Profits up as vets and grooming boosts Pets at Home
PETS at Home, the country’s largest retailer of pet food, accessories and provider of services such as dog grooming and vet practices, has reported strong half year results.
The Handforth-based company, which now has more than 400 shops across the country, also revealed that it expects the introduction of the new National Living Wage will cost it £2m in higher salaries for its staff.
Its figures for the 28 weeks to October 8 showed an 11.8% hike in underlying pre tax profit, which excluding a non-cash exceptional interest charge of £4.3m, came in at £45.2m,
As indicated in an earlier trading update, revenues rose 6% to £404.5m, with like-for like growth of 1.8%.
The company said merchandise revenues rose 4.1% to £362.6m: Food revenues were up 7.1% to £202.1m, with Advanced Nutrition growing 13.7% to £85.8m. Accessories revenues up 0.6% to £160.5m, offset by continuing challenge to Health & Hygiene product sales
Strongest growth came from Services revenues up 26.2% to £41.9m, reflecting growth in both mature and maturing vets and groomers, and good performance from Northwest Surgeons, its Cheshire-based specialist referral hospital acquired at the start of the financial year.
Chief executive Nick Wood said: “Our core strategic drivers remain strong and I am pleased with the progress we have made in the first half of the year, highlighted by a 13.4% rise in earnings per share.
“Pet services have again grown significantly, benefitting from sustained organic growth in both our vet and grooming businesses, together with encouraging results from the acquisition of our first specialist referral hospital. In Merchandise we continue to lead the market and grow our share in Advanced Nutrition foods.”
“We have strengthened the business further through the implementation of our new divisional structure, whilst investment in our colleagues and seamless shopping experience continues to build our competitive and strategic strength.”
The company raised its interim dividend by 11.1% to 2.p per share and said membership of its VIP Club loyalty scheme had increased by 700,000 to 3.9 million in the period.
