Last week, our portfolio performed solidly across the board. All holdings gained value, but CVS Group and Zalando stood out with the strongest rallies. We also added Getty Images to our watchlist due to an upcoming regulatory milestone later this month. Depending on the CMA’s decision, Getty may become our next addition—or be dropped from consideration.
🐾 CVS Group
CVS Group shares surged over 10% on Tuesday after the veterinary services provider reported FY25 adjusted EBITDA of £134.6 million, slightly above the consensus estimate of £131 million. Like-for-like sales rose 0.2%, below the company’s target range of 4–8%. Adjusted earnings per share fell 3.8% to 80.1p, reflecting higher depreciation, amortization, finance, and tax expenses.
The company continues expanding in Australia, completing seven acquisitions (15 sites) in FY25 for £29.2 million, following 22 deals (28 sites) in FY24. Two more acquisitions—eight sites—were completed in early FY26, bringing the Australian network to 31 practices across 51 sites, with further deals expected.
M&A activity in the UK remains on hold pending the outcome of the CMA’s market investigation into the veterinary sector. The regulator is expected to publish its final remedy proposal by the end of October. If the outcome is favorable, it could further boost CVS’s share price.
👗 Zalando
Zalando rose around 5% last week, without any direct company news. However, the German competition authority opened an investigation into Temu, examining whether the Chinese platform has imposed unlawful pricing restrictions on merchants selling via temu.com in Germany.
The inquiry will review Temu’s merchant terms and pricing controls, assessing whether they prevent sellers from setting their own prices. If confirmed, such conduct could amount to a vertical restraint under German and EU competition law and lead to significant fines. The market may be anticipating a competitive tailwind for established players like Zalando.
📸 Getty Images
Getty Images and Shutterstock are progressing with their proposed $3.7 billion merger, and an important regulatory milestone is approaching. The UK CMA is expected to issue its Phase I decision on October 20. Given the overlaps between the two firms, a Phase II investigation appears likely.
If the CMA launches a deeper probe and the stock reacts negatively—as typically happens—we’ll assess whether to open a position. Should that happen, we’ll share a detailed explanation of our rationale and expected upside.
🏦 Bank Pekao, Safran, GXO, Indra
No meaningful updates to report this week for these holdings.
