Retailer’s share price soars to record high on upbeat profit forecast
The share price of Cheshire retailer Pets at Home hit an all-time high today after predicting profits would be higher than expected this year.
Its shares had already recovered from the market fall caused by the coronavirus lockdown and today soared 27% – adding more than £400m to the company’s market value.
In a statement to the stock market, the FTSE 250 company said: “As a consequence of the sustained strength in performance we have seen, we now expect full-year underlying pre-tax profit to be ahead of current market expectations.”
The 450-store retailer also has veterinary surgeries and generates £1bn a year in revenues.
AJ Bell investment director Russ Mould said: “In the past less than flawless execution and the competitive threat posed by non-specialists like supermarkets has undermined what arguably should be quite a compelling story.
“But assuming the recently stricter restrictions introduced in the UK don’t trip the company up then it looks like it may have started to get its act together.
“Demand for the pet care services and products offered by the chain could prove resilient, particularly as there are signs that pet ownership is going up.”