Vets to be legally required to publish price lists and cap prescription fees

Dan Coatsworth, head of markets at AJ Bell, said: “There is long-awaited clarity on reforms to the vet sector.

“Vets must now cap prescription fees and publish price lists to improve transparency and make it easier for customers to compare costs and shop around.

“The competition watchdog has been sniffing around the sector for some time, casting uncertainty over the likes of CVS and Pets at Home.

“Shares in both companies have bounced on the reforms as the new rules provide clarity to investors on the lay of the land.

“The reforms are expected to drive down prices which isn’t good for CVS and Pets at Home’s earnings prospects, but so much bad news around potential changes to the sector have already been priced into their shares.

“Their job is to now gain customers’ trust and win more business.”