Pets at Home set for return to profit growth
Pets at Homes said it expects to return to profit a year ahead of its original plan.
The company reported group revenue was up by 7.6% to £546.3m, which comprised a 7.8% uplift in retail revenue to £479.8m and a 6.4% increase in its vet group business to £66.5m during the 28-week period to 10 October, compared with the same period last year.
However, accounting changes decreased underlying profit before tax by £3.3m. Excluding the impact of the new IFRS 16 accounting rules, underlying pre-tax profit was £45m, up from £37.9m.
Pets at Homes said it expects to return to profit a year ahead of its original plan.
The company reported group revenue was up by 7.6% to £546.3m, which comprised a 7.8% uplift in retail revenue to £479.8m and a 6.4% increase in its vet group business to £66.5m during the 28-week period to 10 October, compared with the same period last year.
However, accounting changes decreased underlying profit before tax by £3.3m. Excluding the impact of the new IFRS 16 accounting rules, underlying pre-tax profit was £45m, up from £37.9m.
Since the start of 2019, IFRS 16 has been introduced for all UK publicly listed companies. From 1 January 2019, an occupier’s balance sheet has to recognise a right-of-use asset and a lease liability based upon the discounted rental payments due under the lease.
Peter Pritchard, group chief executive officer, said: “We have seen sustained momentum in retail, with a two-year like-for-like [increase] of 13%. This has been complemented by a meticulous delivery of our Vet Group recalibration.
“The programme to buy out a number of joint venture practices is already complete, while changes we have made to the fee arrangements for ongoing practices are already showing signs of positive progress and will be followed by further planned adjustments in the second half of the year.
“All this provides a strong foundation, meaning we have much to look forward to in FY20 and beyond, and we now expect to return to profit growth a year ahead of our original plan.”
New openings going forward include up to five new stores, grooming salons and vet practices.
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