Level 2

Pets at Home FY profits fall on restructuring costs

By Frank Prenesti

Date: Wednesday 22 May 2019

(Sharecast News) - Pets at Home reported a 37.7% fall in full year profits as the company bought out more under-performing joint venture vet practices.
Pre-tax profit fell to £79.6m even though revenue was rose 6.9% to £898.9m. Underlying profit rose 6.1% to £84.5m and the company said the retail division had returned to profit "earlier than expected".

The company held its annual dividend steady at 7.5p a share.

"We are confident about the year ahead. We expect to see revenue growth ahead of both the retail and vet markets, as we continue to improve our customer offer and take share," said chief executive Peter Pritchard.

"Having achieved a competitive pricing position, we expect the profit growth in our retail business to continue. In the vet group, our programme to buy out and run, or close, a small number of practices remains on track."

Pritchard added that current year underlying pre-tax profits would see a "slight decline" as the company adjusted joint venture fee arrangements for some practices

"This profile remains in line with previous guidance, although the absolute profit outcome in 2020 will be higher than previously expected, due to the outperformance in 2019," the company said.

e. chief executive said.


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