Tails a-wagging at Pets at Home
REVENUES and profits have surged at Pets at Home in the last financial year.
The retailer headquartered in Handforth near Wilmslow said profits before exceptional items rocketed 66% from £52.2m to £86.9m in the 52 weeks to March 26. In the same period the group’s underlying EBITDA was 9.6% ahead at £121.3m on revenue also 9.6% higher at £729.1m.
Growth was not just from store and vet practices openings as like-for-like sales rose 4.2% in the period led by advanced nutrition products, services, health and hygiene and omni-channel sales.
See also: Retailer promotes duo in divisional move.
Reflecting its rapid growth over the last 10 years both as a private equity-backed and since last year as a listed business, Pets at Home now has 400 stores located across the country. It also operates the UK’s largest small animal veterinary business with 338 practices, and also has nearly 180 in-store Groom Room salons.
During the last year it grew its loyalty scheme, VIP Club, from two million to 3.2 million members. It also saw major success in its advanced nutrition category as sales of its own food brand, Wainwright’s, grew 44.1% to £40.1m.
In terms of new locations, the group opened 25 stores, 61 veterinary practices and 50 Groom Rooms in the period.
Chief executive Nick Wood, said: “I am delighted to announce another year of progress as we continue to deliver on our targets for growth, with strong cash flows allowing us to deliver a dividend payment at the top end of our commitment.
“We have seen excellent progress in Advanced Nutrition, a product area that benefits significantly from the specialist knowledge of our highly-trained colleagues and where we have a strong market presence through our private brand, Wainwright’s.
“We have also seen excellent growth in pet services as we roll-out new vet practices and groom rooms and the existing estate continues to mature. I am particularly proud of our colleagues whose passion for pets mirrors that of our customers and helps to keep our focus firmly on customer engagement.”
Wood said the group was “confident” in prospects for the year, with grow in sales, stores, vet and grooming services ahead of the growth in the market. Trading to date in the first quarter of FY16 has been in line with expectations, he added.
In the current financial year the group said it expects to open 20-25 Pets at Home stores, five smaller dog-focused, high street-based Barkers stores, 50-55 vet practices and 55-60 Groom Rooms.
Shareholders will be paid a final dividend of 3.6p per share, leading to a total of 5.4p for the year.
