Pets at Home H1 pre-tax profits boosted by stronger revenues

24th Nov 2016 07:49

(ShareCast News) - Pets at Home Group said first half pre-tax profits jumped to £45.9m from £40.91m, adding that its outlook for the full year remained in line with expectations despite a tough trading environment.Higher sales of pet food, accessories and a strong performance from veterinary services fuelled a 9.1% increase in revenue to £441.3m.The interim dividend was lifted to 2.5p a share from 2p.Chief executive Ian Kellett said recent trading had been softer than in the first half, but the company was maintaining a focus on margins and costs."We have again demonstrated strong performance in Services, with 47.6% revenue growth. We have also seen robust trading in Merchandise where Health & Hygiene sales returned to a more normalised level after a poor season last year. "We are pleased that our investment in seamless shopping is delivering results with increased volumes, basket spend and the launch of our first subscription service."In a more difficult trading environment, we continue to build Pets at Home for the future and are confident in the long term outlook for our unique offer in the resilient pet market, in particular, the developing potential of our Services business as we see it mature and grow."