced 
holiday entitlement based on length of service. In May 2022, 
we committed an ongoing pledge to paying a minimum of 
3.0% more than the current National Minimum Wage/
National Living Wage.
“With the continued support 
of our outstanding colleagues, 
we will continue to grow CVS 
with care at our heart.” 
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
11

Chief Executive Officer’s review continued
Strategy continued
Our focus on improving our practice facilities and clinical 
equipment is important in both helping us attract and retain 
clinicians, and enabling them to deliver the best possible 
clinical care. We completed 23 refurbishments and 
relocations in the financial year (2021: 13). We have a pipeline 
of exciting capital expenditure projects to develop our 
existing facilities and open new greenfield practice sites, as 
well as continuing to acquire quality practices where they 
are aligned with our strategic goals. 
We have responsibilities to all our stakeholders, including our 
patients, our colleagues and our regulatory bodies, and we 
take all of these responsibilities seriously. We continue to 
engage with the Royal College of Veterinary Surgeons 
(RCVS) and aim to ensure all our practices meet the rigorous 
standards of the RCVS’ Practice Standards Scheme.
We remain well-placed to make further practice acquisitions 
in the UK and in new European markets and we have a 
strong pipeline of opportunities. I am pleased that we 
completed three acquisitions in the financial year, adding 
four practice sites to the Group.
Recruitment and retention of clinicians
To support the Group’s continued growth, we employed an 
average of 117 (6.0%) more vets and an average of 291 (11.4%) 
more nurses in the financial year to 30 June 2022 in 
comparison to the previous financial year. The RCVS, in its 
Workforce Summit report in November 2021, stated that the 
population of practising vets in the UK had increased by c.1% 
and hence we are pleased with our overall increase. 
There remains a shortage of vets in the UK and we are keen 
to recruit more vets to enable us to capitalise on the growth 
opportunity in the market. We are confident that the supply 
of vets and nurses will increase over the medium term given 
that there are now eleven vet schools in the UK. Our leading 
graduate induction programme was enhanced in the year 
through our summer and winter camp programmes which 
help graduate vets make the transition from university to 
work in practice. We have continued to expand our 
investment in Continued Professional Development and 
enhanced career pathways, to ensure colleagues have 
excellent career opportunities within CVS. 
We continue to implement initiatives to enhance the 
wellbeing and job satisfaction for all our colleagues and 
promoted a wellbeing financial calendar in July 2021, 
which is now in its second year.
Sustainability and ESG
We published our first annual Sustainability Report in August 
2022, which sets out our commitment to reducing our 
environmental impact and to improving our ESG standards.
We are committed to taking action to ensure our business 
is as sustainable as it can be, and we will continue to work 
collaboratively and creatively to ensure we are doing the 
right thing for all stakeholders. 
We have appointed an ESG lead to co-ordinate our efforts 
across CVS, with our seven dedicated ESG working groups 
driving progress in the following areas:
	> Energy and Carbon;
	> Waste;
	> One Health (including antimicrobial resistance);
	> Wellbeing;
	> People Development;
	> Equity, Diversity and Inclusion; and
	> Community.
Demonstrating our commitment to holding ourselves 
accountable for our sustainability goals, in our 2022 
Sustainability Report we disclosed financial and non-financial 
data relating to a range of sustainability factors using the 
Sustainability Accounting Standards Board (SASB) framework. 
Further, in this Annual Report we have early-adopted the 
recommendations of the Task Force on Climate Related 
Financial Disclosures (TCFD). Applying these reporting 
frameworks has aided us in understanding the impact of our 
operations on our stakeholders and our environment, and 
developing targets to improve our sustainability. 
I look forward to sharing further progress in due course. 
Outlook
We are confident in our ability to deliver further growth. With 
the improved financial performance in the past financial 
year, continued operating cash conversion and 
strengthened balance sheet, we are well-positioned to 
continue our programme of investment to enable CVS to 
benefit from the favourable market and consumer trends.
We will continue our focus on organic growth through 
high quality of care, augmented by investment in further 
strategically-aligned acquisitions and greenfield practice sites, 
as well as investment in technology, including launching a new 
modern intuitive practice management system, Provet Cloud, 
during 2023.
Our colleagues are key to our success and with their continued 
professionalism, I look forward to a successful future.
Richard Fairman
Chief Executive Officer
22 September 2022
CVS Group plc Annual Report and Financial Statements 2022
12

Proud to be part of 
the CVS community
Area of focus
Celebrating 50 years of Pride
2022 marked the 50th anniversary of Pride in the UK. To 
celebrate Pride month in June, together as an organisation, 
we invited colleagues to express what Pride symbolises to 
them personally or as a team.
Many of our colleagues shared their personal stories, 
poems, photographs and artworks which were celebrated 
in our Group magazine.
Our veterinary practices got involved with colourful pride 
displays and events including wearing colourful dress, 
hosting special lunches, and inviting customers to take 
photos with their pets wearing rainbow accessories.
As part of our conversations about Pride, one of our support 
office colleagues (pictured) told us:
“Back in 2013, my partner and I went to 
Canada to get married because it was still 
not legal in the UK. Pride allows people to 
stop and think, and because of this, we 
were legally married in the UK too the 
following year!”
Encouraging inclusivity
Our LGBTQ+ working group has undertaken a project to 
educate CVS colleagues about fostering inclusivity in the 
workplace, through Group-wide communications using our 
internal channels. As part of this project, we have 
encouraged the free use of gender pronouns.
Our culture survey
With almost 8,000 colleagues in 2022, CVS Group 
comprises people from a range of backgrounds, with a 
broad variety of values and interests. In 2022, we conducted 
a culture survey to understand how our colleagues feel 
about the culture at CVS, and what we can do to ensure 
every colleague’s experience is positive. 
 Discover more about our culture on pages 20 and 21
CVS Group plc Annual Report and Financial Statements 2022
13
The Strategic Report

Market overview
Increasing demand for quality 
all‑round pet care
The veterinary market continues to benefit from increased 
pet ownership alongside trends of humanisation of pets 
and a growing appetite for high-quality care.
Understanding our key markets
Our veterinary practices, laboratories, crematoria and online 
retail business operate in a growing veterinary market. The 
UK pet population has increased since the COVID-19 
lockdown and pet life expectancy is also increasing, as a 
result of improved diet and high standards of clinical care. 
CVS is well-placed to benefit from these trends thanks to 
our fully-integrated veterinary services model.
£9.7bn
spent on pets and related 
products in the UK in 20211
Increasing pet life expectancy
Across the globe, pet owners are seeing an increase in 
life expectancy for household cats and dogs2 and, with 
continually improving standards of both preventative 
healthcare and clinical treatments, this is set to continue. 
Studies in the UK have found links between veterinary 
procedures and reduced rates of mortality. Increased life 
expectancies also provide us with increased opportunities 
to deliver quality veterinary services which generate 
revenues over a longer time period. 
Changing lifestyles
It is clear the COVID-19 pandemic has had lasting effects on 
the way people live and work, from increased time spent at 
home to changing priorities in how we spend our money. In 
addition to the well-publicised impact on the pet population, 
there has been an increase in the demand for high-quality 
healthcare in all stages of a pet’s life cycle.
1.	 https://www.ons.gov.uk/economy/nationalaccounts/satelliteaccounts/
timeseries/uvjk/ct
2. www.healthforanimals.org/reports/pet-care-report/global-trends-in-the- 	
	
pet-population/
Market size (£bn)1
2017
2018
2019
2020
2021
9.7
8.3
7.8
7.5
7.5
We provide integrated care throughout the life cycle…
First-opinion practices servicing whole life veterinary care requirements 
1–3 years
3–8 years
8+ years 
Online retail business food sales
Laboratory tests
Specialist referral interventions
Compassionate end-of-life care and cremation service
Typical life expectancy of 12 years for a dog (14–17 years for a cat) which is increasing
CVS Group plc Annual Report and Financial Statements 2022
14

Geographical market
Following the Competition and Markets Authority (CMA) 
investigation of our acquisition of Quality Pet Care Ltd, we 
now have a clear framework to identify geographical areas 
for further growth. The CMA concluded that a substantial 
lessening of competition could result from an acquisition 
where the resulting share of full-time equivalent (FTE) 
veterinary surgeons in the relevant catchment area is 
above 30%. 
Using this guidance, the Group is able to identify significant 
areas of the UK which continue to provide opportunities for 
acquisitive growth without raising anti‑competitive concerns, 
which we refer to as “white space”. 
3.	 Source: findavet.rcvs.org.uk
c.5,300
veterinary practices 
in the UK3
472
veterinary practices 
operated by CVS Group
Opportunities for growth
We estimate that the UK veterinary market is under 
approximately 55% corporate ownership, with the remaining 
veterinary practices owned privately or in partnerships and 
small groups. We have seen in other industries that corporate 
ownership can comfortably reach around 80% without 
impact to competition in the market. We therefore consider 
there is significant runway for further growth via acquisitions 
within the UK market. 
In addition to acquisitive growth, the market is receptive to 
further organic growth through the opening of new sites. 
We have a pipeline of three viable new sites for potential 
future development.
Our presence in the Republic of Ireland and the Netherlands 
also provides a strong framework to develop further 
international operations, with emerging European markets 
including France, Germany and Spain being potential targets 
for future expansion.
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
15

Market overview continued
Market drivers and responses
Availability of vets  
to perform services
Description
	> There is a continued shortage of veterinary 
surgeons and, to a lesser extent, nurses in the UK. 
	> The Royal College of Veterinary Surgeons (RCVS) 
has confirmed that veterinary surgeons who 
have qualified in the EU can continue to work in 
the UK without any remedial training, provided 
they have qualified from European Association 
of Establishments for Veterinary Education 
(EAEVE) accredited institutions and provided 
they meet appropriate language requirements.
	> The number of veterinary schools in the UK has 
increased to eleven currently (from nine as at 
the date of our 2021 Annual Report). The number 
of graduate vets each year continues to 
increase, and will increase further, as a result.
	> The RCVS is in the final stages of consultation 
on proposed changes to the Veterinary 
Surgeons Act 1966 which, amongst other 
things, would enable nurses to undertake a 
broader range of procedures without direct 
veterinary surgeon supervision.
Our approach
	> We continue to put our people first with our 
vision to be the veterinary company people 
most want to work for. 
	> We have implemented many initiatives with 
the aim of attracting new colleagues and 
retaining our existing colleagues, including 
enhanced wellbeing resources. We have 
particularly targeted new graduate vets, 
with our popular Summer and Winter Camps. 
	> We continue to enhance our learning, education 
and development in support of our clinical 
colleagues in order to enable their continued 
professional development. 
	> We continue to monitor our main key performance 
indicators of vet vacancy rate and employee 
Net Promoter Score. 
	> We continue to partner with universities to 
assist students with their extramural studies, 
providing lasting relationships with graduates. 
Advances in veterinary care
Description
	> Continued scientific research leads to 
further advances in veterinary care offering pet 
owners a variety of treatments for their animals. 
	> Improvements in technology have advanced 
the offering of telemedicine and remote 
specialist diagnostic image interpretation 
and advice. 
	> Technology is becoming more affordable and 
more practices around the world are able to 
buy MRI and CT scanners. We provide support 
through our Vet Oracle™ business. Our Vet 
Oracle™ specialists are able to review images 
remotely and provide advice on clinical 
treatments for first-opinion vets within CVS 
and third-party owned practices.
Our approach
	> We invest in our clinicians, offering them 
industry-leading clinical training, and we 
provide a culture of recommending the best 
possible treatment to our clients. 
	> We have introduced CVS Clinical Research 
Awards which are available to CVS colleagues 
and academics from universities or research 
institutes in the UK, the Netherlands and the 
Republic of Ireland. Successful applicants can 
receive funding to support clinical research 
that benefits veterinary clinical practice. 
	> We continue to grow our vet-to-vet telemedicine 
service, Vet Oracle™, which now has 
five specialisms. 
	> We invest in cutting-edge technology to 
enable us to offer the best clinical care to our 
patients, including investing in a stereotactic 
linear accelerator for cancer treatment, the first 
of its kind for animals in the UK, at our new 
referral centre in Bristol, opening in 2023.
A growing UK pet  
population
Description
	> The UK pet population has continued to grow; 
continued time spent at home has grown over 
the past two years with consumers recognising 
the benefits of companion animal ownership.
	> 	The Pet Food Manufacturers’ Association, in its 
recent survey, indicates that there are now over 
25m cats and dogs in the UK.
	> 	This increase in the pet population is a helpful 
market driver, not just in the short term when 
kittens and puppies require vaccinations, initial 
check-ups and in some cases neutering, but 
significantly in the medium and longer term as 
they become mature animals requiring more 
veterinary intervention.
Our approach
	> We continue to expand our network of 
high-quality facilities, accessible across the UK, 
the Netherlands and the Republic of Ireland. 
	> We provide access to preventative care 
through our successful Healthy Pet Club 
scheme which provides preventative 
healthcare including regular check-ups, 
annual vaccinations and regular flea and 
worming treatments.
	> We also provide advice to clients on the 
appropriate choice of pet for their individual 
circumstances and we offer puppy 
socialisation classes in a number of our 
first-opinion practices.
Link to strategy
Read more on pages 26 and 27
1
2
3
4
Link to strategy
Read more on pages 26 and 27
1
2
3
4
Link to strategy
Read more on pages 26 and 27
1
3
CVS Group plc Annual Report and Financial Statements 2022
16

Humanisation of pets
Description
	> The veterinary sector has benefitted from the 
humanisation of pets in recent years as pets 
are treated increasingly as companions and 
seen as an important part of family and home 
life, as well as positive contributors to improved 
mental and physical health.
	> In the PDSA 2022 PAW report, it was reported 
that 94% of pet owners say owning a pet makes 
them happy, and 84% of pet owners say 
owning a pet improves mental health.
	> Research published in the American Heart 
Association journal has linked pet ownership 
to improved health due to the mental health 
benefits of pet companionship and physical 
health benefits of physical activity, particularly 
associated with dog ownership.
Our approach
	> We continue to prioritise high-quality clinical 
care and, with our integrated structure, we can 
provide all-round animal care throughout a 
pet’s life, from first-opinion, specialist referrals, 
diagnostic testing, accessories, pet food and 
consumables, to end-of-life care, crematoria and 
waste disposal services. 
	> We have a culture of quality improvement 
which ensures our clients can access the most 
appropriate care for their pet. 
Consolidated market
Description
	> The UK and European veterinary market continues 
to consolidate and it is estimated that c.55% of 
UK practices are under corporate ownership. 
	> We recognise the importance of privately-
owned independent practices. However, 
we can see significant runway for further 
consolidation in the market, from review of 
other successful consolidated markets.
	> Where private practice owners are looking to sell, 
we are well-positioned to acquire and provide 
benefits to owners, colleagues and patients.
Our approach
	> We continue to invest in our integrated model and 
support organic and selective acquisitive growth. 
During the year, we spent £24.5m on capital 
expenditure, in addition to acquiring four 
companion animal practice sites. 
	> We support independent practices through 
our buying groups, our laboratories, our referral 
specialists, our Vet Oracle™ service and our 
crematoria, all of which offer services to 
non-CVS practices as well as our own.
	> We will continue to seek synergistic acquisition 
opportunities in areas of the UK where our 
presence is more limited, as well as exploring 
emerging European markets.
Online retail
Description
	> Increasingly, our customers are switching 
to shopping online for their pet food for 
convenience and to obtain the most 
competitive price. 
	> Whilst the majority of our clients purchase 
drugs in our practices, they can also purchase 
a prescription from our practices and then 
purchase drugs online.
Our approach
	> We have invested in and launched a warehouse 
management system to improve the efficiency 
of our order fulfilment.
	> We continue to explore opportunities within 
our online platform, increasing our website 
capabilities and ensuring we have sustainable 
competitive pricing. We are launching a new 
website for Animed Direct in the 2023 
financial year.
	> We are reviewing new opportunities to expand 
our online offering to our practice customers.
Did you know?
The Netherlands celebrated 200 years of veterinary medicine in 2021
In 1821, the National Veterinary School was founded in Utrecht with the hope that scientifically-
trained veterinarians would be able to solve the problem of livestock diseases. Much has 
changed since 1821 as the field of study expanded to match the changing function and 
meaning of the animal in modern society, and the resulting demand for veterinary services.
Between October and December 2021, colleagues from practices through the Netherlands 
carried a “veterinary flame” across the country. They could cycle, walk, row or ride on horseback, 
and the flame relay also raised money for Veterinary Medicine Friends, a charity that 
conducts paid research to improve the health of animals.
Link to strategy
Read more on pages 26 and 27
1
2
3
Link to strategy
Read more on pages 26 and 27
1
3
Link to strategy
Read more on pages 26 and 27
1
3
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
17

Business model
Our fully-integrated veterinary 
services model has a track record 
of resilience
Our inputs
Passionate people
We employ dedicated professionals who 
are committed to excellent clinical care.
7,913
employees
2,079
veterinary surgeons
Financial strength
We continue to deliver growth in revenue, 
adjusted EBITDA and underlying cash 
generated from operations.
£554.2m
revenue
£107.4m 
adjusted EBITDA
£93.1m
cash generated from operations
High-quality clinical care
All of our practices are registered with the 
RCVS Practice Standards Scheme (PSS) and 
are committed to investing in and using 
modern diagnostic techniques. We invest in 
clinical training and advanced qualifications.
85
referrals specialists
154
PSS awards
Customer focused
Our colleagues are dedicated to providing 
a quality service with the highest levels of 
customer and clinical care.
470,000 
Healthy Pet Club members
71.9
client Net Promoter Score
Integrated veterinary platform
We have a fully-integrated model with first-opinion veterinary practices at the core 
of our business, supported by specialist-led multi-disciplinary referral hospitals, 
our own diagnostic laboratories, our network of crematoria and our online retail 
business for pet food, medicines and pet care products. Through our fully-integrated 
model, we can provide high-quality end-to-end care to our patients and their owners.
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 See our Operational review on pages 45 to 53
 ii
i
 iii
CVS Group plc Annual Report and Financial Statements 2022
18

i
A vertically integrated 
platform with veterinary 
practices at our core
	> Strong barriers to entry
	> High-quality integrated clinical care
	> Scale benefits
 ii
Operating in a sizeable and 
growing market with resilient 
characteristics
	> 	Increased population of pets
	> 	Humanisation of pets with 
consumers willing to spend more
	> 	Recurring robust revenues
 iii
Supplemented by prudent  
capital allocation
	> Investment in new facilities and 
equipment, and increase in clinical 
specialists, to drive organic growth
	> Opportunity for 
accretive acquisitions
	> Progressive dividend policy
Stakeholder value creation 
Colleagues
	> Supporting colleagues’ wellbeing 
and performing regular check-ins
	> Creation of an Equity, Diversity 
and Inclusion (EDI) working group
	> Providing career progression 
and learning and development 
opportunities including continued 
professional development and access 
to top-tier clinical expertise
	> Maintaining high standards 
of clinical governance
	> Industry-leading graduate programme, 
including graduate camps
	> A culture of open dialogue and learning
	> Offering competitive rewards 
and benefits
Shareholders
	> Delivering sustained financial performance
	> Open dialogue and communication 
with our shareholders
	> Appointment of a financial PR 
agency and recording of analyst 
results presentations
	> Adherence with reporting 
requirements including Streamlined 
Energy and Carbon Reporting
	> Long-Term Incentive Plan (LTIP) 
awards are linked to total shareholder 
returns and targets are aligned with 
shareholder interests. Executive 
Directors are subject to two-year 
holding period on LTIP awards
	> Annual bonus targets for 
Executive Committee members 
will now include non-financial 
measures linked to sustainability
Industry bodies
	> Regular contact with the Royal College 
of Veterinary Surgeons (RCVS) and 
other industry bodies
	> Participation in RCVS Practice 
Standards Scheme by all CVS practices
	> Full engagement with RCVS as part 
of its recent consultation on proposed 
reforms of the Veterinary Surgeons Act 
1966 with written submission from CVS 
into this consultation
	> Publication of annual Quality 
Improvement report to promote 
improvements across the profession
	> Liaison with RCVS on wellbeing and 
ESG matters
Customers
	> Ensuring customers have access 
to end-to-end care through our 
first-opinion practices, our specialist-led, 
multi-disciplinary referral hospitals, our 
diagnostic laboratories and, at the end 
of an animal’s life, our compassionate 
cremation services
	> Demonstrating consistently high 
clinical standards
	> Prioritising animal welfare
	> Providing regular check-ups and 
routine treatments (e.g. vaccines, 
flea and worming treatments)
	> Maintaining high standards of 
pain management, particularly 
in surgical patients
	> All our first-opinion companion animal 
practices have sign access to allow 
deaf clients access to veterinary care
	> Providing an equine out-of-hours service
Community
	> Focus on quality improvement 
including antimicrobial stewardship
	> Outreach to schools
	> Regular liaison with industry bodies 
including the RCVS, British Veterinary 
Association, British Veterinary Nursing 
Association, and more
	> Donations to charity, including 
sponsorships and annual Vetlife 
charity donations
Suppliers
	> Fair trading terms with our suppliers 
which promote the collective interests 
of CVS and our supplier base
	> Regular meetings with senior 
management teams to ensure 
interests are aligned
	> Suppliers continue to benefit from the 
growth of CVS organically and through 
our strategic acquisitions
	> Engagement on ESG matters to ensure 
collective improvement
 Find out more in our Financial 
review on pages 54 to 58
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
19

Our culture
Driving positive change 
with care at our heart
Our culture and values reflect 
our purpose to give the best 
possible care to animals and 
our vision to be the veterinary 
company people most want 
to work for.
CVS Group plc Annual Report and Financial Statements 2022
20

“We’re building an inclusive 
behaviour framework, to help 
everyone understand what 
they can do to foster inclusivity 
within their teams.” 
Our approach
Individual attitudes and behaviours are key to our success. 
These values not only make us different, they also provide us 
with a sense of direction for consistent behaviour. They act 
as a foundation for our evolving culture as well as a guide 
describing what we can expect of each other and what our 
colleagues, our customers and the communities in which 
we work can expect of us. Our values are at the heart of how 
we work and they provide the inextricable link that ties all of 
these things together.
In 2022, we completed a Group-wide culture survey in which 
our colleagues fed back their experiences of inclusion, support 
and fairness within CVS. We are using this feedback to guide 
our colleague-led Equity, Diversity and Inclusion (EDI) groups, 
focusing on Ability and Neurodiversity, Ethnicity, Social Mobility, 
Gender and LGBTQ+. The groups have great passion for this 
hugely important subject and are already helping us identify 
ways in which we can further improve. We are in this for the 
long term, and we recognise that sustainable cultural 
and systemic change will take time. We are building a 
comprehensive EDI strategy, which will evolve over time 
as we respond to what we are achieving and what our 
colleagues are telling us.
Our culture in numbers
Our values
Customer focus
Our dedication to our customers is at the heart of our business 
and we are focused on our customers’ and their animals’ needs. 
We treat our customers with warmth and respect, we make 
them feel welcome, and we keep our commitments. 
Commitment to excellence
We constantly strive to achieve the highest possible 
standards in the quality of services and products we provide. 
We look for better ways of working, both individually and in 
teams, and we encourage colleagues to be innovative to 
improve the way we work.
Success through our people
We aim to attract, develop and retain the best people. We 
foster a collaborative and mutually supportive working 
environment, and we assist all our colleagues in achieving 
their career aspirations, with progressive learning and 
development opportunities. 
Honesty and integrity
We treat our colleagues and customers with honesty and 
respect. We strive to ensure safety and accessibility in all 
areas of our business. We act with integrity in all that we do, 
being fair, transparent and accessible to all. We are open to 
feedback and we own up to our mistakes. 
4.8
employee Net Promoter Score
 Discover more on page 31
280
active Wellbeing Champions
374
managers who completed 
“Supporting the Wellbeing 
of Your Team” training
5
EDI working groups
How we demonstrate our values
We achieve success through our people: The companion 
animal practices within CVS collectively received an RCVS 
Knowledge Champion Award in 2021, for auditing small animal ear 
cytology on a national scale over a long period, resulting in an 
increase in diagnostic tests and a reduction in antibiotic use across 
a wide range of practices.
We act with honesty and integrity: Many of our colleagues are 
already demonstrating inclusive behaviours, but we recognise that 
we can always do more to recognise and celebrate these inclusive 
behaviours. With the help of our colleague EDI groups, we’re building 
an inclusive behaviour framework to help everyone understand 
what they can do to foster inclusivity within their teams.
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
21

Section 172(1) Statement
Our Section 172(1) Statement sets out how the Board has 
given regard to the matters set out in Section 172(1)(a)-(f) of 
the Companies Act 2006 (“s172”) in performing its duties over 
the course of the year. The Company’s purpose, vision and 
strategy are reviewed and discussed annually by the Board to 
ensure that these continue to promote the long-term success 
of the Company for the benefit of its members as a whole, 
whilst also having regard to the matters set out in s172.
Purpose, vision and strategy
Our purpose is to give the best possible care to animals and 
our vision is to be the veterinary company people most want 
to work for. This purpose and vision are in alignment with the 
long-term interests of our customers, our colleagues and 
other stakeholders in the delivery of high-quality, sustainable 
clinical care for animals.
Stakeholder engagement
The Board has identified six key stakeholders who are essential 
to the delivery of the Company’s strategy and long-term 
success, details of which are set out on the following pages. 
Our colleagues, customers, shareholders, community, industry 
bodies and suppliers are at the heart of what we do; it is of the 
highest importance to us that we engage with all of our 
stakeholders meaningfully to inform decision-making and ensure 
that we provide value in all areas of our business. We promote 
an ongoing dialogue with all of our stakeholders to enable us to 
act on feedback and foster a culture of honesty and integrity.
Consideration of s172 factors by the Board
The following table sets out some key decisions taken by the 
Board during the year and how s172 factors and engagement with 
stakeholders have been discussed and taken into consideration.
The Board has a duty to act for the benefit of its members as 
a whole whilst having regard to the matters set out in s172:
a.	 the likely consequences of any decision in the long term;
b.	 the interests of the Company’s employees;
c.	 the need to foster the Company’s business relationships 
with suppliers, customers and others;
d.	 the impact of the Company’s operations on the 
community and the environment;
e.	 the desirability of the Company maintaining a reputation 
for high standards of business conduct; and
f.	
the need to act fairly as between members of the Company.
Board decision
s172 considerations
Dividend
The Board approved a final 
dividend of 6.5p per 
Ordinary share of 0.2p each 
in the capital of 
the Company for the year 
ended 30 June 2021.
Links to s172: a, c and f
The Board considered the Company’s capital 
position and performance and agreed the 
reintroduction of its progressive dividend 
policy which is based on growing the 
dividend per Ordinary share over time.
The Board also considered whether it was 
appropriate to return capital to shareholders 
through the use of special dividends and share 
buybacks, but taking into consideration the 
long-term investment needs of the business, 
the Board decided to reinvest capital in 
supporting delivery of long-term growth.
Environmental, Social and 
Governance (ESG) 
strategy
During the course of the 
year, the Board formally 
adopted the UN Sustainable 
Development Goals and 
joined the UN Global 
Compact, as part of its 
commitment to delivering 
on its ESG strategy as set out 
on pages 32 to 44.
CVS published its first 
standalone Sustainability 
Report on 12 August 2022.
Links to s172: a, b, d and e
The Board considered the Company’s 
environmental impact and discussed 
initiatives such as the reduction of waste, 
water consumption and the transition to 
recycled packaging. In addition to formally 
adopting the UN Sustainable Development 
Goals, the Board also committed to adopting 
the Sustainability Accounting Standards 
Board (SASB) reporting framework as a means 
to communicate to stakeholders data relating 
to actions the Board is taking with regard to 
financially-material sustainability factors. 
SASB data is recorded in the Group’s 2022 
Sustainability Report. Further, the Board has 
early-adopted the recommendations of the 
Task Force on Climate-Related Financial 
Disclosures (TCFD); the Group’s TCFD 
statement can be read on pages 38 to 44.
Cost-of-living pay review
The Board agreed an 
additional 3.0% salary 
increase for all colleagues 
(save for the Executive 
Directors) with effect from 1 
May 2022 to support 
increased costs of living. 
Further, the Board committed 
to paying a minimum of 3.0% 
above National Minimum 
Wage/National Living Wage 
for all present and future 
colleagues.
Links to s172: b, d and e
The Board agreed to an additional pay 
increase in May 2022 in recognition of the 
increased costs faced by households in the 
UK and Europe. The Board considered the 
views of its stakeholders and agreed that 
prioritising the needs of its colleagues would 
also have a positive impact on the communities 
it operates in as an employer, as well as 
cementing our reputation as a great place to 
work and have a career.
Section 172(1) statement and 
stakeholder engagement
Creating value for 
our stakeholders
CVS Group plc Annual Report and Financial Statements 2022
22

Colleagues
Why we engage
Our vision is to be the veterinary company people most want to 
work for. By engaging with our colleagues, we can understand 
their motivations and work with them to maximise colleague 
engagement and welfare. Our focus is continuing to provide our 
colleagues with the flexibility and support they need to develop 
their careers.
How we engage
We issue Group-wide correspondence in the form of weekly 
emails, a monthly magazine and quarterly video briefings, 
which are issued in English and Dutch with subtitles, to improve 
accessibility. We host an annual conference where clinical staff 
from across our divisions can engage with other members of 
the business. 
We actively monitor our colleague satisfaction via our employee 
Net Promoter Score (eNPS), which is updated monthly. The score 
is broken down on a divisional basis, and business leaders seek 
feedback in response to changes in the score. 
Although much of our day-to-day engagement with colleagues 
is delegated to local teams, a Non-Executive Director regularly 
meets with our colleagues to discuss key matters. 
We host live question and answer webinars with our Chief 
Executive Officer and Chief Operating Officer, and answers 
are also shared in the monthly company magazine.
Outcomes
Our colleagues provide valuable feedback, particularly on issues 
which affect them most, such as the rising costs of living. As a 
result of this, we announced an out-of-cycle pay rise for all colleagues, 
as well as a commitment to pay at least 3.0% above National Minimum 
Wage/National Living Wage to all current and future colleagues. 
In the past year, an increasing pet population and growing 
demand for high-quality clinical care has coincided with a 
shortage of clinical staff in the industry, leading to increased 
demands on our colleagues. We have monitored feedback from 
our colleagues and continue to implement measures to support 
them, by focusing on recruitment and retention, and investing in 
excellent facilities. 
We have continued to increase our wellbeing resources, including 
training further Wellbeing Champions and First Aiders for Mental 
Health, increasing the range of resources available on our wellbeing 
portal, and promoting our Employee Assistance Programme. 
Customers
Why we engage
Customers rightly expect the highest quality care for their 
animals. We provide this through our integrated veterinary 
services model which enables us to deliver high clinical 
standards and quality facilities. 
We engage with our customers to ensure we are meeting their 
high standards of service, and to identify opportunities to 
improve client service. 
How we engage
Alongside contact within our practices, we regularly 
communicate with our customers through a variety of channels 
such as social media, email and direct mail, promoting animal 
wellbeing in addition to discounts and benefits. 
We seek feedback from customers enabling us to measure our 
customer Net Promoter Score.
Our practice teams engage most closely with customers, and 
these colleagues are encouraged to provide regional and central 
management with feedback on key issues identified in conversations 
during consultations and other in-practice interactions.
Outcomes
We continue to invest in our integrated veterinary platform, 
ensuring we can offer our customers a complete pet care 
service, from first-opinion clinics and referral centres, to the sale 
of pet food and medications, to in-house laboratory testing, 
compassionate cremation services and clinical waste disposal. 
We ensure our acquisitions will improve the level of service we 
offer to our customers, whether it is covering a broader range of 
locations or providing enhanced services, such as out-of-hours, 
to complement existing practices. 
We continue to invest in improving our practices to enhance 
customer experience and the quality of clinical care we can 
provide. Our new flagship referral hospital with cutting-edge 
facilities and equipment, including a specialist stereotactic linear 
accelerator, is on track to open in Bristol in early 2023. The 
additional capacity will help us treat a larger number of cases and 
the advanced equipment will open up treatment opportunities to 
give the best possible care to animals.
Strategic Report
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CVS Group plc Annual Report and Financial Statements 2022
23

Section 172(1) statement and 
stakeholder engagement continued
Community
Why we engage
We regularly engage with local communities in which our 
practices operate, communities of pet owners and animal carers, 
and the communities to which our colleagues belong, in order to 
understand how we can support them.
By engaging with our communities we can find ways to 
contribute positively to the environments in which we work, 
promote employment satisfaction within our operations and 
support our communities to achieve common goals, such as 
the advancement of clinical care. 
How we engage
We have an annual charity of the year, which is chosen by our 
colleagues; in 2022 this is the Pet Blood Bank. Throughout the 
year we hold regular fundraising events from bake sales in local 
practices to Group-wide promoted events.
Our practices also engage within their local communities, 
providing key care to animals for a number of smaller charities.
Outcomes
Our colleagues raised £10,000 for our 2021 charity of the year, 
British Divers Marine Life Rescue, which was matched by CVS in 
a donation to Vetlife. This money helped the charity to deal with 
increased callouts after Storm Arwen, and helped to fund its new 
Seal Hospital in Cornwall.
In February 2022, we launched our “MiniCVS” workshops 
initiative, which sees our colleagues visit local schools to help get 
children excited about science and animals, with activities from 
roleplay, to pet first aid, to careers advice.
We have implemented a number of initiatives to lessen or offset 
our impact on the environment. Our crematoria have been 
donating throughout 2021 and 2022 towards the National Trust 
tree planting initiative. For every individual cremation received in 
2021, a contribution was made to this initiative, culminating in a 
£10,000 donation in June 2022 which equates to almost three 
football pitches of new green space in loving memory of pets.
Shareholders
Why we engage
We actively engage with our shareholders, highlighting our 
investment case and communicating our future plans, to ensure 
the Group’s strategy is aligned to the interests of its shareholders.
Our shareholders hold us accountable for doing the right thing, 
and by engaging with them we can understand and act on their 
expectations, enabling us to drive the business forward, deliver 
sustainable growth in shareholder return and attract additional 
investors to support the business.
How we engage
We engage with our shareholders through our Annual General 
Meeting (AGM), broker conferences, one-to one meetings and 
investor roadshows. We have an ongoing dialogue with our 
shareholders and value their feedback, which is regularly 
discussed at Board meetings. 
We keep the investor section of our website up to date to provide 
timely updates about CVS and its activities. 
Individual shareholders are encouraged to contact Directors on 
all matters relating to governance and strategy via the Company 
Secretary. Our Executive Directors take part in live webcasts of 
our interim and preliminary results announcements, including live 
question and answer sessions with analysts. 
Outcomes
At the 2021 AGM, 100.0% of resolutions were passed and votes 
in favour ranged from 93.7% to 100.0%. 
During the year, we attended eight investor conferences and we 
were delighted to attend in-person investor roadshows in the 
United States and the Republic of Ireland.
Our next capital markets day will be held on 8 November 2022, 
giving investors a deeper insight into our future growth opportunities 
and our capital allocation priorities, with an opportunity to meet 
our colleagues and attend practice tours.
CVS Group plc Annual Report and Financial Statements 2022
24

Industry bodies
Why we engage
We actively engage with our industry bodies, including the Royal 
College of Veterinary Surgeons (RCVS), the British Veterinary 
Association (BVA) and the British Veterinary Nurses Association 
(BVNA), to promote innovation and advancement within the 
veterinary industry.
How we engage
We engage with our regulators over a wide range of issues. 
Where appropriate, we hold meetings with industry bodies, such as 
the RCVS, BVA, BVNA and Veterinary Defence Society, to discuss 
key issues and share initiatives and improvements across the industry. 
Appropriate colleagues attend update calls and webinars with 
regulatory bodies to understand upcoming regulatory changes, 
such as the addition of ESG measures to the RCVS Practice 
Standards Scheme (PSS) which we were pleased to see in 2022.
Outcomes
In August 2022, we released our latest Quality Improvement (QI) 
report, updating our stakeholders on our approach to improving 
clinical standards in the industry. QI is hugely important to ensure 
we can maintain the highest possible standards of care. Our 
colleagues’ work on the impact of parasiticides on the natural 
environment will provide recommendations to inform clinical 
decision-making in an area which is currently not well understood.
We were actively involved in consultation with the RCVS on 
recommendations for reform of the Veterinary Surgeons Act 
1966 and are keen to see this legislation amended so that our 
highly-skilled nurses can undertake more procedures.
In advance of any changes in legislation, we have increased 
nurse utilisation in our veterinary practices as permitted under 
existing legislation, with the percentage of Registered Veterinary 
Nurses (RVNs) carrying out consultations increasing significantly 
in the year.
Suppliers
Why we engage
We are proud to have long-term relationships with our wholesalers 
and manufacturers, regularly communicating with them to 
promote our relationship. Through these relationships we can 
generate consistent custom for our suppliers, in return achieving 
mutually favourable terms on purchases. 
We engage with our suppliers to deliver ongoing benefits to our 
businesses, collaboratively finding operational and sustainable 
improvements and delivering improved value. 
We have shared sustainability goals with some of our key 
suppliers. We recognise that through working together we can 
reduce our impact on the environment.
How we engage
We regularly communicate with our suppliers to review contract 
terms and identify mutually beneficial opportunities.
Our suppliers are invited to attend our annual conference to 
understand our business, engage with other key stakeholders 
and ask any questions they may have. 
We attend industry conferences and events which are also 
attended by our existing suppliers, as well as other suppliers that 
we may work with in the future. We actively engage at these 
events to understand where our goals might be aligned to those 
of suppliers. 
Outcomes
We have continued to maintain appropriate communication with 
our suppliers, ensuring they are paid on time and are able to 
deliver sufficient product.
We have formed partnerships with some of our key suppliers to 
reduce our impact on the environment. Our office supplies 
provider, Warrens Office, has worked closely with us on a number 
of environmental initiatives, including timing the deliveries of its 
office supplies to our practices to coincide with deliveries to 
other customers in the same areas.
We have partnered with environmental award-winning print 
supplier SF Taylor to launch the CVS Print Hub in November 2021. 
The CVS Print Hub provides a catalogue of printed items for CVS 
practices to order, including posters, leaflets and branded 
letterheads. Fully accredited with ISO 14001, FSC and PFEC, SF 
Taylor also holds awards for its commitment to manufacturing 
with process-free printing plates; use of only vegetable-based 
inks; reduction of wastage by recycling solvents wherever 
possible; and use of an ink pumping system which both reduces 
Volatile Organic Compounds (VOC) emitted to the atmosphere and 
minimises waste.
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
25

Our strategy
Driving business performance 
by doing the right thing
1. We recommend and provide the best 
clinical care every time
Our strategic objectives
	> To have a culture of recommending the best possible treatments to 
our clients.
	> To deliver industry-leading clinical training.
	> To be committed to evidence-based medicine and have a robust quality 
improvement framework.
	> To ensure our clinicians have access to the right medicines at the right time.
Our achievements in the year
	> We have once again published our annual Quality Improvement (QI) report, 
reflecting our commitment to leading the veterinary profession in patient 
safety and promoting a culture of learning and development amongst 
colleagues. 
	> We have focused on our Patient Care Index, which is our framework to 
monitor the quality of patient care.
	> Our Vet Oracle™ virtual specialist hospital has continued to grow, with 
13,000 cases considered in 2022. 
	> Our equine and farm colleagues have been focusing on implementing QI 
measures, including establishing a QI Lead within each practice.
Outlook
	> We are working hard to drive increased levels of preventative healthcare 
and we hope to continue to grow membership of our Healthy Pet Club. 
	> Our referrals teams are using technology to advance clinician-reported and 
client-reported outcome measures, which will undoubtedly lead the way to 
introducing this work to the wider profession.
Market drivers
This pillar is impacted by:
	> a growing UK pet population;
	> advances in veterinary care; and
	> humanisation of pets.
2. We are a great place to work and have  
a career
Our strategic objectives
	> To create opportunities for our people to have a diverse and 
rewarding career.
	> To be as flexible as possible in all our roles.
	> To have the best leaders within our businesses.
	> To offer the best learning, education and development in the profession.
Our achievements in the year
	> In the year ended 30 June 2022 we employed an average of 2,079 vets 
(2021: 1,962). This is a 6.0% increase from 2021 to 2022, despite workforce 
shortages in the veterinary industry, demonstrating the success of our 
people-focused strategy.
	> Our vet and nurse attrition has remained relatively stable.
	> Our employee Net Promoter Score, which tracks colleague engagement 
across our business, increased by 65.5% from 2021 to 2022.
	> We have placed 362 new colleagues through our highly successful refer-a-
friend scheme and we have filled 160 roles with internal candidates.
	> We have implemented enhanced benefits for our colleagues including 
increased pay and holiday. In May 2022, we announced our commitment to 
pay a minimum of 3.0% above National Minimum Wage/National Living Wage  
to all current and future colleagues.
Outlook
	> We will remain focused on colleague recruitment and retention, seeking 
further initiatives to improve colleague satisfaction. 
	> Our Culture Survey has provided excellent feedback which our five colleague-
led Equity, Diversity and Inclusion (EDI) groups are working on to support 
colleagues on topics including:
•	 Ability and Neurodiversity;
•	 Ethnicity;
•	 Social Mobility;
•	 Gender; and
•	 LGBTQ+.
	> Our industry-leading learning, education and development platform, the 
Knowledge Hub, goes from strength to strength, with 261 courses 
now available. 
Market drivers
This pillar is impacted by:
	> a growing UK pet population;
	> advances in veterinary care;
	> availability of vets to perform services; and
	> humanisation of pets.
Link to KPIs
Read more on pages 28 to 31
Link to risks
Read more on pages 60 to 68
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Read more on pages 28 to 31
Link to risks
Read more on pages 60 to 68
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CVS Group plc Annual Report and Financial Statements 2022
26

3. We provide great facilities  
and equipment
Our strategic objectives
	> To ensure all our practices meet the Royal College of Veterinary Surgeons 
(RCVS) Practice Standards Scheme accreditation standards, and to aspire 
to achieve further RCVS awards.
	> To invest in our estate to ensure all our facilities meet excellent standards.
	> To expand our network with high-quality facilities.
	> To develop new ways to serve our clients and our patients.
Our achievements in the year
	> We have completed 23 practice relocations and refurbishments.
	> In 2022, we spent £13.7m on investment in our facilities and medical 
equipment.
	> During the year, we acquired three new practices (four practice sites). 
which complement our existing portfolio of practices. 
Outlook
	> We are committed to enhancing the quality of our on‑site facilities. 
	> Our senior clinical teams are launching and training new techniques 
across our practices.
	> Our flagship specialist veterinary hospital in Bristol, opening in 2023, 
will have specialists in every discipline and cutting-edge equipment 
and technology.
Market drivers
This pillar is impacted by:
	> a growing UK pet population;
	> advances in veterinary care;
	> availability of vets to perform services; and
	> a consolidated market.
4. We take our responsibilities  seriously
Our strategic objectives
	> To make our Group as environmentally sustainable as possible.
	> To implement the best levels of health and safety in the profession.
	> To prioritise the wellbeing of our people.
	> To engage with the veterinary profession and support its interests. 
Our achievements in the year
	> We refreshed our EDI committee and introduced and recruited 60 
colleagues from across CVS to five new colleague-led EDI groups.
	> We have published our first standalone Sustainability Report, using the 
Sustainability Accounting Standards Board (SASB) as the reporting 
framework to disclose our sustainability data.
	> In this Annual Report we have early-adopted the requirements of the 
Task Force on Climate-Related Financial Disclosures (TCFD). 
 Read more in our TCFD report on pages 38 to 44.
	> We have installed an automatic anonymisation feature within our primary 
practice management system that erases or anonymises customer data 
in line with the data retention policy.
Outlook
	> We want to play a leading role in tackling issues such as antimicrobial 
resistance – a critical challenge for animal healthcare globally. We 
continue to support research into this subject and promote a reduction 
in prescribing of unnecessary or inappropriate antimicrobials.
	> CVS works closely with RCVS Knowledge, the charity partner of the RCVS, 
to help promote its mission “to advance the quality of veterinary care for 
the benefit of animals, the public, and society.”
	> We will continue to report annually under the SASB and TCFD frameworks, 
ensuring accountability to our stakeholders, including setting measurable 
targets against which to benchmark progress.
Market drivers
This pillar is impacted by:
	> availability of vets to perform services; and
	> humanisation of pets.
Link to KPIs
Read more on pages 28 to 31
Link to risks
Read more on pages 60 to 68
We are a great 
place to work and 
have a career
We recommend 
and provide the 
best clinical care  
every time
We provide  
great facilities  
and equipment
We take our 
responsibilities  
seriously
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Read more on pages 28 to 31
Link to risks
Read more on pages 60 to 68
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CVS Group plc Annual Report and Financial Statements 2022
27

Key performance indicators
Financial KPIs
Ensuring CVS 
tracks and monitors 
the correct KPIs, 
both financial and 
non‑financial, is 
key in measuring 
our success.
1.	 Adjusted financial measures 
(adjusted EBITDA, adjusted profit 
before tax and adjusted earnings 
per share) are defined in note 1 to 
the financial statements, and 
reconciled to the financial 
measures defined by International 
Financial Reporting Standards 
(IFRS) on pages 114 and 132.
Link to strategy
Read more on pages 26 and 27
Why it’s a KPI
Revenue is a key measure of 
performance across all 
divisions of the Group and 
demonstrates our ability to 
attract and retain customers.
2022 performance
	> Group revenue has increased 
by £44.1m.
	> Like-for-like sales, adjusted 
for intercompany revenue 
eliminations, increased by 
£37.1m (8.0%) as a result of 
investments in our people, 
facilities and clinical 
equipment. 
	> Acquisitions during the year 
and the full year impact of 
prior year acquisitions 
generated additional revenue 
of £7.0m.
Why it’s a KPI
Like-for-like sales shows revenue 
generated from like-for-like 
operations compared to the 
prior year, adjusted for the 
number of working days. For 
example, for a practice acquired 
in September 2020, revenue is 
included from September 2021 
in the like-for-like calculations. 
This shows the underlying 
growth in revenue across all 
divisions, excluding the impact 
of acquisitions.
2022 performance
	> Like-for-like performance 
reflects growth in both price 
and volume compared to the 
previous year.
	> Price increases are in line with 
inflation and reflect our focus 
on delivering high-quality 
care to our clients and 
patients.
	> The increase in volume has 
been driven by an increase in 
clinical staff supported by our 
continuing investment in our 
facilities and clinical 
equipment.
(C) Adjusted EBITDA1 
(£m)
2022
510.1
17.4
2021
427.8
2020
406.5
£554.2m
+8.6%
2019
327.3
2018
2019
4.9
2018
2022
2021
2020
0.7
5.2
8.0%
-54.0%
2019
47.6
2018
2022
2021
2020
97.5
71.0
54.5
£107.4m
+10.2%
1
2
3
4
1
2
3
4
1
2
3
4
554.2
8.0
107.4
(A) Revenue (£m)
(B) Like-for-like sales 
(%)
Why it’s a KPI
Adjusted Earnings Before 
Interest, Taxation, Depreciation 
and Amortisation (EBITDA) 
excludes costs relating to 
business combinations and 
exceptional items and assists in 
understanding the underlying 
performance of the Group.
2022 performance
	> The improvement in adjusted 
EBITDA reflects the increase 
in like-for-like sales and 
improvement in gross margin 
before clinical staff costs, as 
we continue to deliver our 
purpose to give the best 
possible care to animals.
	> This increase has contributed 
to the improvement in 
like-for-like adjusted EBITDA 
of £9.3m, with acquisitions in 
the year and the full year 
impact of prior year 
acquisitions generating an 
additional £1.5m.
	> This is partly offset by an 
increase in central costs of 
£0.9m as we continue to 
invest in our support 
functions to support the 
delivery of high-quality care 
across the Group.
CVS Group plc Annual Report and Financial Statements 2022
28

(D) Adjusted EPS1 
(pence)
(F) Gross margin 
before clinical 
staff costs (%)
2022
2021
2020
75.1
42.0
46.7
85.8p
+14.2%
2019
42.4
2018
2022
76.1
2021
75.5
2019
79.6
2020
76.2
2018
76.9%
+1.1%
(G) Cash generated 
from operations 
(£m)
2019
46.7
2018
2022
80.3
2021
94.8
2020
52.1
£93.1m
+15.9%
(E) Total capex (£m)
2022
2021
2020
16.6
12.4
12.9
£24.5m
+47.6%
2019
10.7
2018
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
85.8
76.9
93.1
24.5
Why it’s a KPI
This is profit before tax adjusted 
for: amortisation; costs relating 
to business combinations; and 
exceptional items net of the 
notional tax impact of these, 
divided by the weighted 
average number of shares. 
2022 performance
	> The increase reflects the 
increase of £9.3m in the year 
in adjusted profit before tax1.
	> Issued share capital has 
increased only by the number 
of shares required to satisfy 
the Group’s Long-Term 
Incentive Plan and Save As 
You Earn schemes.
Why it’s a KPI
Gross margin represents 
revenue after deducting the 
cost of drugs, laboratory fees 
and cremation fees, and other 
goods sold or used by the 
business, expressed as a 
percentage of total revenue. 
Gross margin is a KPI because 
it helps us to monitor and 
measure our ability to purchase 
drugs at the best possible 
price whilst ensuring the 
highest quality.
2022 performance
	> 	The increase in gross 
margin is principally due 
to our focus on providing 
great clinical care through 
increased diagnostics.
Why it’s a KPI
Cash generated from 
operations shows the cash 
inflows before: payments of 
taxation and interest; business 
combinations; purchases of 
property, plant and equipment 
and intangible assets; 
repayment of right-of-use 
assets; payments of dividends; 
debt issuance costs; increase/
repayment of bank loans; 
exceptional items; and 
proceeds from issue of shares. 
Delivery of increased cash 
generated from operations 
allows us to invest in further 
growth opportunities across 
our business.
2022 performance
	> 	Cash generated from 
operations has increased 
due to the increase in profit 
for the year offset by adverse 
working capital, with an 
increase in inventories of 
£6.6m and a reduction in 
trade payables due to a 
portion of colleagues’ bonus 
payments now being paid in 
salary.
Why it’s a KPI
This is the total amount 
spent by the Group on capital 
expenditure (“capex”). Capital 
expenditure is incurred on 
refurbishment and relocation 
of practice facilities and 
investment in new equipment 
and clinical facilities. Investing 
in our practices and clinical 
equipment is key to 
achievement of our strategic 
goal of providing great facilities 
and equipment.
2022 performance
	> Total capital expenditure 
has increased by £7.9m, 
consisting of a £2.6m 
increase in maintenance 
capital expenditure, 
and a £5.3m increase 
in development capital 
expenditure, with the 
focus on improving client 
experience and growing 
our business. Refer to the 
Financial review on pages 54 
to 58 for further detail.
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
29

Key performance indicators continued
Non-financial KPIs
Tracking our 
non‑financial 
measures allows 
us to monitor our 
performance 
against our core 
strategic goals.
1.	 These non-financial KPIs align 
with our strategy; however, data 
is only available for three years.
2.	 Net Promoter Score measures 
customer and colleague 
experience using the answer to a 
key question, “how likely is it that 
you would recommend CVS?”, 
with a 0-10 scale. Responses 
are analysed using a weighted 
calculation to yield a score 
between a low of -100 to 
a high of 100. 
Link to strategy
Read more on pages 26 and 27
Why it’s a KPI
The vet vacancy rate is 
calculated as the average 
number of live vet vacancies 
divided by the total number 
of vets by headcount plus 
vacancies. This shows the 
average level of vet vacancies 
for the Group during the period. 
This links to our strategic goal of 
being the veterinary company 
people most want to work for.
2022 performance
	> The vet vacancy rate has 
increased in 2022, as we are 
advertising for a number of 
new positions to support our 
growth due to increasing 
demand for our services.
Why it’s a KPI
Healthy Pet Club is our 
preventative care scheme. It 
provides CVS with a robust and 
regular revenue stream, as well 
as improving customer loyalty.
2022 performance
	> The number of Healthy Pet 
Club members has increased 
by 4.4% in the year.
	> This demonstrates the 
increased humanisation of 
pets and desire for our clients 
to invest in their pets’ health 
through preventative care.
Why it’s a KPI
This shows the number of RCVS 
Practice Standards Scheme 
(PSS) awards across the Group. 
These awards promote and 
maintain the highest standards 
of veterinary care across a range 
of different criteria including 
client experience and clinical 
governance. Monitoring the 
number of RCVS awards helps 
us achieve our strategic 
goal of taking our 
responsibilities seriously.
2022 performance
	> PSS accreditations and award 
assessments stopped during 
COVID-19 lockdown periods. 
	> The Awards have recently 
begun to be assessed again, 
but to manage the pressure 
that some practices are 
under, we have not begun 
actively promoting 
re‑assessment. 
	> Of our 154 PSS Awards, 117 
relate to client service, 
highlighting our focus on 
exceptional client service.
2
3
4
1
1
2
3
4
10.4%
+25.3%
154
-3.1%
470,000
+4.4%
(H) Vet vacancy rate 
(%)
(I) Healthy Pet 
Club members
(J) Number of 
RCVS awards
2022
8.3
2021
6.9
2020
9.1
2019
11.3
2018
10.4
450,000
2019
362,000
2018
2022
2021
2020
415,000
401,000
470,000
2019
83
2018
2022
2021
2020
159
159
114
154
CVS Group plc Annual Report and Financial Statements 2022
30

A culture of learning from mistakes 
Talking about and learning from mistakes, or near misses, 
is an integral part of having a culture where patient safety 
is paramount. It is also essential to support the team 
members involved, as we know that people can become 
extremely distressed by these events, known as second 
victim syndrome, and their mental health may suffer. 
The meaning of a significant event in this context is any 
unintended or unexpected event which could or did lead 
to animal harm. The significant event analysis process 
provides a framework to systematically identify all factors 
that contributed to an event, so that improvements can 
be made. While human error may play a role, there will 
always be more factors involved. 
The online significant event recording system, VetSafe, is 
where practices can record and share these events. A 
high number of VetSafe records is considered success, 
as the team is more likely to be learning from these 
events and putting measures in place to reduce the 
chances of the event happening again. Centrally, trends 
in reporting are identified and support can be provided in 
the form of learning opportunities and guidance, as well 
as taking on some of the things that are outside of the 
practices power to change themselves. 
(K) Employee NPS1, 2
Why it’s a KPI
Employee Net Promoter Score 
(eNPS) is a measure of how 
likely our colleagues are to 
recommend the Group as a 
place to work as reported on 
anonymous surveys. Monitoring 
eNPS shows the level of 
colleague satisfaction across 
the Group and helps us to 
ensure we are a great place 
to work and have a career.
2022 performance
	> We have seen significant 
improvements in colleague 
engagement; our focus on 
colleague recruitment and 
retention supports us in our 
vision to be the veterinary 
company people most want 
to work for.
	> We care about the wellbeing 
of our colleagues and 
continue to look for ways to 
support them in their roles, 
such as implementing new 
pastoral support roles in 
practices, and utilising our 
280 active Wellbeing 
Champions across the 
business.
(L) Client NPS1, 2
Why it’s a KPI
Client Net Promoter Score (NPS) 
is a measure of the level of our 
clients’ satisfaction with their 
experiences with the Group via 
anonymous reporting of the 
likelihood that clients would 
recommend the Group for our 
services. Monitoring NPS helps 
us to ensure we recommend 
and provide the best clinical 
care every time.
2022 performance
	> Client engagement has 
remained consistent with the 
prior year, at very high levels.
	> We have been pleased that 
our practices were able to 
re-open their reception areas 
for much of the financial year, 
and, more recently, invite 
clients back into consultation 
rooms.
	> We hope that our focus on 
high-quality clinical care and 
investment in our practice 
facilities will continue to meet 
our clients’ demands for 
exceptional care of their 
treasured animals.
1
2
3
4
1
3
4.8
+65.5%
71.9
-0.4%
2022
2021
2020
2.9
0.7
4.8
2022
2021
2020
72.2
78.5
71.9
Area of focus
Significant events recorded on VetSafe
2021-2022
2020-2021
2019-2020
544
540
617
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
31

Sustainability
Care at the heart 
of our business
Our purpose
Our purpose is to give the best 
possible care to animals
Our vision
Our vision is to be the veterinary 
company people most want to 
work for
Recruiting and 
retaining more 
excellent clinical 
colleagues
Providing 
higher quality 
of animal 
care 
Creating 
a happier 
workforce 
Raising industry 
standards and 
supporting the 
veterinary 
profession 
Continually 
improving 
performance 
and impact
Helping more 
animals, who in 
turn improve 
people’s lives
Driving 
sustainable 
investor 
returns
Meeting market 
demand
Value creation
Our efforts to build a more sustainable business will drive increased standards,  
an improved working environment for our colleagues and improved returns for 
our shareholders. This improvement feeds into a positive cycle of performance 
in all aspects of our economic performance, sustainable practices and 
corporate governance. 
CVS Group plc Annual Report and Financial Statements 2022
32

Introduction
Our Environmental, Social and Governance (ESG) strategy 
was introduced in our 2021 Annual Report, setting out why 
and how we care:
	> We care about protecting the wellbeing of our colleagues, 
and equipping them with the support, resources, training 
and access to personal development opportunities that 
they need.
	> We care about driving standards of clinical excellence in 
the profession and giving the best possible care to 
animals.
	> We care about making a positive impact in the 
communities in which we work. 
	> We care about doing our job in a way that is sustainable 
and that does not compromise the natural environment.
	> We care about delivering value for our investors by doing 
the right thing.
To support the delivery of this strategy, we have established 
working groups across CVS which have been assigned to 
monitor, assess, understand and develop proposals to 
manage our impact in the following areas: 
	> Energy and Carbon; 
	> Waste;
	> ‘One Health’ (including antimicrobial resistance);
	> Wellbeing;
	> People Development;
	> Equity, Diversity and Inclusion; and
	> Community. 
Our goal is to build a more sustainable business, driving 
increased standards, a better working environment for our 
colleagues and improved shareholder returns.
 
CVS in 2022 at a glance
c.1.2m
Companion animals under our care 
(2021: c.1.1m)
£554.2m
Revenue
(2021: £510.1m)
£107.4m
Adjusted EBITDA
(2021: £97.5m)
£1.2bn
Market capitalisation
1,656p per share at 30 June 2022 
(2021: £1.7bn, 2,415p per share)
470,000
Members of the Healthy Pet Club, 
our preventative healthcare scheme  
(2021: 450,000) 
4
Clinicians on our Executive Committee, 
including three veterinary surgeons, of which two 
are specialists, and one qualified veterinary nurse, 
comprising 50% of roles (Chief Operating Officer, 
Chief Veterinary Officer, Director of Clinical Operations 
and Group Procurement Director) 
7,913
Colleagues employed
(2021: 7,241), including 2,079 veterinary surgeons  
(2021: 1,962) and 2,839 nurses (2021: 2,548)
472
Veterinary surgeries 
(2021: 498) throughout the UK, the Netherlands 
and the Republic of Ireland
Read our Sustainability 
Report at cvsukltd.co.uk
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
33

Waste
Key objectives 
1. Segregating waste appropriately to recycle where possible, 
reducing the amount of waste entering landfill and the 
amount of hazardous waste incinerated.
2. Where possible, replacing single-use items with reusable 
ones and using products made from more sustainable 
sources.
3. Engaging with suppliers to understand their sustainability 
policies, and endeavouring to source products from 
companies with strong environmental credentials.
Progress in the year
Annual reporting of packaging purchased across our 
warehouse and laboratories shows a 35% reduction in paper 
use relative to the previous year (calendar year 2021, compared 
to 2020).
In addition, we have introduced paperless systems in our 
warehouse, such as our new stock management system.
We have also collaborated with some of our key suppliers to 
offer packaging return schemes and recycling schemes for 
printer cartridges, batteries and, in our equine practices, 
single-use equine inhaler devices.
Vet Direct, our veterinary equipment supplier, has vastly 
reduced its printing of catalogues, and is carbon balancing 
the use of paper through the World Land Trust.
Outlook
We continue to work on initiatives to reduce waste across our 
business, and we hope to recruit “Waste Champions” in all 
areas of the business to support our colleagues in reducing 
their waste. 
We use Veolia’s Microsoft Power BI platform to analyse waste 
collection data and monitor waste bin utilisation across our 
practices, helping us to increase recycling and reduce waste 
collections. Using this data, we can identify areas for 
improvement in our waste reduction processes. 
Energy and carbon
Key objectives 
1. Consumption management and user awareness.
2. A programme of targeted capital expenditure.
3. Enhancement of existing construction, maintenance and 
property leasing activities.
Progress in the year
As part of our adoption of Streamlined Energy and Carbon 
Reporting (SECR), we have undertaken work to reduce our 
Scope 1, 2 and 3 emissions, as well as broadening the extent of 
our reporting to include details of greenhouse gas emissions 
(including anaesthetics) which are not covered by SECR.
We have moved to a renewable energy supply, we are 
supporting smarter heat and building management and we are 
reducing electricity use in our day-to-day operations. In April 
2022, we also added a range of ultra-low emissions vehicles 
(ULEV) to our company car list.
We have conducted work to measure climate risk within our 
business in line with the recommendations set out by the Task 
Force on Climate-Related Financial Disclosures (TCFD), and we 
have early-adopted the TCFD’s recommendations in this 
Annual Report, on pages 38 to 44.
Outlook
We are launching new Group-wide initiatives to help inform 
colleagues of our responsibilities to consume and conserve 
energy in the most efficient way possible.
We are working through an updated and detailed asset survey 
of the Group’s property portfolio in terms of infrastructure and 
equipment. An output of this process will be a reclassification 
of our key investment priorities. Using this information, we 
intend to develop an investment programme to help improve 
our consumption and monitoring capabilities.
We also plan to enhance our facilities management provision 
during the year ahead and will engage with suppliers which 
specifically promote energy management and sustainability 
across their service provision to us.
As part of our forward acquisition and lease renewal activity 
we will actively promote green leases with our landlords.
Sustainability continued
CVS Group plc Annual Report and Financial Statements 2022
34

Wellbeing
Key objectives 
1. Self: providing support and resources to enable individual 
colleagues to look after their own wellbeing.
2. Leadership: supplying leaders with the relevant tools, 
training, and role-modelling to enable them to support 
the wellbeing of their teams.
3. Community: fostering wellbeing across our teams and 
the CVS community – using our network of Wellbeing 
Champions and team wellbeing activities and events.
Progress in the year
In July 2021, CVS introduced a Wellbeing Calendar. In its first 
year, it featured topics such as resilience, exercise, sleep, 
stress, financial wellbeing, and crisis awareness.
The Wellbeing working group is already seeing good results 
against its three key objectives.
>1,000 
colleagues have accessed wellbeing resources 
on the Knowledge Hub
374 
leaders have been trained in supporting the 
wellbeing of their team
>350 
colleagues have been trained in First Aid  
for Mental Health
Outlook
In 2023, a new regular wellbeing measure will be introduced. 
This will be survey-based, asking colleagues how their work 
affects their wellbeing.
In July 2022, we introduced the second year of our Wellbeing 
Calendar, including topics such as mindful self-care, 
community outreach, hobbies and being active.
We are launching a new online training module for leaders on 
psychological safety – this is, we believe, the first 
psychological safety training course that is bespoke to 
veterinary context.
One Health
Key objectives 
1. Promoting the responsible use of antimicrobials within CVS 
and beyond.
2. Investigating the future use of parasiticides at CVS.
3. Setting short-, medium- and long-term recommendations 
on medications and prescriptions to help inform clinical 
decision-making in the future.
Progress in the year
The Parasiticides working group met in April 2022 for an initial 
exploratory discussion which provided short-, medium-, and 
long-term recommendations, as well as emphasising the 
critical need for practical research in this area, to help inform 
clinical decision-making in the future.
Since updating our antimicrobial resistance (AMR) policy in late 
2021, there has been considerable progress in the reduction of 
Highest Priority Critically Important Antimicrobials (HPCIA) 
prescriptions due to our intervention. Read more about HPCIA 
prescriptions in our 2021 Quality Improvement report and our 
2022 Sustainability Report, which are available on our website: 
www.cvsukltd.co.uk.
Outlook
There is currently insufficient evidence available to make an 
effective risk-benefit analysis of the ongoing prophylactic use 
of parasiticides in companion animals. Therefore, a working 
group has been formed to further develop clinical strategies 
aimed at balancing the use of parasiticides in companion 
animals with environmental concerns regarding such products 
polluting the environment and endangering insect life.
Future discussions and decision-making will include feedback 
from clinicians in practice, to ensure their voices are heard and 
a balanced approach is taken.
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
35

Equity, Diversity and Inclusion (EDI)
Key objectives 
1. For CVS to be the veterinary company people most want to 
work for, regardless of who they are, how they identify, or their 
background.
2. Establishing a ten-year plan to ensure the Group continues  
to move in the right direction towards a culture of  
inclusion fluency.
3. Developing awareness and understanding of inclusivity with 
all leaders and colleagues. 
Progress in the year
We’ve launched an EDI educational platform within the Knowledge 
Hub. It houses plenty of resources to support us all with our 
continued learning and awareness around equity and inclusivity.
We’ve also revised our monthly colleague survey to help us 
gather more useful insights into how we’re doing: quarterly, the 
survey will ask about inclusion.
In May 2022, the Board took the decision to increase the base 
salary of our minimum wage roles to 3.0% above the National 
Minimum Wage/National Living Wage.
We have increased the range of pronouns listed in Robovet to 
provide clients with more options when registering with us, and 
implemented some changes within HR processes around 
gender inclusivity, as well as encouraging the free use of gender 
pronouns.
In June 2022, CVS celebrated Pride Month. 
Outlook
Through 2022 and into 2023, our focus is on building 
foundational understanding across the organisation around EDI.
We are preparing updated company policies on: EDI; Bullying, 
Harassment and Incivility; and Menopause.
Our Ability and Neurodiversity group is engaging with our 
recruitment team to look at how we talk about disability and 
reasonable adjustments during the process to make it 
accessible for everyone.
Our Ethnicity group is building an inclusive behaviours 
framework and supportive training, and wants to ensure all 
colleagues feel confident to report any prejudice or 
discrimination experienced.
Our Social Mobility group is working towards increasing the 
socio-economic diversity of qualified veterinary surgeons 
and nurses in CVS and the wider profession.
People Development
Key objectives 
1. Developing our people to flourish in their current roles, 
including career pathway development and preparing them 
for future roles.
2. Building and strengthening relationships with major partner 
stakeholders to enhance our pipeline for future recruitment 
and help raise the standard of new colleagues who join CVS 
or the wider profession.
3. Supporting and engaging with broader society with 
initiatives including community outreach, school 
engagement and client education.
Progress in the year
Between 2017 and 2022 we have funded our apprenticeship 
training through the apprenticeship levy, to the value of £4.4m 
to date, and committed to continue to fund and support these 
apprentices. We have over 400 currently active learners and 
over 800 colleagues have started an apprenticeship since 
2017.
Many of our colleagues have enjoyed implementing and taking 
part in wider initiatives, such as our “MiniCVS” Workshops 
initiative, which sees our colleagues visit local schools to help 
get children excited about science and animal care.
Outlook
The People Development working group is prioritising:
	> delivering industry-leading training;
	> offering the best learning, education and development in 
the profession;
	> having the best leaders in our business; and 
	> engaging with the veterinary profession and broader society, 
and supporting its interests.
£4.4m
value of the apprenticeship levy
>400
active learner apprentices
Sustainability continued
CVS Group plc Annual Report and Financial Statements 2022
36

Community
Key objectives 
1. Working with charities.
2. Giving our time.
3. Sharing our expertise.
Progress in the year
In February 2022, we launched our “MiniCVS” workshops 
initiative, which sees our colleagues visit local schools to help 
get children excited about science and animal care. Our 
colleagues cater their workshops to different ages, from 
role-play and pet first aid for younger children, through to 
careers advice for older students.
We encourage our teams to fundraise for our annual charity of 
the year, which is chosen by our colleagues to maximise 
engagement. In January 2022, a £10,000 donation was made 
to our charity of the year, British Divers Marine Life Rescue. CVS 
also makes an annual donation to Vetlife, matching the amount 
raised for the colleagues’ chosen charity of the year.
We have connected with a charitable organisation, the Links 
Group, which explores the links between animal abuse and 
domestic violence.
Outlook
In the year ahead, our Community working group will develop 
and start to deliver a CVS Community Strategy in order to 
bring additional rigour and resource to our community 
activities.
In 2022, our charity of the year is the Pet Blood Bank.
“UK SAYS NO MORE” is a campaign working to take a stand 
against domestic abuse and sexual violence by challenging 
the myths and misconceptions around these issues and 
sharing information. It is working with various pharmacies, 
shops and banks across the UK to provide Safe Spaces in its 
consultation rooms for people experiencing domestic abuse. 
We are looking at ways we can offer a similar support network 
in our practices through our project with the Links Group.
“The care we have for our 
colleagues, our clients and their 
animals is ingrained within our 
very DNA. Our purpose is to 
give the best possible care to 
animals, and our vision is to be 
the veterinary company people 
most want to work for. This 
purpose and vision guide us in 
everything we do and help us 
not only to have a positive 
impact on our teams, our 
patients, our customers, and 
our other stakeholders, but also 
to make a bigger contribution 
to wider society.”
Richard Fairman
Chief Executive Officer
 Read more in our 2022 Sustainability 
Report, published on our website 
www.cvsukltd.co.uk/investor-centre/
sustainability/
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
37

Sustainability continued
Non-Financial and Sustainability Information Statement
Caring for animals goes hand-in-hand with caring for the natural environment, so climate-related risks and opportunities are 
a key factor of consideration in the short-, medium- and long-term strategic planning of the Group. Our aim is to minimise 
our impact on the planet in a way that supports and develops our services and clinical expertise.
This year, we have focused on developing an understanding of our impact on the environment, using the Task Force on 
Climate-Related Financial Disclosures (TCFD) recommendations to guide our approach. We understand that there is further 
work to be done to manage our impact on the environment, which is why we have chosen to adopt the TCFD 
recommendations, which include: 
	> scenario analysis which includes a global warming scenario as well as a Net Zero scenario;
	> setting targets for short-, medium- and long-term actions to lessen harmful environmental impacts of our business 
and increase environmentally friendly activities; and
	> reviewing and improving our processes around monitoring our environmental impact and managing climate-related risks.
To ensure open communication with stakeholders on progress, we have chosen to early-adopt the disclosure recommendations 
of the TCFD in this Annual Report. In the table below, we have set out our progress against the eleven recommended disclosures. 
Governance and management
Disclosure 
requirement
Our progress
Find out more
Describe the 
Board’s oversight 
of climate-related 
risks and 
opportunities
The Board has overall responsibility for ensuring risk is appropriately managed 
across the Group, including risks relating to Environmental, Social and 
Governance (ESG) matters and climate change. 
In 2021, the Group formed an ESG Implementation Group, chaired by the 
Chief Executive Officer (CEO), to assist the Board in identifying the risks and 
opportunities arising as a result of sustainability matters, including climate 
change. Addressing the climate challenge is a key part of our wider 
ESG strategy.
Sustainability and ESG, including climate-related issues, are discussed as a 
standing agenda item in Board meetings, with the CEO presenting the activities 
of the ESG Implementation Group. In 2022 there were 15 Board meetings.
The Board has appointed third-party ESG advisors which have helped the 
Group to assess its risks and develop our sustainability and ESG strategy. Within 
CVS, working groups have been formed to monitor, assess and understand our 
impact on areas including energy, carbon and waste.
Although the Board has overall responsibility for assessing and considering 
climate-related issues, the day-to-day monitoring of such issues is delegated to 
the relevant working groups which are chaired by members of senior management.
The Group has increased the volume and regularity of its climate-related 
reporting in the past year, including early-adoption of TCFD reporting within the 
2022 Annual Report, and the publication of our first standalone Sustainability 
Report, titled “Care at our Heart”, which includes data under the Sustainability 
Accounting Standards Board (SASB) standards. The Group has made significant 
efforts to ensure this reporting is fair, balanced and understandable, for 
example by adapting metrics and, where necessary, providing supporting 
discussion to explain sources of data or calculation methods.
As an AIM-quoted group, CVS is not required to report under the TCFD 
recommendations this year; however, we have produced this report in order 
to promote open communication of our risks, opportunities, strategies and 
initiatives relating to climate issues, as well as encouraging the Board to remain 
accountable to the Group’s stakeholders by introducing disclosures against 
which progress can be reported in future.
2022 
Sustainability 
Report available 
on our Investor 
Website www.
cvsukltd.co.uk/
investor-centre/ 
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
2022 Annual 
Report: 
Remuneration 
Committee report 
on pages 83 to 93
CVS Group plc Annual Report and Financial Statements 2022
38

Disclosure 
requirement
Our progress
Find out more
Describe 
Management’s role 
in assessing/
managing climate-
related risks and 
opportunities
ESG is a standing agenda item at Board meetings. The Group intends to 
introduce further ESG targets and KPIs, including climate-related targets, 
against which progress can be reported to the Board to ensure consistent and 
comparable information is available to support decision-making.
The Board has ultimate authority for setting climate-related goals and targets; 
however, the ESG Implementation Group, established in 2021 and chaired by 
the CEO, has assisted in the identification of climate-related risks and 
opportunities and helped to set climate-related targets across the Group. 
Advice is also taken from the ESG working groups across the business. These 
groups are led by senior management, and are already making good progress, 
having developed their own terms of reference and set work in motion to 
ensure that we are doing the right thing, and to challenge us to go further. For 
example, the Waste working group, established in 2021, has developed key 
objectives to segregate waste appropriately for effective recycling, to replace 
single-use items with reusable items where possible and to engage with 
suppliers around their sustainability policies.
The Board feels that the business is prepared for potential short-term climate-
related issues which are discussed later in this report, due to the strength of its 
integrated model.
2022 
Sustainability 
Report available 
on our Investor 
Website www.
cvsukltd.co.uk/
investor-centre/ 
Business model and strategy
Disclosure 
requirement
Our progress
Find out more
Describe the 
climate-related 
risks and 
opportunities 
identified in the 
short, medium 
and long term
The Group’s continued long-term success depends on the social and 
environmental sustainability of its operations. There is a risk that potential 
climate-related issues can have an adverse effect on financial or operational 
performance, including our ability to fulfil operational activities, disruption of 
supply chain, cost of production, and demand for services. 
The Group’s strategy, long-term sustainability and growth potential also rely on 
how the Group assesses risks and opportunities and takes action to reduce the 
environmental impact of operations. Below we have detailed some of the key 
climate-related risks and opportunities we have identified. 
As an AIM-quoted business, risks and opportunities which will impact our financial 
performance are considered financially material as these are likely to impact the 
decision-making of our investors and potential investors, particularly our financial 
Key Performance Indicators (KPIs) as disclosed on pages 28 and 29 of this Annual 
Report. Therefore, the Board considers that those risks that are likely to impact 
these metrics the most significantly are the most financially material to the Group.
The Group has performed a scenario analysis, which is discussed in more detail 
on page 41, from which the following climate-related risks and opportunities 
have been identified. This is not an exhaustive list and is not in a particular order. 
Risks:
	> Disruptions to supply chain caused by the physical effects of climate change, 
increased costs of transportation, regulatory changes and other factors. This 
could result in disruptions to the Group’s revenue-generating activities, 
including the ability to administer drugs, alongside increasing costs and 
decreasing margins. This is the risk most likely to be financially material to the 
Group in the short-to-medium term.
	> Increased likelihood and severity of extreme weather events can cause damage 
to property and disruption to our colleagues’ ability to provide high-quality 
clinical care, and can prevent clients from being able to visit our practices.
2022 Annual 
Report: Financial 
KPIs on pages 28 
and 29
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
39

Business model and strategy continued
Disclosure 
requirement
Our progress
Find out more
Describe the 
climate-related 
risks and 
opportunities 
identified in the 
short, medium 
and long term 
continued
Opportunities:
	> There may be increased opportunities for the Group to provide high-quality 
clinical services as a result of animal injuries and illnesses resulting from 
climate change, such as extreme weather events.
	> It is likely there will be increased appetite for veterinary innovation and 
development of technological advancements, to treat new diseases and 
find ways of working and supporting pet owners in a changing physical 
environment. Our clinicians are passionate about innovation and Quality 
Improvement, evidenced by CVS being the only veterinary corporate to 
publish an annual Quality Improvement report.
	> As innovative utilities technologies are developed, such as technologies for 
off-grid energy generation and water harvesting and recycling, these can be 
implemented by the Group to reduce overhead costs and reliance on grid 
stability. Likewise, increased availability of cloud-based IT systems reduces 
the space and electricity required to maintain servers in our own facilities.
	> Reduction in travel, both international and local, could result in an increase in 
the pet population similar to that seen during the COVID-19 pandemic, which 
provides CVS with further opportunities to provide excellent clinical care.
In order to assess the impact of climate-related issues, including the risks and 
opportunities identified above, the Group has conducted a risks and opportunities 
assessment as part of our regular risk assessment process. The ESG 
Implementation Group has assisted in the identification of climate-related risks 
and opportunities and is helping to set climate-related targets across the Group. 
2022 Quality 
Improvement 
report published 
on our website 
www.cvsukltd.co.
uk/cvs-release-
fourth-annual-
quality-
improvement-
report/
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
Describe the 
impact of climate-
related risks and 
opportunities on 
the Group’s 
businesses, 
strategy and 
financial planning
The Group introduced its ESG strategy, “Care at our Heart”, in the 2021 Annual 
Report. This strategy is based on a set of foundations articulating why and how we 
care. These foundations are included within the Sustainability pages of the 2022 
Annual Report. To support the delivery of this strategy, our working groups in 
Energy and Carbon, Waste, One Health, Wellbeing, People Development, EDI and 
Community monitor and assess our impact in these areas. Each group has its own 
terms of reference and targets, within which climate-related challenges can be 
identified and managed.
Impacts of low-carbon transition could include transitions to electric vehicles and 
use of electricity generated from renewable sources. Such measures have been 
considered in the Group’s risk and opportunities assessment.
In preparing the 2022 Annual Report, the Group has, where possible, considered 
the impact of climate-related risks and opportunities on the Group’s businesses, 
strategy and financial planning. At the present time, no changes were made to the 
Group’s accounting policies, estimates or judgements. In line with developments in 
climate change, the related reporting thereof and the climate-related initiatives we 
have put in place, we expect these disclosures to evolve in future years.
2022 Annual 
Report: 
Sustainability on 
pages 32 to 44
2022 Annual 
Report: Financial 
Statements 
Accounting 
Policies on pages 
115 to 123
Sustainability continued
CVS Group plc Annual Report and Financial Statements 2022
40

Disclosure 
requirement
Our progress
Find out more
Describe the 
resilience of the 
Group’s strategy, 
taking into 
consideration 
different climate-
related scenarios, 
including a 2°C or 
lower scenario
A scenario analysis has been performed, taking into account a “2°C global 
warming” scenario and a “net zero emissions achieved by 2050” scenario. 
These were identified as key scenarios as they challenge the resilience of the 
business to both impacts from climate change and impacts from policy change. 
In conducting the scenario analysis, we have considered the potential risks 
and opportunities and their impact on:
	> financial metrics, including revenue, expenditure, assets and liabilities; and
	> stakeholders, including colleagues, customers, suppliers, investors and our patients. 
A scenario in which a 2°C global warming is experienced could result in risks 
and opportunities including, but not limited to, the following.
	> Rising sea levels in the Group’s existing geographical markets, which could 
decrease customer base and market size, potentially reducing the Group’s 
market size and increasing competition, but likely favouring the Group’s 
city-centre practices.
	> Increased rates of disease and decreased longevity in all animals, which 
could provide opportunities for the Group to provide excellent clinical care 
and increase job satisfaction for clinical colleagues. Conversely, this could 
reduce the market size if the companion animal population decreases.
	> An environment which is less safe for animals, particularly companion animals 
and livestock, due to high temperatures and reduced availability of food and 
drinking water. This could have similar impacts to the above.
A scenario in which net zero emissions can be achieved by 2050 in the Group’s 
existing geographical markets could result in risks and opportunities including, 
but not limited to, the following.
	> Stricter regulations relating to the use of fossil fuels, may increase costs and 
reduce availability of grid energy, and increase the use of electric vehicles which 
may prompt customers to choose veterinary practices in different locations (e.g. 
closer to their homes or in retail parks which have electric vehicle chargers).
	> A reduction in international travel, which could increase the population of 
companion animals, as owners have more time and money to spend at home. 
The Group can offer this increased population high-quality preventative and 
reactive veterinary care.
	> Increased costs of energy, veterinary medicine and consumables, as a result of 
increased regulatory requirements, for example regarding the use of chemicals 
in pharmaceutical products. This could lead to disruptions to the Group’s ability 
to provide clinical care; however, the Group’s size and integrated veterinary 
platform positions it well to remain resilient to price rises. 
The Group’s strategy for growth includes organic growth through capital 
investment in existing and new facilities, and inorganic growth through 
synergistic acquisitions. This strategy enables the Group to be flexible in 
deciding where to deploy capital, therefore climate-related issues such as mass 
migration as a result of rising sea levels, can be adapted into our strategy, for 
example by choosing alternative sites in which to invest.
The Group has plans to implement a Net Zero target. We are considering the 
most appropriate target for the Group and its stakeholders and intend to 
communicate this in future reports. 
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
2022 Annual 
Report: Market 
overview on pages 
14 to 17
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
41

Risk management
Disclosure 
requirement
Our progress
Find out more
Describe the 
Group’s processes 
for identifying and 
assessing climate-
related risks
In order to assess the impact of climate-related issues, including the risks and 
opportunities identified above, the Group has conducted a risks and 
opportunities assessment as part of our regular risk assessment process. 
The ESG implementation group, established in 2021, has assisted in the 
identification of climate-related risks and opportunities and helped to set 
climate-related targets across the Group.
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
Describe the 
Group’s process 
for managing 
climate-related 
risks
The Board regularly undertakes assessments of the emerging and principal 
risks facing the Group, including climate-related risks and climate-related 
impacts on other risks. The ESG Implementation Group and members of senior 
management monitor these risks on a day-to-day basis, reporting changes to 
the Board where necessary.
The Group has identified a range of climate-related risks, both transitional and 
physical. These have been described in detail in the preceding pages. The key 
impacts of climate-related risks are considered to be financial and operational. 
Physical climate-related risks to the Group include operational disruption to 
colleagues and clients caused by extreme weather events, and operational 
and financial effects of disruptions to supply chains resulting from such events. 
Transitional climate-related risks to the Group include increased prices for 
consumables, medicines and other items due to supply chains transitioning 
away from fossil fuels, e.g. to electric vehicles, and a reduction in air freight.
The Group’s risk management process considers short-term operational risks 
as well as risks that may threaten the delivery of the Group’s long-term strategic 
business model.
The Directors have assessed the prospects of the Group in line with the “Going 
concern” provision for a period of five years, as disclosed in the Directors’ 
Report on pages 95 and 96 of the 2022 Annual Report, and have concluded 
the business is viable and will remain viable up to at least 30 June 2027. 
Sustainability and climate change are key considerations of the Group, and the 
potential impacts have therefore been built into the Group’s going concern and 
viability assessment. 
This assessment is reconsidered on at least an annual basis, and any significant 
signals that climate-related issues are likely to have an impact on this 
assessment would be identified by the working groups responsible for 
monitoring and assessing matters relating to sustainability and ESG. These 
working groups feed back to the ESG Implementation Group, which provides a 
report to the Board as a standing agenda item.
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
2022 Annual 
Report: Directors’ 
Report on pages 
94 to 100
Describe how 
processes for 
identifying, 
assessing and 
managing climate-
related risks are 
integrated into the 
Group’s overall risk 
management
The Group’s overall risk management approach is described in the Principal 
Risks and Uncertainties report on pages 60 to 68. One of the principal risks 
identified by the Board is Sustainability and climate change.
The impact and probability of this risk is reviewed on at least a bi-annual basis, 
including review of the mitigating factors in place, and any changes since the 
last review. 
The Group has also developed a framework for assessing climate-related risks 
using a scenario analysis, which is described on page 41.
2022 Annual 
Report: Principal 
Risks and 
Uncertainties on 
pages 60 to 68
Sustainability continued
CVS Group plc Annual Report and Financial Statements 2022
42

Metrics and targets
Disclosure 
requirement
Our progress
Find out more
Discuss the 
metrics used by 
the Group to 
assess climate-
related risks and 
opportunities in 
line with its 
strategy and risk 
management 
process
The Group has a standalone ESG strategy, “Care at Our Heart”, which underpins 
the Group’s overall strategy and business model. 
To support the delivery of this strategy, our working groups in energy 
and carbon, waste, One Health, people development, wellbeing, EDI and 
community monitor and assess our impact in these areas. Each group has its 
own terms of reference and targets, within which climate-related challenges 
can be identified and managed.
In addition, in 2022 we released our first standalone Sustainability Report in 
which we produced a full disclosure report under the Sustainability Accounting 
Standards Board (SASB) standards. This reporting framework was selected to 
provide reliable data on financially material sustainability factors which is 
comparable and consistent, thereby assisting investors to make better 
investment and voting decisions. 
SASB standards are industry specific, and under the current classification 
system used by SASB, there is no single industry framework that would be fully 
aligned with the indicators relevant to a veterinary business. 
To maximise the transparency and suitability of our reporting, we decided to 
report against two industry-specific sets of standards within SASB: “Health Care 
Delivery”, and “Multiline and Speciality Retailers & Distributors”. In some cases 
the metrics within the SASB standards were adapted to suit the Group’s 
business and markets. We were advised and supported in the selection of the 
SASB framework, and the reporting of this data, by an external expert which 
also advised in the creation of our Care at Our Heart strategy. 
This is the first year in which we have reported against SASB standards and we 
intend to continue doing so going forward. This will involve improving our data 
collection processes to provide our stakeholders with a full picture of our 
performance, and aligning the reporting period of various disclosed metrics to 
the extent possible. We have calculated the data on a basis which can be 
consistently applied in future years for maximum comparability.
As this is the first time we have reported against SASB standards, some of the 
data we have disclosed relates only to certain areas of the business, in 
particular our Veterinary Practices division which is our largest operating 
division, and to differing periods. 
In all cases, we have disclosed the scope and boundary of the information 
presented within our SASB report. We have made efforts to align the reporting 
period of the data to our financial year where this is possible, and going forwards 
we intend to ensure all data is aligned to this period, and to extend the scope of 
the data to cover the entire Group wherever relevant.
Metrics regarding water, energy and land use and waste management are 
included in the SASB standards; we have provided data to the fullest extent 
possible within our 2022 Sustainability Report.
In most cases, the data required to report against SASB metrics is available 
internally. This is with the exception of some energy and carbon data, for which 
we use an external energy consultancy which also supports us in the delivery of 
our Streamlined Energy and Carbon Reporting (SECR) in our Annual Report.
2022 
Sustainability 
Report available 
on our Investor 
Website www.
cvsukltd.co.uk/
investor-centre/ 
2022 Annual 
Report: 
Streamlined 
Energy and Carbon 
Reporting on 
pages 99 to 100
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
43

Metrics and targets continued
Disclosure 
requirement
Our progress
Find out more
Discuss the 
metrics used by 
the Group to 
assess climate 
related risks and 
opportunities in 
line with its 
strategy and risk 
management 
process continued
The Board are aware that the Group has runway to improve in a range of 
sustainability and climate-related metrics. One of the key intentions when 
publishing the Sustainability Report and SASB data is to ensure accountability 
across the Group in delivering improvements to these metrics. The creation of 
our ESG working groups helps to disaggregate responsibility for delivering 
progress in the Group’s sustainability and readiness for climate-related risks 
and opportunities.
The Group reports alternative climate-related metrics within the SASB section 
of our 2022 Sustainability Report, however there are not currently specific 
timelines for improvement of these metrics.
2022 
Sustainability 
Report available 
on our Investor 
Website www.
cvsukltd.co.uk/
investor-centre/ 
Disclose Scope 1, 
Scope 2, and if 
appropriate, Scope 
3 greenhouse gas 
(GHG) emissions, 
and the related 
risks
The Group’s Scope 1, Scope 2 and Scope 3 emissions and the methodology for 
calculating these are disclosed in the SECR report within our 2022 Annual Report.
The SECR lays out the total emissions, as well as the methodology applied. An 
internal carbon price is calculated to normalise year-on-year data, by calculating 
the emissions in tonnes of CO2 per £m of revenue. This allows for more 
effective year-on-year comparison.
2022 Annual 
Report: 
Streamlined 
Energy and Carbon 
Reporting on 
pages 99 to 100
Describe the 
targets used by the 
Group to manage 
climate-related 
risks and 
opportunities and 
performance 
against targets
The Group has initiatives in place to reduce its impact on the environment, 
which are disclosed in our 2022 Sustainability Report. Our purpose is to give 
the best possible care to animals and, to be able to deliver this purpose, the 
Group must be able to continue in operation despite climate-related risks. 
Therefore, the Board is overseeing the implementation of specific targets 
relating to climate resilience.
We have set sustainability-related targets in bonuses for Directors and other 
Senior Management, for the financial year to 30 June 2023, as a strategy to 
incentivise the achievement of climate-related targets. These are set out in our 
Remuneration Committee Report on page 93.
2022 
Sustainability 
Report available 
on our Investor 
Website www.
cvsukltd.co.uk/
investor-centre/ 
2022 Annual 
Report: 
Remuneration 
Committee Report 
on pages 83 to 93
Sustainability continued
CVS Group plc Annual Report and Financial Statements 2022
44

Ben Jacklin
Chief Operating Officer
The year delivered much to be proud of in CVS, despite the 
lingering challenges of a global pandemic. COVID-19 
infection rates have been an ongoing challenge for both 
our colleagues and our clients, but our teams continue 
to demonstrate their unending passion and dedication to 
achieving our purpose of giving the best possible care to 
animals. I would like to take this opportunity to thank them 
once again for everything they do for our patients and 
each other.
We continue our relentless pursuit of our purpose through 
our clear vision to be the veterinary company people most 
want to work for. Beneath our purpose and vision are our 
four strategic pillars: 
	> we recommend and provide the best clinical care 
every time; 
	> we are a great place to work and have a career; 
	> we provide great facilities and equipment; and 
	> we take our responsibilities seriously.
As we have done for a number of years, we have placed 
significant focus on attracting great clinical talent and 
providing them with great places to work and have a career. 
Much of our success has come from the culture we have 
fostered, putting clinical care at the forefront of what we do. 
This has meant alignment of all our operational practices to 
this goal, from KPIs and incentive schemes, to the investments 
we continue to make in the very best clinical equipment. Our 
national network of hub clinical leads, who are experienced 
and inspirational vets, are core to this. They support our 
companion animal practices across the business by 
teaching advanced diagnostics and techniques, and by 
mentoring vets who are developing interests in specific 
disciplines. This makes best use of expertise by spreading 
that knowledge across our practices, improving the quality 
of care we can offer, then supporting teams to deliver this 
care to their patients. Furthermore, we have added pastoral 
support roles for recently graduated veterinary clinicians 
across our practices. This provides new vets with experienced 
colleagues to support and guide them through their first 
years in practice and ensure they have a great experience. 
Operational review
Outstanding people, 
delivering outstanding care 
to our patients and clients
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
45

One KPI we introduced in 2021 was employee Net Promoter 
Score, and I am delighted we have seen yet further improvements 
in this measure during the year. By having live monthly 
feedback from colleagues, we are able to ensure we are 
making the right decisions for them, and creating a workplace 
that is the envy of the veterinary profession. We also reduced 
attrition rates of clinical colleagues during the year, further 
to the significant improvements we made in this measure 
when we facilitated changes to the culture of our Group.
Our quality improvement team is equally important to this 
culture, providing data-driven feedback to all our clinicians 
on where we can make improvements and reduce errors. 
By leading national and international projects, the quality 
improvement team makes a big difference to the patients 
they serve and ultimately the profession as a whole.
Our Advanced Clinical Services Network (ACSN) has 
continued to grow, supporting our colleagues in primary 
care practices. Our ACSN clinicians hold advanced 
qualifications in specific disciplines and, by being available 
across a region of our practices, they make advanced 
treatments available to clients and patients that would 
otherwise necessitate referral elsewhere. The goal of our 
ACSN is to be an accessible service to all CVS colleagues in 
the UK, offering a unique clinical career pathway for vets and 
nurses and being advocates of excellent patient care, whilst 
contributing to the development of general practice, 
laboratory and specialist services. The number of ACSN 
clinicians grew to ten during the year, and revenues grew 
by 22.9%.
We have further developed our vet-to-vet telemedicine 
service, Vet Oracle™, and we now have five specialisms 
within this business, offering specialist interpretation of 
results and practical virtual assistance. This not only has the 
benefit of creating new direct revenue streams but, more 
importantly, spreads our expertise across a much wider 
network, improving the care offered and given to our 
patients. This includes installations of advanced imaging 
equipment, such as CT scanning, in practices which would 
otherwise not have the expertise to interpret the results. 
In 2022, Vet Oracle™ considered c.13,000 cases for 
CVS and non-CVS vets, a growth of 54% year-on-year.
“Having clearly set out our stall 
of providing the best possible 
care to animals, we have 
continued to attract and retain 
the very best clinical talent, 
which has had huge benefits 
for our patients and clients.”
One of our nursing assistants in the Northern 
region, Julie Beckett, is our Signvideo ambassador, 
supporting the Group in its project to improve 
accessibility to our veterinary practices for deaf 
and hearing-impaired customers. In July 2022, 
Julie attended the Deaf Rally, teaching children 
about veterinary medicine whilst also expanding 
their British Sign Language vocabulary.
At the Deaf Rally, Julie had a table at which she 
answered questions about the Healthy Pet Club 
scheme and how Signvideo enables clear 
communication on visits to the vet. She also 
gave a stage presentation in which she 
discussed the range of services CVS offers, 
again explaining how Signvideo can support 
hearing impaired customers. 
Julie also hosted a range of children’s activities, 
supporting them to enhance their British Sign 
Language vocabulary, whilst teaching them a 
little about veterinary medicine. The feedback 
from the event was excellent.
Operational review continued
Did you know?
CVS Group plc Annual Report and Financial Statements 2022
46

During the year, we completed 23 refurbishments and 
relocations. This work is critical to our strategy of ensuring 
the clinicians have the right environment to do the 
best work for animals. We have invested in our property 
team to ensure we can deliver on our objectives of 
refurbishing or relocating around half of our companion 
animal sites over the next few years. The refurbishments 
and relocations are very much undertaken with ESG in 
mind, installing energy saving equipment, and other 
measures such as car chargers and alternative sources 
of energy. 
Despite being unable to make acquisitions during much of 
the financial year due to the Competition and Markets Authority 
(CMA) investigation into our acquisition of Quality Pet Care Ltd 
in August 2021, we completed three acquisitions, comprising 
four practice sites, during Q4. We continue to see significant 
opportunity for acquisitions in the UK, with the majority of 
potential targets unaffected by the CMA’s determination on 
Quality Pet Care Ltd. To that end, I am delighted we have 
acquired a further three practice sites since the year end.
In our 2021 Annual Report we introduced our ESG strategy, 
“Care at our Heart”, which underpins our strategic pillars and 
gives meaning to all that we do, as we aim not only to have a 
positive impact on our teams, our patients, our customers 
and our other stakeholders, but also to make a bigger 
contribution to wider society. Many of our initiatives across 
our operations in 2022 have been driven by this intention. 
Read more about our ESG strategy, including key actions 
from our new ESG working groups, on pages 32 to 44.
We are equally focused on all the other aspects of being a 
colleague at CVS that can help us achieve our vision of 
being the veterinary company people most want to work 
for. One significant step this year has been to increase the 
rate of pay for all our colleagues on the National Living 
Wage/National Minimum Wage, to 3.0% above the 
standard set by the government both now and in the 
future. Many of those colleagues are critical to our 
success and often lead the first and most regular 
interactions our clients have with their veterinary practice. 
Ensuring we took the appropriate steps to support these 
colleagues as costs of living rose was the right way to 
deliver on our vision.
Looking after the wellbeing of our colleagues is a crucial 
part of what we do at CVS, and our 280 active Wellbeing 
Champions continue to do excellent work across the 
business. These Champions ensure our colleagues are 
informed of the various resources available to them, 
including our Employee Assistance Programme and our 
Wellbeing Zone on the Knowledge Hub, onto which over 
1,000 colleagues enrolled in its first year. During the year, 
COVID-19 isolations impacted a significant number of our 
veterinary practices, as we made every effort to ensure 
the safety and wellbeing of our colleagues across the 
Group. We retained some social distancing, PPE and 
other restrictions as we continued to follow government 
guidance and the guidance of our most senior clinicians.
Ensuring our nurses have great places to work and 
rewarding careers remains a key aim, led by our Chief 
Veterinary Nursing Officer. We continue to improve the 
number of procedures undertaken by nurses in our 
practices. We also continue to see nurses leading our 
business in a variety of areas, including a number of 
qualified veterinary nurses across our senior leadership 
group and Executive Committee.
Despite the challenges that remain in the recruitment of 
both vets and nurses, I am delighted that we increased 
the average number of vets employed in the Group by 
6.0% during the year, and the number of nurses by 11.4%. 
We continue to drive forward recruitment across the UK, 
Europe and further afield, but most encouraging has 
been the number of vets and nurses joining us on the 
back of a referral from an existing colleague. We saw 362 
colleagues join via a referral from an existing colleague 
during the year, up 91.5% from the prior year.
Another major area of focus is attracting the very best 
new graduate vets, and following the hugely popular 
inaugural “CVS Summer Camp” in 2021 we have repeated 
and enhanced the event this summer. This gives recent 
graduates the very best start in their careers, allows us to 
share all the benefits of the wider CVS from the start of 
their time with us, and gives us and them the best chance 
of a long and rewarding career with CVS. Read more 
about our summer camps on page 59.
Did you know?
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
47

Our Veterinary Practices division comprises our companion 
animal, referrals, farm animal and equine veterinary practices, 
as well as our buying groups, veterinary wholesaler “Vet 
Direct”, and MiPet Insurance. The division has again 
performed well during the financial year, against a comparator 
which included favourable tailwinds from a post-pandemic 
backlog of non-essential procedures. Like-for-like sales 
growth in the division was 7.6%, contributing to total revenue 
growth of 8.5%. This like-for-like growth was also hampered 
during the final quarter of the financial year where we 
experienced a significant increase in COVID-19 isolations of 
our colleagues, which impacted revenues. We made three 
acquisitions during the financial year, adding four practice 
sites to the Group. A further three practice sites have been 
acquired since the year end, and we are pleased to welcome 
these colleagues to the Group. As we continue our focus on 
delivering the best client service across our business and 
being the veterinary company people most want to work for, 
we continue to review our facilities and have closed a 
number of small branch sites in the year to consolidate the 
work to our larger practice sites. 
Companion Animal
Our Companion Animal division forms the majority of our 
Veterinary Practices division. The focus of our Companion 
Animal division on delivering the very best care continues to 
fare well in a market that has grown since the pandemic, and 
where the humanisation of pets continues apace. 
Our Patient Care Index (PCI) is a measure of the quality of 
care we give to patients in our Companion Animal first-
opinion practices. High PCI is associated with high-quality 
clinical diagnostics and the targeted treatment that follows, 
as opposed to more symptomatic treatments. We have seen 
improvements in PCI across our practices as we work towards 
our purpose to give the best possible care to animals. This 
focus has enabled us to deliver revenue growth of 10.3% in 
our Companion Animal division.
Operational review continued
Veterinary Practices division
Delivering clinical excellence 
in an expanding market
Veterinary Practices revenue share*
86+14+U
85.5%
£492.1m 
revenue
8.5%
revenue growth
470,000 
HPC customers
*	 Revenue share before intercompany sales between practices 
and other divisions.
CVS Group plc Annual Report and Financial Statements 2022
48

Referrals
Our Referrals division has grown strongly in recent years. We 
have continued to invest in our nursing and administration 
teams within this division, which are essential to support 
such strong growth. We also continue to expand our 
network of advanced peripatetic practitioners, who provide 
advanced clinical services to our first-opinion practices 
entering new disciplines and geographical locations. 
The range of clinical disciplines we offer in our hospitals has 
expanded, and we are developing opportunities to open 
new sites. There has been an increase in investment in 
highest-quality medical equipment and facilities, such as 
MRI scanners and our cutting-edge Bristol Referral Hospital 
which is planned to open in 2023. 
Equine
Our Equine division has 19 equine locations across the UK. 
The division has performed well in the financial year; this has 
partly resulted from growth in client numbers through our 
focus on attracting new clients, and the introduction of 
a new greenfield practice in the South of England. 
Farm Animal
Our Farm Animal division consists of 14 farm animal 
locations and a large specialist poultry veterinary business, 
Slate Hall. During the year we have increased fee revenue in 
particular, with drug revenue impacted by conscious 
movement away from antibiotic usage wherever possible. 
We have been able to secure our medication supply through 
one of our Group companies, Pharmsure, which is a 
specialist wholesale and distribution company supplying 
veterinary medicines for the pig and poultry industries. This 
has helped our farm practices to achieve improved margins, 
secure prices, and be more confident in medication supply.
International
Our International division comprises 27 practices in the 
Netherlands and four practices in the Republic of Ireland. 
These include companion animal, equine and farm practices. 
Internationally, we have increased investment into our highly 
valued nurses, to mitigate challenges in vet recruitment and 
help us to attract and retain colleagues. This includes 
benchmarking of salaries and increased investment in 
our colleagues’ wellbeing.
Head Office
Central administration costs include those of the 
central finance, IT, human resources, purchasing, 
legal and property functions. Total costs were 
£16.6m (2021: £15.7m), representing 3.0% of 
revenue (2021: 3.1%). The increased spend 
primarily relates to salary costs for new roles to 
support the continued growth of the Group and 
delivery of our strategy; for example, by investing 
in our human resources team, we are able to 
implement more initiatives to help reduce clinical 
role attrition. 
As a percentage of revenue, the spend on support 
functions has remained broadly flat. The Group 
continues to base support colleagues in regions 
where possible, so they can easily provide the 
close support that the operations teams require. 
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CVS Group plc Annual Report and Financial Statements 2022
49

Veterinary Practices division 
continued
Healthy Pet Club
As well as offering first class care to sick or injured animals, 
we continue to offer preventative healthcare through our 
Healthy Pet Club scheme, which offers routine flea and 
worming treatments and vaccinations, as well as twice 
yearly health checks. These clients can spread the cost of 
accessing the best preventative healthcare, allowing our 
clinicians to identify diseases and recommend the best 
diagnostics and treatments. The scheme membership has 
grown by 4.4% over the past year to around 470,000 
members, representing roughly 40% of our companion 
animal active client base. 
MiPet products/purchasing
Our own-brand spend consistently made up c.34% of the UK 
practices’ pharmaceutical spending in 2022 and 2021. 
During the year, we have expanded our efforts to increase 
purchases of our own-brand products rather than third-
party branded pharmaceuticals. This provides increased 
choice for our clients and we hope this will translate to an 
increase in own-brand spend in our practices.
We have continued to improve our warehouse management 
system, enhancing efficiency and increasing our permanent 
staffing, which has enabled us to cope with the increase in 
online retail order volumes as well as successfully complying 
with social distancing requirements through effective use of 
space and adjusted shift patterns within our warehouse. 
Outlook
We are optimistic that our Veterinary Practices division will 
continue to deliver strong revenue growth. This optimism is 
driven primarily by our continued focus on high-quality clinical 
care, and we are confident we can continue to deliver 
significant improvements year on year. Whilst we are mindful 
of inflationary pressures, we are reassured that based on the 
responses to our consumer insight survey in August 2022, 
pet spend on veterinary care and food appears highly resilient. 
Secondly, we are also in a market of increasing humanisation 
of pets, with owners willing to spend more and more on the 
health of their pets, with increasingly high expectations and 
desire for their pets to have the same quality of care as every 
other member of the family.
Our colleagues continue to be our biggest focus in our 
Veterinary Practices division, as they are across the Group. In 
our 2022 Sustainability Report, we introduced our target to 
further reduce attrition by 10% which will enable us to bring 
down our vet and nurse vacancy rates, which have been 
relatively steady over the past two years despite significant 
workforce shortages in the industry. More broadly we expect 
significant improvements in supply of veterinary surgeons 
into the market over the next ten years, as the number of 
new graduates in the UK is set to roughly double by 2032. 
Operational review continued
Consumer insight survey
Our clients value the high quality of our services, and 
based on our August 2022 consumer insight survey1, 
will preserve their spend even in the face of 
economic pressures.
Based on these survey responses, we are further 
reassured pet spend on veterinary care and food 
appears highly resilient, with only 5.8% of clients 
feeling they would try and reduce spend on 
veterinary care in the face of an economic recession. 
High-quality pet healthcare continues to be of great 
importance to our clients, with 52.1% of clients 
feeling spend on their pets healthcare would 
increase over the next 2 years, whilst only 5.2% felt it 
would decrease.
Spend on pet food is also considered a priority for 
our clients, with 96.5% of clients feeling spend on 
pet food would either stay the same or increase over 
the next two years. 
1	 In August 2022, we issued a consumer insight survey to 2,000 
clients and received a 23.2% response rate.
Area of focus
Restaurants and hotels
77.1%
57.2%
Clothing and footwear
54.6%
Miscellaneous goods 
and services
51.0%
Recreation and culture
50.8%
Household and furnishings, 
equipment & maintenances
48.6%
Alcoholic beverages, 
tobacco and narcotics
41.0%
Housing, water, electricity, 
gas and other fuels
32.0%
Transport
23.8%
Food and non-alcoholic 
beverages
17.3%
Education
9.3%
Communication
5.8%
Spend on Veterinary Care 
for my Pets
4.8%
Health
5.8%
Only 5.8% of pet owners said veterinary care was an 
area they would consider reducing spend on in the 
event of recession.
The consumer insight survey asked:
“In the face of an economic 
recession, which of the following 
categories of spend would you 
try to reduce over the next 
2 years?”
CVS Group plc Annual Report and Financial Statements 2022
50

Our Laboratories division provides diagnostic services and 
in-practice desktop analysers to both CVS and third-party 
practices, and employs a national courier network to 
facilitate the collection and timely processing of samples 
from practices across the UK. We continue to develop our 
capability to ensure we can support the wider Group focus 
on growing diagnostic care. 
Revenue has decreased 2.9% compared to the prior year 
which benefitted from one-off COVID-19 testing for CVS 
and third parties. On an underlying basis, adjusting for the 
COVID-19 PCR testing revenue in the prior year, revenue 
increased 1.1% on the back of remarkable non-COVID-19 
testing growth in the prior year. Approximately 45% of our 
diagnostic laboratory tests are for CVS practices, reflecting 
the importance of our integrated veterinary model. 
Adjusting for the number of COVID-19 tests performed in 
2021, the number of diagnostic tests was broadly consistent 
between 2021 and 2022, with price rises contributing to 
underlying revenue growth. 
Outlook
The Laboratories division has remained resilient despite 
increasing consolidation in the veterinary sector. By 
increasing the speed and range of testing we offer in our 
laboratories, continuing to ensure field-leading client 
service, and employing a highly skilled network of sales 
teams and engineers, we are optimistic of growth in the 
years to come. 
Laboratories division
Reliable diagnostic testing 
supporting vets to deliver 
excellent clinical care
Laboratories revenue share*
	95+5+U
£27.2m 
revenue
-2.9%
revenue growth
445,000 
laboratory tests performed
*	 Revenue share before intercompany sales between practices 
and other divisions.
4.7%
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CVS Group plc Annual Report and Financial Statements 2022
51

Our Crematoria division provides both individual and 
communal cremation services for companion animal and 
equine clients, as well as clinical waste disposal services 
for both CVS and third-party veterinary practices. 
The strong growth in the division was driven by the Direct 
Pet Cremation service we introduced in the previous 
financial year. Putting customers directly in contact with 
crematoria to make pet aftercare arrangements, and giving 
them more time to consider their options, has resulted in 
significant changes to customers’ choices and generated 
improved customer care alongside financial returns. As a 
result of the service, the number of individual cremations 
increased by 5.5% in the year.
Outlook
We are investing in a modern new crematorium to relocate 
one of our existing crematoria. The new facility will be the 
first pet crematorium in the UK to incorporate temperature 
and oxygen control systems, which to date have only been 
used in human cremators, to minimise our environmental 
impact by delivering optimal combustion efficiency.
This new facility, due to complete in the 2023 financial year, 
alongside continued expansion and development of the 
Direct Pet Cremation project, is expected to continue to 
deliver revenue growth across the Crematoria division.
Crematoria
CVS provides compassionate service 
throughout a pet’s life and beyond
Crematoria revenue share*
	98+2+U
1.7%
£9.5m 
revenue
18.8%
revenue growth
5.5%
increase in individual cremations 
*	 Revenue share before intercompany sales between practices 
and other divisions.
Operational review continued
CVS Group plc Annual Report and Financial Statements 2022
52

Our online pet food and pharmacy retailer, “Animed Direct”, 
focuses on supplying pet food and prescription and 
non‑prescription medication, directly to customers. This is 
supported by the buying power of the Group as a whole, 
which ensures the business is able to provide the best value 
for customers.
During the financial year, our Online Retail Business division 
delivered revenue growth of 11.8% and adjusted EBITDA 
growth of 20.7%. We have focused on shifting the marketing 
and delivery of Animed Direct from low cost to a trusted 
quality retailer, which is in line with the Group’s overall 
purpose and strategy. This has supported in delivering 
revenue growth in the division despite the reduction in 
unique customer numbers to 368,000 (2021: 404,000).
We have also successfully implemented a new logistics and 
fulfilment system to align with our improved warehouse 
management processes and ensure increased productivity 
and quality control. 
Outlook
In the second half of the financial year, we began the design 
and implementation of a new website to enhance the 
customer journey, expected to launch in the 2023 financial 
year. Our improved website and warehouse systems will 
enable us to increase capacity, delivering future growth in 
online sales, generating revenue growth and improving 
customer satisfaction.
Ben Jacklin
Chief Operating Officer
22 September 2022
Online Retail Business
Shaking up the pet food 
and pharmacy sales market
Online Retail Business revenue share*
	92+8+U
8.1%
£46.6m 
revenue
11.8%
revenue growth
368,000
unique customers 
*	 Revenue share before intercompany sales between practices 
and other divisions.
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CVS Group plc Annual Report and Financial Statements 2022
53

Robin Alfonso
Chief Financial Officer
Financial review
Well positioned for continued 
growth despite the more 
uncertain macro-economic 
environment
Financial highlights
The Group has continued to deliver against its strategy, with 
strong performance in both revenue and adjusted EBITDA. 
Key financial highlights are shown below:
2022
2021
Change
%
Revenue (£m)
554.2
510.1
8.6%
Adjusted EBITDA (£m)*
107.4
97.5
10.2%
Adjusted profit before tax (£m)*
75.5
66.2
14.0%
Adjusted earnings per share (p)*
85.8
75.1
14.2%
Operating profit (£m)
42.8
40.1
6.7%
Profit before tax (£m)
36.0
33.1
8.8%
Basic earnings per share (p)
36.2
27.3
32.6%
A reconciliation of the difference between the reported 
operating profit figure and adjusted EBITDA is shown below:
2022
£m
2021
£m
Operating profit
42.8
40.1
Adjustments for:
Amortisation, depreciation, impairment1 
and profit on disposal
47.3
48.1
Costs relating to business combinations
4.9
9.3
Exceptional items2
 12.4 
—
Adjusted EBITDA
107.4
97.5
1.	 Impairment of non-current assets, except for impairment of the 
investment in Quality Pet Care Ltd in 2022.
2. 	Impairment of the investment in Quality Pet Care Ltd in 2022 is included in 
exceptional items.
*	 Adjusted financial measures (adjusted EBITDA, adjusted profit before tax 
and adjusted earnings per share) are defined in the financial statements, 
and reconciled to the financial measures defined by International 
Financial Reporting Standards (IFRS) on pages 114 and 132 of the Annual 
Report. Management uses adjusted EBITDA and adjusted earnings per 
share (“adjusted EPS”) as the basis for assessing the financial performance 
of the Group. These figures exclude costs relating to business combinations 
and exceptional items and hence assist in understanding the performance 
of the Group. These terms are not defined by IFRS and therefore may not 
be directly comparable with other companies’ adjusted profit measures.
CVS Group plc Annual Report and Financial Statements 2022
54

“Delivery of our strategy drives strong 
performance and robust cash flows.”
Financial performance
Revenue increased by 8.6% to £554.2m from £510.1m, with 
strong like-for-like growth of 8.0%. The Group continues to 
benefit from favourable market trends such as the sustained 
increase in pet population and the demand for and ability 
to deliver quality clinical intervention. The focus of delivery 
against our strategy has underpinned revenue growth and 
we have seen a 6.0% increase in the average number of vets 
we employ and a 4.4% increase in our Healthy Pet Club 
membership, to 470,000. This performance was particularly 
pleasing given the ongoing operational challenges 
associated with COVID-19.
We continue to see an opportunity to grow like-for-like sales 
and have increased our development capital expenditure 
to £13.7m from £8.4m to support ongoing expansion 
opportunities including refurbishments and relocations. 
We also see an opportunity to open Greenfield sites with 
three planned over the next twelve months.
Adjusted EBITDA increased by 10.2%, to £107.4m from 
£97.5m. Adjusted EBITDA margin increased to 19.4% from 
19.1%, benefitting from operating leverage and strong revenue 
growth. Adjusted EBITDA also included £2.0m from another 
year of Research and Development Expenditure Tax Credits, 
which is the Group’s second claim under this scheme. 
During the year an impairment of £12.4m was recognised as 
an exceptional item, outside of adjusted EBITDA, following 
the Competition and Markets Authority’s (CMA) investigation 
into the acquisition of Quality Pet Care Ltd and the 
subsequent divestment. This followed the CMA’s conclusion 
that there was a potential substantial lessening of 
competition in a number of the sites acquired. 
Since the conclusion of the investigation, three acquisitions 
have been completed for an investment totalling £8.4m (net 
of cash acquired), contributing during the period aggregate 
revenue of £0.5m and adjusted EBITDA of £0.1m. The 
pipeline of acquisitions remains strong and we continue to 
see opportunities for further investment in the future both in 
the UK, where there is now a clear framework to follow, and 
also in other territories. 
We continue to closely monitor macro-economic trends 
including the impact of rising inflation. We believe that the 
Group is well placed to deliver continued growth from our 
integrated model, strong balance sheet and available 
investment opportunities. 
Adjusted profit before tax increased by 14.0%, to £75.5m 
from £66.2m, in line with the increase in adjusted EBITDA. 
Adjusted EPS correspondingly increased by 14.2%, to 85.8p 
from 75.1p. Adjusted profit before tax and adjusted EPS 
exclude the impact of amortisation of intangible assets, costs 
relating to business combinations and exceptional items.
Profit before tax increased by 8.8%, to £36.0m from £33.1m, 
benefitting from an increase in adjusted EBITDA, a reduction 
in costs relating to business combinations, which includes 
business combinations costs in respect of prior periods, 
partially offset by the impairment in relation to Quality Pet 
Care Ltd (further information available in note 16 to the 
financial statements). Basic EPS increased by 32.6%, 
to 36.2p from 27.3p.
Taxation
The total tax expense has reduced by £3.5m to £10.3m 
from £13.8m, primarily due to the prior year having included 
a one-off £4.3m expense in respect of the re-measurement 
of deferred tax balances following the substantive enactment 
of the increase in the UK corporation tax rate to 25.0% from 
April 2023. This was partially offset by a £2.3m capital loss, in 
relation to the divestment of Quality Pet Care Ltd, which could 
not be utilised in the current year. A deferred tax asset has 
not been recognised in respect of this loss as presently it is 
not probable that the Group will utilise this loss in future periods.
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CVS Group plc Annual Report and Financial Statements 2022
55

Financial performance continued 
Taxation continued
The Group’s effective tax rate was 28.6% (2021: 41.7%). A 
reconciliation of the expected tax charge, at the standard 
rate, to the actual charge is shown below:
£m
% *
Profit before tax
36.0
 
Expected tax at UK standard rate of tax
6.8
19.0%
Loss on disposal of non-qualifying assets
2.3
6.4%
Expenses not deductible for tax purposes
1.2
3.3%
Adjustments to previous year tax charge
(0.4)
(1.1%)
Impact of unrecognised losses
0.2
0.5%
Effect of difference between closing 
deferred tax rate and current tax rate
0.2
 0.5%
Actual charge/effective rate of tax
10.3
28.6%
*	 Percentage of profit before tax.
All of the Group’s revenues and the majority of its expenses 
are subject to corporation tax. The main expenses that are 
not deductible for tax purposes are costs relating to 
acquisitions, amortisation and depreciation of property, 
plant and equipment that do not qualify for tax relief. Tax 
relief for some expenditure, mainly property, plant and 
equipment, is received over a longer period than that for 
which the costs are charged in the financial statements.
Financial position
2022
£m
2021
£m
Intangible assets
216.5
228.4
Property, plant and equipment
69.7
57.4
Right-of-use assets
101.7
97.2
Other non-current assets
2.4
0.1
Current assets
127.9
101.4
Current liabilities
(101.4)
(98.5)
Non-current liabilities
(199.4)
(194.9)
Equity
217.4
191.1
As at 30 June 2022, intangible assets amount to £216.5m 
(2021: £228.4m), consisting of goodwill, patient data records 
and computer software. The net reduction of £11.9m primarily 
relates to amortisation in the year of £22.2m (2021: £23.8m), 
offset by additions through business combinations of £8.8m 
(2021: £22.9m). The Group maintains significant headroom 
between the value-in-use of the groups of Cash Generating 
Units (CGUs) and the carrying amount of the associated 
assets, resulting in no impairment noted. 
Property, plant and equipment of £69.7m (2021: £57.4m) 
includes freehold land and buildings, leasehold improvements, 
fixtures fittings and equipment and motor vehicles. The net 
increase of £12.3m primarily relates to additions (including 
those arising via business combinations) of £23.7m (2021: 
£16.7m), reflecting our continuing commitment to investing 
in our facilities, offset by depreciation of £11.3m (2021: £10.3m). 
Right-of-use assets of £101.7m (2021: £97.2m) consists of 
property leases for our veterinary practices, specialist 
referral centres and support offices and short term leases 
for vehicles and equipment. The net increase in the year of 
£4.5m primarily relates to additions (including those via 
business combinations) and re-measurement of lease terms 
of £19.6m (2021: £15.4m), partially offset by depreciation and 
impairment charge in the year of £14.1m (2021: £14.0m) and 
net disposals of £1.0m (2021: £1.7m).
Other non-current assets of £2.4m (2021: £0.1m) primarily 
relates to the fair value of the cash flow hedge of £2.3m 
(2021: liability of £0.4m). 
Current assets of £127.9m (2021: £101.4m) comprises 
inventories of £26.2m (2021: £19.5m), trade and other 
receivables of £52.7m (2021: £48.1m) and cash and cash 
equivalents of £49.0m (2021: £33.7m). The net increase of 
£26.5m mainly relates to increased inventories in line with 
growth in overall revenues and increased cash and cash 
equivalents arising from strong operating cash flows. 
Current liabilities of £101.4m (2021: £98.5m) comprise trade 
and other payables of £86.6m (2021: £86.0m), provisions of 
£2.1m (2021: £3.9m), lease liabilities of £9.4m (2021: £8.6m), 
current tax liabilities of £3.3m (2021: asset of £0.1m). The net 
increase of £2.9m mainly relates to the increase in liability for 
corporation tax. 
Non-current liabilities of £199.4m (2021: £194.9m) includes 
borrowings of £84.3m (2021: £83.9m), lease liabilities of 
£95.1m (2021: £90.2m), and deferred tax liabilities of £20.0m 
(2021: £20.4m). See below for further details regarding the 
Group’s borrowings.
Equity of £217.4m (2021: £191.1m) increased by £26.3m as a 
result of total comprehensive income of £27.6m (2021: 
£19.0m), new shares issued and shares disposed from the 
Employee Benefit Trust (EBT) of £2.3m (2021: £1.5m) to settle 
obligations under the Group’s Save As You Earn (SAYE) 
scheme, and transactions in relation to share-based 
payments and associated deferred tax of £1.0m (2021: 
£4.0m). A dividend payment of £4.6m was paid in 2022 
(2021: £nil). 
Financial review continued
CVS Group plc Annual Report and Financial Statements 2022
56

Cash flow and movement in net debt
Net debt decreased by £14.9m to £35.3m from £50.2m. The 
movement in net debt is explained as follows:
2022
£m
2021
£m
Cash generated from operations
93.1
80.3
Capital expenditure – maintenance
(10.8)
(8.2)
Repayment of lease liability
(12.7)
(13.0)
Taxation paid
(11.2)
(13.0)
Interest paid
(6.4)
(7.1)
Free cash flow
52.0
39.0
Capital expenditure – development
(13.7)
(8.4)
Business combinations (net of cash 
acquired)
(8.4)
(19.4)
Loans and borrowings acquired through 
business combinations
(0.1)
(1.0)
Exceptional items
(12.4)
—
Dividends paid
(4.6) 
 — 
Sale of property, plant and equipment
0.2
0.6
Proceeds from Ordinary shares
2.3
1.2
Proceeds from Treasury shares
—
0.3
Amortisation of debt issuance costs
(0.4)
(0.4)
Decrease in net debt
14.9
11.9
The Group remains highly cash generative and de-levers 
quickly post-investment. Cash generated from operations 
increased by 15.9% to £93.1m from £80.3m benefitting from 
increased adjusted EBITDA and a reduction in contingent 
consideration payments in respect of acquisition from prior 
years, partially offset by an increase in inventory. Working 
capital was also adversely impacted in the year by the 
commutation of a portion of clinical colleagues’ bonus 
payments to salary in July 2021.
The analysis of capital expenditure between maintenance 
and development in the table above reflects a broad split 
between expenditure which we believe will primarily maintain 
profit, and that which we expect to increase profit. Development 
capital expenditure includes new sites, relocations, significant 
extensions and significant new equipment. All other capital 
expenditure is included as maintenance; maintenance 
capital expenditure remains less than 2.0% of revenue.
Repayment of lease liabilities of £12.7m (2021: £13.0m) are in 
respect of property leases for our veterinary practices, 
specialist referral centres and support offices and short-term 
leases for vehicles and equipment.
No corporation tax relief is received on the majority of the 
amortisation and transaction costs which are deducted in 
arriving at the unadjusted profit before tax figure. Therefore, 
the tax liability moves broadly in line with the adjusted profit 
before tax of the Group. 
The decrease in tax paid in the year is predominantly as a 
result of an increase in capital allowances and increase in 
the year-end corporation tax liability.
Interest payments of £6.4m were lower than the prior year of 
£7.1m, reflecting the Group’s maintenance of low levels of 
net debt during the financial year. During the year, the Group 
transitioned its interest benchmark rate in relation to its loan 
facility from LIBOR to SONIA.
Cash available for discretionary expenditure (“free cash 
flow”) increased to £52.0m from £39.0m, primarily as a 
result of increased adjusted EBITDA. 
Development capital expenditure increased in the year to 
£13.7m, from £8.4m, to support ongoing expansion 
opportunities, including a number of relocations and 
renovations. We continue to see opportunities to grow 
organic revenue and therefore expect development capital 
expenditure to increase over the next few years. 
For business combinations (net of cash acquired) acquired 
during the financial year, £8.0m (2021: £19.4m) was paid for 
three practices (four practice sites), with an additional £0.4m 
liability on the balance sheet. A further £0.4m (2021: £nil) 
was paid in relation to prior year acquisitions. In addition, 
£0.1m (2021: £1.0m) was paid to settle loans transferred as 
part of the business combinations.
On 19 August 2021, the Group acquired 100% of the share 
capital of Quality Pet Care Ltd, an eight site companion 
animal practice spread across the UK, for total consideration 
of £20.4m, including repayment of loans of £3.4m. On 22 
September 2021, the CMA served an initial enforcement 
order in respect of this acquisition and during the period a 
further £1.0m loan was provided for working capital. On 30 
June 2022, the entire shareholding was divested for proceeds 
of £9.0m, resulting in an impairment of £12.4m, which has 
been recognised as an exceptional item.
A dividend of £4.6m was paid in the year (2021: £nil) reflecting 
the final dividend for the prior year of 6.5p per share. 
Sale of property, plant and equipment of £0.2m (2021: 
£0.6m) primarily related to the sale of motor vehicles.
Proceeds from the sale of Ordinary and Treasury shares of 
£2.3m (2021: £1.5m) arose on the exercise of options under 
the Group’s approved SAYE scheme, which allows 
colleagues to save regular amounts each month over a 
three-year period and benefit from increases in the Group’s 
share price over that time. 
Amortisation of debt issuance costs of £0.4m (2021: £0.4m) 
were in line with our policy.
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CVS Group plc Annual Report and Financial Statements 2022
57

Cash flow and movement in net debt continued
Net debt and borrowing costs
The Group’s net debt comprises the following:
2022 
£m
2021 
£m
Borrowings repayable after more than 
one year:
Loan facility
85.0
85.0
Unamortised borrowing costs
(0.7)
(1.1)
Total borrowings
84.3
83.9
Cash and cash equivalents
(49.0)
(33.7)
Net debt
35.3
50.2
The Group has total facilities of £175.0m to 31 January 2024, 
provided by a syndicate of four banks: NatWest, HSBC, BOI 
and AIB, and comprising the following elements: 
	> a fixed term loan of £85.0m, repayable on 31 January 2024 
via a single bullet repayment; 
	> a four-year Revolving Credit Facility (RCF) of £85.0m, that 
runs to 31 January 2024;
	> an envisaged, but not committed, accordion facility of up 
to £100.0m, that runs to 31 January 2024; and
	> a £5.0m overdraft facility, renewable annually.
The two financial covenants associated with these facilities, 
described below, remain unchanged and will continue to be 
calculated based on the Group’s accounting policies 
applicable at 30 June 2019 for the duration of the facilities, 
i.e. pre-IFRS 16.
At the year-end, the total borrowings principally consist of:
	> the £85.0m term loan (gross of unamortised issue costs) 
(2021: £85.0m); and
	> £nil drawn down under the RCF (gross of unamortised 
issue costs) (2021: £nil).
The two financial covenants associated with the Group’s bank 
facilities are based on the ratios of bank test EBITDA to interest 
and bank test net debt to bank test EBITDA. Bank test EBITDA 
is based on adjusted EBITDA, annualised for the effect of 
acquisitions, including costs relating to business combinations 
and excluding share option costs, prior to the adoption of IFRS 
16. The bank test EBITDA to interest ratio must not be less than 
4.5x. At 30 June 2022 it was 41.00x (2021: 24.97x).
The covenants allow a maximum net debt to bank test 
EBITDA ratio (“gearing”) of 3.25x, although it is not the 
Group’s intention to operate at this level. The gearing ratio 
decreased during the year, to 0.40x at 30 June 2022 from 
0.68x at 30 June 2021. This decrease in ratio reflects both 
the decrease in net debt and increase in EBITDA. 
The Group manages its banking arrangements centrally. 
Funds are swept daily from its various bank accounts into 
central bank accounts to optimise the Group’s net interest 
payable position.
Interest rate risk is also managed centrally and derivative 
instruments are used to mitigate this risk. On 28 February 
2020, the Group entered into two four-year fixed interest rate 
swap arrangements to hedge fluctuations in interest rates on 
£70.0m of its term loan facility. During the year, the loan 
facility and two hedge arrangements were transitioned from 
LIBOR to SONIA benchmark rate, further information can be 
found in note 17.
Going concern and viability
At the year end, the Group had cash and cash equivalents of 
£49.0m, a drawn term loan of £85.0m, an unutilised 
revolving credit facility of £85.0m and an unutilised 
overdraft facility of £5.0m. The Group are fully compliant 
with all covenants in respect of these facilities.
The Directors consider that the £5.0m overdraft and the 
£170.0m of debt facilities will be sufficient to enable the Group 
to meet all liabilities when they fall due. The Group are not 
reliant on any Government support. Since the year end, the 
Group has continued to trade profitably and to generate cash.
After consideration of market conditions, the Group’s 
financial position (including the level of headroom available 
within the bank facilities), financial forecasts for the next 12 
months, its profile of cash generation and the timing and 
amount of bank borrowings repayable, and principal risks, 
the Directors have a reasonable expectation that both the 
Company and the Group will be able to continue in operation 
and meet our liabilities as they fall due over the period. For 
this reason, the going concern basis continues to be 
adopted in preparing the financial statements.
More information on the Group’s viability statement can be 
found on pages 95 and 96. 
Share price performance
At the year end the Company’s market capitalisation was 
£1.2bn (1,656p per share), compared to £1.7bn (2,415p per 
share) at the previous year end.
Forward-looking arrangements
Certain statements and arrangements described in the 
Annual Report and results release are forward-looking. 
Although the Board is comfortable that the expectations 
reflected in these forward-looking statements are reasonable, 
it can give no assurance that these expectations will prove 
to be correct. Because these statements involve risks and 
uncertainties, actual results may differ materially from those 
expressed or implied by these forward-looking statements.
Robin Alfonso
Chief Financial Officer
22 September 2022
Financial review continued
CVS Group plc Annual Report and Financial Statements 2022
58

Giving our graduate vets 
a warm welcome
Attracting key talent
Our vision and purpose rely on recruiting and retaining the 
very best talent. We have close relationships with the eleven 
veterinary schools in the UK and new graduate vets who 
chose to work at CVS are welcomed with an industry-leading 
residential camp.
The summer camp
Our Graduate Summer Camp was developed to help 
provide new graduates with the skills required for a 
successful start in the profession; our belief being that a 
good experience in the first months of practice would set 
them up for a long, happy and successful career.
Our graduates start with lectures on common conditions 
and webinars. The second week of the course is residential, 
in which graduates have opportunities to practice in areas 
such as suturing, ultrasound, CPR, and dentistry. There are 
also social events so they can get to know their new colleagues. 
Following this, new graduates attend clinics in pairs to spend 
time consulting and operating with direct and dedicated 
support from an experienced CVS vet.
One of our graduates who completed the summer camp, 
shared the following feedback after her first day in practice: 
“I just wanted to say that if I didn’t do the 
Summer Camp, I would have been a 
burden today. All the vets were really 
surprised about how independent I was. 
So, a massive thank you for all the work 
and effort that’s been put into the 
Summer Camp to make my transition 
to employment so much easier!”
Testimonials such as this have also been backed up by the 
data University of Surrey is currently analysing. In a questionnaire 
where new graduates scored their confidence going into 
practice at the beginning and end of the residential week, 
there was a dramatic increase from 1.7 to 8.4.
Area of focus
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
59

Principal risks and uncertainties
Proactively identifying and 
managing risk throughout 
the Group
Risk management structure
The Board has overall responsibility for ensuring risk is 
appropriately managed across the Group. The day-to-day 
identification, management and mitigation of risk is 
delegated to the Group’s senior management. 
Risk registers are prepared which evaluate the risks most 
likely to impact the Group. Colleagues across the business 
are involved in the preparation and regular review of these 
risk registers to ensure that all potential areas of risk are 
adequately identified, recorded and managed. Controls that 
are in place are assessed in order to determine the extent to 
which they mitigate risk and in circumstances where it is 
considered appropriate to reduce risk further, appropriate 
actions are determined. 
The Group’s business operations are subject to a wide range 
of risks. Some of the most significant risks are explained on 
pages 61 to 68, together with details of actions that have 
been taken to mitigate these risks.
The key roles and delegated 
responsibilities
Executive Management team
Collectively responsible for managing risks.
Audit Committee
Assists the Board to fulfil its corporate governance duties 
and oversees responsibilities in relation to financial reporting, 
internal control and the risk management structure. 
Internal audit
Holds meetings with risk owners across the business, 
assesses the risk ratings and documents the controls in 
place to mitigate each risk, and recommends improvements 
and corrective actions.
Risk appetite 
The effectiveness of the Group’s risk management approach 
relies upon a culture of transparency and openness that is 
encouraged by both the Board and senior management. The 
Group’s appetite for risk is considered low; whilst some risk is 
accepted in order to develop the business and invest in future 
growth, the Group has no appetite for major risks which 
cannot be effectively mitigated through appropriate controls.
Assessment of principal risks
During the year, the Board undertook a robust, in-depth and 
comprehensive assessment of the emerging and principal 
risks facing the Group and specifically those that might 
threaten the delivery of its strategic business model, its 
future performance, solvency or liquidity. A summary of the 
principal risks and uncertainties that could impact the 
Group’s performance is shown on pages 61 to 68.
CVS Group plc Annual Report and Financial Statements 2022
60

Board
Internal controls
Audit 
Committee
Internal audit
Employees
Group risk management
Executive Committee
Risk management framework
1 	 Key employees
2 	 Economic environment
3 	 Competition
4 	 Adverse publicity
5 	 Information technology
6 	 Changes in 
industry regulations
7 	 Sourcing pharmaceutical 
supplies
8 	 Sourcing and integrating 
acquisitions
9 	 Health and Safety 
legislation
10 	 Corporate legislation and 
regulatory requirements
11 	 Bank facilities
12 	 Future pandemic 
or lockdown
13 	 Sustainability and 
climate change
14 	 Epidemiology
15 	 Cyber attack
Minor
Significant
Moderate
Critical
Probability
Impact
Remote
Likely
Possible
Very likely
11
7
14
5
15
13
6
12
10
3
9
2
4
8
“During the year, the Board undertook a robust, in-depth 
and comprehensive assessment of the emerging and 
principal risks facing the Group and specifically those 
that might threaten the delivery of its strategic business 
model, its future performance, solvency or liquidity.”
1
CVS Group plc Annual Report and Financial Statements 2022
61
The Strategic Report

Principal risks and uncertainties continued
1. Key employees
Description
Failure to retain and attract 
key staff, particularly 
veterinary surgeons due to 
structural shortages of 
qualified vets in the industry.
Potential impact
	> Failure to be able to 
meet the increased 
demand from clients 
and their animals.
	> Increased employment 
costs leading to adverse 
impact on financial 
performance of the Group.
	> Increased pressure on our 
colleagues to cover 
vacancy gaps.
Mitigating factors
	> Close relationship with UK veterinary schools.
	> Market leading graduate induction programme.
	> Focused training programmes to cover clinical, customer 
service and management training.
	> Appropriate reward and benefits.
	> Regular feedback from colleagues to address common 
issues or concerns.
	> Highly qualified recruitment team.
	> Annual bonus scheme and a Group Long-Term Incentive 
Plan (LTIP) scheme for senior colleagues. An annual Save 
As You Earn (SAYE) scheme is in place for all UK 
colleagues. 
	> Home Office reinstatement of veterinary surgeons on UK 
Shortage Occupation List.
	> Increasing number of veterinary schools.
	> Summer and Winter Camps aid an increase in the number 
of graduate intake.
	> Post COVID travel restrictions have eased allowing 
more flexibility.
Changes in the year
	> Increased the number of vets 
and nurses employed by 6.0% 
and 11.4% respectively.
	> Vet and nurse attrition rates 
remained relatively stable.
	> Additional pay rises of 3.0% 
for all colleagues in May 2022 
to manage rising cost of 
living, in addition to the July 
2021 pay review in the year.
	> Increased nurse utilisation, 
improving nurse job 
satisfaction and reducing 
pressure on vets.
	> Summer and winter camps to 
attract new graduate vets, 
and increased engagement 
with the top vet schools.
	> Introduced an additional days 
leave for each completed year 
of service up to a maximum of 
five additional days.
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4
2. Economic environment 
Description
Risk of potential further 
decline in the UK economy.
Potential impact
	> Reduction in consumer 
confidence and spending 
on veterinary services in 
light of inflationary 
pressures.
	> Rising inflation costs 
impacting cost of product 
and adversely effecting 
margins.
	> The impact of Brexit on the 
Group’s business is clearer. 
The main risks are a 
potential risk to supply and 
increased compliance 
around importing and 
exporting goods.
Mitigating factors
	> Diverse range and provision of services across the Group 
to a wide range of animals in the UK, the Netherlands and 
the Republic of Ireland. 
	> Strong year-on-year growth in the Healthy Pet Club (HPC), 
which increased to 470,000 members from 450,000 at 
the year end, a 4.4% increase. This scheme helps to 
promote loyalty to the Group.
	> Online retail business protects the Group against changes 
in consumer spending habits.
	> Ability to source supplies from a number of 
manufacturers. We have strong relationships with our 
suppliers and manufacturers.
	> Veterinary is considered to be an essential service.
Changes in the year
	> A new fixed-term energy 
contract has been signed 
to protect the Group against 
increasing energy prices.
	> Latest PDSA “PAW” report 
found 2.5 million dogs and 
cats acquired between 2020 
to March 2022 showing 
increased pet population is 
here to stay.
	> Shift in working patterns to 
more employees working 
from home makes it easier 
for pet owners to look after 
their pets.
	> The Group is monitoring 
rising inflation.
Link to 
strategy
Read more on 
pages 26 and 27
1
3
4
No change to risk
Increasing risk
Reducing risk
New risk
N
CVS Group plc Annual Report and Financial Statements 2022
62

3. Competition
Description
Increased consolidation and 
acquisition of independent 
veterinary practices.
Potential impact
	> Loss of third-party practice 
clients to Laboratories, 
Crematoria and Referrals. 
	> Increased acquisition 
value multiples being paid.
	> Increased price competition 
may limit the ability to pass 
on increases in employment, 
pharmaceutical and 
other costs.
Mitigating factors
	> The Group has a wide range of services to offer its clients 
by way of its integrated veterinary platform.
	> Continuous investment to maintain high-class facilities 
and equipment in order to provide excellent clinical service.
	> Detailed assessment of acquisition opportunities 
measured against clear target criteria.
	> Regular reviews of pricing of products and services 
to ensure we remain competitive.
	> Healthy Pet Club (HPC) scheme offers clients access 
to preventative healthcare for their pets while spreading 
the cost. 
Changes in the year
	> Ongoing market 
consolidation.
	> Continued increase in 
our HPC scheme.
	> Growth in revenues in the 
year reflecting on focus to 
deliver organic growth.
	> Clear guidelines set by 
Competition and Markets 
Authority on how to assess 
local market competition.
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4. Adverse publicity 
Description
Any adverse publicity on the 
Group, other corporate 
veterinary groups or the 
veterinary sector as a whole.
Potential impact
	> Reduction in customer 
numbers leading to 
adverse revenue.
	> Adverse impact on our 
ability to attract and retain 
key colleagues.
Mitigating factors
	> Policies and procedures in place to monitor service 
delivery and ensure continued levels of high class 
veterinary care.
	> Participation in the RCVS Practice Standards Scheme and 
RCVS Knowledge QI Champion accreditation.
	> Established Clinical Advisory Committee to advise on 
clinical standards and drug lists across the Group.
	> Individual practice branding to reduce risk of adverse 
publicity by being associated with other practices.
	> Group marketing and communications teams to respond 
swiftly to any issues.
	> Prominent representation on national bodies and at 
industry events to enhance the Group’s reputation 
and credibility.
	> Financial PR agency appointed to support with 
media communication.
	> Positive feedback from Summer and Winter Camp for 
Veterinary graduates.
	> 2021 Quality Improvement report issued which outlines 
our approach to increasing clinical standards.
	> Leading Learning, Education and Development programme 
offering a wide range of continued professional 
development courses for our Vets and Nurses.
Changes in the year
	> Increased media coverage 
regarding veterinary 
consolidation and the impact 
on end user pricing.
	> Continued monitoring of our 
clinical standards against 
our quality improvement 
frameworks for clinicians and 
practices.
	> We have engaged with third 
parties to further enhance 
reporting of important issues 
such as sustainability.
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
63

Principal risks and uncertainties continued
5. Information technology
Description
The Group is dependent 
on various aspects of 
Information Technology (IT) 
and support for 
its operations.
Potential impact
	> Loss of connectivity and 
availability of systems 
across our network.
	> A cyber attack could result 
in loss of systems and 
potential loss of client data.
Mitigating factors
	> Policies and procedures are in place to ensure stability 
and security of our networks and systems.
	> Restricted access to systems, networks and applications 
wherever possible.
	> Scheduled programme of network security enhancement 
with external reviews performed periodically.
	> Full system testing of any developments prior to live 
deployment.
	> Regular backups and testing of the recovery of those 
system backups.
	> Established Practice Management System in place which 
is able to work without access to the internet for short 
periods of time.
	> Appropriate training offered to all colleagues.
Changes in the year
	> Strengthened senior IT team 
including appointment of 
Head of Cyber Security and 
Head of Infrastructure.
	> The Group’s new Chief 
Technology Officer (CTO) is 
undertaking a review of 
key risks.
Link to 
strategy
Read more on 
pages 26 and 27
3
4
6. Changes in industry regulations
Description
The industry is subject 
to a number of laws 
and regulations.
Potential impact
	> Failure to adhere to these 
could have a material 
impact on the Group 
through damage to 
reputation and/or financial 
penalties.
	> Changes in regulations 
could adversely impact 
the Group.
Mitigating factors
	> Policies and procedures in place to monitor compliance 
and any developments or proposed changes.
	> Regular engagement with regulatory and legislative 
bodies to promote best practice and lobbying for change 
where considered appropriate.
	> Clinical Directors in place to ensure high standards 
are maintained.
Changes in the year
	> We continue to review and 
respond to evolving 
government and regulatory 
guidance and able to adapt 
our services accordingly (e.g. 
use of tele-consultations).
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4
No change to risk
Increasing risk
Reducing risk
New risk
N
CVS Group plc Annual Report and Financial Statements 2022
64

7. Sourcing pharmaceutical supplies 
Description
Failure to source 
pharmaceutical products 
at the required price 
and quantity.
Potential impact
	> Inability to treat patients 
with the required 
prescription and non-
prescription medicines.
	> Adverse revenue impact.
	> Adverse impact on 
margins through having to 
source alternative supplies 
on less favourable terms.
Mitigating factors
	> Supply agreements in place with multiple major 
wholesalers to cover stocking issues.
	> Supply of own-brand products in Group warehouses for 
onwards supply.
	> Regular pricing reviews with all major suppliers across all 
divisions for best possible pricing.
	> Increase in direct supply of products.
Changes in the year
	> New warehouse system fully 
implemented for monitoring 
stock levels accurately.
	> Where possible, we have 
included price caps in 
supplier contracts to protect 
the Group from price 
increases.
Link to 
strategy
Read more on 
pages 26 and 27
1
4
8. Sourcing and integrating acquisitions
Description
Failure to attract, acquire and 
integrate acquisitions at the 
appropriate price with 
minimal disruption.
Potential impact
	> Pressure that higher 
multiples reduce growth 
opportunities through 
acquisitions.
	> Failure to integrate 
efficiently impacting 
actual performance versus 
business case.
Mitigating factors
	> Dedicated team committed to sourcing acquisitions.
	> Clear list of criteria used to assess any potential acquisition 
targets.
	> Multi-disciplined team communications in advance 
of acquisition to plan the integration.
	> Use of professional advisors to ensure appropriate due 
diligence and legal advice are undertaken.
	> Close monitoring of post-acquisition performance versus 
business plan.
	> Liaise with Competitions and Markets Authority (CMA) on 
acquisitions where appropriate.
Changes in the year
	> Added further conditions to 
pre-acquisitions checklist.
	> Strengthened acquisitions 
team.
	> Clear guidelines set by CMA 
on how to assess local market 
competition.
Link to 
strategy
Read more on 
pages 26 and 27
3
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
65

Principal risks and uncertainties continued
9. Health and Safety legislation
Description
Failure to comply with health 
and safety legislation across 
our practices, laboratories, 
crematoria, warehouse and 
other sites.
Potential impact
	> Colleagues, clients or the 
general public are injured.
	> Required temporary 
closure of sites whilst any 
issues are addressed.
	> Loss of revenue and 
potential claims against 
the Group.
Mitigating factors
	> Robust health and safety procedures are in place ensuring 
full compliance with health and safety legislation.
	> Mandatory employee training to ensure they can perform 
their duties safely.
	> Appropriate protective equipment supplied to all 
employees in order for them to perform their duties safely.
	> Specialist health and safety team which regularly reviews 
any risks and identifies areas for improvement.
	> Participation in the RCVS Practice Standards Scheme to 
ensure the Group promotes the highest levels of 
clinical standards.
	> Specialist and appropriately qualified third-party 
advisors undertake maintenance, inspections and 
property development.
	> Health and Safety committee in place.
Changes in the year
	> Continued focus on health 
and safety in all practices.
	> Emphasis on ensuring health 
and safety standards are at 
the forefront when 
considering property 
improvements.
	> Appointment of Director of 
Property and Health and 
Safety.
Link to 
strategy
Read more on 
pages 26 and 27
1
3
4
10. Corporate legislation and regulatory requirements
Description
Failure to comply with laws 
and regulations.
Potential impact
	> The Group could face 
fines and penalties leading 
to financial loss.
	> The Group could 
face suspension of 
certain operations.
Mitigating factors
	> Appropriate training supplied to colleagues in the relevant 
areas required.
	> Suitable experts employed to ensure compliance and to 
regularly update policies and procedures.
	> Appropriate insurance cover and third-party professional 
advice used as required.
Changes in the year
	> Tender process and 
appointment of new 
Nominated Advisor during 
the year.
Link to 
strategy
Read more on 
pages 26 and 27
4
11. Bank facilities
Description
Failure to comply with bank 
covenants and ability to 
secure future funding.
Potential impact
	> Lack of availability 
of funding.
	> Increased borrowing costs.
Mitigating factors
	> The Group maintains suitable facilities from a syndicate of 
leading banks with an appropriate term.
	> Existing facilities comprise term debt, revolving credit 
facility and an overdraft.
	> Regular reporting of headroom and compliance to the 
Board and Executive Committee.
	> Regular meetings with bank syndicate members to 
appraise performance.
	> Focus on maintaining relationships with main lenders and 
other banking parties.
	> Daily cash flow forecasts prepared and reviewed for a 
rolling three-month period to enable working capital 
requirements to be understood and to optimise bank 
drawings and interest costs.
	> The Group has the ability to de-lever quickly.
Changes in the year
	> Strong cash generation 
continues and net debt and 
leverage remain low.
	> No additional borrowings 
utilised in the year.
	> Transition from LIBOR to 
SONIA on 31 December 2021.
	> The Group is monitoring the 
changes in interest rates 
ahead of the repayment date 
of the existing credit facilities, 
which is 31 January 2024.
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4
No change to risk
Increasing risk
Reducing risk
New risk
N
CVS Group plc Annual Report and Financial Statements 2022
66

12. Future pandemic or lockdown 
Description
Future uncertainty over 
COVID-19 or other pandemic 
and associated lockdowns.
Potential impact
	> Future lockdowns affect 
our ability to service our 
clients if non-emergency 
services are unable to be 
undertaken.
	> Short-term restrictions in 
resource due to 
requirement for COVID-19 
self-isolation.
Mitigating factors
	> Working closely with the RCVS and BVA to review evolving 
guidance.
	> Multiple geographically-spread locations across the UK, 
Netherlands and Republic of Ireland protect the Group 
from any localised lockdowns.
	> The Group operates across a diverse number of 
operations with an online retail business and provides 
veterinary care across companion, equine and farm 
animal species.
	> The Farm Animal division is protected due to it being 
critical to the human food chain.
Changes in the year
	> Continued adherence to 
government and regulatory 
advice across all operating 
territories.
	> We continue to maintain the 
highest levels of protection 
for our staff and customers.
	> We continue to offer flexible 
working where appropriate to 
promote safety across the 
Group as a whole.
Link to 
strategy
Read more on 
pages 26 and 27
3
4
13. Sustainability and climate change
Description
The Group’s continued 
success depends on the 
social and environmental 
sustainability of 
its operations.
Potential impact
	> Disruptions to our 
supply chain leading to 
stock shortage and 
financial loss.
	> Adverse weather 
leading to a decline in 
our client demand.
	> Changes in regulations 
increasing the cost of 
our operations.
Mitigating factors
	> Sustainability and ESG is discussed as a standing agenda 
item in Board meetings.
	> ESG Implementation Group formed which is chaired by 
the CEO. Supported by an additional seven working 
groups in the following areas: (1) Energy and Carbon, 
(2) Waste, (3) One Health, (4) Wellbeing, (5) People 
Development, (6) Equity, Diversity and (7) Inclusion 
and Community.
	> Introduction of additional electric vehicles for the car fleet 
and use of energy from renewable sources.
	> Focus on implementing targets to aim for Net Zero 
carbon emissions.
	> Appointment of ESG advisors to help assess our risks 
and to implement our ESG strategy, “Care at our Heart”.
Changes in the year
	> Sustainability Report 
published with SASB-
compliant data.
	> TCFD reporting in Annual 
Report.
	> Risks and opportunities 
assessment and scenario 
analysis performed in relation 
to climate change.
Link to 
strategy
Read more on 
pages 26 and 27
1
2
3
4
Strategic Report
The Strategic Report
CVS Group plc Annual Report and Financial Statements 2022
67

Principal risks and uncertainties continued
14. Epidemiology
Description
There is a risk to the Group 
as a result of potential 
animal epidemics.
Potential impact
	> New diseases entering the 
UK due to animal 
importation could lead to 
animal deaths, and loss of 
future revenues.
	> Diseases transmitted from 
animals to humans may 
lead to operational 
disruption.
Mitigating factors
	> The Group continues to invest in research and 
development and closely monitors trends and concerns 
through our well established Clinical Advisory Committee.
	> Invested in ensuring we drive quality improvement and 
continue to publish our Quality Improvement Report.
	> Notification system implemented to aid tracking and 
resolution of issuing arising.
	> Focus on increased protection if suspected cases 
are identified. 
Changes in the year
	> We launched our Clinical 
Research Awards to fund 
clinical research, including 
quality improvement, which 
are open to both internal and 
external applicants via 
collaboration with universities.
Link to 
strategy
Read more on 
pages 26 and 27
1
4
15. Cyber attack
Description
Potential for a targeted 
breach of the Group’s 
IT security.
Potential impact
	> Loss of client data 
resulting in reputational 
damage.
	> Disruption to operations.
Mitigating factors
	> The Group has a number of policies in place that are 
aimed at ensuring the stability and security of our 
networks and systems.
	> Network security is regularly enhanced with external 
reviews being performed periodically to identify areas of 
risk. A scheduled programme of equipment and software 
replacement takes place to help ensure that the latest 
security features are available.
	> The Group employs a Head of Cyber Security alongside 
third-party advisors where appropriate to ensure we 
maintain high standards of protection.
	> Systems are regularly backed up and the recovery of 
those systems is tested.
	> Use of anti-virus software in place across the Group.
	> Password policies are in place encouraging use of strong 
passwords. Forced password changes on a regular basis 
and two factor authentication used where appropriate.
	> Fully encrypted payments terminals being rolled out 
across the group.
	> Restricted access to systems, networks and applications 
wherever possible.
Changes in the year
	> Strengthened senior IT team 
including appointment of 
Head of Cyber Security and 
Head of Infrastructure.
	> The Group’s new Chief 
Technology Officer (CTO) 
is undertaking a review of 
key risks.
	> We switched provider of 
anti-virus software to mitigate 
potential threats arising from 
the changing political 
landscape in Europe. 
	> We continue to review our 
equipment and software and 
regularly install updates.
Link to 
strategy
Read more on 
pages 26 and 27
3
4
The Strategic Report is approved for issue by the Board of Directors
Jenny Farrer
Company Secretary
22 September 2022
No change to risk
Increasing risk
Reducing risk
New risk
N
N
N
CVS Group plc Annual Report and Financial Statements 2022
68

Chair’s introduction to governance
Dear Shareholders, 
I am pleased to present our Corporate Governance report 
for the year ended 30 June 2022 on behalf of the Board. This 
report explains how we have applied the principles of the UK 
Corporate Governance Code (the “Code”) during the course 
of the year, as well as setting out details of changes to the 
Board of Directors and our governance structure. We believe 
that effective corporate governance is key to delivering the 
Group’s strategy and ensuring long-term success and this 
report includes information about the progress we have 
made in diversity and inclusion, stakeholder engagement 
and our sustainability strategy.
Board changes and effectiveness
In September 2021, we welcomed David Wilton to the Board 
as an independent Non-Executive Director. David has also taken 
over the role of Chair of the Audit Committee following the 
departure of Mike McCollum and has brought a wealth of 
financial skills and experience to the role. In addition to this, 
Deborah Kemp was appointed Senior Independent Director 
as well as continuing to act as the Board’s dedicated 
Non-Executive Director for employee engagement.
During the year, I conducted an internal evaluation to 
assess the effectiveness of the Board with support from 
our Company Secretary. We have internally set out the 
outcome and actions arising from the evaluation and 
this includes ensuring that the Board agenda includes 
opportunities for the Board to meet with and engage 
with the wider management team.
Strong governance 
and leadership delivers 
sustainable growth.
Equity, diversity and inclusion
Focus on nurturing an inclusive culture at CVS through our 
Equity, Diversity and Inclusion (EDI) workstream has continued 
throughout the year with good progress made against our 
ten-year plan. During 2022, we ran training for our HR team on 
recognising and minimising bias within performance and 
reward management, created EDI zones in our learning and 
development platform, launched psychological safety 
training and prepared updated company policies on EDI, 
Bullying, Harassment and Incivility and Menopause. CVS 
Colleague EDI groups, comprising over 60 colleagues from 
across the Group, have been established to focus on: ability 
and neurodiversity; ethnicity; gender; LGBTQ+ matters; and 
social mobility. These groups are already making an impact 
across the business and I am pleased to report that CVS 
joined together to celebrate Pride month this year through 
activities and the sharing of colleague stories.
Section 172(1) and stakeholder engagement 
During the course of the year, I held a number of meetings 
with our institutional shareholders so I could understand their 
priorities and discuss key themes including the development 
of our approach to ESG and capital management. 
During my time as Chair, CVS has built a strong corporate 
culture based on investing in our people, our facilities and 
our clinical equipment. We continue to expand our business 
and our focus remains on attracting and retaining the very 
best talent. The Board takes into account the interests of its 
stakeholders when taking decisions and some examples 
of how the Board has fulfilled its Section 172(1) duties and 
engaged with stakeholders during the course of the 
year can be found on pages 22 to 25.
Sustainability
During the year the Board has discussed the development 
of its approach to ESG at every Board meeting and we are 
pleased to have released our first standalone Sustainability 
Report, detailing the progress we are making and outlining 
how our ESG strategy is closely aligned to our purpose, 
vision, values and strategic pillars.
Annual General Meeting (AGM)
Our 2022 AGM will be held on Wednesday 23 November 2022 
at 11:00am. Full details including the resolutions to be proposed 
to shareholders will be set out in the Notice of AGM which will 
be made available in the Investor Centre on our website. 
Outcomes of the resolutions put to the AGM, including 
poll results detailing votes for, against and withheld, will be 
published on the Company’s website and the London Stock 
Exchange once the AGM has concluded.
Richard Connell
Chair
22 September 2022
Corporate Governance
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CVS Group plc Annual Report and Financial Statements 2022

	 Male
75%
	 Female
25%
	 White
87.5%
	 Ethnic minority
12.5%
Board and Company Secretary gender diversity
Board and Company Secretary ethnic diversity
75+25+R
87+13+R
A
R
N
A
R
N
A
R
N
Our experienced Board with 
diverse skills and expertise
Board of Directors and Company Secretary 
1. Richard Connell (67)
Non-Executive Chair
Appointment to the Board
Richard was appointed to 
the Board in October 2007.
Career and experience
Richard is a Chartered 
Accountant and worked in 
investment management with 
3i Group, Invesco and HSBC. 
Previously he was Chair of 
Dignity plc, Mercury Pharma 
and Ideal Stelrad Group. 
2. David Wilton (59) 
Non-Executive Director
Appointment to the Board
David was appointed to the 
Board in September 2021.
Career and experience
David is a qualified Chartered 
Accountant with more than 
30 years’ post-qualification 
experience as a Chief Financial 
Officer, Non-Executive Director 
(NED) and consultant after many 
years in corporate finance, 
primarily in mid-cap M&A with 
Rothschilds. David has held roles 
in both public and private equity 
backed companies including as 
CFO of Sumo Group plc, Group 
Finance Director of WYG plc and 
NED and Chair of the Audit 
Committee of Sweett Group plc. 
With effect from 22 September 
2022, David was appointed as 
NED and Chair Designate at 
Frontier Developments plc, due 
to take over as Chair in 
December 2022.
3. Deborah Kemp (61) 
Non-Executive Director
Appointment to the Board
Deborah was appointed to 
the Board in January 2018.
Career and experience
Deborah has held a variety of 
Chief Executive Officer roles in 
the consumer and hospitality 
sector, including as a FTSE 100 
main board Director at Punch 
Taverns plc. Her career started 
at Bass plc as a Chartered 
Surveyor, subsequently holding 
key strategic roles in the 
evolution and growth of the 
Punch Taverns pub company. 
Following a period in private 
equity and a trade sale of Laurel 
Funerals, she is now a Director 
of Vennco Limited and a 
consultancy and interim 
specialist in the consumer-
facing retail and hospitality 
sector, and assists multi-site 
businesses through growth, 
change and transformation.
4. Richard Gray (65)
Non-Executive Director
Appointment to the Board
Richard was appointed to 
the Board in July 2020.
Career and experience
Richard is a career investment 
banker who has extensive 
capital markets and corporate 
finance experience. He is 
Chairman of CT Private Equity 
Trust PLC, a Non-Executive 
Director of Alpha Real Capital, 
Vice Chairman of Invescore 
Group and a Director at Zeus 
Capital. He has previously 
worked at Panmure Gordon. 
Lazard, Charterhouse and UBS. 
Committee membership
Richard is not a member of 
the Audit, Remuneration or 
Nomination Committees. 
Committee membership
David is Chair of the Audit 
Committee, and is a member  
of all three Board Committees.
Committee membership
Deborah is Chair of the 
Remuneration Committee. She 
is a member of all three Board 
Committees and is the Senior 
Independent Director.
Committee membership
Richard is Chair of the 
Nomination Committee, 
and is a member of all three 
Board Committees.
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CVS Group plc Annual Report and Financial Statements 2022

A
R
N
Audit Committee
Remuneration Committee
Nomination Committee
Chair of Committee
Committee membership
5. Richard Fairman (55) 
Chief Executive Officer
Appointment to the Board
Richard was appointed as 
a Director in August 2018 and 
was appointed as Chief Financial 
Officer in October 2018, then 
as Chief Executive Officer in 
November 2019.
Career and experience
Richard spent six and a 
half years at the RAC Group, 
including as Chief Financial 
Officer from 2016. Prior to this, 
Richard qualified as a Chartered 
Accountant at EY, later working 
at PwC, following which Richard 
held roles including Finance 
Director of Virgin Money, CFO 
of Central Trust and Finance 
Director of Virgin Money Giving.
6. Ben Jacklin (38)
Chief Operating Officer
Appointment to the Board
Ben was appointed as a Director 
and Chief Operating Officer 
in November 2019.
Career and experience
Ben is responsible for the 
leadership and management of 
our business operations, across 
all our territories. These include 
all our veterinary practices and 
our laboratories, crematoria, 
marketing and communication 
departments. Ben joined CVS in 
2015 and, prior to his appointment 
to the Board in 2019, led the 
Veterinary Practice division 
across the CVS territories. 
Ben qualified as a Veterinary 
Surgeon from Cambridge 
University, and is a European 
College of Veterinary Surgeons 
and Royal College of Veterinary 
Surgeons recognised specialist 
in equine surgery. 
7. Robin Alfonso (43)
Chief Financial Officer
Appointment to the Board
Robin was appointed as a 
Director and Chief Financial 
Officer in November 2019.
Career and experience
Robin spent eight years at the 
RAC Group, initially as Group 
Financial Controller and then 
as Divisional Finance Director of 
its largest commercial division 
and profit centre, Consumer 
Roadside and Marketing. Prior 
to this, Robin qualified as a 
Chartered Accountant at PwC, 
following which he moved to 
Aviva where he performed a 
technical accounting role.
8. Jenny Farrer (45)
Company Secretary
Appointment
Jenny was appointed 
as Company Secretary 
in August 2021.
Career and experience
Jenny is a fellow of the 
Chartered Governance Institute 
with 16 years’ experience 
of acting as Company Secretary 
to listed and large private 
companies through in-house 
and professional practice roles. 
Jenny is a Corporate 
Governance Professional and 
also spent over seven years in 
professional practice building 
and heading the Company 
Secretarial Practice at Mills & 
Reeve LLP. Jenny established 
the East of England Branch of 
the Chartered Governance 
Institute in 2008 and still takes 
an active role on its committee.
8
5
3
1
7
4
6
2
Corporate Governance
71
CVS Group plc Annual Report and Financial Statements 2022

Effective management 
across the business
Corporate governance statement
Board activity during the financial year 
to 30 June 2022
Strategy, business 
and operational 
performance
	> Reviewing and testing the Group’s 
overall strategy and supporting strategic 
pillars and monitoring performance 
against targets.
	> Considering and approving major 
acquisitions and disposals.
	> Monitoring trading and market 
conditions, competitor activity 
and regulatory requirements.
Financial 
performance 
	> Receiving Audit Committee reports 
on full and half year financial results.
	> Reviewing and approving the Group’s 
annual budget.
	> Considering the Company’s dividend 
policy and approving the allocation of 
capital for investment.
Risk management 
and internal  
control
	> Reviewing the Group’s risk register.
	> Receiving reports from the Audit 
Committee on the effectiveness 
of internal controls.
	> Approving the Audit Committee’s 
recommendation to appoint KPMG 
as internal auditor.
	> Receiving regular updates on legal 
and regulatory matters.
Board and 
Committee 
governance
	> Receiving reports from 
Board Committees.
	> Reviewing terms of reference 
for Board Committees.
	> Adopting updated Schedule of Matters 
Reserved to the Board.
	> Receiving corporate 
governance updates.
	> Conducting annual review 
of Board effectiveness.
This Corporate Governance Statement explains how 
the Company is managed, the roles of the Board, its 
Committees and Directors and compliance with the 
standards set out in the UK Corporate Governance Code 
2018 (“the Code”) for the financial year ended 30 June 2022. 
For more information about the Code set by the Financial 
Reporting Council (FRC), visit www.frc.org.uk.
During the year to 30 June 2022, and up to the date of this 
Annual Report and Financial Statements, the Company has 
complied with the principles set out in the Code apart from 
certain limited exceptions which are explained on page 75 
(Chair’s independence and tenure – Provisions 10 and 19) 
and page 86 (Directors’ Remuneration Policy – Pension – 
Provision 38). The Corporate Governance Report explains 
how the Company has applied the principles of the Code; 
please find below a guide to the most relevant explanations 
for each of the principles:
Principles
Disclosure in the 
2022 Report
Board leadership and 
Company purpose 
A, B, C, D and E
Pages 72 
and 73
Division of responsibilities
F, G and H
Page 74
Composition, succession and 
evaluation
I, J, K and L
Pages 74 
and 75
Audit, risk and internal control
M, N and O
Page 77 
and 78
Remuneration
P, Q and R
Page 90
Jenny Farrer 
Company Secretary
72
CVS Group plc Annual Report and Financial Statements 2022

Our governance framework
The Group’s governance framework comprises matters reserved to the Board, Committees with clear terms of reference 
and our Delegated Authorities policy which ensures that decisions are made at appropriate levels within the Group:
The Board
Four Non-Executive Directors
Our four Non-Executive Directors (including our Chair) 
provide independent oversight and constructive challenge  
to the Executive Directors.	
Three Executive Directors
Our Chief Executive Officer (CEO), Chief Operating Officer 
(COO) and Chief Financial Officer (CFO) are appointed to 
the Board. 
Board Committees
Audit Committee	
Key responsibilities:
	> reviewing and monitoring 
financial reporting;
	> ensuring an appropriate internal 
control and risk management 
framework;
	> monitoring internal and external 
audit arrangements (including 
auditor independence); and
	> maintaining appropriate 
whistleblowing procedures.
Membership:
David Wilton – Chair
Deborah Kemp
Richard Gray
Remuneration Committee	
Key responsibilities:
	> assisting the Board in ensuring 
appropriate remuneration policies 
are in place for the Group;
	> ensuring Executive Director 
remuneration is aligned to the 
strategic priorities of the Group 
and its performance; and
	> making recommendations 
regarding Long-Term Incentive Plan 
terms and conditions, and awards.
Membership:
Deborah Kemp – Chair
David Wilton 
Richard Gray
Nomination Committee
Key responsibilities:
	> making recommendations on 
all Board appointments and 
succession planning;
	> monitoring and reviewing Board 
composition; and
	> undertaking an annual evaluation 
of the effectiveness of the Board 
and its Committees.
Membership:
Richard Gray – Chair
Deborah Kemp
David Wilton
Executive Committee
The Executive Committee (“Exco”) comprises the Group CEO, COO, CFO, Group HR 
Director, Chief Veterinary Officer, Group Procurement Director, Director of Clinical 
Operations and Chief Technology Officer. The Exco assists the CEO in managing the 
Group’s operations and the implementation of strategy. The Exco meets at a minimum 
on a monthly basis to set performance targets, monitor key objectives and commercial 
plans and evaluate opportunities and business initiatives. Exco members report annually 
to the Board in person as well as providing monthly updates through the CEO, COO and 
CFO Board reports.
Senior Leadership Group (SLG)
The SLG comprises the heads of major business units and key service functions. 
The SLG meets on a monthly basis to collaborate and discuss major projects and 
Group performance.
Corporate Governance
73
CVS Group plc Annual Report and Financial Statements 2022

Corporate governance statement continued
Structure of the Board and Board Committees 
At 30 June 2022, the Board of Directors consisted of seven members, including a Non-Executive Chair and three independent 
Non-Executive Directors. Biographical details of the Directors as at the date of this report are set out on pages 70 and 71. 
The responsibilities of the Board members are set out in the table below. The Board and its Committees have access to 
management and external advisors to assist them in discharging their duties. During the year ended 30 June 2022, the 
Board and Board Committees received sufficient, reliable and timely information in order for them to perform their 
responsibilities effectively.
Roles and responsibilities
There is a clear division of responsibilities between the Chair and the CEO, and all Board members have clearly defined 
roles and responsibilities as set out below. Board members have the range of skills and experience required to ensure 
the successful operation, growth and sustainability of the Group, as set out in their biographies on pages 70 and 71.
Role
Name
Responsibility
Chair
Richard Connell
	> The Chair is responsible for leading the Board and for its overall effectiveness 
in directing the Company. The Chair also facilitates constructive Board 
relations and the effective contribution of all Non-Executive Directors as well 
as ensuring that the Directors receive accurate, timely and clear information 
and overseeing the governance framework.
CEO
Richard Fairman
	> The CEO is responsible for leading the Company’s executives in managing the 
day-to-day operation of the Group. The CEO is accountable to and reports to 
the Board and is assisted in his role by the Group’s Exco, all of whom report 
directly or indirectly to the CEO.
COO
Ben Jacklin
	> The COO reports to the CEO and is responsible for overseeing and directing 
the day-to-day operations of the Group in addition to supporting the CEO with 
developing and implementing Group strategy.
CFO
Robin Alfonso
	> The CFO reports to the CEO and is responsible for the day-to-day 
management of the Group’s finances and development and implementation 
of financial strategy as well as supporting the CEO with developing and 
implementing Group strategy.
Senior 
Independent 
Director
Deborah Kemp
	> The Senior Independent Director (SID) provides advice and additional support 
and experience to the Chair. 
Independent 
Non-Executive 
Directors
Richard Gray
David Wilton
	> Independent Non-Executive Directors provide constructive challenge, strategic 
guidance and specialist advice as well as holding management to account and 
being available to work with the Chair to resolve contentious issues.
Company 
Secretary
Jenny Farrer
	> The Company Secretary acts as Secretary to the Board and its Committees 
and is responsible for ensuring that the Board has the policies, processes, 
information, time and resources it needs in order to function effectively and 
efficiently as well as supporting the Chair in developing and overseeing the 
governance framework.
Board and Committee meeting attendance
The Board meets formally eleven times a year and meetings are planned around key events in the corporate calendar 
including interim results, full-year results and the Annual General Meeting (AGM). The Non-Executive Directors confirm that 
they have sufficient time to devote to meet their Board responsibilities. In addition to the eleven scheduled Board meetings 
and other Committee meetings, the Non-Executive Directors make themselves available for ad-hoc meetings and Board 
calls to receive regular updates and to deal with specific projects or matters arising during the year.
The Chair and Non-Executive Directors meet from time to time as appropriate without the Executive Directors present.
74
CVS Group plc Annual Report and Financial Statements 2022

The table below sets out attendance at Board meetings 
during the financial year ended 30 June 2022, including a 
dedicated strategy meeting held in the same week as the 
Board meeting in March 2022.
Board
Audit 
Committee
Remuneration
Committee
Nomination
Committee
Number 
of meetings
15
2
5
2
R Connell
15
2 *
5 *
2 *
D Kemp
15
2
5
2
R Gray
15
2
5
2
D Wilton
10 **
1 **
4 **
1 **
M McCollum
5 **
1 **
1 **
1 **
R Fairman
15
2 *
5 *
2 *
R Alfonso
15
2 *
5 *
2 *
B Jacklin
15
2 *
5 *
2 *
*	 In attendance by invitation of the respective Committee.
**	Mike McCollum resigned as a Director on 23 September 2021 and was 
replaced by David Wilton with effect from 24 September 2021. Both 
Directors attended all meetings whilst in appointment. 
Board processes and effectiveness
The Board has a formal schedule of matters reserved for its 
approval which includes matters of strategy, structure and 
capital, financial reporting, internal controls, contracts, 
Board membership, remuneration, delegation of authority 
and corporate governance. Matters that fall outside of those 
reserved to the Board or its Committees fall within the 
responsibility and authority of the CEO, COO and CFO and 
are either reserved to them or delegated further through the 
Group’s Delegated Authorities Policy.
Board and Committee papers are circulated well in advance 
of meetings and Directors have access to a Board portal 
containing Board packs and reference materials from previous 
meetings as well as all Board policies and procedures. In 
addition to formally scheduled meetings, the Chair maintains 
regular contact with the Non-Executive Directors, CEO, 
COO, CFO and Company Secretary in performing his duties 
leading the Board.
Given the size of the Group and the Company’s AIM listing, 
the Board does not believe external evaluation of the Board 
to be appropriate. During December 2021, the Chair, 
assisted by the Company Secretary, carried out an internal 
review of Board effectiveness which included a review of 
the information provided to the Board, the composition of 
the Board, decision-making processes and the Board’s 
annual agenda. 
Outcomes from the Board effectiveness review:
	> dedicated strategy day held in March 2022 to review 
and refresh the Group’s five-year plan;
	> development of an annual rolling agenda to encourage 
interaction with Executive Committee members; 
	> Nomination Committee to continue to monitor the gender 
diversity of the Board; and
	> introduction of a Board portal to support Directors in 
reviewing Board papers and create a reference point 
for Board policies and procedures. 
Board induction and training
New Directors appointed to the Board undertake an 
induction programme to assist in developing their 
understanding and awareness of the business, its 
governance framework, employees and Group policies and 
procedures. Induction is tailored to suit the requirements of 
each new Director and includes site visits to practices 
around the Group, meetings with the heads of Group 
functions and one-on-one meetings with fellow Board 
members, Executive Committee members and the 
Company’s external advisors in addition to being provided 
with details of the Group’s policies and procedures.
During the financial year ended 30 June 2022, Board 
members received refresher training on AIM and the Market 
Abuse Regulations delivered by the Company’s Nominated 
Advisor and external legal counsel.
Independence
Richard Connell has held the position of Chair of the Board 
since October 2007 and has therefore served on the Board 
for more than nine years, which is an example in the Code 
of a circumstance in which a Non-Executive Director’s 
independence is likely to be, or could appear to be, 
impaired. The Board of Directors believes that Richard’s 
knowledge of the veterinary sector and the Group’s 
operations and experience of transactions continue 
to be invaluable to the leadership of the Group.
Deborah Kemp, Richard Gray and David Wilton are 
considered to be independent by the Board.
All Directors will offer themselves for re-election at the 2022 
AGM of the Company.
Corporate Governance
75
CVS Group plc Annual Report and Financial Statements 2022

Corporate governance statement continued
Relations with shareholders
Copies of the Annual Report and Financial Statements are 
issued to all shareholders where requested and copies are 
available on the Group’s website, www.cvsukltd.co.uk. 
The Group also uses its website to provide information to 
shareholders and other interested parties. The Company 
deals with shareholder correspondence as and when it 
arises throughout the year.
The CEO, COO and CFO have regular meetings with 
institutional investors, private client brokers, individual 
shareholders, fund managers and analysts to discuss 
information made public by the Group. 
The Chair and the Non-Executive Directors are always 
available to shareholders on all matters relating to governance 
and strategy. They may be contacted through the Company 
Secretary at company.secretary@cvsvets.com.
Shareholder engagement activities:
	> Preliminary results roadshow – September 2021
	> Annual General Meeting – November 2021
	> Interim results roadshow – March 2022
	> US roadshow – April 2022
	> Republic of Ireland roadshow – June 2022
The Audit Committee
During the year under review the Committee Chair was 
David Wilton. David became Chair of the Committee in 
September 2021 and has a wealth of experience in senior 
finance roles including in listed companies. All Non‑Executive 
Directors other than the Chair were members of the Committee. 
The Board considers that members of the Audit Committee 
have recent and relevant financial expertise, and that the 
Committee as a whole has competence relevant to the 
sector in which the Company operates.
The Audit Committee’s duties primarily concern financial 
reporting, internal control and risk management systems, 
whistleblowing procedures and internal audit and external 
audit arrangements (including auditor independence).
The Audit Committee report can be found on pages 79 
and 80.
The Nomination Committee
During the year under review the Chair of the Nomination 
Committee was Richard Gray, following his appointment 
as a Non-Executive Director in July 2020. All Non-Executive 
Directors other than the Chair were members of 
the Committee. 
The Nomination Committee is responsible for reviewing 
the structure, size and composition, including skills, 
independence, knowledge and experience, of the Board. 
It is also responsible for the co-ordination of the annual 
evaluation of the performance of the Board and of its 
Committees, and for ensuring appropriate succession plans 
are in place. Given the size of the Group and the Company’s 
AIM listing, the Board does not believe external evaluation 
of the Board to be appropriate. All Directors engage in the 
internal evaluation and appropriate action is taken in light 
of the assessment.
The Committee is responsible for making recommendations 
to the Board on all Board appointments and on the 
succession plans for both Executive Directors and 
Non‑Executive Directors. During the year it appointed 
a new Non-Executive Director David Wilton, to replace 
Mike McCollum.
The Nomination Committee Report can be found on 
pages 81 and 82.
The Remuneration Committee
During the year under review the Chair of the Remuneration 
Committee was Deborah Kemp. Deborah became Chair of 
the Committee in July 2020. All Non-Executive Directors 
other than the Chair were members of the Committee.
The Remuneration Committee has delegated responsibility 
for designing and determining remuneration for the Chair, 
Executive Directors and next level of senior management, 
as well as the Company Secretary.
The CEO, COO and CFO are invited to attend meetings as 
appropriate but do not participate in discussions relating to 
their own remuneration. The Chair will also be invited to 
attend meetings as appropriate.
The Remuneration Committee Report can be found 
on pages 83 to 93.
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CVS Group plc Annual Report and Financial Statements 2022

The Company Secretary
The Company Secretary is responsible for ensuring that 
Board procedures are complied with, advising the Board 
on all governance matters, supporting the Chair and helping 
the Board and its Committees to function efficiently.
Jenny Farrer was appointed Company Secretary with effect 
from 16 August 2021.
Annual General Meeting 2022 – voting results
In the 2021 Results of AGM announcement, the Board of 
CVS noted that all the resolutions had been passed with 
the requisite majority. During the course of the year, the 
Board of Directors has continued to actively engage with 
shareholders and to discuss and consider their feedback. 
Over the past two years, the following changes have been 
made to remuneration policies and committee composition:
	> introduction of malus and clawback for annual bonuses 
and Long-Term Incentive Plans (LTIP);
	> 	Remuneration Committee discretion to override formulaic 
outcomes introduced for bonuses and LTIPs;
	> LTIP scheme performance conditions amended so as to 
closely align with shareholder returns with 50.0% of the 
performance condition now based on total shareholder 
return;
	> target shareholding thresholds introduced of 100.0% of 
salary for the CEO, COO and CFO;
	> two-year holding period introduced for new LTIP awards 
for the CEO, COO and CFO; and
	> Board Committees were restructured as Richard Connell 
stood down from all Committees.
Whistleblowing
The Group’s whistleblowing policy is reviewed by the Board 
annually. The policy sets out the procedures for employees 
or third parties to raise concerns about any suspected 
wrongdoing. Employees also have access to a wide range 
of alternative and informal routes through which to raise 
concerns. This reflects the open culture and strong internal 
communication channels of the Group, in line with our 
strategy, and supports the formal whistleblowing policy we 
have in place. The Board receives a whistleblowing report at 
each Board meeting and will receive more detailed reports 
of any investigations that may take place. There were no 
issues reported to the Board under the whistleblowing 
policy during the year.
Audit, risk and internal control
The Board is ultimately responsible for the Group’s system of 
internal control and for reviewing its effectiveness on an 
ongoing basis.
The system is designed to manage rather than eliminate the 
risk of failure to achieve the Group’s strategic objectives, and 
can only provide reasonable and not absolute assurance 
against material misstatement or loss.
The key risk management processes and internal control 
procedures include the following:
	> the close involvement of the Executive Directors in all 
aspects of the day-to-day operations, including regular 
meetings with senior colleagues from across the Group 
and a review of the monthly operational reports compiled 
by senior management;
	> clearly defined responsibilities and limits of authority. The 
Board has responsibility for strategy and has adopted a 
schedule of matters which are required to be brought to 
it for decision;
	> a comprehensive system of financial reporting, 
forecasting and budgeting. Detailed budgets are prepared 
annually for all parts of the business. Reviews occur 
through the management structure culminating in a 
Group budget which is considered and approved by the 
Board. Group management accounts are prepared 
monthly and submitted to the Board for review. Variances 
from the budget and the prior year are closely monitored 
and explanations are provided for significant variances. 
Independent of the budget process, the Board regularly 
reviews revised profit and cash flow forecasts which are 
updated to reflect actual performance trends;
	> a continuous process for identifying, evaluating and 
managing significant risks across the Group together with 
a comprehensive annual review of risks which covers both 
financial and non-financial areas;
	> an independent internal audit function that reports to the 
Chair of the Audit Committee;
	> a central team that checks clinical and health and safety 
compliance in all parts of the Group; and
	> the Company’s Scheme of Delegation of 
Financial Authority.
Corporate Governance
77
CVS Group plc Annual Report and Financial Statements 2022

Corporate governance 
statement continued
Audit, risk and internal control continued
The Board is committed to maintaining high standards of 
business conduct and ethics, and has an ongoing process 
for identifying, evaluating and managing any significant risks 
in this regard.
The internal control procedures are delegated to the 
Executive Directors and senior management and are 
reviewed in light of the ongoing assessment of the Group’s 
significant risks.
Internal Audit
During the year, the Audit Committee took the decision to 
appoint KPMG as Internal Auditor to provide an 
outsourced service. 
Remuneration
The Board considers that policies on executive remuneration 
should be transparent. They should be implemented in a 
manner which supports strategy and promotes long-term 
sustainable growth. In addition, remuneration should reflect 
both the performance of the Company as well as individuals. 
The Board has delegated to the Remuneration Committee 
responsibility for complying with these aspects of the Code 
and the work of the Committee is reported in full on pages 
83 to 93 of this Annual Report.
Annual General Meeting
The Annual General Meeting (AGM) of the Company will take 
place on 23 November 2022. Full details of resolutions to be 
proposed to our shareholders will be set out in the Notice of 
AGM will which will be made available in the Investor Centre 
on our website.
Outcomes of the resolutions put to the AGM, including poll 
results detailing votes for, against and withheld, will be 
published on the website of the Company and the London 
Stock Exchange once the AGM has concluded.
By order of the Board
Jenny Farrer
Company Secretary
22 September 2022
Engaging with charities
Every year, CVS colleagues nominate and vote for their 
favourite animal charities to be selected as the Group’s 
Charity of the Year. Throughout the year, our colleagues 
fundraise for this charity; this ranges from collection pots 
in veterinary practices, to bake sales, to large sponsored 
events. Each year, CVS matches the amount raised by 
colleagues for the Charity of the Year, with a donation to 
Vetlife, a charity that provides emotional, financial and 
mental health support to the veterinary community.
For 2022, the chosen Charity of the Year is the Pet Blood 
Bank, a charity set up to support vets by providing a blood 
service for pets, just like the one we have as humans.
“We are absolutely over the moon to have 
been chosen by CVS colleagues as their 
charity of the year! Pet Blood Bank is a 
small charity but what we do is critical to 
the veterinary industry. The support from 
CVS will help to fund things like free 
training and education for vets and go 
towards helping to keep the cost of our 
blood products as low as possible. 
Ultimately, this partnership will help to 
save more lives and we are so grateful 
for the nomination.” 
Nicole Osborne 
Marketing Manager for Pet Blood Bank
Area of focus
CVS Group plc Annual Report and Financial Statements 2022
78

Audit Committee report
Officer (COO) and the Chief Financial Officer (CFO) are 
invited to attend such meetings, but the Committee also 
meets with the external auditor without the CEO, COO and 
CFO being present at least once annually. Other members of 
management are invited to present such reports as are 
required for the Committee to discharge its duties.
The agenda of each meeting is linked to the reporting 
requirements of the Group and the Group’s financial 
calendar. Each Audit Committee member has the right to 
request reports on matters relevant to its terms of reference 
in addition to the regular items.
Summary of activity
In the year ended 30 June 2022 and up to the date of 
this report, the actions taken by the Audit Committee to 
discharge its duties included:
	> reviewing the Annual Report and Financial Statements and 
the Interim Report, including significant financial reporting 
judgements contained therein. As part of these reviews 
the Committee received a report from the external auditor 
on its audit of the 2022 financial statements;
	> advising the Board that the Annual Report and Financial 
Statements are fair, balanced and understandable, and 
provide the information necessary for shareholders to 
assess the Company’s position and performance, 
business model and strategy;
	> reviewing the effectiveness of the Group’s internal 
controls and reports received from the Group’s internal 
audit function in respect of its programme of internal 
audit reviews; 
	> reviewing the Group’s risk management framework;
	> reviewing the effectiveness of the Group’s internal audit 
function and arranging for the appointment of KPMG to 
provide an outsourced internal audit service;
	> reviewing the external auditor’s audit planning document, 
with particular reference to the audit approach, planned 
materiality, significant risks as detailed in the Independent 
Auditor’s Report and the audit approach to these risks;
	> reviewing the external auditor’s audit findings 
memorandum, noting conclusions in respect of identified 
audit risks, materiality of adjusted and unadjusted 
misstatements, control observations and suggested 
improvements in the disclosure provided in the Annual 
Report and Financial Statements;
	> considering papers prepared by the CFO to support the 
going concern basis of preparation of the Annual Report 
and Financial Statements;
David Wilton
Audit Committee Chair
Key responsibilities:
	> reviewing and monitoring financial reporting;
	> ensuring an appropriate internal control and risk 
management framework;
	> monitoring internal and external audit arrangements 
(including auditor independence); and
	> maintaining appropriate whistleblowing procedures.
Committee composition 
during the year to 30 June 2022
Attendance
David Wilton*
1
Deborah Kemp
2
Richard Gray
2
Mike McCollum**
1
*	
David Wilton attended the Audit Committee meeting held 
following his appointment on 24 September 2021. 
**	
Mike McCollum attended the Audit committee meeting held prior 
to him stepping down from the Board on 23 September 2021. 
Prior to his resignation, Mike McCollum chaired the 
Audit Committee.
Ensuring the continued integrity 
and quality of financial information
Responsibilities and terms of reference
The Committee is responsible for ensuring that the financial 
performance of the Group is properly controlled, monitored 
and reported, for liaising with the external auditor and reviewing 
its reports relating to the Annual Report and Financial 
Statements, and for internal control matters. David Wilton 
became Chair of the Committee following his appointment 
as a Non-Executive Director on 24 September 2021, 
replacing Mike McCollum. David is a chartered accountant 
and, until his retirement at the end of October 2022, will be 
the Chief Financial Officer of another company that was 
listed until January 2022. All members of the Committee are 
Non-Executive Directors with considerable experience in 
senior roles and are deemed to have the necessary ability 
and experience to understand financial statements. The 
Chair, the Chief Executive Officer (CEO), the Chief Operating 
Corporate Governance
79
CVS Group plc Annual Report and Financial Statements 2022

Audit Committee report continued
Summary of activity continued
	> considering papers prepared by the CFO to support 
goodwill and cash-generating unit impairment review;
	> reviewing the calculation, application and presentation of 
Alternative Performance Measures (APMs) in the Annual 
Report and Financial Statements; 
	> agreeing the fees to be paid to the external auditor 
for its audit of the 2022 financial statements; and
	> reviewing the performance and independence of the 
external auditor.
Significant financial reporting risks and judgement 
areas considered during the year
Revenue recognition
During the year, the Committee has reviewed the Group’s 
revenue recognition in accordance with IFRS 15 Revenue 
from Contracts with Customers. The Committee reviewed 
the revenue recognised under the Healthy Pet Club 
membership scheme, to ensure revenue is recognised on 
delivery of the performance obligation. In the year the Board 
reviewed the assumptions around the occurrence of the 
performance obligations and concluded the recognition of 
Healthy Pet Club revenue to be appropriate. 
Management override
During the year, the Committee has reviewed the 
appropriateness of controls around management override 
of controls taking into account reasons which could lead 
management to override controls. The Committee 
concluded there are adequate policies and procedures in 
place and there is a culture of high adherence to compliance, 
ethics and code of conduct across the Group. The Group 
also has an appropriate whistleblowing policy in place.
The Audit Committee also received and considered reports 
from the external auditor, Deloitte LLP, which included 
control findings relevant to their audit. Management 
conducts regular reviews to identify and evaluate the 
risks faced by the Group and to ensure that mitigation 
is appropriate. This process was reviewed by the Audit 
Committee and is considered appropriate. 
The Board also carries out its own annual review and assessment 
of key risks. During the year the Audit Committee has 
received a presentation detailing each key risk, and the 
mitigating actions in place.
Research and Development Expenditure Tax Credit 
(RDEC) income
During the year, the Committee has reviewed the 
appropriateness of the income recognised in relation 
to RDEC. The Group has considered the facts and 
circumstances relating to the claims in order to make a 
judgement as to whether compliance is reasonably assured 
and therefore receipt is reasonably certain. The Committee 
has reviewed the estimated discount applied to the gross 
claims and the associated uncertainty of the claims until 
either the formal acceptance of the claims has been 
received from HM Revenue & Customs or the expiry enquiry 
window of the relevant claims. The Committee concluded 
the income recognised is considered to be appropriate. 
In respect of these significant financial reporting risks and 
judgement areas, we concluded that the Group’s accounting 
treatment and/or controls in place were appropriate.
Going concern and viability assessment
In considering going concern and viability overall, the 
Committee reviewed the Group’s forecasts with particular 
focus on the key assumptions in relation to revenue, gross 
margin and cash flow management. Sensitivities to these 
key assumptions were also reviewed based on the impact of 
the Group’s key risks, as set out on pages 60 to 68. 
Following a review of the detailed considerations set out 
above by the Committee and Executive Committee, the 
Committee is satisfied that it is appropriate for the Group to 
continue to adopt the going concern basis in preparing the 
Annual Report and Accounts of the Group and, further, that 
the going concern longer term viability statement on pages 95 
to 96 is appropriate.
External auditor
The external auditor was appointed with effect from the 
year ended 30 June 2017 giving a current tenure of six years. 
A tender process was carried out prior to this change. From 
the year ending 30 June 2022, in line with guidance from the 
Auditing Standards Board, there has been an audit 
engagement partner rotation and a new audit partner has 
become the Senior Statutory Auditor. The appointment of 
the external auditor is reviewed and subject to a shareholder 
vote at the AGM on an annual basis. Details of the fees paid 
to the external auditor during the financial year are set out 
in note 6 to the financial statements.
The Audit Committee has primary responsibility for the 
supervision of the relationship with the external auditor, 
including overseeing its qualification, independence, 
expertise, performance and effectiveness, and the terms 
of its engagement and remuneration. The Committee is also 
responsible for ensuring the quality and efficiency of the 
external audit, enabling the Committee to formally evaluate 
the effectiveness and quality of the external auditor’s output, 
which it does annually. After reviewing the external auditor’s 
performance during the year, the Committee has concluded 
that it is satisfied with the effectiveness of the external 
auditor and the external audit process, and that Deloitte 
remains effective in its role as external auditor. The 
Committee has therefore recommended to the Board 
that Deloitte LLP be reappointed for a further year and 
a resolution to this effect will be proposed at the AGM.
Approval
The members of the Audit Committee have reviewed the 
financial statements and the content of the draft Annual 
Report and Financial Statements to ensure that they are fair, 
balanced and understandable and, accordingly, the Audit 
Committee resolved to recommend that the Board makes 
the Directors’ responsibilities statement set out on page 97.
David Wilton
Audit Committee Chair
22 September 2022
80
CVS Group plc Annual Report and Financial Statements 2022

Nomination Committee report
Ensuring an appropriate level 
of experience on the Board
Richard Gray
Nomination Committee Chair
Key responsibilities:
	> making recommendations on all Board appointments 
and succession planning;
	> monitoring and reviewing the Board composition; and
	> undertaking an annual evaluation of the effectiveness 
of the Board and its Committees.
The Committee is comprised of the three independent 
Non-Executive Directors. The primary purpose of 
the Committee is to lead the process for Board 
appointments and to make recommendations to the 
Board to achieve the optimal composition of the Board 
having regard to:
	> its size and composition;
	> ensuring that it consists of individuals who are best 
able to discharge the responsibilities of Directors;
	> potential conflicts of interest;
	> the extent to which the required skills, experience 
or attributes are represented; and
	> the need to maintain the highest standards of 
corporate governance.
The Board recognises the importance of having a diverse 
Board and workforce and encourages reviewing ways of 
working to ensure candidates from all backgrounds can 
apply. Each appointment of a Board member or senior 
executive is made on merit and the best candidate will 
be appointed. The Board recognises that further steps 
can be taken to improve the diversity of the Group at 
all levels and across all business streams, and 
continues to work towards this aim.
Committee composition 
during the year to 30 June 2022
Attendance
Richard Gray
2
Deborah Kemp
2
David Wilton*
1
Mike McCollum**
1
*	 David Wilton attended the Nomination Committee meeting held 
following his appointment on 24 September 2021.
** Mike McCollum attended the Nomination Committee meeting held 
prior to him stepping down from the Board on 23 September 2021.
Board appointments and resignations
Mike McCollum, former Senior Independent Non-Executive 
Director and Chair of the Audit Committee, resigned from 
the Board at the end of his term on 23 September 2021 to 
pursue a full-time opportunity outside of the Group.
In light of Mike McCollum’s resignation, Deborah Kemp, 
who has served as a Non-Executive Director since her 
appointment on 2 January 2018, was appointed Senior 
Independent Director. 
The Nomination Committee oversaw the appointment of 
David Wilton as the new Chair of the Audit Committee with 
effect from 24 September 2021. David Wilton is a qualified 
Chartered Accountant with more than 30 years’ post-
qualification experience as a Chief Financial Officer, Non-
Executive Director and consultant after many years in 
corporate finance, primarily in mid-cap M&A with 
Rothschilds. David has held roles in both public and private 
equity backed companies including as CFO of Sumo Group 
plc, Group Finance Director of WYG plc and Non-Executive 
Director and Chair of the Audit Committee of Sweett Group 
plc. With effect from 22 September 2022, David was 
appointed as Non-Executive Director and Chairman 
Designate at Frontier Developments plc, taking over as 
Chairman in December 2022.
The Nomination Committee engaged a third-party 
recruitment specialist, Chief Officers Group, to support 
with the appointment of David Wilton. 
Corporate Governance
81
CVS Group plc Annual Report and Financial Statements 2022

Board evaluation and effectiveness
The Nomination Committee scrutinises the performance 
of the Executive Directors, taking into account the performance 
of the business against agreed plans. The Nomination 
Committee also considers the other commitments of 
Directors and is satisfied that all Directors devote appropriate 
time to the Company’s affairs. 
In April 2022, the Nomination Committee evaluated the 
results of the internal Board Effectiveness review carried out 
by the Chair and the Company Secretary and was satisfied 
that the Board remains effective and has the right balance of 
skills and experience to provide continued effective 
stewardship of the Group. 
Committee terms of reference
The Nomination Committee’s terms of reference were 
reviewed during the course of the year and were considered 
to be appropriate.
Succession planning
The Committee is responsible for ensuring that plans are 
in place for orderly succession to Board and executive 
positions, and to oversee the development of a diverse 
pipeline for succession, taking into account the challenges 
and opportunities facing the Group and the skills and 
expertise needed on the Board in the future. The Nomination 
Committee considered contingency and succession plans 
in April 2022.
The Committee is also responsible for keeping under review 
the leadership needs of the Group, both Executive and 
Non-Executive, with a view to ensuring the continued ability 
of the Group to compete effectively. 
It is important that a diverse pipeline for succession is 
developed in line with the Company’s strategy on pages 26 
and 27. The gender balance of those in the senior 
management, which, in accordance with the Code, we 
consider to be the Executive Committee and the Company 
Secretary, is four women and five men. 
The Committee is responsible for keeping up to date and 
fully-informed about strategic issues and commercial 
changes affecting the Group and the market in which it 
operates. The Group competes with a number of private 
equity backed veterinary businesses and, in order to 
respond appropriately to changing and increasing 
competition, and to successfully execute accretive 
acquisitions, it is considered important that the Board 
contains Executive and Non-Executive Directors with both 
private equity and transaction experience.
Conflicts of interest
The Board has established robust procedures for monitoring 
conflicts of interest in accordance with the Group’s Articles 
of Association and conflicts of interest policy. All Directors are 
required to make the Board aware of any other commitments 
and potential conflicts of interest are approved by the Board 
where appropriate, and recorded in the conflicts register. The 
Board has delegated authority to the Nomination Committee 
to keep under review any actual or potential conflict of 
interest situations authorised by the Board, and to determine 
whether it is appropriate for such matter(s) to remain so 
authorised. During the year the Committee reviewed the 
conflicts register and it was noted that none of the Directors 
have interests or external appointments which give rise to 
material conflicts of interest.
Electing and re-electing Directors
The Committee has reviewed the independence of the 
Non-Executive Directors and the Non-Executive Chair and 
concluded that all remain independent and have sufficient 
time to meet their Board responsibilities in accordance with 
the criteria set out in the UK Corporate Governance Code. 
The Committee will recommend to the Board and the 
shareholders that all serving Directors should be submitted 
for re-election at the Company’s 2022 AGM.
Ongoing review
Whilst the Committee will continue to review the 
composition of the Board, it is confident that the Board has 
the right balance of skills, experience and tenure at present 
to successfully steer the Group through the next stages of 
its growth and to respond appropriately to the strategic 
opportunities ahead. 
The Group’s continuing strong financial performance, 
strengthened balance sheet and experienced management 
team position it well to take advantage of these opportunities 
and to deliver further enhancements in shareholder value. 
Richard Gray
Nomination Committee Chair
22 September 2022
Nomination Committee report continued
82
CVS Group plc Annual Report and Financial Statements 2022

Remuneration Committee report – unaudited
Deborah Kemp
Remuneration Committee Chair 
Key responsibilities:
	> assisting the Board in ensuring appropriate 
remuneration policies are in place for the Group;
	> ensuring Executive Director remuneration is aligned 
to the strategic priorities of the Group and its 
performance; and
	> making recommendations regarding Long-Term Incentive 
Plan (LTIP) terms and conditions, and awards.
The Remuneration Committee is comprised of three 
independent Non-Executive Directors. 
The Remuneration Committee meets frequently 
throughout the year to consider remuneration matters 
of the Group, to consider feedback from shareholders 
on remuneration matters and to make appropriate 
recommendations to the Board. 
Terms of Reference 
The full Terms of Reference for the Committee are 
reviewed and approved annually. These were last 
updated on 22 September 2022.
Committee composition 
during the year to 30 June 2022
Attendance
Deborah Kemp
5
Richard Gray
5
David Wilton*
4
Mike McCollum**
1
*	 David Wilton attended all Remuneration Committee meetings held 
following his appointment on 24 September 2021. 
**	Mike McCollum attended the Remuneration Committee meeting held 
prior to him stepping down from the Board on 23 September 2021.
Ensuring remuneration is aligned 
with shareholders’ interests
Corporate Governance
83
CVS Group plc Annual Report and Financial Statements 2022
As an AIM-quoted company, the information provided in this 
report is disclosed to fulfil the requirements of AIM Rule 19. 
CVS Group plc is not required to comply with Schedule 8 of 
the Large and Medium-sized Companies and Groups 
(Accounts and Reports) Regulations 2008. The information 
is unaudited.
Remuneration policy
The Remuneration Committee seeks to develop the 
Company’s executive remuneration arrangements 
appropriately taking due account of matters specified in 
the UK Corporate Governance Code and the Investment 
Association Principles of Remuneration in light of the 
Company’s growth and its status as an AIM 50 company.
The Remuneration Committee considers it important that 
remuneration policies for Executive Directors are aligned 
to the Group’s long-term strategy and that a meaningful 
portion of Executive Director reward is linked to long-term 
performance. In light of this, remuneration for Executive 
Directors is comprised of base salary, an annual bonus and 
a Long-Term Incentive Plan (LTIP) with performance criteria 
based on earnings per share and total shareholder return.
In respect of basic salary, the objective is to ensure that the 
Group attracts and retains high calibre Executives with the 
skills, experience and motivation necessary to direct and 
manage the affairs of the Group. The annual bonus scheme 
is designed to reward exceptional performance with criteria 
aligned to the annual budget approved by the Board. 
Long-Term Incentive Plans are seen as an important part 
of Executive Directors’ total remuneration and are designed 
to drive and reward exceptional performance aligned with 
shareholder interests over the long term. 
The policy also provides for post-retirement benefits through 
contributions to Executive Directors’ personal pension 
schemes, together with other benefits such as a company 
car (or car allowance), and life and medical insurance.
A description of how the Company has addressed the 
matters specified in Rule 41 of the FRC Code is set out 
on page 89.
Ongoing development of remuneration policy in 
alignment with shareholder interests
The Remuneration Committee has introduced the following 
changes in Executive Director reward and benefits over the 
past two years following consultation with major shareholders:
	> the introduction of malus and clawback provisions for 
annual bonuses and LTIPs;
	> the ability for the Remuneration Committee to override 
formulaic outcomes;

Remuneration Committee report – unaudited continued
84
CVS Group plc Annual Report and Financial Statements 2022
Ongoing development of remuneration policy in 
alignment with shareholder interests continued
	> the amendment of LTIP performance criteria such that 
50.0% of the performance condition is based on achieving 
total shareholder return with the remaining 50.0% 
continuing to be based on delivering real increases in 
earnings per share; and
	> the introduction of formal shareholding guidelines of 
100.0% of salary for the three Executive Directors. 
In light of these changes, and the voluntary forgoing of 
20.0% of salaries by all Directors in the final quarter of the 
financial year to 30 June 2020 at the peak of the COVID-19 
pandemic impact, the advisory vote to approve the 
Directors’ Remuneration Report at our 2021 AGM was 
supported by 94.5% of votes cast.
The Remuneration Committee is committed to ensuring that 
the Group’s remuneration policies remain appropriate given 
its AIM-quoted status and has introduced the following two 
additional changes in the past year:
	> a new two-year hold period has been introduced for all 
new LTIP awards for Executive Directors, commencing 
with the awards made in October 2021 in relation to the 
three-year performance period ending 30 June 2024 (save 
that the Executive Directors will be able to sell sufficient 
shares to cover any tax liability arising); and
	> new non-financial measures have been introduced in the 
Executive Directors’ annual bonus scheme for the year to 
30 June 2023 with 20.0% of bonus potential being based 
on the delivery of five non-financial measures. These 
measures are aligned with shareholder interests and 
comprise targets on improving Patient Care Index, 
reducing attrition, improving employee net promoter 
scores, improving client net promoter scores and reducing 
gross tonnage clinical waste which is sent to landfill.
The Remuneration Committee will continue to review a 
number of further matters on remuneration in particular; 
bonus deferral, the level of the shareholding guidelines and 
Director pension alignment with the workforce. 
In relation to bonus deferral, the Remuneration Committee 
continues to see merit in a clear distinction between annual 
bonus and long-term incentives and does not propose this 
should be introduced at this point. The maximum annual bonus 
is capped at 100.0% of salary for each Executive Director.
The Executive Directors have each increased their individual 
shareholdings in CVS Group plc over the past year and the 
company intends to maintain its shareholding guideline at 
100.0% of salary for the three Executive Directors.
Executive Director Service Agreements
During the prior year, the Remuneration Committee 
oversaw the agreement of new Service Agreements with 
each Executive Director to reflect current best practice in 
light of input from the Group’s legal advisors, DLA Piper UK 
LLP. The Remuneration Committee believes that the terms 
of these Service Agreements remain appropriate and in 
line with best practice. 
Executive Director salary review
Salaries are reviewed annually and are regularly 
benchmarked against similar AIM-quoted and other listed 
companies with changes effective annually in January. The 
Remuneration Committee decided to increase the salary of 
the Chief Executive Officer (CEO), Chief Operating Officer 
(COO) and Chief Financial Officer (CFO) by 2.0% with effect 
from 1 January 2022 in line with the average Company-wide 
increase. The CEO salary increased to £416,000, the COO 
salary increased to £312,000 and the CFO salary increased 
to £270,000.
Executive Director annual bonus scheme
The annual bonus scheme in which the Executive Directors 
participate is based on the achievement of adjusted EBITDA 
prior to share option costs, in comparison to the annual 
budget approved by the Board. For 2021/22, the maximum 
bonus for the CEO, COO and CFO was 100.0% of salary. 
In light of the financial performance in the year, the 
Remuneration Committee proposes that the CEO, COO and 
CFO achieve 98.4% of their bonus entitlement.
LTIP awards
In October 2021, the Company granted awards under its LTIP 
scheme to the CEO with a value of 125.0% of salary, and to 
the COO and CFO with a value of 100.0% of salary. These 
awards are subject to an adjusted EPS real growth performance 
condition measured over three years in addition to the total 
shareholder return benchmarked against the FTSE 250 
index (less investment trusts) measured over three years. For 
the first time these awards are now subject to a two-year 
hold period post-vesting. Detail on the performance 
conditions is set out later in this report.
The Remuneration Committee plans to make further awards 
in October 2022 on a consistent basis. 
Recognising the contribution of all CVS colleagues
CVS colleagues continue to work tirelessly to ensure CVS 
provides the best possible care to animals. In recognition of 
the dedication and professionalism of colleagues, during the 
year the Remuneration Committee made the following 
changes:
	> salary review dates for all colleagues (save for Directors) 
were accelerated from 1 January 2022 to 1 July 2021;
	> the Remuneration Committee decided to increase the 
holiday entitlement to colleagues with an additional day’s 
holiday for every completed year of service, up to a 
maximum of five days; and
	> the Remuneration Committee approved an additional 
3.0% salary increase for all colleagues (save for the Board 
whose salary review will take place under the normal 
cycle) in May 2022, recognising the pressures faced with 
the increased cost of living. At the same time they 
committed to always paying all colleagues at least 3.0% 
above the National Minimum Wage/National Living Wage, 
improving salaries for our lower income colleagues. 

In light of the competitive landscape and the continued shortage of veterinary professionals in the UK, the Remuneration 
Committee will continue to consider reward and benefits across the Group to ensure that CVS remains well positioned to 
attract and retain talent. 
Ongoing review
The Remuneration Committee intends to keep remuneration policies under review and will continue to consider and 
develop its approach to remuneration on an ongoing basis. 
The Remuneration Committee has received advice in relation to the matters outlined above and overall executive 
remuneration from h2glenfern Remuneration Advisory. 
I hope that you find the report helpful and informative, and I look forward to receiving further feedback from our investors 
on the information presented.
Executive Directors’ remuneration policy
This part of the Directors’ Remuneration Report sets out the remuneration policy of the Company with regard to its 
Executive Directors.
Purpose and link to strategy
Operation
Potential remuneration
Performance metrics
Base salary
 
 
 
Base pay is designed to 
reflect Executive 
Directors’ experience, 
capabilities and role 
within the business.
To be set at a level 
which is sufficiently 
competitive to recruit 
and retain individuals of 
the appropriate calibre 
to deliver the Group’s 
strategy.
Salaries are reviewed annually and 
benchmarked against similar 
AIM-quoted and listed companies 
with any changes effective from 
1 January. The review takes 
into account:
	> Company performance and 
increase in scale and complexity;
	> the role, experience and 
performance of the individual 
Director; and
	> average workforce salary 
adjustments within the Company.
The CEO’s base salary was 
reviewed on 1 January 2022 
(the prior review being in 
January 2021) and was 
increased by 2.0% to £416,160.
The COO’s base salary was 
reviewed on 1 January 2022 
(the prior review being on 
1 January 2021) and was 
increased by 2.0% to £312,120.
The CFO’s base salary was 
reviewed on 1 January 2022 
(the prior review being on 
1 January 2021) and was 
increased by 2.0% 
to £270,300.
Not applicable.
Benefits
 
To complement 
base salary by 
providing market 
competitive benefits 
to attract and retain 
Executive Directors.
Reviewed from time to time to 
ensure that benefits, when taken 
together with other elements 
of remuneration, remain 
market competitive.
Benefits for the Executive Directors 
currently include the provision of 
a company car and medical and 
life insurance.
The cost of providing these 
benefits varies year on year 
depending on the schemes’ 
premiums. The Remuneration 
Committee monitors the 
overall cost of the 
benefits package.
Not applicable.
Corporate Governance
85
CVS Group plc Annual Report and Financial Statements 2022

Purpose and link to strategy
Operation
Potential remuneration
Performance metrics
Pension
 
 
To provide retirement 
benefits which, when 
taken together with 
other elements of 
the remuneration 
package, will enable 
the Company to 
attract and retain 
appropriately qualified 
Executive Directors.
The CEO participates in a defined 
contribution pension arrangement 
and receives payments partly in 
lieu of pension.
The COO receives payments in lieu 
of pension which are partly used 
for an enhanced company car 
contribution.
The CFO receives payments in lieu 
of pension. 
Pension arrangements, including 
contribution rates, for any new 
Executive Directors will be aligned 
with those of the majority of the 
UK workforce.
The CEO is entitled to 
a Company pension 
contribution of 12.0%. This is 
partly taken as a payment in 
lieu of a pension.
The COO is entitled to 
a Company pension 
contribution of 10.0%. This is 
partly taken as a payment in 
lieu of pension and partly as 
enhanced company car 
contribution.
The CFO is entitled to 
a Company pension 
contribution of 8.0%. This 
is taken as a payment in lieu 
of pension.
Only base salary 
is pensionable.
Not applicable.
Annual bonus
 
 
 
To drive and reward 
exceptional 
performance.
The Executive Directors are eligible 
to participate in a discretionary, 
annual, performance related bonus 
scheme. Targets are set at the 
beginning of each year based 
on the recommendations of 
the Remuneration Committee.
Bonuses are paid in cash based 
on audited financial results. Annual 
bonus payments are subject to 
malus and clawback provisions.
During the year under review, 
the maximum capped bonus 
potential for the CEO, COO 
and CFO is 100.0% of base 
salary. 
For the year ended 
30 June 2022 the targets are 
based on adjusted EBITDA. 
The target is adjusted to take 
account of acquisitions made 
in the course of the year. The 
level of payment commences 
from zero at the threshold 
target increasing on a 
straight-line basis to full 
payment at the maximum 
target. For the year ending 
30 June 2023, 80.0% of 
bonus will be payable on 
adjusted EBITDA as 
described above, and 20.0% 
on non-financial ESG related 
targets. More information can 
be found on page 93.
Remuneration Committee report – unaudited continued
Executive Directors’ remuneration policy continued
86
CVS Group plc Annual Report and Financial Statements 2022

Purpose and link to strategy
Operation
Potential remuneration
Performance metrics
Long-Term Incentive Plan (LTIP)
To drive and reward 
exceptional 
performance over the 
medium term and to 
align the interests of 
Executive Directors and 
shareholders.
The Executive Directors are 
entitled to be considered for the 
grant of awards under the Group’s 
LTIP scheme. The awards take the 
form of nominal cost options over 
a specified number of Ordinary 
shares. Awards are not transferable 
or assignable. Awards are released 
to participants after a performance 
period of three years, subject to 
certain performance and service 
conditions being met. 25.0% 
of awards vest at threshold 
performance for each target, 
being adjusted EPS growth and 
Total Shareholder Return. 
The LTIP rewards the future 
performance of the Executive 
Directors and certain other 
employees by linking the size 
of the award to the achievement of 
Group performance targets.
Participation is at the discretion 
of the Remuneration Committee. 
Awards will typically be made 
annually based on a percentage of 
annual salary. The Remuneration 
Committee sets performance 
conditions at the time of the 
award. The 2017 plan rules, 
amongst other things, include 
clawback provisions and a 
limitation to ensure that new 
shares issued, when aggregated 
with all other employee share 
awards, must not exceed 10.0% 
of issued share capital over any 
ten-year period.
For schemes granted from 2021, 
there will be a two-year holding 
period for LTIPs for Executive 
Directors, other than for settling 
related tax liabilities.
The Remuneration Committee 
would in normal circumstances 
expect to make annual LTIP 
awards to the CEO of 125.0% 
of salary and the COO and 
CFO of 100.0% of salary. 
The maximum annual award 
permissible under the 2017 
plan rules in exceptional 
circumstances is 200.0% 
of salary.
From 2019, awards are 
subject 50.0% to an adjusted 
EPS CAGR real growth target, 
where adjusted EPS reflects 
adjustments for amortisation 
of intangibles, costs of 
business combinations and 
associated income tax and 
exceptional items, and 50.0% 
to a relative Total Shareholder 
Return performance 
condition against the FTSE 
250 companies excluding 
investment trusts.
In addition, and irrespective 
of the targets, no award will 
vest unless, in the opinion of 
the Remuneration 
Committee, the underlying 
performance of the Group 
has been satisfactory over 
the measurement period.
An amendment to the 2017 
plan was made in 2019 to 
ensure that the Committee 
has discretion to vary award 
vesting in the event of 
exceptional negative events 
and to override formulaic 
outcomes.
Commencing in 2021, a 
two-year holding period 
applies to Directors for shares 
awarded under LTIP 
schemes, other than the 
requirement to sell to settle 
associated tax liabilities.
Corporate Governance
87
CVS Group plc Annual Report and Financial Statements 2022

Purpose and link to strategy
Operation
Potential remuneration
Performance metrics
Shareholding guideline
To incentivise 
Executives to 
achieve the Company’s 
long-term strategy 
and create sustainable 
shareholder value. 
To align with 
shareholder interests.
Target value to be achieved over 
five years: 
CEO	 – 100.0% of salary.
COO	 – 100.0% of salary.
CFO	 – 100.0% of salary. 
Current shareholder interests 
are shown on page 92.
Not applicable.
Not applicable.
In relation to both annual bonus and LTIP awards, the Remuneration Committee may, in line with the UK Corporate Governance 
Code, exercise its discretion to override formulaic outcomes, including to reflect overall corporate performance and the 
experience of shareholders of the Company and if the business has suffered an exceptional negative event. Malus and 
clawback provisions are effective for three years from the date bonus is paid. Issues which may trigger malus and clawback 
include discovery of misstatement of the financial results or error in assessing the achievement of the performance 
conditions. Other circumstances include the individual being found guilty of misconduct.
Save As You Earn (SAYE)
The Group operates a savings scheme for all UK colleagues, including the Executive Directors, being the CVS SAYE plan. 
A SAYE scheme is operated for each calendar year. Under the SAYE14 and SAYE13 schemes, the awards were made at a 
20.0% discount to the closing mid-market price of the day preceding the date of invitation. Under the SAYE12 and SAYE11 
schemes, the awards were made at a 10.0% discount. There are no performance conditions attached to any of the 
SAYE schemes.
Policy on Non-Executive Directors’ remuneration
The Chair and the other Non-Executive Directors’ remuneration comprises only directorship fees. They are reviewed annually. 
The Chair’s and the Non-Executive Directors’ fees are approved by the Board on the recommendation of the CEO. The 
Non-Executive Directors are not involved in any decisions about their own remuneration. The Chair and the other 
independent Non-Executive Directors are entitled to be reimbursed for reasonable expenses.
Details of the fees payable for 2021/22 are set out in the Annual Report on Remuneration.
The current annual fees are as follows:
Director
 
R Connell
£117,650
D Kemp
£47,858
R Gray
£45,257
D Wilton
£47,858
Executive Directors’ service agreements
Richard Fairman’s service agreement commenced on 1 August 2018 and his most recent service agreement is dated 10 
September 2020. The CEO’s agreement can be terminated by either the CEO or the Company on twelve months’ notice. 
Ben Jacklin’s service agreement commenced on 7 September 2015 and his most recent service agreement is dated 18 
September 2020. The COO’s agreement can be terminated by either the COO or the Company on twelve months’ 
notice. Robin Alfonso’s service agreement commenced on 8 July 2019 and his most recent service agreement is dated 
22 September 2020. The CFO’s agreement can be terminated by either the CFO or the Company on twelve months’ notice. 
As well as an annual salary, the service agreements also detail the provision of other benefits including performance related 
bonuses, medical and life insurance, a car allowance and contributions to personal pension plans.
Remuneration Committee report – unaudited continued
Executive Directors’ remuneration policy continued
88
CVS Group plc Annual Report and Financial Statements 2022

Non-Executive Directors’ letters of appointment
Richard Connell was appointed on 4 October 2007. His most recent service agreement is for a one-year term ending on 
21 September 2023. His appointment may be terminated by the Company or himself giving three months’ notice. Deborah 
Kemp was appointed on 2 January 2018. Her most recent service agreement is dated 2 January 2021 for a three-year term 
ending on 2 January 2024. Her appointment can be terminated by the Company or herself by giving three months’ notice. 
Richard Gray was appointed on 16 July 2020 for a three-year term ending 16 July 2023. His appointment can be terminated 
by the Company or himself by giving three months’ notice. David Wilton was appointed on 24 September 2021 for a three-year 
term ending 24 September 2024. His appointment can be terminated by the Company or himself by giving three months’ 
notice.
Further items specified under Rule 41 of the FRC Code
The Remuneration Committee believes remuneration is appropriate in light of the skills and experience of the Executive 
Directors, and the need for differentials between different levels of seniority, and in the context of the amounts and structure 
of remuneration at comparable UK companies.
Mindful of provision 40 of the Code, the Remuneration Committee will continue to consider factors including clarity, 
simplicity, risk, predictability, proportionality and alignment to culture. The Remuneration Committee believes that the 
Company’s remuneration practices are clear and simple, as laid out in this Remuneration Report. The Committee has always 
been conscious of reputational and other risks in managing remuneration and in taking decisions on remuneration matters. 
Malus and clawback provisions, and the Remuneration Committee’s ability to exercise discretion within the policy to override 
formulaic outcomes, support the mitigation of risks. The Committee believes that the range of possible values of rewards is 
clearly identified and explained in this report, that the rewards and potential rewards are proportionate and do not reward 
poor performance and that remuneration arrangements are aligned with Company culture.
The Remuneration Committee believes that the policy operated as intended in terms of Company performance and 
quantum during 2021/22. The Committee continues to engage with the workforce in respect of remuneration and other 
matters. The Committee did not apply discretions in respect of the operation of annual bonus or LTIP during 2021/22.
Annual Report on Remuneration
Introduction
This Annual Report on Remuneration sets out information about the remuneration of the Directors of the Company for 
the year ended 30 June 2022.
Membership and role of the Remuneration Committee
The Remuneration Committee is appointed by the Board, and comprises Deborah Kemp as Chair, Richard Gray and David 
Wilton. Mike McCollum was a member of the Committee until he left the Board on 23 September 2021. The role of the 
Remuneration Committee is to determine and recommend to the Board the remuneration policy for the Executive Directors. 
This includes base salary, annual and long-term incentive awards and pension arrangements.
Advisors
During the year, the Company engaged h2glenfern Remuneration Advisory to provide advice on Executive remuneration. 
h2glenfern Remuneration Advisory is a member of the Remuneration Consultants Group in relation to executive 
remuneration consulting in the United Kingdom. h2glenfern does not provide other services to the Group and has no other 
connection with the Company or individual Directors. The Board is satisfied that h2glenfern is independent and has no 
connection to any individual Director.
Corporate Governance
89
CVS Group plc Annual Report and Financial Statements 2022

Annual Report on Remuneration continued
Remuneration of the Executive Directors – audited
Directors’ emoluments
 
 
Basic salary 
allowance 
and fees
£’000
Benefits 
in kind 
£’000
Pension 
£’000
Performance 
related 
bonus 
£’000
Value of 
share LTIP 
awards vested 
during the
year 3
£’000
Total 
£’000
Executive Directors
 
 
 
 
 
 
 
R Fairman
2022
412
12
49
409
791
1,673
2021
404
12
48
408
750
1,622
B Jacklin
2022
303
4
24
307
475
1,113
2021
303
10
28
306
150
797
R Alfonso
2022
268
10
21
266
261
826
2021
215
9
17
265
—
506
Non-Executive Chair
R Connell
2022
116
—
—
—
—
116
 
2021
114
—
—
—
—
114
Non-Executive Directors
 
 
 
 
 
 
 
M McCollum1
2022
16
—
—
—
—
16
 
2021
46
—
—
—
—
46
D Kemp
2022
47
—
—
—
—
47
 
2021
46
—
—
—
—
46
R Gray
2022
45
—
—
—
—
45
 
2021
42
—
—
—
—
42
D Wilton2
2022
37
—
—
—
—
37
2021
—
—
—
—
—
—
1.	 M McCollum resigned on 23 September 2021.
2.	 D Wilton was appointed on 24 September 2021. 
3.	 In respect of 2022, LTIP awards expected to vest by reference to a performance period ending 30 June 2022 value is based on: the estimated vesting 
outturn (100%) and the estimated value of a share at vesting calculated by reference to the three month average share price up to 30 June 2022 (being 
£17.08) less the per share exercise price (0.2 pence). In the 2021 Directors’ Remuneration Report, the value of awards vesting in respect of the performance 
period ending 30 June 2021 was calculated by reference to the share price at date of grant. The values have been updated to reflect the share price on the 
date of vesting (13 October 2021), being £24.22. The value of these awards is not included in the table in note 8 to the financial statements.
Benefits in kind include the provision of a company car and medical and life insurance for each Executive Director. 
No Directors waived emoluments in respect of the year ended 30 June 2022. 
The remuneration of the Executive Directors of CVS Group plc is borne by the subsidiary company, CVS (UK) Limited, 
without recharge to CVS Group plc.
LTIP vesting
LTIP awards for the three year performance period ended 30 June 2022 are due to vest in December 2022 (“LTIP 13”). 
The vesting of these awards is subject to meeting adjusted EPS and total shareholder return targets as set out below: 
Adjusted EPS
Pre-IFRS 16 adjusted EPS for the year ended 30 June 2022 was 87.5p. This compares to adjusted EPS of 46.7p for the year 
ended 30 June 2019, a Compound Annual Growth Rate (CAGR) of 17.8% above inflation. The target CAGR for threshold and 
full vesting of LTIPs issued in December 2019 was 5.0% and 10.0% above inflation, respectively. This target has been 
substantially exceeded and, therefore, 50.0% of the options granted have vested. 
Remuneration Committee report – unaudited continued
90
CVS Group plc Annual Report and Financial Statements 2022

Total shareholder return
Total shareholder return for the three years to 30 June 2022 was 124.0%, and in the upper quartile when benchmarked 
against the FTSE-250 index (less investment trusts), measured over the same period. This target has been exceeded and, 
therefore, 50.0% of the options granted have vested.
In light of the adjusted EPS and total shareholder return targets having been achieved, 100.0% of the options granted have 
vested for LTIP13. 
Discretionary bonus
 
 
Bonus 
(% of salary)
Range 
(adjusted EBITDA 
pre-share option cost)*
Actual 
(adjusted EBITDA 
pre-share option cost)
Payout 
£’000
R Fairman
2022 *
98.4
£101.1m to £110.6m
£111.5m
409
2021 **
100
£57.2m to £62.7m
£79.1m
408
B Jacklin
2022 *
98.4
£101.1m to £110.6m
£111.5m
307
2021 **
100
£57.2m to £62.7m
£79.1m
306
R Alfonso
2022 *
98.4
£101.1m to £110.6m
£111.5m
266
2021 **
100
£57.2m to £62.7m
£79.1m
265
*	 2022 bonus targets were adjusted EBITDA, excluding Executive Committee bonus accrual, share option costs and associated employee national insurance.
**	2021 bonus targets were pre-IFRS 16 adjusted EBITDA, and pre-share option costs.
The Remuneration Committee has considered the financial performance of the year and considers it appropriate that the 
CEO, COO and CFO are paid 98.4% of their bonus entitlement. The Group has not taken government support in the current 
or previous financial year.
Share scheme interests as of 30 June 2022
Details of plans at the reporting date that have not yet vested are set out below.
Award
Grant date
Vesting period
 
LTIP13
LTIP14
LTIP15
19 December 2019
02 October 2020
06 October 2021
3 years
3 years
3 years
The performance targets for awards LTIP13, LTIP14 and LTIP15 are based 
on achieving adjusted EPS growth in excess of inflation and total 
shareholder return in comparison to the FTSE 250.
50.0% of the awards will vest if adjusted EPS growth in excess of inflation, 
pre-IFRS 16 (LTIP14 and LTIP15 post-IFRS 16), is achieved as follows:
	> less than 5.0% CAGR – no award subject to this condition;
	> 5.0% to 10.0% CAGR – awarded on a straight-line basis between 25.0% 
and 100.0% of total award subject to this condition; or
	> more than 10.0% CAGR – full award subject to this condition.
50.0% of the awards will vest if total shareholder returns in comparison to 
the FTSE 250 index (excluding investment trusts) are achieved as follows:
	> below median comparable performance – no award subject to 
this condition;
	> median comparable performance – 25.0% of awards subject to 
this condition;
	> median to upper quartile comparable performance – 25.0% to 100.0% 
of awards subject to this condition measured on a straight-line basis; or
	> upper quartile comparable performance – 100.0% of awards subject 
to this condition.
Corporate Governance
91
CVS Group plc Annual Report and Financial Statements 2022

Remuneration Committee report – unaudited continued
Annual Report on Remuneration continued
Share scheme interests as of 30 June 2022 continued
Options over Ordinary shares awarded to Executive Directors under the LTIP and SAYE schemes in place on 22 September 2022 
are as follows:
Scheme
Date of grant
Market price of shares 
on date of grant
Earliest exercise date and 
date of vesting of shares
Exercise price
Number of 
shares
R Fairman
LTIP13
19 December 2019
1,080p
30 June 2022
0.2p
46,296
LTIP14
02 October 2020
1,219p
30 June 2023
0.2p
41,030
LTIP15
06 October 2021
2,407p
30 June 2024
0.2p
21,188
SAYE13
02 December 2020
1,415p
01 January 2024
1,009p
606
SAYE14
25 November 2021
2,230p
01 January 2025
1,974p
310
B Jacklin
LTIP13
19 December 2019
1,080p
30 June 2022
0.2p
27,778
LTIP14 
02 October 2020
1,219p
30 June 2023
0.2p
24,618
LTIP15
06 October 2021
2,407p
30 June 2024
0.2p
12,712
SAYE12
04 December 2019
1,054p
01 January 2023
863p
709
SAYE13
02 December 2020
1,415p
01 January 2024
1,009p
570
SAYE14
25 November 2021
2,230p
01 January 2025
1,974p
310
R Alfonso
LTIP13
19 December 2019
1,080p
30 June 2022
0.2p
15,278
LTIP14
02 October 2020
1,219p
30 June 2023
0.2p
13,540
LTIP14(b)
04 January 2021
1,485p
30 June 2023
0.2p
6,733
LTIP15
06 October 2021
2,407p
30 June 2024
0.2p
11,009
SAYE12
04 December 2019
1,054p
01 January 2023
863p
709
SAYE13
02 December 2020
1,415p
01 January 2024
1,009p
606
SAYE14
25 November 2021
2,230p
01 January 2025
1,974p
291
During the year, shares were exercised as follows:
Scheme
Date of grant
Market price of shares 
on date of grant
Earliest exercise date and 
date of vesting of shares
Exercise price
Number of 
shares
R Fairman
LTIP12
12 October 2018
807p
30 June 2021
0.2p
30,969
SAYE11
30 November 2018
913p
01 January 2022
830p
737
B Jacklin
LTIP12
12 October 2018
807p
30 June 2021
0.2p
6,194
SAYE11
30 November 2018
913p
01 January 2022
830p
737
No options have lapsed during the year.
Directors’ interests in shares
The interests of the Directors when combined with their spouses’ holdings as of 30 June 2022 in the shares of the Company were:
Ordinary 
shares
of 0.2p each 
Number
R Connell
164,500
D Kemp
6,559
R Gray
5,000
D Wilton
5,500
R Fairman
29,462
B Jacklin
5,446
R Alfonso
2,000
92
CVS Group plc Annual Report and Financial Statements 2022

Apart from the interests in shares and share options disclosed above, the Directors had no other interest in shares of Group 
companies. There have been no changes to the Directors’ interests in shares between the year end and the date of this 
Annual Report.
On 30 June 2022, the market price of the Ordinary shares was 1,656p.
Statement of voting
At the 2021 AGM, a motion was proposed to the shareholders to approve on an advisory only basis the Directors’ Remuneration 
Report contained in the 2021 Annual Report. 94.5% of votes cast were in favour of the motion and 5.5% of votes cast were against. 
Remuneration in 2022/23
Salaries and fees
Salaries and fees effective from 1 January 2022 are detailed earlier in this report.
Bonus targets for the financial year to 30 June 2023
The Remuneration Committee has approved a bonus scheme for Executive Directors for the financial year to 30 June 2023, 
with 80.0% of bonus potential being based on EBITDA performance versus budget, with 20.0% being based on ESG related 
non-financial measures for the first time. 
The targets of the financial element of the bonus are deemed commercially sensitive, and therefore the committee has decided 
that the targets will not be disclosed for the current financial year. The Committee intends to retrospectively publish the annual 
bonus targets in the Annual Report and Financial Statements for the year to June 2023. 
The ESG related non-financial element is based on targets being achieved in key non-financial metrics as follows.
1.	 Patient Care Index – an increase of one percentage point.
2.	 Attrition – 10.0% reduction.
3.	 eNPS – 50.0% improvement in employee net promoter score.
4.	 Clinical waste – 5.0% reduction in gross tonnage clinical waste which is incinerated or which is sent to landfill (measured 
across existing CVS sites and excluding acquisitions in year).
5.	 Client NPS – 5.0% improvement in client net promoter score.
LTIP targets for the three-year performance period to 30 June 2025
The Remuneration Committee is proposing new LTIP targets for Executive Directors for the three-year LTIP scheme (“LTIP 16”) 
for the performance period to 30 June 2025 on the following basis: 
50.0% of the awards will vest if adjusted EPS growth in excess of inflation is achieved as follows:
•	
less than 1.0% CAGR – no award subject to this condition;
•	
1.0% to 6.0% CAGR – awarded on a straight-line basis between 25.0% and 100.0% of total award subject to this condition; or
•	
more than 6.0% CAGR – full award subject to this condition.
50.0% of the awards will vest if total shareholder returns in comparison to the FTSE 250 index (excluding investment trusts) 
are achieved as follows:
•	
below median comparable performance – no award subject to this condition;
•	
median comparable performance – 25.0% of awards subject to this condition;
•	
median to upper quartile comparable performance – 25.0% to 100.0% of awards subject to this condition measured 
on a straight-line basis; or
•	
upper quartile comparable performance – 100.0% of awards subject to this condition.
Deborah Kemp
Remuneration Committee Chair
22 September 2022
Corporate Governance
93
CVS Group plc Annual Report and Financial Statements 2022

The Directors present their Annual Report and Financial 
Statements together with the audited consolidated financial 
statements for the year ended 30 June 2022.
Principal activities and results
The principal activities of the Group are to operate animal 
veterinary practices, complementary veterinary diagnostic 
businesses, pet crematoria and an online retail business. 
The principal activity of CVS Group plc is that of a 
holding company.
The Group made a profit after taxation of £25.7m (2021: £19.3m).
Particulars of events which have occurred since the end 
of the financial year have been disclosed in note 32 to the 
financial statements.
Business review
The information that fulfils the requirements of the business 
review, including details of the 2022 results, key performance 
indicators, principal risks and uncertainties and the outlook 
for future years, is set out in the Chair’s statement (pages 6 to 8), 
the Chief Executive Officer’s review (pages 10 to 12), the 
Operational review (pages 45 to 53) and the Financial review 
(pages 54 to 58) including key performance indicators (pages 
28 to 31) and principal risks and uncertainties (pages 60 to 68).
Dividends
In respect of the year under review, the Directors recommend 
a dividend payment of 7.0p, amounting to £5.0m (2021: £4.6m). 
The aggregate dividends recognised as distributions in the 
year ended 30 June 2022 amounted to £4.6m (2021: £nil). 
No interim dividends (2021: £nil) have been paid during the 
year.
Dividend policy
The Group has established an ordinary dividend policy that 
is both progressive and sustainable, based on growing the 
ordinary dividend per share over time. The rate of growth 
of the ordinary dividend will be decided by the Board in light 
of the circumstances at the time. The Board also gives due 
consideration to the return of capital through the use of 
special dividends or share buybacks.
The ability of the Group to pay a dividend is also subject to 
constraints including the availability of distributable reserves 
and the Group’s financial and operating performance. 
Distributable reserves are determined as required by the 
Companies Act 2006 by reference to a company’s individual 
financial statements.
Directors
The following Directors held office during the year and up to the 
date of signing the financial statements unless otherwise stated:
R Connell 
M McCollum (resigned 23 September 2021)
D Kemp
R Gray 
D Wilton (appointed 24 September 2021)
R Fairman
B Jacklin 
R Alfonso 
Biographical details of the Directors are provided on 
pages 70 and 71.
Re-election of Directors
The Articles of Association of the Company require all 
Directors to be re-elected at intervals of not more than three 
years. The Board has decided that it is appropriate for all 
Directors to be re-appointed each year, so in accordance 
with that decision all Directors will stand for re-election at 
the Annual General Meeting.
Directors’ remuneration and interests
The Remuneration Committee report is set out on 
pages 83 to 93. It includes details of Directors’ remuneration, 
interests in the shares of the Company, share options and 
pension arrangements.
Environment
The Group recognises the significance of environmental 
responsibility and undertakes clinical compliance reviews 
to ensure environmental standards are conformed with 
in addition to providing training to its employees to 
ensure compliance.
Although the Group’s activities do not have a major impact 
on the environment, every effort is made to reduce any 
effect. Details of the Group’s approach to sustainability 
and ESG are set out on pages 32 to 44.
Health and safety
The Group is fully aware of its obligations to maintain high 
health and safety standards at all times, and the safety of our 
colleagues and customers is of paramount importance. The 
Group’s operations are managed at all times in such a way 
as to ensure, as far as is reasonably practicable, the health, 
safety and welfare of all of our colleagues and all other 
people who may be attending our premises.
Corporate governance
The Board’s Corporate Governance Statement is set out on 
pages 72 to 78.
Directors’ report
94
CVS Group plc Annual Report and Financial Statements 2022

Going concern
The Governance Code requires the Board to assess and 
report on the prospects of the Group and whether the 
business is a going concern. In considering this requirement, 
the Directors have taken into account the Group’s forecast 
cash flows, liquidity, borrowing facilities (which mature in 
January 2024) and related covenant requirements and the 
expected operational activities of the Group. 
As part of the going concern assessment, the Group 
modelled a base case scenario and undertook sensitivity 
analysis to stress-test the performance at which the Group 
would breach its covenants. This sensitivity analysis 
assessed the impact of a sustained reduction in revenues on 
cash and covenants, with reductions between 5% and 30% 
modelled. While the sensitivity analysis was modelled up to 
a sustained 30% decrease in revenue, it is considered that a 
reduction of 15% would be a realistic worst case scenario, 
given this was the short-term decrease in revenues 
experienced across the Group at the height of the COVID-19 
pandemic. In the 15% decrease scenario, the Group would 
breach its covenants in September 2023, however this 
analysis excludes any reduction in costs and in practice, the 
Group is confident that sufficient mitigating actions could 
be taken to remedy this. Additional details on the above scenario 
analysis can be found in the Viability statement below.
Having due regard to these matters and after making 
appropriate enquiries, the Directors have a reasonable 
expectation that the Group and the Company have 
adequate resources to remain in operation until at least 
twelve months after the approval of these Financial 
Statements. The Board has therefore continued to adopt the 
going concern basis in preparing the consolidated Financial 
Statements.
Viability statement
In accordance with provision 31 of the UK Corporate 
Governance Code, the Directors have assessed the 
prospects of the Group over a longer period than 12 months 
required by the “Going concern” provision. A period of five 
years is believed to be appropriate for this assessment since 
this is consistent with the Group’s long term strategic 
planning, and other assessment periods included within the 
Annual Report, for example impairment reviews. The Group 
also finances debt on a four-plus-one-year period, which is 
consistent with a five-year assessment period. 
The Directors confirm that they have a reasonable 
expectation that the Group will continue in operation to 
meet its liabilities as they fall due, up to 30 June 2027.
The Directors’ assessment has been made by reference 
to the Group’s financial position as at 30 June 2022, its 
prospects, the Group’s strategy, the Board’s risk appetite and 
the Group’s principal risks, all of which are described in the 
Strategic Report. The assessment also considers scenario 
analysis over the key principal risks to the business, how the 
Group is resilient to those risks and how the Group can 
mitigate the effects of those risks. 
The Directors’ assessment of the Group’s viability is underpinned 
by a paper prepared by management. The paper is supported 
by comprehensive and detailed analysis and modelling, 
containing financial projections for a detailed one-year plan 
and extended five-year period. The longer-term plan is 
reviewed each year by the Board as part of the strategy 
review process. Once approved by the Board, the plan is 
cascaded across the Group and provides the basis for setting 
all detailed financial budgets and strategic actions that are 
subsequently used by the Board to monitor performance.
The five-year plan provides a robust planning tool against 
which strategic decisions can be made. In making their viability 
assessment, the Board has taken into consideration that 
financing facilities are maintained for the duration of 
the forecast.
For the purposes of assessing the Group’s viability, the 
Directors identified that, of the principal risks detailed on 
pages 60 to 68, the most important to the assessment of 
the viability of the group are Economic environment, Future 
pandemic or lockdown, and Bank facilities.
As part of the going concern assessment, the Group 
modelled a base case scenario and undertook sensitivity 
analysis to stress test the performance at which the Group 
would breach its covenants. The Group has two financial 
covenants associated with the Group’s bank facilities, which 
are based on the ratios of net debt to bank test EBITDA and 
bank test EBITDA to interest. The net debt to bank test 
EBITDA ratio must not exceed 3.25x. The bank test EBITDA to 
interest ratio must not be less than 4.50x. Further details on 
the covenants, solvency and liquidity are included below.
Scenario analysis was completed to assess the required 
reduction in revenue that would lead to a breach of 
covenants before any mitigating actions. At a sustained 
15.0% decrease in revenue, covenants would be breached 
by September 2023 due to the negative impact on EBITDA. 
This sustained decrease in revenue has been modelled 
around the impact of the first COVID-19 lockdown as the 
Directors consider this to be an accurate representation of 
a potential worst-case scenario. 
The Directors consider the Group to be resilient to future 
pandemics or lockdowns, including through the following:
	> geographically-spread locations across the UK, the 
Netherlands and the Republic of Ireland protect the Group 
from any localised lockdowns;
	> better knowledge and understanding of the impacts of 
lockdowns on the business, reducing the level of 
uncertainty; and
	> improved infrastructure to cope with remote working, 
such as telemedicine capabilities.
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CVS Group plc Annual Report and Financial Statements 2022
The Directors’ Report

Viability statement continued
The scenario analysis assumes that no mitigating action is 
taken. However, the Group would be able to mitigate the 
impact of future pandemics or lockdowns on covenant 
compliance through reductions in non-essential spending, 
including locum vets and discretionary bonuses, and the 
deferment of non-essential capital expenditure. 
Therefore, the Directors consider that under this worst-case 
scenario, the Group would be able to comply with its 
covenants and secure further funding if required.
The Directors have considered other sources of risks and 
uncertainties that may impact on the Group’s ability to trade, 
and the controls in place to mitigate them, on pages 60 to 68. 
The outputs of the above scenario tests have been reviewed 
against the Group’s current and projected future cash and 
liquidity position. At the year end, the Group had cash and 
cash equivalents of £49.0m, a drawn term loan of £85.0m, 
an unutilised revolving credit facility of £85.0m, and an 
unutilised overdraft facility of £5.0m. 
During the viability period, on 31 January 2024, the term loan 
of £85.0m will expire. The Directors have considered the 
available cash and undrawn overdraft facility and cash flow 
forecasts (including those prepared on the basis of a lower 
investment capital expenditure profile) and consider that the 
Group will be able to meet its liabilities in full as they fall due, 
including the repayment of the term loan if not refinanced. 
The Group monitors cash flow on a daily basis, and 
maintains sufficient cash reserves to ensure both solvency 
and liquidity within the Group. 
In making this assessment, the Board has assumed that there 
is no material adverse change in the legislative environment 
in the practice of veterinary medicine. The Group expects 
that legislative changes, such as the proposal by the RCVS to 
enable highly skilled nurses to undertake a broader range of 
procedures without veterinary surgeon supervision, will 
benefit the Group moving forwards. It is recognised however, 
that such future assessments are subject to a level of 
uncertainty that increases with time and therefore future 
outcomes cannot be guaranteed or predicted with certainty. 
In the scenario analysis, the Board has also assumed that a 
worst case scenario would not exceed the impact of the 
initial COVID-19 lockdown. On this basis and in conjunction 
with other matters considered and reviewed by the Board 
during the year, the Board has reasonable expectations that 
the Group will be able to continue in operation and meet its 
liabilities as they fall due over the five financial years used for 
its assessment.
Financial instruments
Details of the Group’s financial risk management objectives 
and policies are included in note 3 to the financial statements.
Share capital and substantial shareholdings
Shareholder
31 August
2022
%
IC
BlackRock Inc
5,905,327 
8.30
Octopus Investments Limited
4,759,771 
6.69
Grandeur Peak Global Advisors
4,271,773 
6.00
Ameriprise Financial
3,672,818 
5.16
abrdn plc
3,378,549 
4.75
Global Alpha Capital Management
2,892,337 
4.06
Canaccord Genuity 
Wealth Management
2,616,423 
3.68
Invesco
2,210,381 
3.11
29,707,379
41.75
Details of the share capital of the Company as at 30 June 
2022 are set out in note 26 to the financial statements. Each 
share carries the right to one vote at general meetings of 
the Company.
At 31 August 2022, the Company has been notified (using 
TR1 standard form) of the substantial shareholdings detailed 
in the table above comprising 3.0% or more of the issued 
Ordinary share capital of the Company.
The Board is satisfied that no major shareholder presents 
a conflict of interest or exerts undue influence over the 
Board’s independent judgement.
Employees
Consultation with employees takes place through a number 
of regional meetings throughout the year and an annual 
staff survey. The aim is to ensure that employees’ views are 
taken into account when decisions are made which are likely 
to affect their interests and that all employees are aware of 
the general progress of their business units and of the 
Group as a whole. To enhance communication within the 
Group, a committee is in place which is constituted of 
regional members from all areas of the business with the 
aim of improving consultation and communication levels.
Deborah Kemp is the Board’s dedicated Non-Executive 
Director for employee engagement and during the year 
Deborah has consulted with employees through online 
meetings with the Company’s Senior Leadership Team, 
visits to our businesses and regular reviews of the Group’s 
monthly employee Net Promoter Score. The business has 
further reviewed its monthly employee survey and additional 
questions have been added to this to obtain more detailed 
feedback from employees in addition to calculating the 
employee Net Promoter Score.
The Group regularly consults with, and seeks feedback from, 
employees, and the Board monitors employee engagement.
Directors’ report continued
96
CVS Group plc Annual Report and Financial Statements 2022

Applications for employment by disabled people are always 
fully considered, bearing in mind the respective aptitudes 
and abilities of the applicant concerned. In the event of 
members of staff becoming disabled, every effort is made 
to ensure that their employment with the Group continues 
and that appropriate training is arranged. 
It is the policy of the Group that the training, career 
development and promotion of a disabled person should 
be, as far as possible, identical to that of a person who does 
not have a disability.
The Group operates a Long-Term Incentive Plan for 
Executive Directors and senior managers. Details are 
included in note 11. The Group also has a Save As You Earn 
scheme, now in its 14th year, under which employees are 
granted an option to purchase Ordinary shares in the 
Company in three years’ time, dependent upon their 
entering into a contract to make monthly contributions to 
a savings account over the relevant period. These savings 
are used to fund the option exercise value. The exercise 
price in respect of options issued in the year was at a 20.0% 
discount to the shares’ market value at the date of invitation. 
The scheme is open to all UK Group employees, including 
the Executive Directors. Details of the scheme are included 
in the Remuneration Committee report on pages 83 to 93.
Directors’ third-party indemnity provision
A qualifying third-party indemnity provision as defined in 
Section 234 of the Companies Act 2006 was in force during 
the year and also at the consolidated and Company statement 
of financial position date for the benefit of each of the Directors 
in respect of liabilities incurred as a result of their office with 
the Company and any associated company to the extent 
permitted by law. In respect of those liabilities for which 
Directors may not be indemnified, the Company maintained 
a Directors’ and Officers’ (“D&O”) liability insurance policy 
throughout the financial year. 
Directors’ responsibilities statement
The Directors are responsible for preparing the Annual 
Report and Financial Statements in accordance with 
applicable law and regulations.
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the 
Directors are required to prepare the Group and Company 
financial statements in accordance with international 
accounting standards in conformity with the requirements 
of the Companies Act 2006. Under company law the 
Directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the 
state of affairs of the Group and the Company and of the 
profit or loss of the Company and the Group for that period.
In preparing these financial statements, the Directors are 
required to: 
	> select suitable accounting policies and then apply 
them consistently;
	> make judgements and accounting estimates that are 
reasonable and prudent;
	> state whether applicable IFRS as adopted by the 
European Union have been followed, subject to any 
material departures disclosed and explained in the 
financial statements; and
	> prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for ensuring that the 
Annual Report provides information necessary to enable 
shareholders to assess the Company’s position, performance, 
business model and strategy.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Company 
and the Group and enable them to ensure that the financial 
statements comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of the Company 
and the Group and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
Responsibility statement 
We confirm that to the best of our knowledge:
	> the financial statements, prepared in accordance with 
international accounting standards in conformity with the 
requirements of the Companies Act 2006, give a true and 
fair view of the assets, liabilities, financial position and 
profit or loss of the Company and the undertakings 
included in the consolidation taken as a whole;
	> the Strategic Report includes a fair review of the 
development and performance of the business and the 
position of the Company and the undertakings included 
in the consolidation taken as a whole, together with 
a description of the principal risks and uncertainties 
that they face; and
	> the Annual Report and Financial Statements, taken 
as a whole, are fair, balanced and understandable and 
provides the information necessary for shareholders 
to assess the Company’s position and performance, 
business model and strategy.
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CVS Group plc Annual Report and Financial Statements 2022
The Directors’ Report

Disclosure of information to auditor
Each of the persons who is a Director at the date of approval 
of this Annual Report and Financial Statements confirms that:
	> so far as the Director is aware, there is no relevant audit 
information of which the Company’s auditor is unaware; and
	> the Director has taken all the steps that he/she ought to 
have taken as a Director in order to make himself/herself 
aware of any relevant audit information and to establish 
that the Company’s auditor is aware of that information.
This confirmation is given and should be interpreted in 
accordance with the provisions of Section 418 of the 
Companies Act 2006.
Resolutions concerning the re-appointment of Deloitte LLP 
as auditor and authorising the Audit Committee to set its 
remuneration will be proposed at the AGM.
Jenny Farrer
Company Secretary
22 September 2022
Directors’ report continued
98
CVS Group plc Annual Report and Financial Statements 2022

Streamlined Energy and Carbon Reporting (SECR)
The Group is required under the Streamlined Energy and 
Carbon Reporting (SECR) regulations to report how it 
manages its energy consumption and carbon emissions and 
has used a third-party consultant to advise on this and 
support with the preparation of this SECR report. Since 
2020, we have published our direct greenhouse gas (GHG) 
emissions from sources that are controlled or owned by the 
Group (“Scope 1”), indirect GHG emissions from the Group’s 
consumption of purchased electricity (“Scope 2”) and all 
emissions the Group is indirectly responsible for across its 
value chain (“Scope 3”). 
Monitoring and reporting these emissions enables 
us to evaluate and minimise our impact on the natural 
environment, which supports us in our purpose to give the 
best possible care to animals. We have taken strong actions 
to increase our energy efficiency and reduce any adverse 
impact our business has on the planet.
Our energy efficiency actions
Increasing energy efficiency in our facilities
One of our strategic goals is to provide great facilities and 
equipment, and a key part of this is to ensure our facilities 
and operations are as energy efficient as possible. 
We are currently working through an updated and detailed 
asset survey of the Group’s property portfolio in terms of 
infrastructure and equipment. An output of this process will 
be a reclassification of a number of our key investment 
priorities. Using this information we intend to develop a 
programme of investment to help improve our consumption 
and monitoring capabilities. This will focus on, but not be 
limited to:
	> replacing our lighting infrastructure with LED/Energy 
efficient products;
	> targeted deployment of Smart meters particularly focused 
on high consuming locations;
	> the installation of further EV chargers at appropriate 
locations across our estate; and
	> installing energy saving equipment such as Passive 
Infrared (PIR) detectors and other intelligent solutions.
A greener approach to transport
We have added a range of ultra-low emissions vehicles 
(ULEV) to our company car list, as well as more hybrid and 
Electric Vehicles (EV). All fossil fuel-reliant vehicles on the list 
are capped to 130g CO2 emissions. To support the future 
increase in EV and hybrid vehicles, we have installed several 
EV charging points at a range of our sites. We have also 
installed charging points at our Wetherby and Diss support 
office sites.
Using renewable sources
Since August 2021, all our veterinary practice sites across 
the UK, the Netherlands and the Republic of Ireland use 
electricity from 100% renewable sources. 
Reducing the energy consumed by our equipment
All relocations and new builds are fitted with LED lights from 
the outset, combined with PIR switches where appropriate, 
to ensure lights are not left on for longer than required. 
In our existing sites we continue to roll out an LED light 
replacement programme which sees all bulbs which 
expire across our estate being replaced with LEDs.
Where possible, all devices are set to hibernate after a short 
period of idle time, for example display monitors, computers 
and printers. 
We have briefed our suppliers to supply only A-rated 
appliances, such as refrigerators and washing equipment. 
99
CVS Group plc Annual Report and Financial Statements 2022
The Directors’ Report

Streamlined Energy and Carbon Reporting (SECR) continued
Our UK and offshore energy usage and carbon emissions
2022
tCO2e
2021
tCO2e
Change (%)
Comments
Scope 1
8,539
4,862
75.6% The increase in these emissions arises 
from a return to regular business transport 
following the COVID-19 pandemic, as 
business has begun to return to normal, 
particularly in our support offices in 
Wetherby and Diss. Emissions from gas 
have decreased 7.2%.
Scope 2
2,619
2,940
-10.9% The reduction in these emissions arises 
partly from the full-year impact of the 
switch to renewable sources for all our UK 
veterinary practices in January 2021. There 
is a partial offset due to support office 
workers returning to the office.
Scope 3
593
2
295.5% The Group did not record grey fleet 
mileage for the financial year ended 30 
June 2021, however, we have implemented 
a process to record this and therefore 
emissions from grey fleet have been 
included in 2022. 
Total emissions
11,750
7,804
50.6%
Total energy volume (kWh)
55,227,876
38,929,681
41.9%
Intensity ratio (tCO2e  
per £m revenue)
21.2
15.3
38.6% The intensity ratio has increased from the 
prior year, as a result of the prior year 
impact of the COVID-19 pandemic, which 
only impacted part of the current year. 
Methodology
The Group has taken guidance from the UK Government’s Environmental Reporting Guidelines (March 2019), the Greenhouse 
Gas Protocol reporting standard, and the UK Government’s Greenhouse Gas Conversion Factors for Company Reporting 
document for calculating carbon emissions. 
Energy usage information (gas and electricity) has been obtained directly from the Group’s energy suppliers and Half-Hourly 
Automated Meter Reading (HH/AMR) data, where available, for those suppliers with HH/AMR meters. For suppliers where 
energy usage data was not available for a full twelve months, flat profile estimation techniques were used to calculate the 
annual consumption. With all landlord sites these have had to be estimated using similar-sized sites’ usage for gas and electricity. 
Transport mileage data was obtained from expense claims submitted for our company cars and grey fleet. 
Exclusions
Transport mileage and/or fuel usage data was provided for the Group’s and colleagues’ owned vehicles. Grey fleet mileage 
was included for the financial year ended 30 June 2022 but was not recorded in the prior year comparative as the Group did 
not have methods in place for recording this mileage at that time. 
CO2e emissions were calculated using the appropriate emission factors from the UK Government’s UK Greenhouse Gas 
Conversion Factors and this is retained within the Group’s data file for reference where required.
Normalisation
The Group has chosen to report gross Scope 1, 2 and 3 emissions tonnes of CO2 equivalent (tCO2e) per £m revenue as this is 
a common metric used in corporate GHG reporting.
Approval
Authorised by order of the Board
Jenny Farrer
Company Secretary
22 September 2022
100 CVS Group plc Annual Report and Financial Statements 2022

101
CVS Group plc Annual Report and Financial Statements 2022
Independent auditor’s report 
To the members of CVS Group plc
Report on the audit of the financial statements
1.	Opinion
In our opinion: 
	> the financial statements of CVS Group plc (the “parent 
company”) and its subsidiaries (the “Group”) give a true 
and fair view of the state of the Group’s and of the parent 
company’s affairs as at 30 June 2022 and of the Group’s 
profit for the year then ended;
	> the Group financial statements have been properly 
prepared in accordance with United Kingdom adopted 
international accounting standards;
	> the parent company financial statements have been 
properly prepared in accordance with United Kingdom 
adopted international accounting standards and as 
applied in accordance with the provisions of the 
Companies Act 2006; and
	> the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
	> the consolidated income statement;
	> the consolidated statement of comprehensive income;
	> the consolidated and parent company statements 
of financial position;
	> the consolidated and parent company statements 
of changes in equity;
	> the consolidated and parent company statements 
of cash flow; and
	> the related notes 1 to 33.
The financial reporting framework that has been applied in 
their preparation is applicable law and United Kingdom 
adopted international accounting standards and, as regards 
the parent company financial statements, as applied in 
accordance with the provisions of the Companies Act 2006.
2.	Basis for opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK) (ISAs (UK)) and applicable law. 
Our responsibilities under those standards are further 
described in the auditor’s responsibilities for the audit of the 
financial statements section of our report. 
We are independent of the Group and the parent company in 
accordance with the ethical requirements that are relevant to 
our audit of the financial statements in the UK, including the 
Financial Reporting Council’s (FRC) Ethical Standard as applied 
to listed entities, and we have fulfilled our other ethical 
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our opinion.
3.	Summary of our audit approach
Key audit 
matters
The key audit matter that we identified 
in the current year was:
	> Revenue Recognition – Healthy Pet Club
This is a similar level of risk to the prior year.
Materiality
The materiality that we used for the Group 
financial statements was £3.0m (2021: £2.5m) 
which was determined by reference to a 
range of income statement measures.
Scoping
Our audit comprised of two components 
subject to full-scope audits and a further 13 
components subject to audit procedures 
on specified account balances. The 
remainder of the Group was subject 
to review procedures only.
Significant 
changes 
in our 
approach
There have been no significant changes 
to our audit approach in the current year.
4.	Conclusions relating to going concern
In auditing the financial statements, we have concluded that 
the Directors’ use of the going concern basis of accounting 
in the preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s 
and parent company’s ability to continue to adopt the going 
concern basis of accounting included:
	> Assessment of the financing facilities available to Group, 
including repayment terms and likelihood of breaching 
financial covenants;
	> Evaluation of the assumptions used in the forecasts such 
as revenue growth, gross margin changes and cash flow 
movements, and whether these are appropriate in line 
with historical performance;
	> Assessment of the level of headroom in the financing 
facilities under the base case forecast;
	> Assessment of the arithmetical accuracy of the forecast 
model confirming consistent calculations are used 
throughout, using internal software;
	> Assessment of the historical accuracy of forecasts through 
comparing actual performance to forecast, to assess the 
historic accuracy of forecasts prepared by management; 
	> Assessment of the reverse stress test scenario performed 
by management, and consideration of whether the 
adverse variance in cash flows required to produce a 
covenant breach represents a remote possibility; and
	> Assessment of the appropriateness of the going concern 
disclosures in the financial statements.
Financial Statements

102 CVS Group plc Annual Report and Financial Statements 2022
Independent auditor’s report continued
4.	Conclusions relating to going concern continued
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions 
that, individually or collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a 
going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material 
to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors 
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant 
sections of this report.
5.	Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 
financial statements of the current year and include the most significant assessed risks of material misstatement (whether 
or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit 
strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion 
thereon, and we do not provide a separate opinion on these matters.
5.1.	
Healthy Pet Club – Revenue Recognition 
	
Key audit 
matter 
description
The Group earns revenue via the Healthy Pet Club (HPC) scheme whereby customers sign up for a 
monthly or annual direct debit arrangement in exchange for a program of preventative products and 
treatments. The Group recognised £67.3m (2021: £60.2m) of HPC revenue during the year and has 
approximately 470,000 (2021: 450,000) active members as at the year-end. 
The revenue recognition for this scheme is judgemental since IFRS 15 “Revenue from Contracts with 
Customers” requires revenue to be recorded either at a point in time or over time according to when the 
performance obligation is satisfied, which in the case of HPC revenue is not aligned to the timing of cash 
receipts due to the weighting of treatments towards the earlier months of the scheme. Revenue must also 
be adjusted for anticipated animal deaths (whereby outstanding fees will be waived) and irrecoverable 
debts. Additional adjustments are also required where a customer does not receive their treatment during 
the scheduled month, due to various factors. 
The Group’s accounting policy is to record revenue according to the cost profile associated with providing 
the services offered in the scheme, as disclosed in note 2 to the financial statements, and due to the 
complexities outlined above there is a risk that revenue recognition is not in accordance with IFRS 15 
Revenue from Contracts with Customers.
How the 
scope of 
our audit 
responded 
to the key 
audit matter
In response to the key audit matter, we performed the following procedures:
	> Tested management’s controls around HPC revenue recognition;
	> Assessed the appropriateness of accruing revenue according to the cost profile of treatments offered, 
including adjustments to delay revenue recognition where treatments are missed, in line with the 
requirements of IFRS 15;
	> Tested the accuracy and completeness of the membership data that drives the HPC revenue calculation;
	> Tested the accuracy and completeness of the underlying data of the assumed cost profiles for the 
different types of pet that can be added to the scheme;
	> Performed a reconciliation of amounts due from customers to cash receipts in bank statements, 
for a sample of months;
	> Performed a recalculation of accrued revenue based on member data and assumed cost profiles;
	> Performed a recalculation of revenue subsequently deferred due to missed treatments, based on 
operational and sales data used to estimate the level of missed treatments occurring across the Group; and
	> Critically assessed assumptions around animal deaths and cancellations through comparison and 
benchmarking against direct debit collection rates and operational data around animal life expectancy.
Key 
observations
Based on the audit procedures performed, we concluded that revenue recognition in respect of the HPC 
is appropriate.

103
CVS Group plc Annual Report and Financial Statements 2022
6.	Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the 
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality 
both in planning the scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent company financial statements
Materiality
£3.0m (2021: £2.5m)
£2.3m (2021: £2.3m)
Basis for determining 
materiality
3.9% (2021: 3.8%) of adjusted pre-tax profit. 
1.5% (2021: 1.5%) of net assets.
Rationale for the 
benchmark applied
We have considered both adjusted pre-tax 
profit of £75.5m (2021: £66.2m) and revenue 
of £554.2m (2021: £510.1m), where adjusted 
pre-tax profit is calculated as profit before tax 
adjusted for amortisation, costs associated 
with business combinations and exceptional 
items. These are the metrics that are deemed 
to be of most importance to stakeholders, as 
disclosed within Note 1.
As a holding company, net assets were 
considered the most relevant benchmark 
to users of the parent company 
financial statements.
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected 
and undetected misstatements exceed the materiality for the financial statements as a whole. 
Group financial statements
Parent company financial statements
Performance 
materiality
70% (2021: 70%) of Group materiality.
70% (2021: 70%) of parent company materiality. 
Basis and rationale 
for determining 
performance 
materiality
We have assessed the quality of the Group’s 
overall control environment, as well as the low 
volume of corrected and uncorrected 
misstatements in the previous audit.
The assessment at a Group level is also 
applicable for the parent company, also noting 
that minimal entries are made in the parent 
company reducing the risk of material 
misstatement.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £150k (2021: 
£125k) as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report 
to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial 
statements.
96+4+U
Adjusted PBT 
£75.5m
Group materiality 
£3.0m
Component 
materiality range 
£0.8m to £1.9m
Audit Committee 
reporting threshold 
£0.15m
 Adjusted PBT
 Group materiality
Financial Statements

104 CVS Group plc Annual Report and Financial Statements 2022
Independent auditor’s report continued
7.	An overview of the scope of our audit
7.1. Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide 
controls, and assessing the risks of material misstatement.
We have focused our work on the UK-based subsidiaries which account for the majority of the Group’s revenue, expenses 
and net assets. We have subjected two components to full-scope audits and a further thirteen components to audits of 
specified account balances, which covers 84% of revenue, 85% of expenses and 91% of net assets. The remainder of the 
Group, including all components located overseas in the Republic of Ireland and the Netherlands, were subject to review 
procedures only. All audit work was carried out by the UK engagement team, with no reliance of components auditors. 
Testing was performed to component materiality ranging from £0.7m to £1.9m (2021: £0.8m to £1.5m).
7.2. Our consideration of the control environment
We have not relied on controls in the current year. During the course of the audit, we have performed testing around 
selected revenue controls and relevant IT systems, and communicated a number of observations and recommendations 
to management, in anticipation of adopting a controls reliance approach for material revenue streams in future years.
8. Other information
The other information comprises the information included in the Annual Report, other than the financial statements and 
our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly 
stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially 
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears 
to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 
this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, 
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors 
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether 
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the parent company’s 
ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going 
concern basis of accounting unless the Directors either intend to liquidate the Group or the parent company or to cease 
operations, or have no realistic alternative but to do so.
62+22+16+U66+19+15+U91+0+9+U
 Full audit scope 
 Specified audit procedures 
 Review at Group level
Revenue
Expenses
Net assets
9%
15%
16%
91%
66%
62%
19%
22%

105
CVS Group plc Annual Report and Financial Statements 2022
10. Auditor’s responsibilities for the audit of the 
financial statements
Our objectives are to obtain reasonable assurance about 
whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to 
issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee 
that an audit conducted in accordance with ISAs (UK) will 
always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are considered 
material if, individually or in the aggregate, they could 
reasonably be expected to influence the economic decisions 
of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of 
the financial statements is located on the FRC’s website at: 
www.frc.org.uk/auditorsresponsibilities. This description 
forms part of our auditor’s report.
11. Extent to which the audit was considered 
capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non‑compliance 
with laws and regulations. We design procedures in line with 
our responsibilities, outlined above, to detect material 
misstatements in respect of irregularities, including fraud. 
The extent to which our procedures are capable of 
detecting irregularities, including fraud is detailed below. 
11.1. Identifying and assessing potential risks related 
to irregularities
In identifying and assessing risks of material misstatement in 
respect of irregularities, including fraud and non-compliance 
with laws and regulations, we considered the following:
	> the nature of the industry and sector, control environment 
and business performance including the design of the 
Group’s remuneration policies, key drivers for Directors’ 
remuneration, bonus levels and performance targets;
	> the Group’s own assessment of the risks that irregularities 
may occur either as a result of fraud or error; 
	> results of our enquiries of management and the audit 
committee about their own identification and assessment 
of the risks of irregularities; 
	> any matters we identified having obtained and reviewed 
the Group’s documentation of their policies and 
procedures relating to:
	> identifying, evaluating and complying with laws and 
regulations and whether they were aware of any 
instances of non-compliance 
	> detecting and responding to the risks of fraud and 
whether they have knowledge of any actual, suspected 
or alleged fraud 
	> the internal controls established to mitigate risks of fraud 
or non-compliance with laws and regulations
	> the matters discussed among the audit engagement team 
and relevant internal specialists, including tax, valuations 
and IT specialists regarding how and where fraud might 
occur in the financial statements and any potential 
indicators of fraud.
As a result of these procedures, we considered the 
opportunities and incentives that may exist within the 
organisation for fraud and identified the greatest potential 
for fraud in the following area: Revenue Recognition – 
Healthy Pet Club. In common with all audits under ISAs (UK), 
we are also required to perform specific procedures to 
respond to the risk of management override.
We also obtained an understanding of the legal and 
regulatory frameworks that the Group operates in, focusing 
on provisions of those laws and regulations that had a direct 
effect on the determination of material amounts and 
disclosures in the financial statements. The key laws and 
regulations we considered in this context included the 
Companies Act, AIM listing rules, corporate governance 
code, pensions legislation and tax legislation.
In addition, we considered provisions of other laws and 
regulations that do not have a direct effect on the financial 
statements but compliance with which may be fundamental 
to the Group’s ability to operate or to avoid a material 
penalty. These included the Group’s compliance with the 
RCVS regulations applicable to all practices and qualified 
nurses, GDPR, Veterinary Surgeons Act 1966, Animed 
Welfare Act 2006, Veterinary Medicines Regulations 2013 
and The Animal Act 1986. 
11.2. Audit response to risks identified
As a result of performing the above, we identified Revenue 
Recognition – Healthy Pet Club as a key audit matter related 
to the potential risk of fraud. The key audit matters section 
of our report explains the matter in more detail and also 
describes the specific procedures we performed in 
response to that key audit matter. 
In addition to the above, our procedures to respond to risks 
identified included the following:
	> reviewing the financial statement disclosures and testing 
to supporting documentation to assess compliance with 
provisions of relevant laws and regulations described as 
having a direct effect on the financial statements;
	> enquiring of management, the audit committee and 
external legal counsel concerning actual and potential 
litigation and claims;
	> performing analytical procedures to identify any unusual 
or unexpected relationships that may indicate risks of 
material misstatement due to fraud;
	> reading minutes of meetings of those charged with 
governance, reviewing internal audit reports and reviewing 
correspondence with the Health and Safety Excecutive 
(HSE) and the Royal College of Veterinary Services (RCVS); 
	> reviewing the disclosures in the Audit Committee Report 
on pages 79 and 80; and
Financial Statements

106 CVS Group plc Annual Report and Financial Statements 2022
Independent auditor’s report continued
11. Extent to which the audit was considered 
capable of detecting irregularities, including fraud 
continued
11.2. Audit response to risks identified continued
	> in addressing the risk of fraud through management 
override of controls, testing the appropriateness of journal 
entries and other adjustments; assessing whether the 
judgements made in making accounting estimates are 
indicative of a potential bias; and evaluating the business 
rationale of any significant transactions that are unusual 
or outside the normal course of business.
We also communicated relevant identified laws and 
regulations and potential fraud risks to all engagement team 
members including internal specialists, and remained alert 
to any indications of fraud or non-compliance with laws and 
regulations throughout the audit.
Report on other legal and regulatory 
requirements
12. Opinions on other matters prescribed by the 
Companies Act 2006
In our opinion, based on the work undertaken in the course 
of the audit:
	> the information given in the strategic report and the 
Directors’ report for the financial year for which the 
financial statements are prepared is consistent with the 
financial statements; and
	> the strategic report and the Directors’ report have been 
prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 
Group and the parent company and their environment 
obtained in the course of the audit, we have not identified 
any material misstatements in the strategic report or the 
Directors’ report.
13. Corporate Governance Statement
Based on the work undertaken as part of our audit, we have 
concluded that each of the following elements of the 
Corporate Governance Statement is materially consistent 
with the financial statements and our knowledge obtained 
during the audit: 
	> the Directors’ statement with regards to the 
appropriateness of adopting the going concern basis of 
accounting and any material uncertainties identified set 
out on pages 95 and 96;
	> the Directors’ explanation as to its assessment of the 
Group’s prospects, the period this assessment covers and 
why the period is appropriate set out on pages 95 and 96;
	> the Directors’ statement on being fair, balanced and 
understandable set out on page 97;
	> the Board’s confirmation that it has carried out a robust 
assessment of the emerging and principal risks set out on 
page 95;
	> the section of the Annual Report that describes the review 
of effectiveness of risk management and internal control 
systems set out on page 77; and
	> the section describing the work of the audit committee 
set out on pages 79 and 80.
14. Matters on which we are required to report 
by exception
14.1. Adequacy of explanations received and 
accounting records
Under the Companies Act 2006 we are required to report 
to you if, in our opinion:
	> we have not received all the information and explanations 
we require for our audit; or
	> adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have 
not been received from branches not visited by us; or
	> the parent company financial statements are not in 
agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to 
report if in our opinion certain disclosures of Directors’ 
remuneration have not been made.
We have nothing to report in respect of this matter.
15. Use of our report
This report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken 
so that we might state to the company’s members those 
matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent 
permitted by law, we do not accept or assume responsibility 
to anyone other than the company and the company’s 
members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Paul Schofield FCA (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
Cambridge, United Kingdom
22 September 2022

107
CVS Group plc Annual Report and Financial Statements 2022
Consolidated income statement
for the year ended 30 June 2022
 
Note
2022 
£m
2021 
£m
Revenue
4
554.2
510.1
Cost of sales
(315.1)
(288.2)
Gross profit
 
239.1
221.9
Administrative expenses
(196.3)
(181.8)
Operating profit
 
42.8
40.1
Finance expense
5
(6.8)
(7.0)
Profit before tax
4
36.0
33.1
Tax expense
9
(10.3)
(13.8)
Profit for the year
25.7
19.3
Earnings per Ordinary share (EPS)
 
 
 
Basic 
10
36.2p
27.3p
Diluted
10
35.9p
27.1p
All activities derive from continuing operations.
Reconciliation of alternative performance measures
The Directors believe that adjusted measures, being adjusted EBITDA, adjusted PBT and adjusted EPS provide additional useful information 
for shareholders. These measures are used by the Board and management for planning, internal reporting and setting Director and 
management remuneration. In addition, they are used by the investor analyst community and are aligned to our strategy and KPIs. These 
measures are not defined by IFRS and therefore may not be directly comparable with other companies’ adjusted measures. 
Adjusted EBITDA is calculated by reference to profit before tax, adjusted for interest (net finance expense), depreciation, amortisation, 
costs relating to business combinations and exceptional items. The following table provides the calculation of adjusted EBITDA: 
Alternative performance measure: adjusted EBITDA
Note
2022 
£m
2021 
£m
Profit before income tax
 
36.0
33.1
Adjustments for:
 
 
 
  Finance expense
5
6.8
7.0
  Amortisation of intangible assets
12
22.2
23.8
  Depreciation of property, plant and equipment
13
11.3
10.3
  Profit on disposal of property, plant and equipment and right-of-use assets
(0.3)
—
  Depreciation and impairment of right-of-use assets
14
14.1
14.0
  Costs relating to business combinations1
4
4.9
9.3
  Exceptional items2
16
12.4
—
Adjusted EBITDA
4
107.4
97.5
Adjusted earnings per share (EPS):
Adjusted EPS
10
85.8p
75.1p
Diluted adjusted EPS
10
85.0p
74.6p
1.	
Includes amounts paid in respect of acquisitions in prior years expensed to the income statement.
2. 	 Exceptional items relate to impairment in relation to Quality Pet Care Ltd, refer to note 16.
Financial Statements

108 CVS Group plc Annual Report and Financial Statements 2022
Consolidated statement of comprehensive income
for the year ended 30 June 2022
 
Note
2022 
£m
2021 
£m
Profit for the year
25.7
19.3
Other comprehensive income – items that will or may be reclassified to profit or loss 
in future periods
 
 
Cash flow hedges:
 
 
  Net movement on cash flow hedge
2.8
0.9
  Cost of hedging reserve
(0.1)
(0.4)
Deferred tax on cash flow hedge and available-for-sale financial assets
25
(0.7)
(0.1)
Exchange differences on translation of foreign operations
 
(0.1)
(0.7)
Other comprehensive income/(expense) for the year, net of tax
 
1.9
(0.3)
Total comprehensive income for the year attributable to owners of the parent
 
27.6
19.0

109
CVS Group plc Annual Report and Financial Statements 2022
Consolidated and Company statement of financial position
as at 30 June 2022
 
Note 
Group 
2022
£m
Group 
2021
£m
Company 
2022 
£m
Company 
2021 
£m
Non-current assets
 
 
 
 
 
Intangible assets
12
216.5
228.4
—
—
Property, plant and equipment
13
69.7
57.4
—
—
Right-of-use assets
14
101.7
97.2
—
—
Investments
16
0.1
0.1
73.9
71.6
Amounts owed by Group undertakings
33
—
—
79.4
82.3
Derivative financial instruments
17
2.3
—
—
—
 
 
390.3
383.1
153.3
153.9
Current assets
 
 
 
 
 
Inventories
19
26.2
19.5
—
—
Trade and other receivables
20
52.7
48.1
—
—
Current tax receivable
 
—
0.1
—
—
Cash and cash equivalents
21 
49.0
33.7
—
—
 
 
127.9
101.4
—
—
Total assets
4
518.2
484.5
153.3
153.9
Current liabilities
 
 
 
 
 
Trade and other payables
22
(86.6)
(86.0)
—
—
Provisions
23
(2.1)
(3.9)
—
—
Lease liabilities
14
(9.4)
(8.6)
—
—
Current tax liabilities
 
(3.3)
—
—
—
 
(101.4)
(98.5)
—
—
Non-current liabilities
 
 
 
 
 
Borrowings
24
(84.3)
(83.9)
—
—
Lease liabilities
14
(95.1)
(90.2)
—
—
Derivative financial instruments
17
—
(0.4)
—
—
Deferred tax liabilities
25
(20.0)
(20.4)
—
—
 
 
(199.4)
(194.9)
—
—
Total liabilities
4
(300.8)
(293.4)
—
—
Net assets
 
217.4
191.1
153.3
153.9
Shareholders’ equity
 
 
 
 
 
Share capital
26
0.1
0.1
0.1
0.1
Share premium
27
105.4
103.1
105.4
103.1
Capital redemption reserve
 
0.6
0.6
0.6
0.6
Cash flow hedge reserve
 
1.6
(0.5)
—
—
Cost of hedging reserve
 
—
0.1
—
—
Merger reserve
 
(61.4)
(61.4)
—
—
Retained earnings
 
171.1
149.1
47.2
50.1
Total equity
 
217.4
191.1
153.3
153.9
The Company reported a total comprehensive loss for the financial year ended 30 June 2022 of £0.6m (2021: £0.5m). 
The notes on pages 114 to 150 are an integral part of these consolidated and Company financial statements.
The financial statements on pages 107 to 150 were authorised for issue by the Board of Directors on 22 September 2022 
and were signed on its behalf by:
Richard Fairman	
Robin Alfonso
Director	
	
Director
Company registration number: 06312831
Financial Statements

110
CVS Group plc Annual Report and Financial Statements 2022
Consolidated statement of changes in equity
for the year ended 30 June 2022
 
Note
Share 
capital
£m
Share 
premium 
£m
Capital 
redemption 
reserve 
£m
Treasury 
reserve 
£m
Cash flow
hedge
 reserve
£m
Cost of
hedging
reserve
£m
Merger 
reserve 
£m
Retained 
earnings 
£m
Total 
equity 
£m
At 1 July 2021
 
0.1
103.1
0.6
—
(0.5)
0.1
(61.4)
149.1
191.1
Profit for the year
 
—
—
—
—
—
—
—
25.7
25.7
Other comprehensive income 
and losses
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
  Fair value income/(loss)
 
—
—
—
—
2.8
(0.1)
—
—
2.7
Deferred tax on cash flow hedge and 
available-for-sale financial assets
 
—
—
—
—
(0.7)
—
—
—
(0.7)
Exchange differences on translation of 
foreign operations
 
—
—
—
—
—
—
—
(0.1)
(0.1)
Total other comprehensive income/
(loss)
 
—
—
—
—
2.1
(0.1)
—
(0.1)
1.9
Total comprehensive income/(loss)
 
—
—
—
—
2.1
(0.1)
—
25.6
27.6
Transactions with owners
 
 
 
 
 
 
 
 
 
Issue of Ordinary shares
26
—
2.3
—
—
—
—
—
—
2.3
Credit to reserves for share‑based 
payments
11
—
—
—
—
—
—
—
2.3
2.3
Deferred tax relating to share-based 
payments
25
—
—
—
—
—
—
—
(1.3)
(1.3)
Dividends to equity holders of the 
Company
26
—
—
—
—
—
—
—
(4.6)
(4.6)
Total transactions with owners
 
— 
2.3
—
—
—
—
—
(3.6)
(1.3)
At 30 June 2022
0.1
105.4
0.6
—
1.6
—
(61.4)
171.1
217.4

111
CVS Group plc Annual Report and Financial Statements 2022
Consolidated statement of changes in equity continued
for the year ended 30 June 2022
 
Note
Share 
capital
£m
Share 
premium 
£m
Capital 
redemption 
reserve 
£m
Treasury 
reserve 
£m
Cash flow
hedge
 reserve
£m
Cost of
hedging
reserve
£m
Merger 
reserve 
£m
Retained 
earnings 
£m
Total 
equity 
£m
At 1 July 2020
 
0.1
101.9
0.6
(0.3)
(1.4)
0.5
(61.4)
126.6
166.6
Profit for the year
 
—
—
—
—
—
—
—
19.3
19.3
Other comprehensive income 
and losses
 
 
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
  Fair value income/(loss)
 
—
—
—
—
0.9
(0.4)
—
—
0.5
Deferred tax on cash flow hedge 
and available-for-sale financial assets
 
—
—
—
—
—
—
—
(0.1)
(0.1)
Exchange differences on 
translation of foreign operations
 
—
—
—
—
—
—
—
(0.7)
(0.7)
Total other comprehensive  
(loss)/income
 
—
—
—
—
0.9
(0.4)
—
(0.8)
(0.3)
Total comprehensive income/(loss)
 
—
—
—
—
0.9
(0.4)
—
18.5
19.0
Transactions with owners
 
 
 
 
 
 
 
 
 
 
Issue of Ordinary shares
26
—
1.2
—
—
—
—
—
—
1.2
Disposal of treasury reserve
26
—
—
—
0.3
—
—
—
—
0.3 
Credit to reserves for 
share‑based payments
11
—
—
—
—
—
—
—
2.2
2.2
Deferred tax relating to 
share‑based payments
25
—
—
—
—
—
—
—
1.8
1.8
Total transactions with owners
 
—
1.2
—
0.3
—
—
—
4.0
5.5
At 30 June 2021
 
0.1
103.1
0.6
—
(0.5)
0.1
(61.4)
149.1
191.1
Financial Statements

112
CVS Group plc Annual Report and Financial Statements 2022
Company statement of changes in equity
for the year ended 30 June 2022
 
Note
Share 
capital
£m
Share 
premium 
£m
Capital 
redemption 
reserve 
£m
Retained
 earnings 
£m
Total
 equity 
£m
At 1 July 2021
 
0.1
103.1
0.6
50.1
153.9
Total comprehensive loss for the year
 
—
—
—
(0.6)
(0.6)
Transactions with owners
 
 
 
 
 
 
Issue of Ordinary shares
26
—
2.3
—
—
2.3
Credit to reserves for share-based payments
11
—
—
—
2.3
2.3
Dividends to equity holders of the Company
26
—
—
—
(4.6)
(4.6)
Total transactions with owners
 
—
2.3
—
(2.3)
—
At 30 June 2022
 
0.1
105.4
0.6
47.2
153.3
 
Note
Share 
capital
£m
Share 
premium 
£m
Capital 
redemption 
reserve 
£m
Retained
 earnings 
£m
Total
 equity 
£m
At 1 July 2020
 
0.1
101.9
0.6
48.4
151.0
Total comprehensive loss for the year
 
—
—
—
(0.5)
(0.5)
Transactions with owners
 
 
 
 
 
 
Issue of Ordinary shares
26
—
1.2
—
—
1.2
Credit to reserves for share-based payments
11
—
—
—
2.2
2.2
Dividends to equity holders of the Company
26
—
—
—
—
—
Total transactions with owners
 
—
1.2
—
2.2
3.4
At 30 June 2021
 
0.1
103.1
0.6
50.1
153.9

113
CVS Group plc Annual Report and Financial Statements 2022
Consolidated and Company statement of cash flow
for the year ended 30 June 2022
 
Note
Group 
2022 
£m
Group 
2021 
£m
Company 
2022 
£m
Company 
2021 
£m
Cash flows from operating activities
 
 
 
 
 
Cash generated from/(used in) operations
29
93.1
80.3
2.3
(1.2)
Taxation paid
 
(11.2)
(13.0)
—
—
Interest paid
 
(6.4)
(7.1)
—
—
Net cash generated from/(used in) operating activities
 
75.5
60.2
2.3
(1.2)
Cash flows from investing activities
 
 
 
 
 
Business combinations (net of cash acquired)
15
(8.4)
(19.4)
—
—
Purchase of property, plant and equipment
13
(23.0)
(16.1)
—
—
Proceeds from sale of property, plant and equipment
 
0.2
0.6
—
—
Purchase of intangible assets
12
(1.5)
(0.5)
—
—
Purchase of other investments
16
(21.4)
—
—
—
Proceeds from sale of other investments
16
9.0
—
—
—
Net cash used in investing activities
 
(45.1)
(35.4)
—
—
Cash flows from financing activities
 
 
 
 
 
Dividends paid
26 
(4.6)
—
(4.6)
—
Proceeds from issue of Ordinary shares
26
2.3
1.2
2.3
1.2
Proceeds from sale of Treasury shares
26
—
0.3
—
—
Repayment of obligations under right-of-use assets
 
(12.7)
(13.0)
—
—
Repayment of borrowings
28 
(0.1)
(1.1)
—
—
Net cash (used in)/generated from financing activities
 
(15.1)
(12.6)
(2.3)
1.2
Net increase in cash and cash equivalents
 
15.3
12.2
—
—
Cash and cash equivalents at the beginning of the year
 
33.7 
21.5
 — 
—
Cash and cash equivalents at the end of the year
 
49.0
33.7
—
—
Financial Statements

114
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements
for the year ended 30 June 2022
1. General information
The principal activity of CVS Group plc, together with its subsidiaries (“the Group”), is to operate veterinary practices, 
complementary veterinary diagnostic businesses, pet crematoria and an online pharmacy and retail business. The principal 
activity of CVS Group plc (“the Company”) is that of a holding company.
CVS Group plc is a public limited company incorporated under the Companies Act 2006 and domiciled in England and 
Wales and its shares are quoted on AIM of the London Stock Exchange (“CVSG”). Its company registration number is 
06312831 and registered office is CVS House, Owen Road, Diss, IP22 4ER.
Use of alternative performance measures
Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), adjusted profit before tax (adjusted PBT) 
and adjusted earnings per share (adjusted EPS)
The Directors believe that adjusted measures, being adjusted EBITDA, adjusted PBT and adjusted EPS provide additional 
useful information for shareholders. These measures are used by the Board and management for planning, internal 
reporting and setting Director and management remuneration. In addition, they are used by the investor analyst community 
and are aligned to our strategy and KPIs. These measures are not defined by International Financial Reporting Standards 
(IFRS) and therefore may not be directly comparable with other companies’ adjusted measures. They are not intended to be 
a substitute for, or superior to, IFRS measurements of profit or earnings per share.
Adjusted EBITDA is calculated by reference to profit before tax, adjusted for interest (net finance expense), depreciation, 
amortisation, costs relating to business combinations and exceptional items.
Adjusted PBT is calculated as profit before tax, amortisation, costs relating to business combinations and exceptional items.
Adjusted EPS is calculated as adjusted profit before tax, less applicable tax, divided by the weighted average number of 
Ordinary shares in issue in the period.
The following table provides the calculation of adjusted EBITDA as defined above:
Alternative performance measure: adjusted EBITDA
Note
2022 
£m
2021 
£m
Profit before income tax
 
36.0
33.1
Adjustments for:
 
 
 
  Finance expense
5
6.8
7.0
  Amortisation of intangible assets
12
22.2
23.8
  Depreciation of property, plant and equipment
13
11.3
10.3
  Profit on disposal of property, plant and equipment and right-of-use assets
(0.3)
—
  Depreciation and impairment of right-of-use assets
14
14.1
14.0
  Costs relating to business combinations1
4
4.9
9.3
  Exceptional items2
16
12.4
—
Adjusted EBITDA
4
107.4
97.5
Adjusted earnings per share (EPS):
Adjusted EPS (pence)
10
85.8
75.1
Diluted adjusted EPS (pence)
10
85.0
74.6
1.	 Includes amounts paid in respect of acquisitions in prior years expensed to the income statement.
2. 	 Exceptional items relate to impairment in relation to Quality Pet Care Ltd, refer to note 16.
The reconciliations for adjusted PBT and adjusted EPS can be found in note 10. 
Net debt
Net debt is calculated as bank borrowings less gross cash and cash equivalents and unamortised borrowing costs. 
Note
2022 
£m
2021 
£m
Borrowings repayable after more than one year
 
  Loan facility
 
85.0 
85.0
  Unamortised borrowing costs
(0.7)
(1.1)
Total borrowings
24
84.3
83.9
Cash and cash equivalents
21
(49.0)
(33.7)
Net debt 
35.3
50.2

115
CVS Group plc Annual Report and Financial Statements 2022
1. General information continued
Use of alternative performance measures continued 
Like-for-like sales
Like-for-like sales shows revenue generated from like-for-like operations compared to the prior year, adjusted for the number 
of working days. For example, for a practice acquired in September 2020, revenue is included from September 2021 in the 
like-for-like calculations. 
2. Summary of significant accounting policies
Basis of preparation
The consolidated and Company financial statements of CVS Group plc have been prepared in accordance with international 
accounting standards and in conformity with the requirements of the Companies Act 2006. 
The consolidated financial statements have been prepared on a going concern basis and under the historical cost convention, 
except for certain financial instruments and share-based payments that have been measured at fair value. At the year end the 
Group had cash balances of £49.0m and an unutilised overdraft facility of £5.0m. Total facilities of £170.0m are available to support 
the Group’s organic and acquisitive growth initiatives over the coming years, comprising a term loan of £85.0m and an unutilised 
revolving credit facility of £85.0m. The Group is fully compliant with all covenants in respect of these facilities. The Directors 
consider that the £5.0m overdraft and the £170.0m facility enable the Group to meet all current liabilities as they fall due. The Group 
is not reliant on any Government support. Since the year end, the Group has continued to trade profitably and to generate cash. 
After consideration of market conditions, the Group’s financial position (including the level of headroom available within the bank 
facilities), financial forecasts, its profile of cash generation and the timing and amount of bank borrowings repayable, principal risks, 
and considering the Task Force on Climate-Related Financial Disclosures (TCFD) scenario analysis conducted, the Directors have a 
reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For 
this reason, they continue to adopt the going concern basis in preparing these financial statements. 
The accounting policies set out below have, unless otherwise stated, been applied consistently to all years presented in these 
financial statements. The accounting policies which follow relate to the Group and are applied by the Company as appropriate.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and 
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates 
and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the 
circumstances, the results of which form a basis for making the judgements about carrying values of assets and liabilities that are not 
readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to 
accounting estimates are recognised in the period in which the estimate is revised if the revision affects that period, or in the period of 
the revision and future periods if the revision affects both current and future periods. Due to the inherent uncertainty involved in 
making assumptions and estimates, actual outcomes will differ from those assumptions and estimates.
Judgement: Leases
Management exercises judgement in determining the likelihood of exercising break or extension options in determining 
the lease term.
When determining the lease term in accordance with IFRS 16, ‘Leases’, paragraphs 18–21, management has applied the 
following policy for all leases: 
a)	 for properties in contract, the lease term has been determined to be the period to the end of the contractual lease term;
b)	 for properties out of contract and therefore occupied on a rolling basis in accordance with legislation that permits this, 
the lease term has been determined to be 7.5 years from the end of the contractual lease term; and
c)	 for properties where management has committed to close the site, the lease term is determined to be until the next break clause.
Refer to note 14 for additional disclosures related to leases.
Accounting estimate: Research and Development Expenditure Tax Credit (RDEC) 
The Group has recognised £2.0m (2021: £2.0m) income in relation to claims made by the Group under HM Revenue & Customs 
(HMRC) RDEC scheme in respect of costs relating to qualifying research and development (R&D) activities. The income is recognised 
when there is reasonable assurance that the Group will comply with the relevant conditions of the scheme and that the tax credits 
will be received, which can be some time after the original expense is incurred. The Group’s assessment of eligible expenditure and 
qualifying activities must align with the definition of R&D for RDEC purposes. The Group has considered the facts and circumstances 
relating to each company’s claim in order to make a judgement as to whether compliance is reasonably assured and therefore 
receipt is reasonably certain. The Group has applied an estimated discount to the gross claims of £4.1m (2021: £3.9m) submitted to 
HMRC in the period and recognised £2.1m (2021: £1.9m). The aggregate amount unrecognised at 30 June 2022 amounted to £4.0m 
(2021: £1.9m). The unrecognised amount of £4.0m, will be recognised when uncertainty has been removed either via formal 
acceptance of the claims or the expiry of the enquiry windows, which should occur in the year ended June 2023. 
Financial Statements

116
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
2. Summary of significant accounting policies continued
Changes in accounting policies and disclosure
Standards adopted by the Group for the first time
Two new and revised standards, including the following, are effective for annual periods beginning on or after 1 January 2021: 
	> Amendment to IFRS 16, ‘Leases’ – COVID-19 Related Rent Concessions Beyond 30 June 2021
	> Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2
Adoption of these standards has not had an impact on the Group’s financial statements.
Standards and interpretations to existing standards which are not yet effective and are under review as to their impact 
on the Group
The following standards and interpretations to existing standards have been published that are mandatory for the Group’s 
accounting periods beginning on or after 1 July 2022 or later periods but which the Group has not early adopted:
	> Amendments to IAS 16, ‘Property, Plant and Equipment’ – Proceeds Before Intended Use (effective 1 January 2022)
	> Annual Improvements to IFRS Standards 2018–2020 (effective 1 January 2022)
	> Amendments to IFRS 3 – Reference to the Conceptual Framework (effective 1 January 2022)
	> Amendments to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract (effective 1 January 2022)
	> Amendments to IFRS 17, ‘Insurance Contracts’ (effective 1 January 2023)
	> Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current (effective 1 January 2023)
	> Amendments to IAS 8 – Definition of Accounting Estimates (effective 1 January 2023)
	> Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies (effective 1 January 2023)
	> Amendments to IAS 12 – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (effective 
1 January 2023)
The consolidated financial statements include the financial information of the Company and its subsidiary undertakings 
as at and for the year ended 30 June 2022.
Subsidiaries are all entities over which the Group has control. The results of companies and businesses acquired are 
included in the consolidated income statement from the date control passes. They are deconsolidated from the date that 
control ceases. Where the Group does not control a subsidiary, it is not consolidated. On acquisition of a company or 
business, all assets and liabilities that exist at the date of acquisition are recorded at their fair values, reflecting their 
condition at that date. Changes that arise during the measurement period that inform about conditions at the date of the 
acquisition are adjusted via goodwill, and changes that arise after the measurement period, are credited or charged to the 
income statement.
Intra-group transactions and profits are eliminated fully on consolidation. Accounting policies of subsidiaries have been 
aligned to ensure consistency with the policies adopted by the Group.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker 
(CODM). The CODM has been determined to be the Board of Directors, as it is primarily responsible for the allocation of 
resources to segments and the assessment of the performance of segments. The Group has four operating segments: 
Veterinary Practices, Laboratories, Crematoria and Online Retail Business. Further details of the Group’s operating segments 
are provided in note 4 to the financial statements.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred 
in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of 
assets transferred by the Group and liabilities incurred by the Group to the former owners of the acquiree. Acquisition 
related costs are recognised in the income statement as incurred. At the acquisition date, the identifiable assets acquired 
and the liabilities assumed are recognised at their fair value.
Goodwill is measured as the excess of the sum of the consideration transferred over the net of the acquisition date amounts 
of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date amounts 
of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the excess is 
recognised immediately in the income statement as a bargain purchase gain.

117
CVS Group plc Annual Report and Financial Statements 2022
2. Summary of significant accounting policies continued
Business combinations continued
When the consideration transferred by the Group in a business combination includes an asset or liability resulting from 
a contingent or deferred consideration arrangement, this additional consideration is measured at its acquisition date fair 
value and included as part of the consideration transferred in a business combination. Changes in fair value of the contingent 
or deferred consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding 
adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information 
obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and 
circumstances that existed at the acquisition date. Contingent or deferred consideration that is classified as an asset or 
a liability is remeasured at subsequent reporting dates in accordance with IFRS 9, ‘Financial Instruments: Recognition and 
Measurement’, or IAS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding 
gain or loss being recognised in the income statement.
Property, plant and equipment
Property, plant and equipment are stated at cost (being the purchase cost, together with any incidental costs of acquisition) 
less accumulated depreciation and any accumulated impairment losses. The assets’ residual values and useful lives are 
reviewed annually, and adjusted as appropriate. Depreciation is provided so as to write off the cost of property, plant and 
equipment, less their estimated residual values, over the expected useful economic lives of the assets in equal annual 
instalments at the following principal rates:
Freehold buildings	
	
2% straight line
Leasehold improvements	 	
Straight line over the life of the lease 
Fixtures, fittings and equipment	
20%–33% straight line
Motor vehicles	
	
	
25% straight line
Freehold land is not depreciated on the basis that it has an unlimited life.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when 
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be 
measured reliably. All other repairs and maintenance are charged to the income statement during the financial year in which 
they are incurred.
Intangible assets
Goodwill
With the exception of the acquisition of CVS (UK) Limited, which was accounted for using the principles of merger accounting, 
all business combinations are accounted for by applying the acquisition method. Goodwill arising on acquisitions that have 
occurred since 1 July 2004 is stated after separate recognition of intangible assets and represents the difference between the 
fair value of the purchase consideration and the fair value of the Group’s share of the identifiable net assets of an acquired 
entity. In respect of acquisitions prior to 1 July 2004 goodwill is included on the basis of its deemed cost, which represents 
the amount recorded under previous Generally Accepted Accounting Practice. Goodwill is carried at cost less accumulated 
impairment losses, and is subject to annual impairment testing.
Patient data records and trade names
Acquired patient data records and trade names are recognised as intangible assets at the fair value of the consideration paid 
to acquire them and are carried at historical cost less provisions for amortisation and impairment. The fair value attributable 
to these items acquired through a business combination is determined by discounting the expected future cash flows to 
be generated from that asset at the risk-adjusted post-tax weighted average cost of capital for a market participant. The 
residual values are assumed to be £nil. Patient data records and trade names are reviewed for impairment if conditions exist 
that indicate a review is required. Amortisation is provided so as to write off the cost over the expected economic lives of 
the asset in equal instalments at the following principal rates:
Patient data records 	
10% per annum 
Trade names	
	
10% per annum
Amortisation is charged to administrative expenses.
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the 
specific software. These costs are amortised over their estimated useful lives of three years and charged to administrative 
expenses. Costs associated with maintaining computer software programs are recognised as incurred.
Financial Statements

118
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
2. Summary of significant accounting policies continued 
Impairment of non-current assets
Assets that have an indefinite useful life are not subject to amortisation but are tested annually for impairment. Assets 
that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances 
indicate that the carrying amount may not be recoverable. An impairment loss is recognised in the income statement for 
the amount by which the asset’s carrying amount exceeds its recoverable amount.
As permitted by IAS 36, ‘Impairment of Assets’, for the purposes of assessing impairment, individual cash-generating units 
(CGUs) are grouped at a level consistent with the Group’s operating segments. Recoverable amounts for CGUs are based 
on value in use, which is calculated from cash flow projections using data from the Group’s latest internal forecasts, being 
a one-year detailed forecast and extrapolated forecasts thereafter, the results of which are approved by the Board. The 
key assumptions for the value-in-use calculations are those regarding discount rates and growth rates. The Group has 
considered the Task Force on Climate-Related Financial Disclosures (TCFD) scenario analysis conducted in undertaking this 
assessment and concluded no changes were required to the Group’s accounting policies, estimates or judgements in this area.
In respect of assets other than goodwill, an impairment loss is reversed if there has been a change in the estimates used to 
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does 
not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment 
loss had been recognised. Impairment losses in respect of goodwill are not reversed.
Inventories
Inventories comprise goods held for resale and are stated at the lower of cost and net realisable value on a first in, first out 
basis. Net realisable value is based on estimated selling price less costs expected to be incurred on disposal. Where 
necessary, a provision is made for obsolete, slow moving or defective inventory.
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s consolidated and Company statement of financial 
position when the Group becomes a party to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables are recognised initially at fair value through profit or loss (FVTPL) and subsequently measured at 
amortised cost, less provision for impairment. A provision for impairment of trade and other receivables is recognised if 
there are considered to be expected credit losses. The amount of expected credit losses is updated at each reporting date 
to reflect changes in credit risk since initial recognition of the financial asset. Losses arising from impairment are recognised 
in the income statement within administration expenses.
Investments
Gains and losses arising from changes in the fair value of available-for-sale investments in equity instruments that have 
a quoted market price are recognised directly in other comprehensive income (“fair value through other comprehensive 
income” (FVTOCI)) until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss 
previously recognised in equity is included in the net result for the year.
In accordance with IFRS 9, available-for-sale investments in equity instruments that do not have a quoted market price 
in an active market and whose fair value cannot be reliably measured are measured at cost. The Group assesses at each 
year-end whether there is objective evidence that a financial asset or a group of financial assets is impaired.
Dividends on an available-for-sale equity instrument are recognised in the income statement when the Group’s right 
to receive payment is established.
In the Company’s financial statements, investments in subsidiary undertakings are initially stated at cost. Provision is made 
for any permanent impairment in the value of these investments.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements 
entered into. Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group 
becomes a party to the contractual provisions of the instrument. Financial liabilities are recorded initially at fair value and 
subsequently at amortised cost using the effective interest method, with interest related charges recognised as an expense 
in finance cost in the income statement. A financial liability is derecognised only when the obligation is extinguished. An 
equity instrument is any contract that gives a residual interest in the assets of the Group after deducting all of its liabilities.

119
CVS Group plc Annual Report and Financial Statements 2022
2. Summary of significant accounting policies continued
Financial instruments continued
Interest-bearing borrowings
Interest-bearing bank loans and overdrafts are initially recorded as the proceeds received, net of associated transaction 
costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between 
cost and redemption value being recognised in the income statement over the period of the borrowings using the effective 
interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement 
of the liability for at least twelve months after the consolidated and Company statement of financial position date.
Trade and other payables
Trade and other payables are non-interest bearing and are recognised initially at fair value and subsequently measured 
at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Derivative financial instruments and hedging activities
The Group uses derivative financial instruments to hedge its exposure to interest rate risks arising from financing activities. 
The Group does not hold or issue derivative financial instruments for trading purposes; however, if derivatives do not qualify 
for hedge accounting they are accounted for as such.
Derivative financial instruments are recognised and stated at fair value. The fair value of derivative financial instruments is 
determined by reference to market values for similar financial instruments, by discounted cash flows, or by the use of option 
valuation models. The fair value of interest rate swap arrangements is calculated as the present value of the estimated future 
cash flows. Where derivatives do not qualify for hedge accounting, any gains or losses on remeasurement are immediately 
recognised in the income statement.
Where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the 
hedge relationship and the item being hedged.
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, 
as well as its risk management objectives, the strategy for undertaking various hedging transactions, the nature of the risks 
being hedged and the economic relationship between the item being hedged and the hedging instrument. The Group also 
documents its assessment, both at hedge inception and on an ongoing basis, of whether or not the derivatives that are 
used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items.
The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the 
hedged item is more than twelve months and as a current asset or liability when the remaining maturity of the hedged item 
is less than twelve months.
Cash flow hedging
Derivative financial instruments are classified as cash flow hedges when they hedge the Group’s exposure to variability in 
cash flows that are either attributable to a particular risk associated with a recognised asset or liability, or a highly probable 
forecasted transaction.
The effective element of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is 
recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in 
the income statement where material. Amounts accumulated in equity are recycled in the income statement in the periods 
when the hedged item affects the income statement. The classification of the effective portion when recognised in the 
income statement is the same as the classification of the hedged transaction. Any element of the remeasurement of the 
derivative instrument which does not meet the criteria for an effective hedge is recognised immediately in the income 
statement within finance costs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any 
cumulative gain or loss existing in equity at that time remains in equity and is recognised in the income statement when the 
forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected 
to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and deposits with maturities of three months or less from inception. 
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included 
as a component of cash and cash equivalents for the purposes of the consolidated and Company statement of cash flow.
Financial Statements

120 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
2. Summary of significant accounting policies continued 
Current and deferred tax
The tax expense represents the sum of the current tax payable, deferred tax and any adjustments in respect of previous periods.
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the 
income statement because it excludes some items of income or expense that are taxable or deductible in other years and it 
further excludes items that are never taxable or tax deductible. The Group’s liability for current tax is calculated on the basis 
of tax laws and tax rates that have been enacted or substantively enacted by the consolidated and Company statement of 
financial position date. Management periodically evaluates positions taken in tax returns with respect to situations in which 
applicable tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts 
expected to be paid to the tax authorities.
Deferred tax is provided in full, using the balance sheet liability method, on temporary differences arising between the tax 
bases of assets and liabilities used in computation of taxable profits and their carrying amounts in the consolidated financial 
statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction 
other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. 
Deferred tax is also not accounted for if it arises from initial recognition of goodwill. Deferred tax is determined using tax 
rates (and laws) that have been enacted or substantively enacted by the consolidated and Company statement of financial 
position date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Current and deferred tax is charged or credited in the income statement, except where it relates to items charged or 
credited directly to other comprehensive income or equity, in which case the deferred tax is also recognised in other 
comprehensive income or equity respectively.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which 
the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against 
current tax liabilities and when the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either 
the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis, or to realise 
the asset and settle the liability simultaneously.
Revenue recognition
Revenue is measured in accordance with relevant accounting standards. For all contracts within the scope of IFRS 15, 
‘Revenue from Contracts with Customers’, the Group determines whether enforceable rights and obligations have been 
created with the customer and recognises revenue based on total transaction price as estimated at the contract inception, 
being the amount which the Group expects to be entitled to and has present enforceable rights under contract. Revenue is 
allocated proportionately across the contract performance obligations and recognised either over time or at a point in time 
as appropriate.
Service revenue
Revenue represents sales of veterinary services, laboratory diagnostic services and crematoria services which are 
recognised in accordance with IFRS 15, at the point in time when the performance obligation is satisfied. Revenue is 
recognised when the veterinary consultation, veterinary procedure, laboratory test or cremation is completed.
Members of customer membership schemes, for example the Healthy Pet Club, pay annually or monthly subscription fees 
and receive preventative consultations and treatments over a twelve-month period, being the life of the contract. Annual 
subscription fees are received annually in advance and monthly subscription fees are received evenly over a twelve-month 
period. Revenue is recognised in line with the cost profile of individual performance obligations as they are completed in 
accordance with the contract and not in line with the receipt of subscription fees. For the majority of customers who pay 
monthly this results in revenue recognised in advance of cash received as performance obligations are weighted towards 
the beginning of the twelve-month contract. 
The adjustments are made through deferred and accrued income and the contract asset and contract liability for this are 
shown in note 20 and note 22, respectively. Revenue is recognised net of the provision to reflect cancellations as a result of 
animal deaths, due to our policy not to invoice our customers in such an event. The provision is calculated based on historical 
membership data. All other cancellations are accounted for as an impairment of receivables within administration expenses.
Products
Revenue relating to the sale of veterinary products is recognised according to the terms of sale, at the point in time when 
the performance obligations are satisfied.

121
CVS Group plc Annual Report and Financial Statements 2022
2. Summary of significant accounting policies continued
Rebates received from manufacturers
Consistent with standard industry practice, the Group has agreements with suppliers whereby volume related allowances 
and various other fees are received in connection with the purchase of goods from those suppliers in the form of rebates. 
Rebates received from drug and consumable manufacturers in respect of the Group’s purchases relating to inventories are 
held by the Group at the reporting date; the rebate is included within the cost of those inventories and recognised in cost 
of sales upon sale of those inventories.
Rebates negotiated on behalf of our buying group members, MiVetClub and VetShare, are recorded in the statement of 
financial position as a receivable and the corresponding liability for the rebate due to the member is recorded as a payable. 
The associated commission receivable by the Group is recorded as revenue in the income statement when all obligations 
attached to the rebate have been discharged and the rebate can be measured reliably based on the terms of the contract 
which is taken as at the point at which the buying group member purchases the drugs and consumables.
Leases
The Group as a lessee
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right‑of‑use 
asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short‑term 
leases (defined as leases with a lease term of twelve months or less) and leases of low value assets (such as tablets and personal 
computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an 
operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative 
of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement 
date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its 
incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
	> 	fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
	> variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
	> 	the amount expected to be payable by the lessee under residual value guarantees;
	> the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
	> 	payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability 
(using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
	> the lease term has changed or there is a significant event or change in circumstances resulting in a change in the 
assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised 
lease payments using a revised discount rate;
	> the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed 
residual value, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged 
discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised 
discount rate is used); and 
	> 	a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease 
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using 
a revised discount rate at the effective date of the modification.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at 
or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently 
measured at cost less accumulated depreciation and impairment losses.
Financial Statements

122 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
2. Summary of significant accounting policies continued
Leases continued
The Group as a lessee continued
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which 
it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision 
is recognised and measured under IAS 37.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease 
transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise 
a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation 
starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated statement of financial position.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment 
loss as described in the Property, plant and equipment policy on page 117.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the 
right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that 
triggers those payments occurs and are included in administration expenses in the income statement.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any 
lease and associated non-lease components as a single arrangement. The Group has not used this practical expedient. For 
a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates 
the consideration in the contract to each lease component on the basis of the relative standalone price of the lease 
component and the aggregate standalone price of the non-lease components.
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions 
attaching to them and that the grants will be received.
Government grants are recognised in the income statement on a systematic basis over the periods in which the Group 
recognises as expenses the related costs for which the grants are intended to compensate.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving 
immediate financial support to the Group with no future related costs are recognised in the income statement in the period 
in which they become receivable.
Certain companies within the Group may be entitled to claim tax credits in relation to the Research and Development 
Expenditure Tax Credit (RDEC) scheme in the UK. Tax credits receivable under this scheme are determined to have 
the substance of a government grant and accordingly these tax credits are accounted for under IAS 20, ‘Accounting for 
Government Grants’, as described above. The tax credits are recognised within administration expenses within the income 
statement when there is reasonable assurance that the Group will comply with the relevant conditions and that the tax 
credits will be received.
Provisions
A provision is recognised in the statement of financial position when the Group has a present legal or constructive 
obligation as a result of a past event and that can be reliably measured and it is probable that an outflow of economic 
benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows 
at a pre-tax rate that reflects risks specific to the liability.
Share-based payments
Certain employees of the Group receive part of their remuneration in the form of share-based payment transactions, 
whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). UK employees 
may also acquire shares in the Company through an HMRC-approved employee Save As You Earn scheme (SAYE), where 
the employee makes monthly savings over a three-year period and has the option to purchase shares at the end of the period.
The fair values of equity-settled transactions are measured indirectly at the dates of grant using Monte Carlo or Black 
Scholes option pricing models, taking into account the terms and conditions upon which the awards are granted. The fair 
value of share-based payments under such schemes is expensed on a straight-line basis over the vesting period, based 
on the Group’s estimate of shares that will eventually vest and adjusted at each reporting date for the effect of 
non‑market‑based vesting conditions. The fair value of options awarded to employees of subsidiary undertakings is 
recognised as a capital contribution and recorded in investments on the Company statement of financial position.

123
CVS Group plc Annual Report and Financial Statements 2022
2. Summary of significant accounting policies continued
Foreign currency translation
Functional and presentational currency
The individual financial statements of each Group company are presented in the currency of the primary economic 
environment in which it operates (its functional currency). For the purpose of the consolidated financial statements, the 
results and financial position of each Group company are expressed in Sterling, which is the functional currency of the 
Company, and the presentation currency for the consolidated financial statements, rounded to the nearest £0.1m.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s 
functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. 
At each year-end, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates 
prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated 
at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of 
historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in the income statement in the period in which they arise.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations 
are translated at exchange rates prevailing on the consolidated and Company statement of financial position date. Income 
and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly 
during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising, if 
any, are recognised in other comprehensive income and accumulated in a separate component of equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the 
foreign entity and translated at the closing rate. The Group has elected to treat goodwill and fair value adjustments arising 
on acquisitions before the date of transition to IFRS as Sterling-denominated assets and liabilities. Exchange differences 
arising are recognised in other comprehensive income.
Retirement benefit costs
The Group makes contributions to stakeholder and employee personal pension defined contribution schemes in respect of 
certain employees. The Group has no further payment obligations once the contributions have been paid. The contributions 
are recognised as an employee benefit expense in the period to which they relate. Prepaid contributions are recognised as 
an asset to the extent that a cash refund or a reduction in the future payments is available.
Financing costs
Financing costs comprise interest payable on borrowings, debt finance costs, finance cost on the right-of-use lease liability, 
and gains and losses on derivative financial instruments that are recognised in the income statement.
Interest expense is recognised in the income statement as it accrues, using the effective interest method.
Share premium
The share premium reserve comprises the premium received over the nominal value of shares issued.
Treasury reserve
The treasury reserve comprises shares held by an Employee Benefit Trust (EBT) for the purposes of satisfying the exercise 
of certain share options vesting under the Group’s Long-Term Incentive Plan (LTIP) and SAYE schemes.
Capital redemption reserve
Upon cancellation of redeemable Preference shares on redemption, a capital redemption reserve was created representing 
the nominal value of the shares cancelled. This is a non-distributable reserve.
Merger reserve
The merger reserve resulted from the acquisition of CVS (UK) Limited and represents the difference between the value 
of the shares acquired (nominal value plus related share premium) and the nominal value of the shares issued.
Loss for the financial year
As permitted by Section 408 of the Companies Act 2006 the Company has elected not to present its own income 
statement or statement of comprehensive income for the year. The loss attributable to the Company is disclosed in 
the footnote to the consolidated and Company statement of financial position.
3. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (being foreign currency risk, interest rate risk and other price 
risks), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial 
markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative 
instruments to manage its exposure to interest rate movements. It is not the Group’s policy to actively trade in derivatives.
Financial Statements

124 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
3. Financial risk management continued
Financial risk factors continued
The Board monitors financial risk management. The policies set by the Board of Directors are implemented by the Group’s 
finance department.
a) Market risk
i) Foreign exchange currency rate risk
The Group has limited exposure to foreign exchange risk as the majority of its transactions are denominated in the 
Company’s functional currency of Sterling. The Group has a policy to minimise foreign exchange currency rate risk through 
the regular monitoring of foreign currency flows. Currency exposures are reviewed regularly and all significant foreign 
exchange transactions are approved by Group management. For subsidiaries incorporated in the Netherlands and the 
Republic of Ireland, a natural hedge is applied where both revenue and expenditure is denominated in Euros. Aside from 
this, the Group does not hedge any foreign currency transactions but continues to keep this policy under review.
ii) Cash flow and fair value interest rate risk
The Group has interest-bearing assets and liabilities. The Group’s income and operating cash inflows are substantially 
independent of changes in market interest rates. The Group’s interest rate risk arises from long-term borrowings. Borrowings 
issued at variable rates expose the Group to cash flow interest rate risk.
At the year end, the Group had interest hedging arrangements in place covering £70.0m (2021: £70.0m) of debt. This allows 
the Group to minimise its exposure to significant interest rate increases whilst enabling the Group to take advantage of 
interest rate reductions. The strategy for undertaking the hedge is to match a portion of the loan liability with a coterminous 
derivative that allows interest to float within an agreed range and thereby limits the cash flow exposure relating to interest.
Excluding the impact of the interest rate swap arrangement, bank borrowings bear interest at 1.45% to 2.70% above SONIA 
plus a credit adjustment spread. The applicable interest rate is dependent upon the bank test net debt to bank test EBITDA 
ratio. During the year the bank borrowings carried a rate averaging 1.45% above SONIA.
At 30 June 2022, the Group has considered the impact of movements in interest rates over the past year and has concluded 
that a 1% movement is a reasonable benchmark. At 30 June 2022, if interest rates on Sterling-denominated borrowings had 
been 1% higher or lower, with all other variables held constant, post-tax profit and the movement in net assets for the year 
would have been approximately £0.9m (2021: £0.8m) lower or higher, mainly as a result of the movement in interest rates 
on the floating rate borrowings, net of the hedging derivative instrument in place.
b) Credit risk
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for 
impairment. A provision for impairment of trade receivables is recognised on trade receivables if there is considered to be 
expected credit losses. The amount of expected credit losses is calculated using the simplified approach as allowable under 
IFRS 9 and is updated at each reporting date to reflect changes in credit risk since initial recognition of the financial asset. 
Losses arising from impairment are recognised in the statement of comprehensive income in other operating expenses. 
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high 
credit ratings assigned by international credit rating agencies.
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s diverse customer base. Sales 
made other than on a cash basis are limited to a small part of the Group’s overall business, and within these business areas 
the Group has appropriate credit checking facilities and procedures in place. Customer accounts are also monitored on an 
ongoing basis and appropriate action is taken where necessary to minimise any credit risk. The Directors therefore believe 
there is no further credit risk provision required in excess of normal provision for impaired receivables.
The maximum exposure to credit risk at 30 June 2022 is the fair value of each class of receivable as disclosed in note 20 
to the financial statements.
c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of 
funding through an adequate amount of committed credit facilities. The Group actively maintains cash balances and a mix 
of long-term and short-term finance facilities that are designed to ensure the Group has sufficient available funds for operations 
and acquisitions. Management monitors rolling forecasts of the Group’s liquidity reserve on the basis of expected cash flow. 
The table below summarises the remaining contractual maturity for the Group’s financial liabilities. The amounts shown 
are the contractual undiscounted cash flows, which include interest, analysed by contractual maturity. When the amount 
payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates 
as illustrated by the yield curves existing at the reporting date.

125
CVS Group plc Annual Report and Financial Statements 2022
3. Financial risk management continued
Financial risk factors continued
c) Liquidity risk continued
30 June 2022
Note
In less than 
one year 
£m
In more than 
one year but 
not more than 
two years 
£m
In more than 
two years but 
not more than 
three years 
£m
In more than 
three years but 
not more than 
five years 
£m
In more than 
five years
£m
Total 
£m
Non-derivative financial liabilities
 
 
 
 
 
Borrowings
—
85.0
—
—
—
85.0
Trade and other payables (excluding 
social security and other taxes)
22
68.2
—
—
—
—
68.2
Lease liabilities
14
13.2
15.5
14.6
26.1
56.6
126.0
 
 
81.4
100.5
14.6
26.1
56.6
279.2
30 June 2021
Note
In less than 
one year 
£m
In more than 
one year but 
not more than 
two years 
£m
In more than 
two years but 
not more than 
three years 
£m
In more than 
three years but 
not more than 
five years 
£m
In more than 
five years
£m
Total 
£m
Non-derivative financial liabilities
Borrowings
—
—
85.0
—
—
85.0
Trade and other payables (excluding 
social security and other taxes)
22
69.1
—
—
—
—
69.1
Lease liabilities
14
12.4
14.2
13.2
23.7
57.2
120.7
 
 
81.5
14.2
98.2
23.7
57.2
274.8
Capital risk management
The Group’s policy is to maintain a strong capital base, defined as bank facilities plus total shareholders’ equity, so as to 
maintain investor, creditor and market confidence and to sustain future development of the business. Within this overall 
policy, the Group seeks to maintain an optimum capital structure by a mixture of debt and retained earnings.
The bank facilities include financial covenants and a number of general undertakings. There have been no breaches of 
the terms of the respective loan agreements, breaches of covenants or defaults during the current or comparative years.
Funding needs are reviewed periodically and also each time a significant acquisition is made. A number of factors are 
considered which include the bank test net debt/bank test EBITDA ratio, future funding needs (usually potential acquisitions) 
and Group banking arrangements.
 
2022 
£m
2021 
£m
Bank test net debt
 
36.0
51.3
Bank test EBITDA
89.3
75.5
Ratio
 
0.40
0.68
The ratio above is calculated for the bank covenants as bank test net debt divided by bank test EBITDA.
Bank test net debt
Drawn bank debt less cash and cash equivalents which includes £9.0m held in escrow at 30 June 2022 (2021: £nil). 
Bank test EBITDA
Adjusted EBITDA annualised for the effect of acquisitions, deducting costs relating to business combinations and adding 
back share option costs, on an accounting basis prior to the adoption of IFRS 16. Refer to note 1 for the calculation of 
adjusted EBITDA. 
There were no changes to the Group’s approach to capital management during the year.
The primary sources of funding for the Group are internally generated cash and syndicated borrowings. The Group’s 
£5.0m overdraft facility and £85.0m revolving credit facility were undrawn at 30 June 2022.
Financial Statements

126
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
3. Financial risk management continued
Fair value measurement
The Group’s financial assets and liabilities that are measured at fair value at 30 June 2022 by level of fair value hierarchy are:
	> quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
	> inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly 
(that is, as prices) or indirectly (that is, derived from prices) (level 2); and
	> inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The Group has level 1 available-for-sale financial assets of £0.1m (2021: £0.1m). Refer to note 16 for further information.
4. Segment reporting
Segment information is presented in respect of the Group’s business and geographical segments. The primary format, operating 
segments, is based on the Group’s management and internal reporting structure and monitored by the Group’s CODM. 
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated 
on a reasonable basis. Unallocated items comprise mainly interest-bearing borrowings and associated costs, tax-related 
assets and liabilities, costs relating to business combinations, and Head Office salary and premises costs.
Revenue comprises £398.1m of fees and £156.1m of goods (2021: £359.3m and £150.8m respectively).
Operating segments
The Group is split into four operating segments (Veterinary Practices, Laboratories, Crematoria and Online Retail Business) 
and a centralised support function (Head Office) for business segment analysis. In identifying these operating segments, 
management generally follows the Group’s service lines representing its main products and services.
Each of these operating segments is managed separately as each segment requires different specialisms, marketing 
approaches and resources. Intra-group sales eliminations are included within the Head Office segment. Head Office 
includes costs relating to the employees, property and other overhead costs associated with the centralised support 
function together with finance costs arising on the Group’s borrowings.
Year ended 30 June 2022
Veterinary 
Practices 
£m
Laboratories 
£m
Crematoria 
£m
Online Retail 
Business 
£m
Head Office 
£m
Group 
£m
Revenue
492.1
27.2
9.5
46.6
(21.2)
554.2
Adjusted EBITDA
108.8
8.3
3.4
3.5
(16.6)
107.4
Profit/(loss) before tax
64.8
7.6
2.9
3.4
(42.7)
36.0
Total assets
426.0
38.6
20.1
27.9
5.6
518.2
Total liabilities
(170.6)
(5.1)
(2.2)
(18.6)
(104.3)
(300.8)
Reconciliation of adjusted EBITDA
 
 
 
 
 
 
Profit/(loss) before tax
64.8
7.6
2.9
3.4
(42.7)
36.0
Finance expense
4.1
—
—
—
2.7
6.8
Depreciation of property, plant and equipment
9.9
0.6
0.5
—
0.3
11.3
Depreciation of right-of-use assets
13.7
0.1
—
—
0.3
14.1
Profit on disposal of property, plant 
and equipment and right-of-use assets
(0.3)
—
—
—
—
(0.3)
Amortisation of intangible assets
14.6
—
—
0.1
7.5
22.2
Costs relating to business combinations
2.0
—
—
—
2.9
4.9
Exceptional items 
—
—
—
—
12.4
12.4
Adjusted EBITDA
108.8
8.3
3.4
3.5
(16.6)
107.4

127
CVS Group plc Annual Report and Financial Statements 2022
4. Segment reporting continued
Operating segments continued
Year ended 30 June 2021
Veterinary 
Practices 
£m
Laboratories 
£m
Crematoria 
£m
Online Retail 
Business 
£m
Head Office 
£m
Group 
£m
Revenue
453.4
28.0
8.0
41.7
(21.0)
510.1
Adjusted EBITDA
98.4
9.1
2.8
2.9
(15.7)
97.5
Profit/(loss) before tax
49.5
8.4
2.4
2.7
(29.9)
33.1
Total assets
422.4
32.7
16.9
10.9
1.6
484.5
Total liabilities
(179.8)
(4.0)
(1.4)
(3.4)
(104.8)
(293.4)
Reconciliation of adjusted EBITDA
 
 
 
 
 
 
Profit/(loss) before tax
49.5
8.4
2.4
2.7
(29.9)
33.1
Finance expense
4.1
—
—
—
2.9
7.0
Depreciation of property, plant and equipment
9.0
0.6
0.4
—
0.3
10.3
Depreciation and impairment of right-of-use assets
13.7
0.1
—
—
0.2
14.0
Amortisation of intangible assets 
14.0
—
—
0.2
9.6
23.8
Costs relating to business combinations
8.1
—
—
—
1.2
9.3
Adjusted EBITDA
98.4
9.1
2.8
2.9
(15.7)
97.5
Geographical segments
The business operates predominantly in the UK. As at 30 June 2022, it has 27 veterinary practices in the Netherlands and 
four in the Republic of Ireland. It performs a small amount of laboratory work and teleradiology work for Europe-based 
clients and a small amount of teleradiology work for clients based in the rest of the world. In accordance with IFRS 8, 
‘Operating Segments’, no segment results are presented for trade with clients in Europe or the rest of the world as these 
are not reported separately for management reporting purposes and are not considered material for separate disclosure.
5. Finance expense
 
2022
£m
2021
£m
Interest expense on bank loans and overdraft
2.2
2.5
Interest expense on lease liabilities
4.2
4.1
Amortisation of debt arrangement fees
0.4
0.4
Finance expense
6.8
7.0
Financial Statements

128 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
6. Expenses/(income) by nature
 
Note
2022
£m
2021
£m
Amortisation of intangible assets
12
22.2
23.8
Depreciation of property, plant and equipment 
13
11.3
10.3
Depreciation and impairment of right-of-use assets
14
14.1
14.0
Employee benefit expenses
7
259.6
231.5
Cost of inventories recognised as an expense (included in cost of sales)
 
121.2
117.5
Repairs and maintenance expenditure on property, plant and equipment
 
4.9
5.3
Movement in provision for expected credit losses
20
(1.4)
0.7
Exceptional items1
16
12.4
—
RDEC income2
 
(2.0)
(2.0)
Other expenses
 
69.1
68.9
Total cost of sales and administrative expenses
 
511.4
470.0
1.	 During the year ended 30 June 2022, exceptional items related to impairment of the investment in Quality Pet Care Ltd, which was disposed of on 
30 June 2022. The impairment of this investment is considered as exceptional and non-recurring due to the circumstances of the sale, as described in 
note 16. These costs are included within administration expenses and are shown above. There were no exceptional items in the year ended 30 June 2021.
2.	 In the course of their ordinary work, our colleagues perform work which advances the overall knowledge in the veterinary field and seeks to resolve 
scientific and technological uncertainties. In the prior year, the Group submitted claims under the Research and Development Expenditure Credits 
(RDEC) scheme to HMRC for the first time in respect of the 2019 financial year, and in the current year claims were submitted in respect of 2020. The 
amount of qualifying expenditure in relation to 2021 and 2022 is yet to be determined, in part due to the uncertainty around FY19 and FY20 claims, 
which is explained more fully in Note 2. The amount of research and development expenditure within Cost of sales and Administrative expenses is 
therefore not separately disclosed.
Services provided by the Company’s auditor and associates
During the year the Group obtained the following services from the Company’s auditor at costs as detailed below:
 
2022
£’000
2021
£’000
Audit services
 
 
Fees payable to the Group’s auditor for:
 
 
  The audit of the parent company and consolidated financial statements
180
164
  The audit of the Company’s subsidiaries pursuant to legislation
352
326
 
532
490
7. Employee benefit expense and numbers
Group
Employee benefit expense for the Group
Note
2022 
£m
2021 
£m
Wages and salaries
 
228.5
205.0
Social security costs
 
22.9
19.3
Other pension costs
31
5.9
5.0
Share-based payments
11
2.3
2.2
 
 
259.6
231.5
The employee benefit expense included within cost of sales is £181.9m (2021: £160.7m). The balance is recorded within 
administrative expenses.

129
CVS Group plc Annual Report and Financial Statements 2022
7. Employee benefit expense and numbers continued
Group continued
The average monthly number of people employed by the Group (including Executive and Non-Executive Directors) during 
the year, analysed by category, was as follows:
 
2022 
Number
2021 
Number
Veterinary surgeons and pathologists
2,079
1,962
Nurses, practice ancillaries and technicians
5,489
4,976
Crematoria staff
98
84
Central support
247
219
 
7,913
7,241
Company
The average monthly number of people employed by the Company is four (2021: four), being the Non-Executive Directors. 
The Executive Directors received remuneration in respect of their services to the Company from a subsidiary company.
8. Directors’ remuneration and key management compensation
 
Highest paid Director
Directors’ emoluments
 
2022 
£m
2021 
£m
2022 
£m
2021 
£m
Salaries and other short-term employee benefits
0.8
0.8  
2.3
2.2
Company contributions to money purchase schemes
—
—  
0.1
0.1
 
0.8
0.8  
2.4
2.3
Retirement benefits are accruing to one Director (2021: three) under a personal pension plan. The remuneration of the 
Executive Directors, amounting to £2.1m (2021: £2.1m), is borne by the subsidiary company CVS (UK) Limited, without 
recharge. The remuneration of the Non-Executive Directors, amounting to £0.3m (2021: £0.2m), is borne by the subsidiary 
company CVS (UK) Limited and recharged to the Company.
Directors’ remuneration is disclosed on an individual basis in the Remuneration Committee Report on pages 83 to 93. 
Share options
Under the Company’s SAYE schemes the Directors have the following options at the year end:
SAYE scheme
Date of grant
Earliest exercise date 
and vesting date
Exercise price
Number of 
shares
B Jacklin
SAYE12
04 December 2019
01 January 2023
863p
709
R Alfonso
SAYE12
04 December 2019
01 January 2023
863p
709
R Fairman
SAYE13
02 December 2020
01 January 2024
1,009p
606
B Jacklin
SAYE13
02 December 2020
01 January 2024
1,009p
570
R Alfonso
SAYE13
02 December 2020
01 January 2024
1,009p
606
R Fairman
SAYE14
25 November 2021
01 January 2025
1,974p
310
B Jacklin
SAYE14
25 November 2021
01 January 2025
1,974p
310
R Alfonso
SAYE14
25 November 2021
01 January 2025
1,974p
291
Financial Statements

130 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
8. Directors’ remuneration and key management compensation continued
Share options continued
Under the Company’s Long-Term Incentive Plans (LTIP) the Directors have the following options at the year-end: 
LTIP
Date of grant
Market price on 
date of grant
Earliest exercise date  
and vesting date
Number of 
shares
R Fairman
LTIP13
19 December 2019
1,080p
30 June 2022
46,296
B Jacklin
LTIP13
19 December 2019
1,080p
30 June 2022
27,778
R Alfonso
LTIP13
19 December 2019
1,080p
30 June 2022
15,278
R Fairman
LTIP14
02 October 2020
1,219p
30 June 2023
41,030
B Jacklin
LTIP14
02 October 2020
1,219p
30 June 2023
24,618
R Alfonso
LTIP14
02 October 2020
1,219p
30 June 2023
13,540
R Alfonso
LTIP14(b)
04 January 2021
1,485p
30 June 2023
6,733
R Fairman
LTIP15
06 October 2021
2,407p
30 June 2024
21,188
B Jacklin
LTIP15
06 October 2021
2,407p
30 June 2024
12,712
R Alfonso
LTIP15
06 October 2021
2,407p
30 June 2024
11,009
The exercise price for all shares awarded under LTIPs is 0.2p.
LTIP12 vested in the year; for further details of the above schemes see the Remuneration Committee report on pages 83 
to 93.
Key management compensation
Key management is considered to be those on the Executive Committee (being the Executive Directors and other senior 
management) and the Non-Executive Directors. The employment costs of key management are as follows:
 
2022
£m
2021
£m
Salaries and other short-term employee benefits
3.5
4.0
Post-employment benefits
0.2
0.2
Share-based payments
1.1
1.0
 
4.8
5.2
9. Tax expense	
a) Analysis of tax expense recognised in the income statement
Note
2022 
£m
2021 
£m
Current tax
 
 
 
Current tax on profits for the year
 
13.1
12.9
Adjustments in respect of previous years
 
—
1.3
Total current tax charge
 
13.1
14.2
Deferred tax
 
 
Origination and reversal of temporary differences
 
(2.4)
(5.0)
Adjustments in respect of previous years
 
(0.4)
0.3
Effect of tax rate change on opening deferred tax balance
 
—
4.3
Total deferred tax credit
25
(2.8)
(0.4)
Total tax expense
 
10.3
13.8 

131
CVS Group plc Annual Report and Financial Statements 2022
9. Tax expense continued
b) Reconciliation of effective tax charge
The total tax expense for the year differs from the theoretical amount that would arise using the standard rate of UK corporation 
tax of 19.0% (2021: 19.0%) as follows:
 
2022
£m
2021
£m
Profit before tax
36.0
33.1
Effective tax charge at 19.0% (2021: 19.0%)
6.8
6.3
Effects of:
 
  Expenses not deductible for tax purposes
1.2
2.4
  Loss on disposal of non-qualifying assets
2.3
— 
  Tax rate change on opening deferred tax balances
—
4.3
  Adjustments to deferred tax charge in respect of previous years
(0.4)
0.3
  Adjustments to current tax charge in respect of previous years
—
1.3
  Current year tax losses not recognised/(utilisation of brought forward losses previously unrecognised)
0.2
(0.1)
  Effect of difference between closing deferred tax rate and current tax rate
0.2
(0.7)
Total tax expense
10.3
13.8
Factors affecting the current tax charge
UK corporation tax is calculated at 19.0% (2021: 19.0%) of the estimated assessable profit for the year. Tax for other 
jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
The effective tax rate on reported profits is 28.6% (2021: 41.7%) and has decreased from the prior year mainly due to 
the remeasurement of deferred tax in the prior year as a result of the substantive enactment of the increase in the UK 
corporation tax rate to 25.0% from April 2023, which did not recur in the current year. The effective tax rate for 2022 was 
adversely influenced by the impairment and subsequent disposal of an investment, which resulted in tax losses of £13.4m. 
A deferred tax asset has not been recognised on the tax loss as it is not probable the Group will have sufficient future 
taxable profits against which this loss could be utilised. It was further affected by a decrease in expenses not deductible for 
tax purposes predominantly in respect of business acquisitions. 
Changes in tax rates
The UK corporation tax rate for the year was 19.0% (2021: 19.0%). In March 2021, the UK Government announced an 
increase in the UK corporation tax rate. The Finance Bill 2021 was substantively enacted on 24 May 2021 increasing the UK 
corporation rate to 25.0% from 1 April 2023. The impact of this change in tax rate was recognised in 2021 in the income 
statement, except to the extent that it related to items previously recognised outside of the income statement in which 
case it was recognised in other comprehensive income and equity accordingly.
Uncertain tax position
The Group recognises taxation based on estimates of whether taxes will be due. No material uncertain tax positions existed 
at 30 June 2022 or 30 June 2021.
10. Earnings per Ordinary share
a) Basic
 
2022
2021
Profit for the year (£m)
25.7
19.3
Weighted average number of Ordinary shares in issue
70,926,977
70,685,939
Basic earnings per share (pence)
36.2
27.3
b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary shares outstanding to 
assume conversion of all dilutive potential Ordinary shares. The Company has potentially dilutive Ordinary shares, being 
the contingently issuable shares under the Group’s LTIP schemes and SAYE schemes. For share options, a calculation is 
undertaken to determine the number of shares that could have been acquired at fair value (determined as the average 
annual market share price of the Company’s shares) based on the monetary value of the subscription rights attached to 
outstanding share options. The number of shares calculated as above is compared with the number of shares that would 
have been issued assuming the exercise of the share options.
Financial Statements

132
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
10. Earnings per Ordinary share continued
b) Diluted continued
 
2022
2021
Profit for the year (£m)
25.7
19.3
Weighted average number of Ordinary shares in issue
70,926,977
70,685,939
Adjustment for contingently issuable shares – LTIPs
248,506
237,307
Adjustment for contingently issuable shares – SAYE schemes
377,056
246,533
Weighted average number of Ordinary shares for diluted earnings per share
71,552,539
71,169,779
Diluted earnings per share (pence)
35.9
27.1
Alternative performance measure: adjusted earnings per share
 
Note
2022
£m
2021
£m
Profit before tax 
 
36.0
33.1
Adjustments for:
 
 
  Amortisation of intangible assets
12
22.2
23.8
  Costs relating to business combinations
4
4.9
9.3
  Exceptional items
6
12.4
—
Adjusted profit before tax
 
75.5
66.2
Tax expense amended for the above adjustments
 
(14.6)
(13.1)
Adjusted profit after tax
 
60.9
53.1
Weighted average number of Ordinary shares in issue
 
70,926,977
70,685,939
Weighted average number of Ordinary shares for diluted earnings per share
 
71,552,539
71,169,779
 
 
Pence
Pence
Adjusted earnings per share (pence)
 
85.8
75.1
Diluted adjusted earnings per share (pence)
 
85.0
74.6
11. Share-based payments
Long-Term Incentive Plans
The Group operates incentive schemes for certain senior executives, the CVS Group Long-Term Incentive Plans (LTIP).
Under the LTIP schemes, awards are made at an effective nil cost, vesting over a three-year performance period conditional 
upon the Group’s adjusted earnings per share growth and Total Shareholder Return (TSR). The LTIP scheme arrangements 
are equity settled.
Details of the share options outstanding during the year under the LTIP schemes are as follows:
 
July 2021 scheme 
(LTIP15/15(b))
 Number of share 
awards
July 2020 scheme 
(LTIP14/14(b)) 
Number of share 
awards
July 2019 scheme 
(LTIP13/13(b)) 
Number of share 
awards
July 2018 scheme 
(LTIP12) 
Number of share 
awards
Outstanding at 1 July 2021
—
136,655
135,025
98,110
Granted during the year
74,625
—
—
—
Lapsed during the year
—
—
—
(619)
Forfeited during the year
(4,982)
(12,836)
(6,111)
—
Exercised during the year
—
—
—
(97,491)
Outstanding at 30 June 2022
69,643
123,819
128,914
—
Exercisable at 30 June 2022
—
—
128,914
—
Options are exercisable at 0.2p per share. The weighted average exercise price was 0.2p at the beginning and end of the period.
The options outstanding at the year end under LTIP15, LTIP15(b), LTIP14, LTIP14(b), LTIP13, and LTIP13(b) have a weighted 
average remaining contractual life of two years, two years, one year, one year, nil years and nil years, respectively.

133
CVS Group plc Annual Report and Financial Statements 2022
11. Share-based payments continued
Long-Term Incentive Plans continued
The share-based payment charge for the year in respect of the options issued under the LTIP schemes amounted to £1.2m 
(2021: £1.4m) and has been charged to administrative expenses. Employer’s National Insurance contributions of £0.2m 
(2021: £0.6m) have been charged to administrative expenses in respect of the LTIP scheme transactions and are treated 
as cash-settled transactions.
Further details of the above schemes are included in the Remuneration Committee report on pages 83 to 93.
Save As You Earn (SAYE)
The Group operates an incentive scheme for all UK employees, the CVS Group SAYE plan, an HM Revenue & 
Customs‑approved scheme. Details of the share options outstanding during the year under the SAYE schemes are as follows:
 
SAYE14
Number of 
share awards
SAYE13
Number of 
share awards
SAYE12 
Number of 
share awards
SAYE11 
Number of 
share awards
SAYE10 
Number of 
share awards
Outstanding at 1 July 2021
—
345,954
243,561
298,818
13,014
Granted during the year
215,022
—
—
—
—
Forfeited during the year
(13,492)
(34,716)
(18,535)
(14,247)
—
Exercised during the year*
—
(1,047)
(2,799)
(249,108)
(13,014)
Outstanding at 30 June 2022
201,530
310,191
222,227
35,463
—
Exercisable at 30 June 2022
—
—
—
35,463
—
*	
The weighted average share price at the date of exercise was £19.54.
Further information on the SAYE schemes is shown in the table below:
 
SAYE14
SAYE13
SAYE12 
SAYE11 
Date opened for subscription
November 2021 December 2020 December 2019 November 2018
Date options granted
January 2022
January 2021
January 2020
January 2019
Discount on closing mid-market price
20%
20%
10%
10%
Exercise price
£19.74
£10.09
£8.63
£8.30
Remaining contractual life
2 years 5 months
1 year 5 months
5 months
nil
All of the SAYE schemes vest over a three-year period. There are no performance conditions attached to the SAYE scheme.
The weighted average exercise price at the beginning of the period for the options outstanding was £9.09 and end of the 
period was £12.11.
The share-based payment charge for the year in respect of the options issued under the SAYE schemes amounted to £1.1m 
(2021: £0.8m) and has been charged to administrative expenses.
Options for all schemes were valued using either the Monte Carlo or Black Scholes option pricing models. The fair value per 
option granted and the assumptions used in the calculation are as follows:
 
LTIP15
LTIP15(b)
SAYE14
Grant date
06 October 2021
16 December 2021
25 November 2021
Share price at grant date1
£24.07
£22.17
£22.30
Fair value per option
£15.46
£18.81
£7.54
Exercise price
0.2p
0.2p
£19.74
Number of employees
34
1
1,391
Shares under option at date of grant
74,174
451
215,022
Vesting period/option life/expected life
3 years
3 years
3 years
Weighted average remaining contractual life
2 years
2 years
2 years 5 months
Expected volatility2
35.2%
35.2%
41.1%
Expected dividends expressed as a dividend yield
0.45%
0.45%
0.30%
1.	 Share price calculated at average of closing share price for preceding five days in line with scheme rules.
2.	 Expected volatility has been determined by reference to the historical share return volatility of CVS Group plc.
Financial Statements

134 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
12. Intangible assets
Group 
Note
Goodwill 
£m
Trade 
names 
£m
Patient data 
records 
£m
Computer 
software 
£m
Total 
£m
Cost
 
 
 
 
 
 
At 1 July 2020
 
100.2
1.5
263.2
5.5
370.4
Additions arising through business combinations
14.1
—
8.8
—
22.9
Foreign currency translation
 
(0.4)
—
(0.8)
—
(1.2)
Other additions
 
—
—
—
0.5
0.5
At 30 June 2021 and 1 July 2021
 
113.9
1.5
271.2
6.0
392.6
Additions arising through business combinations
15
6.7
—
2.1
—
8.8
Other additions
 
—
—
—
1.5
1.5
At 30 June 2022
 
120.6
1.5
273.3
7.5
402.9
Accumulated amortisation
 
 
 
 
 
 
At 1 July 2020
 
—
1.5
135.5
3.6
140.6
Amortisation for the year
 
—
—
22.8
1.0
23.8
Foreign currency translation
 
—
—
(0.2)
—
(0.2)
At 30 June 2021 and 1 July 2021
 
—
1.5
158.1
4.6
164.2
Amortisation for the year
 
—
—
21.4
0.8
22.2
At 30 June 2022
 
—
1.5
179.5
5.4
186.4
Net book amount
 
 
 
 
 
 
At 30 June 2022
 
120.6
—
93.8
2.1
216.5
At 30 June 2021
 
113.9
—
113.1
1.4
228.4
At 1 July 2020
 
100.2
—
127.7
1.9
229.8
Amortisation is charged to administrative expenses in the Income Statement.
The patient data records and trade names were acquired as a component of business combinations. See note 15 for further 
details of current year acquisitions.
Intangible assets that are individually material to the financial statements are disclosed as follows:
Intangible category
Description
Carrying amount
Remaining life
Patient data records
Slate Hall Veterinary Group
£6.1m
6 years
Patient data records
YourVets
£3.1m
3 years
The components of goodwill are disclosed according to the group of CGUs to which they have been allocated. Due to 
the integrated nature of the Group, although each veterinary practice, laboratory and crematorium is considered to be 
an individual CGU, the monitoring of goodwill is performed on an aggregated basis for groups of CGUs that are no larger 
than the operating segments, as determined in accordance with IFRS 8. 
The majority of other assets are tested at the CGU level, to the extent that an impairment review is triggered following 
identification of an indicator of impairment by management. A small number of assets (typically patient data records acquired 
in a business combination with multiple sites or locations) are shared between sub-groups of CGUs and are tested for 
impairment at that level.
Goodwill per operating segment
 
2022 
£m
2021 
£m
Veterinary Practices
116.3
109.2
Laboratories
2.1
2.1
Crematoria
2.6
2.6
Total
121.0
113.9

135
CVS Group plc Annual Report and Financial Statements 2022
12. Intangible assets continued
Impairment tests
The pre-tax discount rate applied to the cash flow projections is derived from the Group’s pre-tax weighted average cost 
of capital. The risks relating to each of the CGUs are considered to be the same as a result of the Group’s operations being 
entirely focused in the veterinary market and, as such, the discount rate applied to each CGU is the same. The use of the 
Group’s weighted average cost of capital is consistent with the valuation methodology used when determining the offer price 
for business combinations and, therefore, is considered an appropriate discount rate. The Directors consider the growth rate 
to be broadly consistent between CGUs; a 6.0% growth per annum in adjusted EBITDA has been assumed for years one to 
five with a long-term growth rate of 2.0% per annum for the purposes of assessing net present value of future cash flows, 
with adjusted EBITDA, adjusted for an assumption of capital expenditure, used as an approximation to cash flows given the 
insignificant impact of working capital adjustments. The budget for the next financial year is used as a basis for the cash 
flow projections. The growth rate used in the impairment tests is based upon a prudent assessment of market‑specific 
growth assumptions. Further details of the impairment tests are disclosed in note 2.
Estimates are based on past experience and expectations of future changes to the market. Growth rate forecasts are 
extrapolated based on estimated long-term average growth rates for the markets in which the CGU operates (estimated 
at 6.0% for years one to five and 2.0% long-term rate). The pre-tax discount rate used to calculate value in use is 11.3% at 
30 June 2022 (2021: 10.3%). 
A sensitivity analysis using reasonably possible changes in key assumptions has been performed. None of these changes 
result in the value of goodwill allocated to the CGUs being in excess of its recoverable amount and therefore no sensitivity 
analysis is presented.
13. Property, plant and equipment
Group
Note
Freehold land 
and buildings 
£m
Leasehold 
improvements 
£m
Fixtures, 
fittings and 
equipment 
£m
Motor 
vehicles 
£m
Total 
£m
Cost
 
 
 
 
 
 
At 1 July 2020
 
16.8
31.4
55.9
3.6
107.7
Foreign exchange
 
—
—
(0.2)
—
(0.2)
Additions arising through business combinations
—
—
0.6
—
0.6
Additions
 
3.0
5.7
5.7
1.7
16.1
Disposals
 
(0.5)
—
—
(0.3)
(0.8)
At 30 June 2021 and 1 July 2021
 
19.3
37.1
62.0
5.0
123.4
Additions arising through business combinations
15
—
—
0.7
—
0.7
Additions
 
3.2
8.8
9.0
2.0
23.0
Disposals
 
—
(0.1)
(0.2)
(0.3)
(0.6)
At 30 June 2022
 
22.5
45.8
71.5
6.7
146.5
Accumulated depreciation
 
 
 
 
 
 
At 1 July 2020
 
1.8
16.6
35.8
1.9
56.1
Foreign exchange
 
—
—
(0.1)
—
(0.1)
Depreciation for the year
 
0.3
3.0
6.2
0.8
10.3
Disposals
 
—
—
—
(0.3)
(0.3)
At 30 June 2021 and 1 July 2021
 
2.1
19.6
41.9
2.4
66.0
Depreciation for the year
 
0.4
2.9
6.9
1.1
11.3
Disposals
 
—
—
(0.2)
(0.3)
(0.5)
At 30 June 2022
 
2.5
22.5
48.6
3.2
76.8
Net book amount
 
 
 
 
 
 
At 30 June 2022
 
20.0
23.3
22.9
3.5
69.7
At 30 June 2021
 
17.2
17.5
20.1
2.6
57.4
At 1 July 2020
 
15.0
14.8
20.1
1.7
51.6
Freehold land amounting to £1.7m (2021: £1.7m) has not been depreciated. 
Included within the above classes of assets is £5.5m (2021: £4.6m) of assets which are under construction, of which £4.8m 
was acquired in the year and £0.7m is carried forward from the previous year.
Financial Statements

136
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
14. Leases
Group as a lessee 
The majority of the Group’s veterinary practices, specialist referral centres and support offices are leased, with remaining 
lease terms of between one and fifteen years. The Group also has a number of non-property leases relating to vehicle, equipment 
and material handling equipment, with remaining lease terms of between one and four years. Additions to right-of-use 
assets include new leases; extensions and amendments to existing lease agreements are disclosed as remeasurements.
Right-of-use assets
Group 
Note
Property 
£m
Equipment
£m
Motor 
vehicles
£m
Total
£m
Cost
 
 
 
 
 
At 1 July 2020
 
109.6
1.2
1.9
112.7
Foreign currency translation
 
(0.6)
—
—
(0.6)
Acquired through business combinations
4.9
—
—
4.9
Remeasurement of lease term
 
7.8
—
—
7.8
Additions
 
1.2
0.5
1.0
2.7
Disposals
 
(2.1)
—
—
(2.1)
At 30 June 2021 and 1 July 2021
 
120.8
1.7
2.9
125.4
Acquired through business combinations
15
1.0
—
—
1.0
Remeasurement of lease term
 
11.7
—
—
11.7
Additions
 
6.1
0.4
0.4
6.9
Disposals
 
(1.7)
—
(1.0)
(2.7)
At 30 June 2022
 
137.9
2.1
2.3
142.3
Accumulated depreciation
 
 
 
 
 
At 1 July 2020
 
13.3
0.4
0.9
14.6
Depreciation for the year
 
12.4
0.3
0.9
13.6
Impairment
 
0.4
—
—
0.4
Disposals
 
(0.4)
—
—
(0.4)
At 30 June 2021 and 1 July 2021
 
25.7
0.7
1.8
28.2
Depreciation for the year
 
13.0
0.3
0.8
14.1
Disposals
 
(0.7)
—
(1.0)
(1.7)
At 30 June 2022
 
38.0
1.0
1.6
40.6
Net book amount
 
 
 
 
 
At 30 June 2022
 
99.9
1.1
0.7
101.7
At 30 June 2021
 
95.1
1.0
1.1
97.2
At 1 July 2020
 
96.3
0.8
1.0
98.1
The impairment loss in the prior year relates to veterinary practices which were closed or were due to close. In line with 
IAS 36, the carrying value of these right-of-use assets was assessed for indicators of impairment and the planned closure 
was considered to be an indicator of impairment. The right-of-use asset was written down to its expected recoverable value 
and impairment costs of £0.4m were charged. No impairment loss was recognised in the current year.

137
CVS Group plc Annual Report and Financial Statements 2022
14. Leases continued
Lease liabilities
Group
2022 
£m
2021 
£m
Current
9.4
8.6
Non-current
95.1
90.2
Total discounted lease liabilities
104.5
98.8
Maturity analysis – contractual undiscounted lease payments
 
Less than one year
13.2
12.4
Between one and five years
56.2
51.1
More than five years
56.6
57.2
Total undiscounted lease payments
126.0
120.7
15. Business combinations
Details of business combinations in the year ended 30 June 2022 are set out below. The reason for each acquisition was 
to expand the CVS Group business through acquisitions aligned to our strategic goals. The acquisition and subsequent 
disposal of Quality Pet Care Ltd is not included in the below, and further information can be found in note 16.
Name of business combination 
Date of acquisition
Dierenkliniek Leloup Olst-Wijhe (trade and asset)
01 February 2022
Anton Vets Ltd
05 May 2022
OCVC Limited
10 June 2022
All businesses were acquired via 100% share purchase agreement unless indicated otherwise in the table above.
Given the nature of the veterinary practices acquired and the records maintained by such practices, it is not practicable 
to disclose the revenue or profit or loss of the combined entity for the year as though the acquisition date for all business 
combinations during the year had been at the beginning of that year.
The table below summarises the total assets acquired through business combinations in the year ended 30 June 2022:
 
Note
Book value of 
acquired 
assets 
£m
Fair value
adjustments 
£m
Fair value 
£m
Property, plant and equipment
13
0.7
—
 0.7 
Patient data records
12
—
2.1
2.1 
Right-of-use assets
14
1.0
—
 1.0 
Inventories
 
0.1
—
 0.1 
Deferred tax liability
25
(0.1)
(0.3)
 (0.4)
Trade and other receivables
 
0.1
(0.1)
 — 
Trade and other payables
 
(0.7)
—
 (0.7)
Loans
 
(0.1)
—
 (0.1)
Lease liabilities 
 
(1.0)
—
 (1.0)
Total identifiable assets
 
—
1.7
1.7
Goodwill
12
6.7
Total consideration (net of cash acquired of £0.5m)
 
8.4
Initial consideration paid (net of cash acquired of £0.5m)
 
 
 
8.0
Deferred consideration payable
 
 
 
0.4
Total consideration (net of cash acquired of £0.5m)
 
 
8.4
The total consideration of £8.4m is prior to the agreement of the completion accounts. The amounts recognised are subject 
to adjustment in line with IFRS 3 for up to 12 months from acquisition, with goodwill being adjusted accordingly.
Financial Statements

138 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
15. Business combinations continued 
Goodwill recognised represents the excess of purchase consideration over the fair value of the identifiable net assets. 
Goodwill reflects the synergies arising from the combination of the businesses; this includes cost synergies arising from 
shared support functions and buying power synergies. Goodwill includes the recognition of an amount equal to the 
deferred tax that arises on non-qualifying fixed assets acquired under a business combination.
Post-acquisition revenue and post-acquisition adjusted EBITDA were £0.5m and £0.1m respectively. The post-acquisition 
period is from the date of acquisition to 30 June 2022. Post-acquisition EBITDA represents the direct operating result of 
practices from the date of acquisition to 30 June 2022 prior to the allocation of central overheads, on the basis that it is 
not practicable to allocate these.
Goodwill and intangible assets recognised in the year relating to business combinations are not expected to be deductible 
for tax purposes.
Acquisition costs of £4.9m (2021: £9.3m) are included within other expenses in note 6 of the financial statements.
The Directors do not consider any individual in-year acquisition to be material to the Group and therefore have not 
separately disclosed these.
Business combinations in previous years
Details of business combinations in the comparative year are presented in the consolidated financial statements for the 
year ended 30 June 2021. £0.4m (2021: £nil) was paid in the current year to settle deferred consideration payable from the 
prior year.
Business combinations subsequent to the year end
Subsequent to the year end, the Group has made two acquisitions.
On 27 July 2022, the Group completed the purchase of 100.0% of the share capital of Werrington Vets Limited, a company 
registered in England and Wales, for initial cash consideration of £4.3m. This is a business comprising one companion 
animal veterinary practice site in the UK. Assets acquired comprised principally goodwill and intangible patient data records 
with a provisional fair value of £4.1m.
On 16 September 2022, the Group completed the purchase of 100.0% of the share capital of Woodlands Veterinary Clinic 
Limited, a company registered in England and Wales, for initial cash consideration of £3.5m. This is a business comprising 
two companion animal veterinary practice sites in the UK. Assets acquired comprised principally goodwill and intangible 
patient data records with a provisional fair value of £3.3m.
16. Investments
a) Available-for-sale financial assets
Available-for-sale financial assets, which are denominated in Sterling, consist of an investment in managed investment funds.
The Group holds £0.1m (2021: £0.1m) in an investment in managed investment funds which have a quoted market price in 
an active market and are accordingly measured at fair value. Gains and losses arising from changes in the fair value are 
recognised directly in equity until the security is disposed of or deemed to be impaired.
b) Shares in subsidiary undertakings
Company
Note
£m
Cost and net book amount
 
 
At 1 July 2020
 
69.4
Options granted to employees of subsidiary undertakings
2.2
At 30 June 2021
 
71.6
Options granted to employees of subsidiary undertakings
11
2.3
At 30 June 2022
 
73.9

139
CVS Group plc Annual Report and Financial Statements 2022
16. Investments continued
b) Shares in subsidiary undertakings continued
The principal subsidiary undertakings of CVS Group plc are set out below:
Name of subsidiary
Principal business
Country of incorporation
Albavet Limited
Veterinary services and buying club
Scotland
Animed Direct Limited
Online dispensary
England and Wales
Axiom Veterinary Laboratories Limited
Veterinary diagnostic services
England and Wales
B & W Equine Group Limited
Veterinary services
England and Wales
CVS (Ireland) Veterinary Services Limited
Holding company
Republic of Ireland
CVS (Ireland) Veterinary Services No.2 Limited
Veterinary services
Republic of Ireland
CVS (Netherlands) B.V.
Holding company
The Netherlands
CVS (UK) Limited
Veterinary and diagnostic services
England and Wales
Dierenziekenhuis Drachten B.V.
Veterinary services
The Netherlands
Diergeneeskundig Centrum Noord Nederland B.V.
Veterinary services
The Netherlands
Endell Veterinary Group Limited
Veterinary services
England and Wales
Greenacres Pet Crematorium Limited
Animal cremation
England and Wales
Highcroft Pet Care Limited
Veterinary services
England and Wales
Kliniek voor Gezelschapsdieren Dieren B.V.
Veterinary services
The Netherlands
Mi Vet Club Limited
Veterinary goods and services buying club
England and Wales
Okeford Veterinary Centre Limited
Veterinary services
England and Wales
Pet Doctors Limited
Veterinary services
England and Wales
Pet Emergency Treatment Services Limited
Veterinary services
England and Wales
Pet Vaccination Clinic Limited
Veterinary services
England and Wales
Precision Histology International Limited
Veterinary diagnostic services
England and Wales
Rossendale Pet Crematorium Limited
Animal cremation and provision of burial grounds England and Wales
Ruddington and East Leake Veterinary Centre Limited
Veterinary services
England and Wales
Severn Edge Equine Limited
Veterinary services
England and Wales
Severn Edge Farm Limited
Veterinary services
England and Wales
Severn Edge Veterinary Group Limited
Veterinary services
England and Wales
Silvermere Haven Limited
Animal cremation and provision of burial grounds England and Wales
Silverton Veterinary Practice Limited
Veterinary services
England and Wales
Sustainable Developments (SW) Limited
Property development
England and Wales
The Pet Crematorium Limited
Animal cremation
England and Wales
Valley Pet Crematorium Limited
Animal cremation
England and Wales
Vet Direct Services Limited
Veterinary instrumentation supply
England and Wales
Whitley Brook Crematorium for Pets Limited
Animal cremation
England and Wales
Financial Statements

140 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
16. Investments continued
b) Shares in subsidiary undertakings continued
The dormant subsidiary undertakings included within the consolidation are as follows:
Name of subsidiary
Country of incorporation
Animal Health Centre Limited
England and Wales
Anton Vets Ltd
England and Wales
Ambivet Ltd
England and Wales
Astonlee Limited
England and Wales
Charter Veterinary Hospital Group Limited
England and Wales
Cinder Hill Equine Clinic Limited
England and Wales
Corner House Equine Clinic Limited
England and Wales
Cromlynvets Limited
Northern Ireland
Darboe and Baily Limited
England and Wales
Enterprise Veterinary Services Limited
England and Wales
Greendale Veterinary Diagnostics Limited
England and Wales
Greensands Veterinary Clinic Limited
England and Wales
Gurka Animal Care Ltd
England and Wales
Insight Laboratory Services Limited
England and Wales
Keown O’Neill Limited
Northern Ireland
Newlands Veterinary Group Limited
England and Wales
OCVC Limited
England and Wales
Pet Vaccination UK Limited
England and Wales
Pets Holding Limited
England and Wales
Pharmsure UK Limited
England and Wales
Polmont Veterinary Clinic Limited
Scotland
Severn Edge Holdings Limited
England and Wales
Slate Hall Veterinary Practice Limited
England and Wales
Slate Hall Veterinary Services Limited
England and Wales
Superstar Pets Limited
England and Wales
Three Valleys Veterinary Ltd*
Northern Ireland
Total Veterinary Services Limited
England and Wales
Vet Direct Holdings Limited
England and Wales
Veterinary Enterprises & Trading Limited
England and Wales
Weighbridge Referral Service Limited
England and Wales
Western Counties Equine Hospital Limited
England and Wales
White Lodge Veterinary Centre Ltd
England and Wales
Wyatt Poultry Veterinary Services Limited
England and Wales
Your Vets (Holdings) Limited
England and Wales
*	
Companies in liquidation. 
CVS Group plc owns 100% of the Ordinary share capital of CVS (UK) Limited; the remaining subsidiaries above are indirectly 
held by CVS Group plc.
100% of the Ordinary share capital is owned for all equity shareholdings and therefore all are wholly owned.

141
CVS Group plc Annual Report and Financial Statements 2022
16. Investments continued
b) Shares in subsidiary undertakings continued 
The registered office for all United Kingdom registered subsidiary undertakings is CVS House, Owen Road, Diss, Norfolk 
IP22 4ER, with the exception of the following companies:
Name of subsidiary
Registered office address
Albavet Limited
24 Nicol Street, Kirkcaldy, Fife KY1 1NY
Axiom Veterinary Laboratories Limited
The Manor House, Brunel Road, Newton Abbot, Devon TQ12 4PB
Cromlynvets Limited
50 Old Coach Road, Hillsborough, County Down BT26 6PB
Keown O’Neill Limited
11 Church Street, Ballygawley, Co. Tyrone BT70 2HA
Polmont Veterinary Clinic Limited
Boness Road, Polmont, Falkirk FK2 0XZ
Precision Histology International Limited
The School House, One Eyed Lane, Weybread, Diss, Norfolk IP21 5TT
Three Valleys Veterinary Ltd
17 Clarendon Road, Belfast BT1 3BG 
The registered office for all Netherlands registered subsidiary undertakings is Postbus 176, 8300 AD Emmeloord. The registered 
office for all Republic of Ireland registered subsidiary undertakings is KPMG, Dockgate, Dock Road, Galway H91 V6RR.
On 19 August 2021, the Group acquired 100% of the share capital of Quality Pet Care Ltd, a company registered in England 
and Wales, for total consideration of £20.4m, including repayment of loans of £3.4m. On 22 September 2021, the 
Competition & Markets Authority (CMA) served an initial enforcement order (IEO) in respect of this acquisition and during 
the period a further £1.0m loan was provided for working capital. During the investigation, the group did not control Quality 
Pet Care Ltd due to conditions imposed by the IEO, and as such it is recorded as an investment in a subsidiary held at fair 
value, and its financial performance and position are not consolidated into those of the Group. Prior to the year-end, an 
impairment of £12.4m was recorded to the carrying amount of the investment in anticipation of a disposal, based on the 
estimated fair value, which has been recognised as an exceptional item in the income statement within administrative 
expenses. On 30 June 2022, the entire shareholding was divested with sales proceeds of £9.0m, with no gain or loss on 
disposal recorded due to the investment having already been impaired to its recoverable amount. The sales proceeds have 
been included within cash equivalents; see note 21. 
17. Derivative financial instruments
Derivatives are used for hedging in the management of exposure to market risks. This enables the optimisation of the overall 
cost of accessing debt capital markets, and the mitigation of the market risk which would otherwise arise from movements 
in interest rates.
The ineffective element of cash flow hedges in 2022 was immaterial (2021: immaterial).
Cash flow hedges
On 28 February 2020, the Group entered into an interest rate swap arrangement limiting the Group’s exposure to interest 
rate increases. The arrangement exposed the Group to Sterling LIBOR within a cash flow hedge accounting relationship. 
Following the proposed and subsequent discontinuance of Sterling LIBOR, the Group has adopted both Phase 1 and Phase 
2 of Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7). The Group debt was transitioned per 
agreement entered on 31 December 2021. The Group has also transitioned its interest rate swaps, effective from 
31 December 2021. The revised arrangements amended exposures from Sterling LIBOR to the Sterling Overnight 
Index Average Rate (SONIA), plus a credit adjustment spread.
The Group has applied the practical expedient published by the IASB, allowing the Group to account for a change in the 
contractual cash flows of the debt required by the Interest Rate Benchmark Reform by updating the effective interest rate 
and applying any changes prospectively. 
The Group has also applied the practical expedient to continue hedge accounting where changes to the hedging arrangement 
arise as a direct result of changes required by the reform. Therefore, the amount accumulated in the cash flow hedge reserve 
is deemed to be based on the alternative benchmark rate and does not require reclassification into retained earnings. 
The expedients can be applied by the Group because the transitioning of interest rate swaps and debt was necessary as a 
direct consequent of IBOR reform, and the new basis for determining the contractual cash flows is economically equivalent 
to the previous basis.
At 30 June 2022, £70.0m of debt was hedged (2021: £70.0m); the remainder of the debt was unhedged at the year end.
Financial Statements

142
CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
17. Derivative financial instruments continued
Cash flow hedges continued
Below are details of the hedging instruments and hedged items in scope of the IFRS 9 amendments due to interest rate 
benchmark reform. The terms of the hedged items listed match those of the corresponding hedging instruments.
Hedge type
Instrument type
Maturing in
Nominal
Hedged item
Cash flow hedge
Receive SONIA + credit 
adjustment spread, pay 
Sterling fixed interest 
rate swaps
2024
£70.0m
Sterling fixed rate issued 
debt of the same maturity 
and nominal of the swap
The Group classifies its interest rate swap arrangement as a cash flow hedge and utilises hedge accounting to minimise 
income statement volatility in relation to movements in the value of the swap arrangement.
The fair values of the Group’s interest rate derivatives are established using valuation techniques, primarily discounted cash 
flows, based on assumptions that are supported by observable market prices or rates (level 1).
The fair values of derivative financial instruments have been disclosed in the Group consolidated statement of financial 
position as follows:
 
2022
2021
Group
Assets 
£m
Liabilities 
£m
Assets 
£m
Liabilities 
£m
Non-current
 
 
 
 
 
Interest rate swap arrangements – cash flow hedges
2.3
—  
—
(0.4)
Movements in fair values
Group
Interest
rate swap
arrangements 
£m
Fair value at 1 July 2020
(0.9)
Fair value loss through reserves – hedged
0.5
At 30 June 2021
(0.4)
Fair value gain through reserves – hedged
2.7
At 30 June 2022
2.3
The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments deemed 
effective in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is recognised in the income 
statement only when the hedged transaction impacts the profit or loss, or is included directly in the initial cost or other 
carrying amount of the hedged non-financial items.
The cost of hedging reserve includes the effects of the changes in fair value of the time value of option when only the 
intrinsic value of the option is designated as the hedging instrument.
The changes in fair value of the time value of an option in relation to a transaction-related hedged item accumulated in the 
cost of hedging reserve are reclassified to the income statement only when the hedged transaction affects profit or loss, or 
included as a basis adjustment to the non-financial hedged item. The changes in fair value of the time value of an option in 
relation to a time-period-related hedged item accumulated in the cash flow hedging reserve are amortised to the income 
statement on a rational basis over the term of the hedging relationship.

143
CVS Group plc Annual Report and Financial Statements 2022
18. Financial instruments
Financial assets and liabilities
 
2022
2021
Group
Note
FVTPL 
- derivatives 
designated in 
hedge 
relationships
£m
FVTOCI 
- designated 
£m
Amortised 
cost 
£m
Total 
£m
FVTPL 
- derivatives 
designated in 
hedge 
relationships
£m
FVTOCI 
- designated 
£m
Amortised cost
£m
Total 
£m
Investments
16
—
0.1
—
0.1
—
0.1
—
0.1
Trade and other 
receivables*
20
—
—
42.1
42.1
—
—
39.5
39.5
Cash and cash 
equivalents
21
—
—
49.0
49.0
—
—
33.7
33.7
Derivative 
financial 
instruments
17
2.3
—
—
2.3
(0.4)
—
—
(0.4)
Borrowings
24
—
—
(84.3)
(84.3)
—
—
(83.9)
(83.9)
Trade and other 
payables**
22
—
—
(68.2)
(68.2)
—
—
(69.1)
(69.1)
Lease liabilities
14
—
—
(104.5)
(104.5)
—
—
(98.8)
(98.8)
 
 
2.3
0.1
(165.9)
(163.5)
(0.4)
0.1
(178.6)
(178.9)
*	
Trade and other receivables excludes prepayments.
**	 Trade and other payables excludes social security and other taxes.
Company
Note
2022 
£m
2021
£m
Amounts owed by Group undertakings
33
79.4
82.3
Amounts owed by Group undertakings are unsecured and interest-free and have no fixed date of repayment. Amounts owed 
by Group undertakings are measured at amortised cost.
19. Inventories
All inventories are finished goods held for resale. The Directors do not consider the difference between the purchase price 
of inventories and their replacement cost to be material.
Financial Statements

144 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
20. Trade and other receivables
 
Group 
2022 
£m
Group 
2021
£m
Company 
2022 
£m
Company 
2021 
£m
Trade receivables:
 
 
 
 
 
Within their due period
 
17.1
19.2
—
—
Past due: 
 
 
 
 
 
  Not impaired
 
10.8
7.8
—
—
  Fully impaired
 
3.9
6.4
—
—
Total trade receivables
 
31.8
33.4
—
—
Less: provision for impairment of receivables
 
(3.9)
(6.4)
—
—
Trade receivables – net
 
27.9
27.0
—
—
Other receivables
 
5.4
4.4
—
—
Prepayments
 
10.6
8.6
—
—
Accrued income
 
8.8
8.1
—
—
Total trade and other receivables
 
52.7
48.1
—
—
Group
The carrying amount of trade and other receivables is deemed to be a reasonable approximation to fair value. The 
maximum exposure to credit risk at the reporting date is the fair value of each class of receivable above with the exception 
of prepayments which hold no credit risk. The Group does not hold any collateral as security. The Group’s trade and other 
receivables are denominated in Sterling.
A provision for expected credit losses has been recognised at the reporting date through consideration of the ageing profile 
of the Group’s trade receivables and the perceived credit quality of its customers reflecting net debt due. The carrying 
amount of trade receivables, net of expected credit losses, is considered to be an approximation to its fair value. The 
amount of the expected losses was £3.9m (2021: £6.4m). The Group has not disclosed the expected loss rate as this 
varies by type of customer. Aggregate movements on the Group’s expected losses of trade receivables are as follows:
 
2022
£m
2021
£m
At the beginning of the year
6.4
6.9
(Credited)/charged to the income statement within administrative expenses
(1.4)
0.7
Utilisation of the provision during the year
(1.1)
(1.2)
At the end of the year
3.9
6.4
Other receivables do not contain impaired assets.
At 30 June 2022, there is a contract asset recorded as accrued income of £8.8m (2021: £8.1m), relating to customer 
membership schemes including the Healthy Pet Club (HPC) contract. The contract asset arises from customers having 
received consultations and treatments which are weighted towards the beginning of the twelve-month scheme, in advance 
of cash payments, as detailed more fully in note 2. Due to the nature of the scheme, the accrued income amount brought 
forward has been fully utilised in the year.
21. Cash and cash equivalents
 
Group
Company
 
2022 
£m
2021 
£m
2022 
£m
2021 
£m
Cash 
40.0
33.7  
—
— 
Cash equivalents
9.0
—  
—
—
Total cash and cash equivalents
49.0
33.7  
—
—
Cash equivalents relate to funds held in an escrow account, which are available to the Group on demand.

145
CVS Group plc Annual Report and Financial Statements 2022
22. Trade and other payables
 
Group
Company
 
2022 
£m
2021 
£m
2022 
£m
2021 
£m
Current
 
 
 
 
 
Trade payables
40.4
40.3  
—
—
Social security and other taxes
18.4
16.9  
—
—
Other payables
6.0
12.7  
—
—
Deferred income1
2.2
2.8  
—
—
Accruals
19.6
13.3  
—
—
Total trade and other payables
86.6
86.0  
—
—
1.	 Deferred income relates to the contract liability relating to the Healthy Pet Club (HPC) contract.
23. Provisions
 
 
2022 
£m
2021 
£m
At the beginning of the year
3.9
5.0
Charged to the income statement within administration expenses
1.2
0.9
Utilised in the period
(3.0)
(2.0)
At the end of the year
2.1
3.9
Provisions relate to costs set aside for properties including site closures and other property maintenance obligations. It is 
anticipated these will be utilised in the next twelve months.
24. Borrowings
Borrowings comprise bank loans and are denominated in Sterling. The repayment profile is as follows:
Group
2022 
£m
2021 
£m
Within one year or on demand
—
—
Between one and two years
84.3
—
After more than two years
—
83.9
 
84.3
83.9
The balances above are shown net of issue costs of £0.7m (2021: £1.1m), which are being amortised over the term of the 
bank loan. The carrying amount of borrowings is deemed to be a reasonable approximation to fair value.
The Group has total facilities of £175.0m. These facilities are provided by a syndicate of four banks: NatWest, HSBC, BOI 
and AIB, and comprise the following elements:
	> 	a fixed term loan of £85.0m, repayable on 31 January 2024 via a single bullet repayment; 
	> 	a four-year Revolving Credit Facility (RCF) of £85.0m that runs to 31 January 2024; and
	> a £5.0m overdraft facility renewable annually.
The two financial covenants associated with these facilities have remained unchanged, and are based on the ratios of 
bank-test net debt to bank-test EBITDA and bank-test EBITDA to interest. The bank-test net debt to bank-test EBITDA ratio 
must not exceed 3.25x. The bank-test EBITDA to interest ratio must not be less than 4.5x. The facilities require cross-
guarantees from the most significant of CVS Group’s trading subsidiaries but are not secured on the assets of the Group. 
Bank-test EBITDA is based on the last twelve months’ adjusted EBITDA performance annualised for the effect of acquisitions 
deducting costs relating to business combinations and adding back share option expense, prior to the impact of IFRS 16.
Bank covenants are tested quarterly and the Group has considerable headroom in both financial covenants and in its 
undrawn but committed facilities as at 30 June 2022. More information can be found in note 3.
Interest rate risk is also managed centrally and derivative instruments are used to mitigate this risk. On 28 February 2020, 
the Group entered into a four-year interest rate fixed swap arrangement to hedge fluctuations in interest rates on £70.0m 
of its term loan.
Financial Statements

146 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
24. Borrowings continued
At the year end £70.0m of the term loan was hedged using an interest rate swap. The remainder of the debt is not hedged. 
Further information on the cash flow hedge can be found in note 17.
Undrawn committed borrowing facilities
At 30 June 2022, the Group has a committed overdraft facility of £5.0m (2021: £5.0m) and an RCF of £85.0m (2021: £85.0m). 
Both the overdraft facility and the RCF were undrawn at 30 June 2022 and 30 June 2021.
25. Deferred tax
Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. Deferred tax balances 
are calculated using tax rates expected to apply in the period when the liability or asset is expected to be realised based on 
rates enacted or substantively enacted by the reporting date. 
Deferred tax assets comprised:
Group
2022 
£m
2021 
£m
Tax effect of temporary differences:
 
 
  Share-based payments
1.5
2.6
  Accelerated tax depreciation
—
0.2
  Derivative financial instruments
—
0.1
  Tax losses
0.2
0.1
  Other
0.1
0.1
 
1.8
3.1
The Group’s deferred tax assets have been recognised based on historical performance and future budgets. The recoverability 
of deferred tax assets is supported by the expected level of future profits. The Group believes that it is probable that there 
will be sufficient taxable profits against which the deferred tax assets will reverse.
Deferred tax liabilities comprise the excess of carrying value over the tax base.
Group
2022 
£m
2021 
£m
Tax effect of temporary differences:
 
 
  Excess of qualifying amortisation and intangible fixed assets acquired via a business combination
20.4
23.5
  Derivative financial instruments
0.6
—
  Capital allowances in excess of depreciation 
0.8
—
 
21.8
23.5
The movement in the net deferred tax assets and liabilities is explained as follows:
Group
At 1 July 
2021
£m
Credited/
(charged) 
to income 
statement
£m
Charged to
other
comprehensive
income
£m
Charged to 
statement of 
changes in 
equity 
£m
Acquisition of
subsidiary and
deferred tax
recognised in
goodwill 
£m
At 30 June 
2022 
£m
Share-based payments
2.6
0.2
—
(1.3)
—
1.5
Derivative financial instruments
0.1
—
(0.7)
—
—
(0.6)
Other temporary differences
0.1
—
—
—
—
0.1
Property, plant and equipment
0.2
(0.9)
—
—
(0.1)
(0.8)
Tax losses
0.1
0.1
—
—
—
0.2
Intangible fixed assets acquired 
via a business combination
(23.5)
3.4
—
—
(0.3)
(20.4)
(20.4)
2.8
(0.7)
(1.3)
(0.4)
(20.0)

147
CVS Group plc Annual Report and Financial Statements 2022
25. Deferred tax continued
Group
At 1 July 
2020
£m
Credited/
(charged)
to income 
statement
£m
Charged to
other
comprehensive
income
£m
Credited to 
statement of 
changes in 
equity 
£m
Acquisition of
subsidiary and
deferred tax
recognised in
goodwill 
£m
At 30 June 
2021 
£m
Share-based payments
0.2
0.6
—
1.8
—
2.6
Derivative financial instruments
0.2
—
(0.1)
—
—
0.1
Other temporary differences
0.1
—
—
—
—
0.1
Property, plant and equipment
0.6
(0.3)
—
—
(0.1)
0.2
Tax losses
—
0.1
—
—
—
0.1
Intangible assets and fixed assets acquired 
via a business combination
(21.5)
—
—
—
(2.0)
(23.5)
(20.4)
0.4
(0.1)
1.8
(2.1)
(20.4)
The deferred tax balance is non-current.
Deferred tax assets and deferred tax liabilities have been offset where they relate to the same tax authority, the Group has a 
legally enforceable right to offset and the Group intends to settle the liability and realise the asset simultaneously.
The Group has carried forward unutilised tax losses of £20.6m (2021: £4.9m) that are available indefinitely for offsetting 
against future taxable profits of Group companies within the tax jurisdiction in which the losses arose. A deferred tax asset 
has been recognised of £0.2m (2021: £0.1m) in respect of some of these losses as it is probable that sufficient future taxable 
profits will arise against which the asset will reverse. This deferred tax asset has been offset against the deferred tax liability in 
respect of intangible assets. The Group has not recognised a deferred tax asset on remaining losses of £18.9m (2021: £3.9m) 
as it is not probable that sufficient future taxable profits will arise against which the losses can be utilised.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries. The earnings are continually reinvested 
by the Group and there is no intention for these entities to pay dividends; no tax is expected to be payable on them in the 
foreseeable future.
26. Share capital
Company
2022 
£m
2021 
£m
Issued and fully paid
 
 
71,120,037 (2021: 70,753,782) Ordinary shares of 0.2p each
0.1
0.1
During the year, shares were issued for a total consideration of £2.3m (2021: £1.2m) as follows: 
2022 
shares
2021
shares
LTIP12
97,491
—
SAYE9
—
318
SAYE10
15,810
97,296
SAYE11
249,108
1,053
SAYE12
2,799
147
SAYE13
1,047
9
Total
366,255
98,823
Details of shares under option are provided in note 11 to the financial statements.
The authorised share capital of the Company is 352,000,000 Ordinary shares of 0.2p each.
Dividends
The Directors have proposed a final dividend of 7.0p (2021: 6.5p) per share, giving a total of £5.0m (2021: £4.6m). During 
the year the 2021 final dividend totalling £4.6m was paid (2021: £nil).
Financial Statements

148 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
26. Share capital continued
EBT own shares
The Group operates an EBT which holds 64 shares (2021: 710 shares). 195,000 shares were bought at open market value 
for £2.1m in the year ended 30 June 2017.
In the year ended 30 June 2017, the Group established an Employee Benefit Trust (EBT) for the purposes of satisfying 
the exercise of certain share options vesting under the Group’s LTIP and SAYE schemes. The Group has accounted for 
the purchase of the shares held by the EBT as Treasury shares and has deducted these from reserves.
During the year, the Group did not sell shares (2021: nil shares) to satisfy shares vesting under LTIP schemes. The Group sold 
646 shares (2021: 23,569 shares) to satisfy shares vesting under SAYE schemes for proceeds of less than £0.1m (2021: £0.3m).
27. Share premium
The share premium reserve comprises the premium received over the nominal value of shares issued.
28. Analysis of movement in liabilities from financing activities
Group
At 1 July 
2021 
£m
Cash flow 
£m
New leases
£m
Liabilities on
disposed leases
£m
Non-cash 
movement 
£m
At 30 June 
2022 
£m
Lease liabilities
(98.8)
16.9
(19.6)
1.3
(4.3)
(104.5)
Bank loans
(83.9)
0.1
—
—
(0.5)
(84.3)
Total liabilities from financing activities 
(182.7)
17.0
(19.6)
1.3
(4.8)
(188.8)
Group
At 1 July 
2020 
£m
Cash flow 
£m
New leases
£m
Liabilities on
disposed leases
£m
Non-cash 
movement 
£m
At 30 June 
2021 
£m
Lease liabilities
(98.6)
17.1
(15.4) 
2.1
(4.0)
(98.8)
Borrowings
(0.1)
0.1
—
—
—
—
Bank loans
(83.5)
1.0
—
—
(1.4)
(83.9)
Total liabilities from financing activities 
(182.2)
18.2
(15.4)
2.1
(5.4)
(182.7)
Non-cash movements on right-of-use assets mainly comprise interest on right-of-use lease liabilities. Non-cash movements 
on borrowings and bank loans mainly include amortisation of issue costs on bank loans and bank debt acquired. 
29. Cash flow generated from operations
 
Group
Company
 
2022 
£m
2021
£m
2022 
£m
2021
£m
Profit/(loss) for the year
25.7
19.3  
(0.6)
(0.5)
Tax expense
10.3
13.8  
—
—
Finance expense
6.8
7.0  
—
—
Amortisation of intangible assets
22.2
23.8  
—
—
Depreciation of property, plant and equipment
11.3
10.3  
—
—
Depreciation and impairment of right-of-use assets
14.1
14.0
—
—
Profit on sale of property, plant and equipment and right-of-use assets
(0.3)
—
—
—
Increase in inventories
(6.6)
(0.4)  
—
—
(Increase)/decrease in trade and other receivables
(3.2)
(3.4)  
2.9
(0.7)
Decrease in trade and other payables
(0.1)
(5.2)  
— 
—
Decrease in provisions
(1.8)
(1.1)  
—
—
Share option expense
2.3
2.2  
—
—
Exceptional items
12.4
—  
—
—
Total net cash flow generated from/(used in) operations
93.1
80.3  
2.3
(1.2)

149
CVS Group plc Annual Report and Financial Statements 2022
30. Guarantees and other financial commitments
Capital commitments
The Group had no capital commitments as at 30 June 2022 (2021: £nil).
Bank guarantees
The Company is a member of the Group’s banking arrangement, under which it is party to unlimited cross-guarantees 
in respect of the banking facilities of other Group undertakings, amounting to £175.0m at 30 June 2022 (2021: £175.0m). 
The Directors do not expect any material loss to the Company to arise in respect of the guarantees.
Contingent liabilities
A letter of support has been provided to certain subsidiaries indicating the intention of the Company to support them, 
if required, for a period of a minimum of twelve months from the date of signing their financial statements.
Exemption from audit by parent company guarantee
The following wholly owned subsidiaries of the Company are covered by a guarantee provided by CVS Group plc and are 
consequently entitled to an exemption under Section 479A from the requirement of the Act relating to the audit of individual 
accounts. Under this guarantee, the Group will guarantee all outstanding liabilities of these entities. The Group has deemed 
it not practical to quantify the possible outflow and no liability is expected to arise under the guarantee. The entities covered 
by this guarantee are disclosed below.
Name of subsidiary
Company number
Albavet Limited
SC275059
Axiom Veterinary Laboratories Limited
02526935
B & W Equine Group Limited
06777468
Charter Veterinary Hospital Group Limited
12941058
Endell Veterinary Group Limited
08078309
Greenacres Pet Crematorium Limited
07877237
Greendale Veterinary Diagnostics Limited
05138112
Highcroft Pet Care Limited
07238070
Insight Laboratory Services Limited
06353163
Mi Vet Club Limited
08365201
Okeford Veterinary Centre Limited
05984705
Pet Vaccination UK Limited
05391973
Pet Vaccination Clinic Limited
03252801
Pets Holding Limited
11161672
Pet Emergency Treatment Services Limited
03586933
Rossendale Pet Crematorium Limited
01409643
Ruddington and East Leake Veterinary Centre Limited
04551334
Severn Edge Equine Limited
09524486
Severn Edge Farm Limited
09521408
Severn Edge Holdings Limited
09522086
Severn Edge Veterinary Group Limited
09523786
Silvermere Haven Limited
02187947
Silverton Veterinary Practice Limited
08101117
Slate Hall Veterinary Services Ltd
08390278
Sustainable Developments (SW) Limited
05174372
The Pet Crematorium Limited
03442460
Valley Pet Crematorium Limited
04961306
Vet Direct Services Limited
05167635
Vet Direct Holdings Limited
06746630
Veterinary Enterprises & Trading Ltd
03495054
Whitley Brook Crematorium for Pets Limited
04734723
Wyatt Poultry Veterinary Services Limited
05780117
Your Vets (Holdings) Limited
07071834
Financial Statements

150 CVS Group plc Annual Report and Financial Statements 2022
Notes to the consolidated financial statements continued
for the year ended 30 June 2022
31. Pension schemes
The Group contributes to certain employees’ personal pension schemes in accordance with their service contracts. The 
amounts are charged to the income statement as they fall due. The amounts charged during the year amounted to £5.9m 
(2021: £5.0m). The amount outstanding at the year end included in trade and other payables was £1.1m (2021: £0.9m).
32. Events after the reporting period
On 27 July 2022, the Group completed the purchase of 100.0% of the share capital of Werrington Vets Limited, a company 
registered in England and Wales, for initial cash consideration of £4.3m. This is a business comprising one companion animal 
veterinary practice site in the UK, aligned with the Group’s strategic goals. Further information can be found in note 15.
On 16 September 2022, the Group completed the purchase of 100.0% of the share capital of Woodlands Veterinary Clinic 
Limited, a company registered in England and Wales, for initial cash consideration of £3.5m. This is a business comprising 
two companion animal veterinary practice sites in the UK, aligned with the Group’s strategic goals. Further information can 
be found in note 15.
33. Related party transactions
Directors’ and Key Management’s compensation is disclosed in note 8.
Company
During the year the Company had the following transactions with CVS (UK) Limited:
 
2022
£m
2021
£m
Recharge of expenses incurred by CVS (UK) Limited on behalf of the Company
(0.6)
(0.5)
Cash advanced to fund payment of dividend
(4.6)
—
The following balances were owed by related companies:
 
2022
2021
 
Receivable
£m
Payable
£m
Receivable
£m
Payable
£m
CVS (UK) Limited
79.4
—  
82.3
—
Amounts owed by CVS (UK) Limited are unsecured and interest free and have no fixed date of repayment.
Transactions with Directors and key management
During the year, the following dividends were paid to the Directors of the Group: R Connell – £10,693; D Kemp – £426; 
R Gray – £325; R Fairman – £1,158; and B Jacklin – £306. Dividends were also paid to the spouses of R Fairman and R Alfonso 
of £709 and £130, respectively (2021: no dividend paid).
Ultimate controlling party
The Directors consider there is no ultimate controlling party.

151
CVS Group plc Annual Report and Financial Statements 2022
 
2022
£m
2021
£m
2020
£m
2019
£m
2018
£m
Revenue
554.2
510.1
427.8
406.5
327.3
Gross profit
239.1
221.9
170.1
168.9
151.6
Operating profit
42.8
40.1
18.5
15.6
17.7
Finance expense
(6.8)
(7.0)
(8.6)
(3.9)
(3.6)
Profit before tax
36.0
33.1
9.9
11.7
14.1
Tax expense
(10.3)
(13.8)
(4.2)
(3.5)
(3.4)
Profit for the year
25.7
19.3
5.7
8.2
10.7
Adjusted EBITDA
107.4
97.5
71.0
54.5
47.6
Adjusted profit before tax
75.5
66.2
38.2
41.4
36.0
Cash generated from operations
93.1
80.3
94.8
52.1
46.7
Taxation paid
(11.2)
(13.0)
(9.5)
(7.3)
(6.2)
Interest paid
(6.4)
(7.1)
(7.0)
(3.4)
(3.1)
Business combinations (net of cash acquired)
(8.4)
(19.4)
(7.2)
(56.6)
(50.3)
Loans and borrowings acquired through 
business combinations
(0.1)
(1.0)
—
(1.5)
(3.1)
Purchase of property, plant and equipment and 
intangible assets
(24.5)
(16.6)
(12.4)
(12.9)
(10.7)
Proceeds from sale of property, plant and equipment 
and intangible assets 
0.2
0.6
—
—
—
Purchase of other investments
(21.4)
—
—
—
—
Proceeds from sale of other investments
9.0
—
—
—
—
Dividends paid
(4.6)
— 
(3.9)
(3.5)
(2.9)
Proceeds from Ordinary shares
2.3
1.2
0.1
0.6
61.0
Proceeds from Treasury shares
— 
0.3
0.9
—
—
Repayment of obligations under right-of-use assets
(12.7)
(13.0)
(14.2)
—
—
Amortisation of debt issuance costs
(0.4)
(0.4) 
(1.0)
(0.5)
(0.4)
Exceptional items
— 
—
(0.7)
—
—
Decrease/(increase) in net debt
14.9
11.9
39.9
(33.0)
31.0
Year-end net debt
35.3
50.2
62.1
102.0
69.0
 
Pence
Pence
Pence
Pence
Pence
Basic earnings per share
36.2
27.3
8.1
11.6
16.0
Adjusted basic earnings per share
85.8
75.1
42.0
46.7
42.4
Five-year history – unaudited
for the year ended 30 June 2022
Financial Statements

152 CVS Group plc Annual Report and Financial Statements 2022
Contact details and advisors
Registered office
CVS House  
Owen Road  
Diss  
Norfolk 
IP22 4ER
Nominated advisor and broker 
Peel Hunt LLP
7th Floor  
100 Liverpool Street  
London  
EC2M 2A
Joint broker 
Berenberg
60 Threadneedle Street 
London  
EC2R 8HP
Financial Public Relations
MHP Communications
4th Floor 
60 Great Portland Street 
London 
W1W 7RT
Company Secretary
J Farrer
Bankers
NatWest Bank plc 
Gentleman’s Walk  
Norwich 
NR2 1NA
HSBC Bank plc 
8 Canada Square  
London 
E14 5HQ
Bank of Ireland Group plc
40 Mespil Road 
Dublin 4 
Republic of Ireland
Allied Irish Banks plc
10 Molesworth Street 
Dublin 2 
Republic of Ireland
Rabobank
Willemskade 1 
8011 AC Zwolle  
Netherlands
Ulster Bank Limited 
33 Eyre Square  
Galway 
H91 HY96 
Republic of Ireland
Independent auditor
Deloitte LLP
1 Station Square  
Cambridge 
CB1 2GA
Legal advisors
Leathes Prior 
74 The Close  
Norwich 
NR1 4DR
DLA Piper UK LLP 
Victoria Square House  
Victoria Square  
Birmingham 
B2 4DL
Eversheds Sutherland
115 Colmore Row 
Birmingham 
B3 3AL

CBP014813
CVS’s commitment to environmental issues is reflected in this Annual Report, 
which has been printed on Galerie Satin, an FSC® certified material.
This document was printed by Park Communications using its 
environmental print technology, which minimises the impact of printing 
on the environment, with 99% of dry waste diverted from landfill. Both the 
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CVS Group plc
Owen Road
Diss
Norfolk 
IP22 4ER
01379 644288
Company No. 06312831