- Britain’s biggest pet supplies firm said it was ‘on track to deliver modest growth’
- Its total turnover relatively flatlined at £361.6m in the 12 weeks ending 2 January
Pets at Home Group reiterated its annual earnings guidance on Tuesday despite the retailer reporting marginally weaker trading.
Britain’s biggest pet supplies business claimed it was ‘on track to deliver modest growth’ in underlying pre-tax profits this financial year, with analysts predicting the company making £134million in the year ending March.
The Cheshire-based firm said it had kept gross margins ‘disciplined’ thanks to good cost control and strong sales of Christmas products against a more difficult trading backdrop.
Its total turnover relatively flatlined at £361.6million in the 12 weeks ending 2 January, while like-for-like revenues shrank by 1 per cent owing to subdued footfall in its retail division.
This offset a very strong performance by its veterinary segment, which saw sales soar by 21.3 per cent thanks to higher numbers of visits, subscriptions, and average transaction values at its practices.
Outlook: Pets at Home, Britain’s biggest pet supplies business, claimed it was ‘on track to deliver modest growth’ in underlying pre-tax profits this financial year
Britain’s retail industry has experienced more challenging conditions in recent months amid a stagnating UK economy and the fallout from the Autumn Budget.
Chancellor Rachel Reeves announced that employers’ National Insurance rates would go up in April from 13.8 per cent to 15 per cent.
The annual salary threshold at which companies start paying NI contributions will also be reduced from £9,100 to £5,000.
Pets At Home estimates taking a hit of up to £18million from these changes in the 2026 financial year.
Lyssa McGowan, its chief executive, has criticised the NI hike, recently telling the Mail on Sunday: ‘If they had consulted more widely, they might have realised the impact on young, flexible workers, as well as part-time workers and women.’
She added that it was more expensive for companies to have two part-time staff members than one full-time worker doing the same job.
Adam Vettese, market analyst at eToro, said: ‘It’s fair to say it isn’t the easiest time to be a UK retailer with potentially huge employment cost increases looming, and Pets at Home is no exception.’
Pets at Home also faces a potentially significant threat from the Competition and Markets Authority’s investigation into the veterinary services sector.
The CMA launched a full probe in May last year due to concerns regarding rapid industry consolidation and pet owners being overcharged for medicines and prescriptions.
It warned that veterinary firms could be forced to sell some assets, cap prescription fees, or give mandatory information to pet owners once the inquiry is concluded.
Vettese said the probe ‘will make [Pets at Home] shareholders nervous that the one thing offsetting the soft retail performance has problems of its own.’
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .