Pets at Home sees revenues rise

The company, which also offers veterinary care and grooming services for pets, said like-for-like sales rose 2.2 per cent in the 12 weeks ended December 31.

Pets at Home said merchandise sales grew like-for-like by 1.7 per cent, with strength in Advanced Nutrition, omnichannel and recovering sales in Health & Hygiene.

Nick Wood, chief executive officer at Pets at Home, said: “We are pleased with the improved trading momentum in our merchandise business, alongside continued strength in our vet and grooming services.

“We are also delighted with our acquisition of one of the UK’s leading specialist hospitals, Anderson Moores, which further develops our presence in this important strategic segment of the veterinary market.

“I would like to thank all our colleagues for their hard work through the busy festive period. We look forward to further growth and expansion in 2016.”

Pets at Home has 413 stores across the UK, with 359 veterinary practices and was on track to open 20-25 Pets at Home stores, five Barkers, 50-55 vet practices and 55-60 grooming salons during the year.

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said the update should help restore some investor confidence, following Pets at Home’s disappointing first half trading statement.

Mr Bowman said: “Core merchandise like-for-like sales have regained momentum, with sales in the previously hit Health & Hygiene category highlighted as recovering.

“Accompanying management outlook comments are supportive, guiding towards a full year profit in line with current expectations, whilst its veterinary business has recently been bolstered by the acquisition of animal hospital company, Anderson Moores.

“More negatively, earlier disappointment in relation to Health & Hygiene appeared to show that like the broader retail industry, the weather can impact, while required ongoing group investment generates some drag to earnings.

“In all, investors may be breathing a sigh of relief. Current trading provides reassurance, growth in services such as veterinary facilities continues to be pursued, whilst new store openings remain ongoing. Furthermore, potential to expand overseas cannot be ruled out, whilst hopes of increased shareholder returns going forward also persist. On balance, analyst consensus opinion currently points towards a buy.”