Pets at Home unveils higher FY profit but cautions on outlook

12th Jun 2014 09:33

Newly listed pet shop chain Pets at Home unveiled higher annual profit and revenue, but cautioned that weak consumer incomes could hold back business.Pets at Home, which floated on the market in March at a price per share of 245p, said it made underlying pre-tax earnings before interest, depreciation and amortisation (EBITDA) of £110.7m in the year to March 27th, up 12.4% on a year ago. Underlying EBITDA margins expanded 17 basis points to 16.6%.Revenues grew 11.2% to £665.4m, reflecting the addition of 32 shops - giving it 377 - and strength across food, accessories and services.Chief Executive Nick Wood said: "Whilst the lack of a sustained increase in consumer disposable incomes gives some caution to the outlook, I believe the potential of our retail and services businesses will enable us to deliver our strategy and achieve long-term returns."The group's VIP Club loyalty scheme, strength in advanced nutrition and the growing maturity of its 129-strong Groom Room business and vet practices drove a 2.4% rise in like-for-like sales.Its joint venture vet practices increased like-for-like revenue by 14%, underpinning fee income growth.The chain said it had also successfully integrated Vets4Pets, which it bought last year, with a single support office now established for the combined vet business.Shares had risen 1.5p or 0.7% to 218.5p by 10:12 in London.PW