CVS Group
Website:
CVS Group
Index:
AIM
EPIC: CVSG
Supersector:
Retail
Sector:
General Retailers
Subsector:
Specialized Consumer Services
Market Cap:
£847.19M
Payout Frequency: Annual
CVS Group Dividend Analysis and Summary
Dividend Details
- Declared: Final dividend of 8.5p per share (FY24: 8.0p, +6.3%)
- Policy: Board reiterates a progressive dividend policy
- Ex-dividend date: 06/11/2025
- Record date: 07/11/2025
- Payment date: 05/12/2025
- Approval: Subject to shareholder approval at the AGM on 18/11/2025
- Indicative yield: c.0.7% on the year-end share price of 1,250p (final dividend only)
Payout Capacity and Coverage
- Adjusted EPS: 80.1p; final dividend cover c.9.4x
- Free cash flow (FY25): £72.2m; estimated cash cost of final dividend c.£6.1m (c.12x FCF cover)
- Adjusted operating cash conversion: 76.9% (vs 70.1% FY24)
- Leverage: 1.18x (bank test), well below the <2.0x target ceiling; facilities of £350m to Feb 2028 with ample headroom
Context and Notable Items
- Revenue: £673.2m (+5.4%); Adjusted EBITDA: £134.6m (+9.4%), margin 20.0%
- Statutory profit boosted by the sale of Crematoria; core PBT down on higher finance and depreciation costs
- Like-for-like sales: Group +0.2% (Practices +1.0%) with stronger Q4 momentum
- Capital allocation: Ongoing capex (£33.2m continuing ops) and Australia M&A (£29.2m in FY25; further £23.6m post year-end)
Structural Changes / Events Affecting Dividend Outlook
- Divestment of UK Crematoria for £42.3m (10x adj. EBITDA), strengthening the balance sheet and funding expansion
- Inorganic growth continues in Australia, including deals with non-controlling interests (70%/75% stakes), modestly reducing attributable cash inflows to the Group
- CMA market investigation in the UK ongoing; provisional decision expected mid-October 2025 with potential remedies (e.g., joint branding, standardised price lists)
Assessment for Dividend-Focused Investors
- Sustainability: Very strong based on low payout, robust FCF, improved cash conversion, and low leverage. Interest cover remains healthy and facilities extend to 2028.
- Growth trajectory: Final DPS up 6.3%; management reiterates a progressive policy. With consensus FY26 adjusted EBITDA around £141m, capacity for continued DPS growth looks intact, assuming stable trading and ongoing cash generation.
- Support from financials and capital allocation: Dividend is clearly a secondary but reliable use of cash after disciplined capex (c.£30–50m p.a.) and acquisitions (~£50m p.a. subject to timing), consistent with a growth-first strategy and leverage cap at <2.0x.
Risks and Flags to Dividend Stability
- CMA outcome risk: Remedies could pressure UK pricing, disclosure and margins; heightened sector scrutiny may weigh on growth and sentiment.
- Cost inflation: UK wage and Employers’ NI increases (annualised c.£11m) may compress margins if not offset by efficiencies and price/mix.
- Operational soft spots: Laboratories lost a major customer; online retail declined; UK LFLs modest. Execution on efficiency and Australia expansion key.
- RDEC dependence: Research & Development Expenditure Credit of £15.1m materially supports EBITDA; changes to RDEC could affect reported profitability and cash.
- FX/structure: Expanded Australia footprint introduces FX translation volatility and NCI leakage, though balance sheet strength mitigates.
Read more
CVS Group Annual Dividend Yield - 0%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
Total (Annual Dividends Per Share):
0.00p
Dividend Yield =
Annual Dividends Per Share (0.00p)
÷ Share Price (1148p)
= 0%
CVS Group Dividend History
| Ex Dividend Date | Payment Date | Type | Amount | Currency |
| 06/11/2025 | 05/12/2025 | Final | 8.50p | GBX |
| 31/10/2024 | 29/11/2024 | Final | 8.00p | GBX |
| 02/11/2023 | 08/12/2023 | Final | 7.50p | GBX |
| 17/11/2022 | 02/12/2022 | Final | 7.00p | GBX |
| 18/11/2021 | 03/12/2021 | Final | 6.50p | GBX |
| 21/11/2019 | 06/12/2019 | Final | 5.50p | GBX |
| 22/11/2018 | 07/12/2018 | Final | 5.00p | GBX |
| 23/11/2017 | 08/12/2017 | Final | 4.50p | GBX |
| 24/11/2016 | 09/12/2016 | Final | 3.50p | GBX |
| 26/11/2015 | 11/12/2015 | Final | 3.00p | GBX |
| 04/12/2014 | 22/12/2014 | Final | 2.50p | GBX |
| Year | Final | Currency | Total | Change (%) |
| 2023 | 7.500 | GBX | 7.500 | 7.14 |
| 2022 | 7.000 | GBX | 7.000 | 7.69 |
| 2021 | 6.500 | GBX | 6.500 | 18.18 |
| 2019 | 5.500 | GBX | 5.500 | 10.00 |
| 2018 | 5.000 | GBX | 5.000 | 11.11 |
| 2017 | 4.500 | GBX | 4.500 | 28.57 |
| 2016 | 3.500 | GBX | 3.500 | 16.66 |
| 2015 | 3.000 | GBX | 3.000 | 20.00 |
| 2014 | 2.500 | GBX | 2.500 | |
CVS Group Dividend Calculator
CVS Group Dividend Growth
| Dividend Growth (1Y) |
6.25%
|
| Dividend CAGR (5Y) |
5.51%
|
| Years of Growth |
13
|
| Payout Ratio |
10.8%
|
| Buyback Yield |
-0.19%
|
| Shareholder Yield |
0.52%
|
CVS Group Valuation & Profitability
| P/E Ratio (TTM) |
45.27
|
| Forward P/E |
13.4
|
| P/FCF |
15.21
|
| Earnings Yield |
6.23%
|
| FCF Yield |
6.57%
|
| ROE |
6.79%
|
| ROCE |
8.69%
|
| Profit Margin |
7.84%
|
| Operating Margin |
7.4%
|
| Gross Margin |
42.44%
|