UK veterinary group CVS is to sell its operations in the Republic of Ireland and the Netherlands for just €2 to Global Veterinary Excellence, owned by vet James Cahill

Cahill previously worked for CVS, including being a former director of its subsidiary companies.

The cash consideration for the disposal of these operations is €2 and CVS is providing a £600,000 unsecured loan at a market rate to Global Veterinary Excellence.

The completion of this deal is expected within the next fortnight.

Combined loss

CVS said its Irish and Dutch operations made a combined loss of £0.2m (adjusted for earnings before interest, tax, depreciation and amortisation) in the financial year to June 2023.

Projections for the financial year to June 2024, taking into account a number of factors, CVS said, indicate a loss of £2m (again, adjusted for earnings before interest, tax, depreciation and amortisation).

It is anticipated that CVS will make a non-cash writedown in its financial year 2024 accounts in relation to the disposal of its Irish and Dutch operations.

Growth strategy

A statement from CVS said its practices in Ireland and the Netherlands have had a “negative contribution” to the group's operating cashflows.

“Significant management focus would be required to address operational performance.

“Therefore, following their disposal, it is expected that more capital will be able to be allocated to the group's growth strategy and management will be free to focus on the delivery of the group's growth strategy,” it added.

CVS chief executive officer Richard Fairman said the Irish and Dutch practices “no longer fit” with the group’s strategy.

“We have exciting plans to expand in Australia and this disposal will free up working capital and management capacity to support our continued expansion.

“We are delighted to have found a solution that enables our former colleagues to continue to deliver high-quality veterinary care in the Netherlands and Republic of Ireland and wish James and Global Veterinary Excellence Ltd well as an independent business,” he added.