Merchandising and vet services set tails wagging at Pets at Home

Pets at Home Group’s merchandising and vet services are continuing the Cheshire-based company’s positive momentum.

Revenue in the 28 weeks to October 12 climbed 6% to £468m, although statutory pre-tax profit fell from £46m in the same period in 2016 to £40m.

Veterinary business growth remained strong with total income from joint venture practices up 16.1% to £28m and specialist referral centres growing revenues at double digit levels.

Group chief executive Ian Kellett, who has also announced his intention to step down soon, said: “Our strategic progress and trading momentum have steadily improved through the first half of the financial year.

“In the merchandise business, our like-for-like sales grew by 5.1% in the second quarter, driven by our pricing changes, omnichannel offer and product innovation.

“Our veterinary business is taking market share and hitting the revenue and profit growth levels expected from both the first opinion practices and specialist referral centres.

“We see the potential for significant future profit growth in our Vet Group, where 75% of practices are yet to mature.

“We are confident we are taking the right actions to reposition our merchandise business and having seen the results from our initial investments, we are accelerating our plans. There remains much to do and we will continue to evolve our strategy and adapt to customers’ needs in what remains a competitive market place.”

As part of the board’s succession plan, the company has also announced that Peter Pritchard, currently chief executive of retail, will succeed Kellett when he leaves.