Ongoing strength. Today’s trading statement highlights that the improved CVS performance first seen in 2H19 (and already flagged for July/August) has continued into September/October. In the four months to 31-Oct-19, group sales increased 16.8% with like-for-like growth at 8.0%. Within the practice division, like-for-like growth was 7.4%. In our view, this implies practice like-for-like growth in September/October having accelerated to a high single-digit %. Per management commentary, improved growth has been driven by a continuing focus on advanced clinical work (improved volume/value of referrals), as well as price increases in both Healthy Pet Club (Feb-19) and on vet fees (this year recorded in July rather than later in the year). Management highlighted the positive trends seen for July/August regarding gross margins, employment costs and vet vacancy rates which have continued at a similar level. Continued focus on organic growth. The group completed only one additional practice acquisition thus far in FY20E. As such, as at 31-Oct-19, net bank borrowing was at a similar level to end-FY19 (c.£96m) while leverage (on a bank test basis) has reduced to c.1.8x (vs 2.1x at end-FY19E), given the EBITDA growth. We update estimates and valuation to reflect current trading. By modelling improved like-for-like growth across the business, we raise our revenue and underlying EBITDA forecasts by c.2-4%. p.a. Our underlying EPS estimates increase 2.5%-4.0% p.a. (see full report). Our primarily DCF-based valuation increases by 50p. AGM today. CVS is holding its AGM at 11.00am today at the Crowne Plaza Birmingham City Centre, Central Square, Holiday Street, Birmingham.