IVC Evidensia flags £34mn UK competition probe cost as EQT weighs exit options

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IVC Evidensia UK probe cost

Highlights

IVC Evidensia incurred £10.6mn in CMA compliance costs for 2025, following £24mn spent the previous year, with total regulatory probe costs reaching £34mn.
CMA concluded its UK veterinary sector review in March, capping first prescription fees at £21 and requiring greater price transparency but avoiding broader price controls.
IVC's adjusted EBITDA rose 4% to £719.6mn in 2025, revenue was flat at £3.42bn, and statutory losses widened to £904mn due to an £818mn writedown on its Canadian business.

Regulatory costs and exit planning

As reported by Financial Times, newly filed Companies House accounts show IVC Evidensia spent £10.6mn on costs relating to compliance with the Competition and Markets Authority investigation in the year to the end of September 2025, after spending £24mn the previous year.

The CMA review began in September 2023, at a time when EQT had been considering next steps for the veterinary group. The regulator concluded its investigation into the sector in March, clearing the way for the owner to prepare for a possible exit through a stock market listing or a sale, although people familiar with the business say no final decision has yet been made.

IVC has been in early discussions with advisers about a potential multibillion-pound listing in London or elsewhere in Europe. EQT has owned the business for about a decade, while Nestlé holds a stake through Purina PetCare and Silver Lake is also invested in the company.

Market impact and financial performance

The CMA ruled that UK vets can charge a maximum of £21 for the first prescription, while capping some medicine prices and requiring greater price transparency. Analysts say the sector is largely relieved that the outcome does not include wider price controls or ongoing monitoring of the industry.

The regulator found average prices at practices owned by Medivet, IVC, CVS, VetPartners and Linnaeus were 18.3 per cent higher than at independent practices for consultations, treatments and medicines. It also said practices must be clearer when they are part of a chain.

Large veterinary chains control about 60 per cent of the UK's £6.7bn market, and IVC remains the biggest player in the country. The group operates 2,600 sites across 19 countries and says it cares for 190,000 animals a week.

Adjusted earnings before interest, tax, depreciation and amortisation rose 4 per cent to £719.6mn from £693.3mn in 2025, while revenue is flat at £3.42bn. Statutory losses widen to £904mn from £309mn, mainly because of an £818mn writedown of its Canadian business following the 2021 acquisition of Vet Strategy.

Chief executive Simon Smith says IVC delivers a robust performance despite challenging market conditions, while investing about £120mn in practices, equipment, training, and mergers and acquisitions, with 122 locations joining in 2025. He adds that the company remains well positioned for long-term clinical care delivery and sustainable growth.

Our earlier report on the UK’s rapid prime-minister turnover looked at how repeated leadership changes have fuelled concerns about short-term policymaking and weak follow-through on structural challenges. It also outlined proposals for a more durable, independent framework to set long-term national priorities across political cycles, giving businesses and institutions a clearer basis for planning and accountability.

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