Activist investor Kelso Group Holdings has announced its latest investment in CVS Group, a leading integrated veterinary service provider.
It follows the purchase of 130,000 shares at an average price of 1,387p in recent weeks. CVS’s market capitalisation was £971m at the close of business yesterday (February 16th).
On the back of the news CVS’s share price spiked to 1,408p, giving it a market cap of £989m.
Kelso, which is also an investor in NCC Group and THG, recently invested in over-50s group Saga and saw a 40 per cent rise in its investment in the first six weeks
Kelso sees 40% spike in Saga investment in less than a month
Sir Nigel Knowles, chairman of Kelso, said: “CVS has built a high-quality resilient platform operating in a structurally attractive market and has delivered an exceptional long-term record of consistent growth.
“Kelso’s investment reflects our conviction that the current valuation does not reflect the strength of the business, the quality of its earnings or its long-term strategic value.
“We believe disciplined capital allocation will be increasingly important in unlocking future shareholder value.
“Kelso is a supportive long-term shareholder, and we look forward to engaging constructively with management over time.
“Our objective is to see CVS continue to develop as a UK-listed success story and to ensure that shareholders fully benefit from this potential.
“As a pet owner myself, I am well aware how much care and investment goes into ensuring an animal’s long-term health, which reinforces my conviction in the strength of this market and the appeal of CVS as an investment.”
Kelso raised £2.1m through a new share placing in December 2025 and expects to announce other new investments during 2026.
CVS listed on AIM in October 2007 with a market capitalisation of £105m.
Since then, its market capitalisation has grown to just under £1bn, representing one of the LSE’s most consistent long-term growth stories.
Kelso believes that CVS’s near 20-year record of uninterrupted revenue and EBITDA growth places it amongst the most successful and consistent growth companies listed on the UK markets.
Since IPO in 2007, revenue has increased from £39m to £673m as of June 2025, implying a CAGR of c.17 per cent. EBITDA has grown from £5.1m to c.£134m as of June 2025.
CVS has expanded from 128 veterinary practices at IPO to c.470 across the UK and Australia as of January 2026.
Pet ownership increased significantly during the Covid pandemic, with the UK dog population estimated to have risen 13.4 per cent between 2021 and 2023 from 9.7 million to 11 million.
Kelso is a listed investment vehicle founded in November 2022 which is backed now by 75 individuals known to the board and more recently a small number of institutions.
Kelso’s aim is to actively help its investee companies by offering constructive advice, support and ideas predominantly around investor relations and strategy in order to unlock trapped value. Kelso’s current principal holdings are CVS Group Plc, Saga plc, NCC Group plc, THG plc, Angling Direct plc, The Works.co.uk Plc and Selkirk plc.