26th May 2016 06:54
LONDON (Alliance News) - Pets at Home Group PLC on Thursday reported growth in profit in its recently-ended financial year as revenue grew in both the merchandise and services divisions, and it said trading is in line with expectations in the first quarter of the new year.
The retailer for pets and veterinary services operator said its pretax profit in the year ended March 31 grew to GBP92.1 million from GBP87.0 million the year before, as revenue rose to GBP793.1 million from GBP729.1 million.
By division, merchandise revenue increased to GBP710.2 million from GBP666.1 million, driven by food, and services revenue was up to GBP82.9 million from GBP63.0 million.
Like-for-like sales grew by 2.2%, boosted by strength in its Advanced Nutrition range, VIP club momentum and growth in fee income from its veterinary practices and grooming salons, partially offset by seasonal challenges to its Health & Hygiene products.
Pets at Home will pay a total dividend for the year of 7.5 pence, a 39% increase on the prior year.
Pets at Home added that while margins will be hit in the new financial year by weaker sterling and the National Living Wage, over the medium to longer term this will be outweighed by the support from its growing services business.
Trading in the first quarter of the new year is in line with expectations, Pets at Home added.
"We have enjoyed 25 very successful years as a business and enter our 26th year confident in the future," Chief Executive Ian Kellett said in a statement.
"The pet market has proved over time to be more resilient than general retail, so whilst consumer confidence may be more fragile, we believe our drive to become more specialist and most loved by customers will deliver further progress," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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