Maiden dividend after strong first half for Pets at Home
PETS at Home, the North West retailer which was one of a clutch of big-ticket IPOs this year, has reported strong half year results as it continued its new store roll-out programme, improved margins and like-for-like sales.
The Handforth-based group also announced its maiden dividend payment of 1.9p per share as Nick Wood the chief executive of the 385 store chain said Pets at Homes is confident of future prospects.
In the 28 weeks to October 9 revenues grew 10.2% to £381.5m and underlying ebitda was up 10.8% to £58.6m, despite a £1.4m increase in operating costs as a result of its listing.
Pets at Home said its like-for-like sales growth was 4.2%, driven by strength in its advanced nutrition, health & hygiene categories its popular VIP Club loyalty scheme, growth from its vet practices and groom rooms and also omnichannel sales.
Highlights of the period included opening eight new stores, 26 veterinary practices, 23 Groom Rooms, and wooing a further 600,000 members to its VIP Club, which now has 2.6 million customers.
The company said the pet care market outlook remains positive, and in the current financial year it will have opened 25 stores, 60 veterinary practices and 50 Groom Room salons.
Nick Wood said: “We are pleased with our first half financial performance. We continue to deliver on our strategy to be the leading destination brand for pet lovers, with particularly strong performance from new growth areas including vets and groom rooms.
“Our passion for pets guides everything we do and it’s a passion we share with our customers, with more than half a million joining our VIP Club during this period.”
“We end the first half in a strong financial position, the business remains very cash generative and we are pleased to announce our first dividend payment. Looking ahead, we will continue to focus on our successful strategy, and by doing so, we are confident that we can deliver sustainable long-term growth.”
The company said it was confident in prospects for the remainder of the year and trading since the end of the half year period had been in line with expectations.
