Why Reported Profit Figures Vary So Much
- Owner remuneration
- The largest cause. A practice where the owner takes a modest salary reports far higher profit than an identical practice where the owner is paid properly. Until owner pay is normalised to a market rate, no two practices are comparable.
- Property
- A practice owning its freehold with no rent charge shows better profit than one paying market rent for the same building.
- Practice type
- Small animal, equine, farm and referral practices have different cost structures. Averaging them produces a number that describes none of them.
- What is counted as profit
- Operating profit, profit before tax, EBITDA and normalised EBITDA are four different numbers, and they are quoted interchangeably.
The Comparison That Actually Works
Normalised EBITDA as a percentage of turnover, after substituting a market rate salary for the working owner and a market rent where premises are owned. That is the figure a buyer uses, a lender uses and a benchmark survey should use.
Calculate yours on that basis before comparing it to anything, otherwise you are comparing your practice after owner pay to someone else practice before it.
What Drives the Difference Between Practices
In our experience the gap between a strong and a weak practice of the same size and type comes down to four things: whether pricing has been rebuilt from cost recently, how much work is done and not charged, the gross margin achieved on medicines and consumables, and whether the team shape matches demand.
None of those is about working harder. Practices at the weaker end are frequently the busiest.
Where to Find Sector Data
The SPVS fees and profitability surveys are the established UK reference and are worth participating in as well as reading. Treat published medians as a middle point rather than a target, and check the definitions before drawing conclusions from any single figure.
Written by Veterinary Accountants UK editorial team. Published 3 August 2026.
Last reviewed 3 August 2026. [REVIEWER DETAILS REQUIRED BEFORE PUBLICATION]
Sources
- SPVS surveys, Society of Practising Veterinary Surgeons