Source: Sharecast
The company said that since listing on AIM in October 2007, it has delivered "strong" revenue and profit growth, "significant" shareholder returns and "built a broad and supportive shareholder base".
"The board acknowledges that AIM has been a valuable platform for the group over many years and has been an important stepping stone to establish CVS as a leading veterinary services company in the UK with a fast-growing presence in Australia," it said.
"Following thorough consideration of the merits of transitioning to the Main Market, as well as the clarity afforded by the CMA's provisional decision report published on 15 October 2025 and the positive momentum in like-for-like sales performance from Q4 FY2025 which has continued into Q1 FY2026, the board has determined that such a move will provide access to deeper pools of capital across a broader range of investors, offer the potential for index inclusion, improve trading liquidity, and enhance the group's corporate profile."
CVS expects to be admitted to the Main Market in early Q1 of calendar year 2026, subject to regulatory approval from the Financial Conduct Authority. The group said it does not plan to raise funds in connection with admission or the publication of the prospectus, and admission is not expected to be conditional on shareholder approval.
Chair David Wilton said: "The board has reached the decision to move up to the Main Market after carefully considering the merits and potential demerits of such move and evaluating the process involved. We believe it is, as a listed company, in CVS's best interest to do so as it will provide access to deeper pools of capital across a broader range of investors, offer the potential for index inclusion, improve trading liquidity, and enhance the group's corporate profile.
"We are grateful to our shareholders for their long-term support particularly through the period of uncertainty in the past two years since the CMA launched their market review in September 2023. We look forward to working with all our stakeholders in our next phase of growth."
Also on Friday, CVS announced a buyback programme to return up to £20m to shareholders.
"Taking into account the group's attractive pipeline of acquisitions in Australia and capital investment commitments which the group expects to continue into FY26, as well as the opportunity for further acquisitions in the UK in due course, the group continues to have significant headroom under its committed facilities and leverage at 1.18x as at 30 June 2025, well below its stated target of less than 2.0x," it said.
As a result, CVS said the buyback is appropriate and is consistent with its stated capital allocation policy.
Broker Peel Hunt, which rates the shares at 'buy' with a 1,600p price target, said: "In our view, this move makes sense given the benign outcome of the CMA review and the improvement in LFL sales.
"There is also significant balance sheet capacity to deliver on the acquisition pipeline and undertake the buyback. On our estimates, the shares continue to offer material upside and are trading on 8.8x EV/EBITDA to June 2026E."
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "The news follows last week’s long-awaited provisional decision from the Competition and Markets Authority (CMA), which had been looking into the sector amid concerns about pricing and ownership disclosure.
"The CMA’s proposed remedies focused on improving price transparency for pet owners, with little in the way of price controls and no suggestion of a break-up of the group.
"The move to the main market should give CVS Group access to deeper pools of capital and increase trading liquidity, and is expected to be completed early in 2026, subject to FCA approval."
