FY26 Interim Results

Statutory Metrics

FY26 H1

FY25 H1

YoY %

Group Statutory Revenue (£m)

778.3

789.01

(1.3)%

Group Statutory PBT (£m)

36.2

51.1

(29.1)%

Statutory Basic EPS (p)

5.7

7.9

(27.7)%

Dividend (p)

4.7 

4.7

0.0% 

Financial Performance Metrics

FY26 H1

FY25 H1

YoY %

Group Consumer Revenue# (£m)

1,055.8

1,048.51

0.7%

- Retail

679.9

696.21

(2.3)%

- Vet Group

375.9

352.3

6.7%

Group Underlying PBT# (£m)

36.2

54.5

(33.5)%

- Retail

3.5

22.0

(84.1)%

- Vet Group

44.9

41.5

8.3%

Free Cash Flow# (£m)

34.0

33.1

2.6%

- Retail

(11.1)

1.2

- Vet Group

53.6

45.7

17.3%

Adjusted Net Debt# (£m)

(12.0)

(8.3)

44.6%

Underlying Basic EPS# (p)

5.7

8.4

(32.1)%

●

Group consumer revenue# up 0.7% to £1.06bn.

ᵒ

Vet Group consumer revenue# up 6.7%, high quality growth driven by average transaction values and continued growth in Care Plan revenues with over 50% of clients having one. Visits were more subdued due to more of our clients entering healthy mid-life where visits are lower.

ᵒ

Retail consumer revenue# down 2.3%, delivered against a flat market growth and no inflation of note. Q2 performance sequentially improved over Q1 as we saw a full quarter of strong online performance, partially offsetting weaker store sales. Food sales declined 0.3% with accessories sales falling 5.9%, lagging a soft market.

●

Total Group statutory revenues down 1.3% to £778.3m, with Group like-for-like# (LFL) revenue -1.3%.

●

Group operating costs broadly flat excluding insurance start-up costs. Including them they grew 1.2% YoY. Well within the stated guidance of 'operating costs to increase no more than 5% in FY26'.

●

Group underlying PBT# of £36.2m down 33.5% YoY, underlying PBT margin# of 4.7% down c220bps.

ᵒ

Vet Group underlying PBT# of £44.9m up 8.3% YoY, underlying PBT margin# of 45.7% up c90bps driven by the operational gearing from higher JV practice revenues alongside an ongoing improvement in managed practice profitability.

ᵒ

Retail underlying PBT# of £3.5m down 84.1% YoY, underlying PBT margin# of 0.5% down c260bps. Retail gross margins saw a 105bps reduction YoY driven by targeted price investment c40bps, adverse category mix c30bps and lower supplier income c20bps.

●

Group statutory PBT £36.2m down 29.1% YoY, statutory PBT margin of 4.7% down 181bps with no non-underlying costs vs £3.4m in FY25 H1.

●

Underlying Basic EPS# 5.7p, down 32.1% with an underlying profit for the period decline of 33.5%, partially offset by share buyback accretion.

●

Interim dividend per share of 4.7p is flat YoY

●

Free cash flow# up 2.6% to £34.0m, the reduction in Group underlying PBT# is being offset by lower capex, cash tax and non-underlying cash costs as well as a working capital timing benefit.

ᵒ

Vet Group £53.6m up from £45.7m YoY driven by high quality sales growth, leveraged through our capital light model alongside a working capital timing benefit which will unwind in H2.

ᵒ

Retail -£11.1m down from £1.2m YoY lower underlying PBT# being partially offset by a lower capex outflow.

●

Balance sheet remains robust with adjusted net debt# of £12.0m (before lease liabilities of £338.0m) vs adjusted net debt# of £8.3m in the prior year. Cash and cash equivalents of £49.0m up from £40.0m in the prior year.

●

FY26 £25m share buyback program is 50% complete, once complete will result in £150m in buybacks in last 4 years.

●

Pets Club members4 down 2.4% to 7.9m due to a decline in our active retail customer base.

●

Pets Club average consumer value5 up to £185 due to an increase in spend across our Vet customer base.

●

Subscription % of consumer revenues6 continues to grow, 14.6% of Group Consumer revenue# now generated via subscriptions (YoY up from 11.42%). Growth continues to be driven by Easy Repeat and Care Plans.

●

Digital platform is performing well with LFL's improving in the half, Q2 delivered double-digit sales growth.

●

'Pets Insurance' on track - We are on track to launch in 2026 having made good progress on building our team, the necessary infrastructure and we are progressing toward regulatory approval.

●

Pets Club Pricing launched - Providing the very best deals for consumers. Our independent brand tracker has shown a meaningful improvement in Value for Money perception.

●

Puppy & Kitten sign up in growth - c17k average weekly sign-ups has increased 13% YoY.

●

Vet expansion on track - We have opened 5 new practices and completed 3 vet extensions in H1 and remain on track for 10 new practice openings and 15 vet extensions in FY26. To support this, we continue to win vet talent, with clinical FTE headcount up 5.5% YoY and 70 new practice owners welcomed in H1.

●

Taking action on costs, we have initiated a restructuring program to reduce Group overheads by £20m. This program will incur non-underlying costs of £6-8m in FY26, but with payback of less than 12 months as we expect a full year of benefit in FY27.

●

CMA provisional decision - we acknowledge the CMA's provisional findings and will continue to engage with the CMA in moving towards a final conclusion in 2026.

●

Built and launched our new digital and data platform - We have replatformed our digital capabilities, replaced outdated capability with a modern platform which is performing well.

●

Created a single unified master brand - we unified our disparate portfolio of brands under a single 'Pets' brand, supported by the 'We're all for Pets' campaign. Since its launch we have seen an improvement in brand perception, improvement which continues across key brand metrics.

●

Our distribution network is optimised in a single site - We have modernised our distribution capabilities at a single, enterprise grade distribution centre in Stafford. This DC is seeing improving levels of efficiency and supporting very high levels of availability throughout the business.

●

Relaunched Easy Repeat - we have relaunched our Easy Repeat proposition in FY25 and generating considerable growth in the Easy Repeat revenues. 4% of Pets Club members now have an Easy Repeat subscription, with Easy Repeat revenues up 50% on FY25.

●

Care Plans - we relaunched our Care Plan proposition in our vets in FY24 and continue to innovate and improve our offer. We have seen pleasing growth in the number of plans in recent years, believing our penetration to be industry leading with over 50% of vet clients now having a care plan.

●

We have a sector leading and differentiated Veterinary business - Our Vet Group is #2 in the UK First Opinion sector and is responsible for a large proportion of our consumer revenues# and the majority of our Group underlying PBT# and Group Free Cash Flow#.

●

Our JV proposition is unique in the UK vet sector and supports some of the most productive assets in the sector, operated by our expert and trusted vet partners. Over the past 3 years our partners have been able to take over £100m in dividends with average practice revenues growing by an average of 15% per annum.

●

We have proven levers of growth from driving out maturity, extending practices, building out advanced capabilities and opening new practices, and we have plenty of headroom to grow further with an opportunity for 100 new practices and 100 extensions over the medium term, continuing the good progress we have seen to date.

●

Long term growth underpinned by predictable spending behaviour - our Vet Group is in a period where new customer registrations and visits will reflect normalised puppy & kitten numbers and more pets entering mid-life. However, our success in acquiring customers in recent years will drive an acceleration in growth in the medium term as pandemic cohorts age, compounded by the building impact of new practice openings.

●

On track to launch a Pets at Home branded insurance in 2026, accessing the largest pet care vertical outside of our current businesses, leveraging a number of existing capabilities we have.

●

We have made good progress to date, defining our product, identifying critical partners and moving towards regulatory approval. We are building out our platform with our partners.

●

Advanced Nutrition - In recent years the Advanced Nutrition (AN) market has shifted rapidly to new premium, Direct to Consumer entrants, at the expense of legacy branded players, where innovation has been lacking. We remain the largest player in the AN segment but are over-exposed to these legacy ranges, which has limited our ability to access the premiumisation driven growth in the market. Our own label performance, where we have innovated with our partners, has been much stronger with both sales and volumes growing. 

●

Accessories - we have seen declines in accessories sales for >3 years now. While there are undoubtedly headwinds from cyclicality and channel shift, a large part of this has been self-inflicted, by not having the right products at the right price points, with the right execution. Our progress in delivering innovation and breadth to our accessories ranges has been slower than we aimed for and we have underperformed the weak underlying market.

1.

Product - we believe the root cause of our sales shortfall is product related. Such issues can take time to fix but we are moving ahead with a clear plan to reset and revitalise our ranges in Advanced Nutrition. In Accessories, once we have added buying and merchandising capabilities to our existing team, we will focus on the opportunity for better performance through improved own brand product innovation & new partnerships with third-party brands.

2.

Price - price is a fundamental discipline for our business. We monitor it closely and act when required, recently investing £4m reducing prices on over 1,000 Food products by an average of 12%. Combined with Pets Club Prices, Easy Repeat discounts and leading private labels we have an increasingly compelling value proposition for customers and have seen Value for Money perception increase 6 points in H1. However, we are not complacent and will not compromise on price going forward.

3.

Execution - we have launched many new initiatives in recent years, but our execution has not been good enough, for example, our execution of price and promotional changes, and the rollout of Easy Repeat In Store. We are moving quickly to address this. The issues identified are fixable and are within our control. We are focused on improving commercial execution through simplified strategies and better forward planning. By simplifying, we will better support our store colleagues and drive better execution for customers.

4.

Cost - we have controlled cost well in recent years through productivity programs including the implementation of a leaner store operating model which was embedded earlier in the year. This has enabled us to mitigate a number of external cost headwinds, most notably a £48m rise in NICs/National Living Wage over the past 3 years. However, our cost base has also increased due to the increased complexity of the business. We have already initiated actions to address this and will reduce overheads by £20m as we simplify the business. We will continue to look for ways to optimise our cost base either through reducing costs or redirecting them to areas that benefit customers.

●

Leading scale - with 7.9m active Pets Club customers and many more vet clients and non-Pets Club customers, we remain the leading UK pet specialist and most important route to market for any pet brand.

●

Expert colleagues - we have 17,000 highly trained, passionate colleagues and clinicians that help consumers take the best care of their pets and will be at the heart of our turnaround. We have a proven track record in educating consumers, introducing innovation and growing new categories when we support colleagues in the right way, we are determined to improve in this area.

●

Unrivalled reach - our 459 Pet Care Centres give us unrivalled reach to the nation's pet owners, and bring together products, grooming, and vets while enabling much of our digital revenue. We have a well located, well rented, and flexible estate with no long tail of unprofitable stores.

●

A well invested omnichannel platform - we have invested significantly in our capability in recent years with modernised distribution capabilities and a new digital platform, now in place and working well. We are the only UK pet care business capable of offering consumers a complete pet care solution across product and service.

●

Sector leading vets - our Vet Group is a unique asset, operating some of the most productive assets in the industry through empowering our partners with our support and services. Over recent years, on average we have grown sales 15% and profits 20% with significant headroom to grow further through the proven growth levers of maturity, extensions and new practices.

●

Vet Group trading remains in line with expectations.

●

Vet Group revenues continue to grow in line with our expectations, albeit slower than our medium-term ambition of 'high-single digit' this year as we build momentum in our new practice opening program. We expect our Vet Group to deliver PBT >£80m.

●

Retail performance is improving sequentially but remains behind a flat market with no inflation.

●

Market growth in H1 was flat against which we lost share but with Q2 improving over Q1.

●

Online continues to generate double-digit digital sales growth with store performance more challenging. The retail turnaround plan is key to improving performance further.

●

As we look to H2 we expect market growth to remain around 0% and slightly positive Retail LFL growth expected as we lap very soft comps.

●

Insurance is on track to launch in 2026. We have identified our key partners now, and due to the phasing of our tech build with these partners expect losses in FY26 to be around £5m now (from £3m).

●

Our search for a new CEO continues to progress and we will update in due course.

●

Due to the costs of our restructuring programme, we now expect to incur around £6-8m of non-underlying costs in FY26.

●

We continue to maintain tight discipline around our capital expenditures and expect to spend c£50m in FY26

●

We now expect to finish the year with around £25m of net debt.

●

We expect a full year tax rate of 27-28%.

Number of active Pets Club members4 (m)

7.9

8.1

(2.4)%

Average Consumer Value5 (£)

185

1778

4.4%

% of Consumer Revenue from Subscriptions6 (%)

14.6%

11.4%2

28.8%

Clinical FTE Headcount7 (k)

3.7

3.5

5.5%

2.

Restated from 12.4%, prior year now reporting against the last 365 days prior to the end of the reporting period.

3.

Financial KPIs represent those used by the business to monitor performance. Management recognise that as Alternative Performance Measures they differ to statutory metrics, but believe they represent the most appropriate KPIs.

4.

Retained consumers are active Pets Club members who transacted across the group in the last 365 days prior to the end of the reporting period for both the current and prior year.

5.

Average consumer value (ACV) is the average spend of active Pets Club members across the group over the last 365 days based on consumer revenue, rather than statutory revenue.

6.

Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care and Vac4Life plans and is divided by Group consumer revenue.

7.

Full time equivalent number of all vets and nurses working across the group, based on standard working hours.

8.

Restated from £175

Investor Relations Enquiries

Pets at Home Group Plc:

Andrew Porteous, Director of Investor Relations

+44 (0) 7740 361 849

Aaron Wood, Head of Investor Relations

+44 (0) 7702 083 154

Media Enquiries

Pets at Home Group Plc:

Natalie Cullington, Head of Communications

+44 (0) 7974 594 701

Citigate Dewe Rogerson:

Angharad Couch

+44 (0) 7507 643 004

FY26 H1

FY25 H1

YoY

Group statutory revenue (£m)

778.3

789.01

(1.3)%

Retail

679.9

696.21

(2.3)%

Vet Group

98.4

92.8

6.1%

Group consumer revenue# (£m)

1,055.8

1,048.51

0.7%

Retail

679.9

696.2

(2.3)%

Vet Group

375.9

352.3

6.7%

Group like-for-like revenue growth#

(1.3)%

1.5%

Retail

(2.2)%

(0.0)%

Vet Group

6.7%

17.6%

Group gross profit margin

45.5%

46.3%

(80)bps

Retail

44.1%

45.2%

(105)bps

Vet Group

54.7%

54.4%

29bps

Group statutory PBT (£m)

36.2

51.1

(29.1)%

Group statutory PBT margin

4.7%

6.5%

(181)bps

Group underlying PBT# (£m)

36.2

54.5

(33.5)%

Retail

3.5

22.0

(84.1)%

Vet Group

44.9

41.5

8.3%

Insurance

(2.2)

0.0

Central

(10.0)

(9.0)

11.1%

Group underlying PBT margin# 

4.7%

6.9%

(224)bps

Retail

0.5%

3.2%

(264)bps

Vet Group

45.7%

44.7%

93bps

Statutory basic EPS (p)

5.7

7.9

(27.7)%

Underlying basic EPS# (p)

5.7

8.4

(32.1)%

Operating Costs (£m)

(309.2)

(305.4)

1.2%

Non-underlying items2 (£m)

0.0

(3.4)

Free cash flow# (£m)

34.0

33.1

2.6%

Cash and cash equivalents (£m)

49.0

40.0

22.5%

Adjusted net debt# (£m)

(12.0)

(8.3)

44.6%

Dividend (p)

4.7 

4.7

0.0%

Number of

Pet care centres

459

461

(2)

% of Pet care centres with a vet practice

69%

67%

Joint Venture vet practices

404

394

10

Company managed vet practices

48

54

(6)

Grooming salons

341

345

(4)

1.

£0.1m has been reclassified from cost of sales to revenue in the 28-week period ended 10 October 2024.

2.

FY25 H1 non-underlying items of £3.4m. £1.7m relates to the transition to our new distribution centre, £3.1m relates to our support office restructuring and £0.9m relates to the costs of the ongoing CMA investigation. Alongside this we had a disposal on investment gain of £2.3m which relates to the disposal of Pure Pet Food.

Consumer Revenue YoY Growth#

Q1 25

Q2 25

H1 25

Q3 25

Q4 25

H2 25

FY 25

Retail

(0.8)%

1.1%

0.1%

(2.4)%

(5.2)%

(3.7)%

(1.8)%

Vet Group

13.3%

12.6%

13.0%

14.2%

11.9%

13.0%

13.0%

Group

3.6%

4.7%

4.1%

2.3%

0.2%

1.2%

2.7%

Consumer Revenue YoY Growth#

Q1 26

Q2 26

H1 26

Retail

(2.8)%

(1.7)%

(2.3)%

Vet Group

7.1%

6.2%

6.7%

Group

0.5%

1.0%

0.7%

3.

Vet Group consumer revenue# consists of revenue from both Joint Venture and company managed practices, income generated from non-revenue based fees such as supplier income and income from our telehealth business 'The Vet Connection'

●

Joint Venture fee income was up 7.7% (LFL 6.5%) with Joint Venture consumer revenues up 7.1%.

ᵒ

In the half we saw 8 practices converted from company managed to joint venture.

●

Revenues from company managed practices increased by 1.4% to £28.1m with LFL# revenue up 7.5%

ᵒ

In the half we saw 5 practice acquisitions going from joint venture to company managed.

●

The Vet Connection (our telehealth business), generated revenue of £2.1m, +2.3% YoY.

●

Food sales declined 0.3%, as we saw declines across branded ranges (-2.2% LFL), with our own brands in LFL growth in the period (+2.3% LFL). Discretionary accessories remain the most impacted area lagging a soft market, down 6.5%. Consumable accessories down 5.0% as we had a weak flea & worm season this year alongside annualising a very strong season in the prior year.

LFL# Revenue Growth 

Q1 25

Q2 25

H1 25

Q3 25

Q4 25

H2 25

FY 25

Retail

(0.8)%

0.9%

(0.0)%

(2.8)%

(5.5)%

(4.1)%

(2.0)%

Vet Group

19.5%

15.3%

17.6%

19.9%

9.6%

14.5%

16.2%

Group

1.0%

2.2%

1.5%

(1.0)%

(4.0)%

(2.5)%

(0.4)%

LFL# Revenue Growth 

Q1 26

Q2 26

H1 26

Retail

(2.8)%

(1.4)%

(2.2)%

Vet Group

7.8%

5.2%

6.7%

Group

(1.8)%

(0.8)%

(1.3)%

●

Gross margin4 within the Vet Group increased by 29bps to 54.7%. The main contributor being the growing contribution of Joint Venture fee income, we also saw strong sales and better profit conversion within our company managed practices.

●

Gross margin4 within Retail was 44.1%, a 105bps decline YoY driven by targeted price investment c40bps, adverse category mix c30bps and lower supplier income c20bps.

(£m)

FY26 H1

FY25 H1

YoY

Group statutory revenue

778.3

789.01

(1.3)%

Selling and distribution expenses

243.3

239.2

1.7%

Administrative expenses

74.4

70.7

5.3%

Other income

(8.5)

(7.9)6

8.5%

Underlying operating costs

309.2

302.0

2.4%

Non-underlying costs

0.0

3.4

Operating costs

309.2

305.4

1.2%

Underlying operating costs to sales ratio

39.7%

38.3%

145bps

4.

Gross margin is calculated as gross profit as a percentage of revenue.

5.

Operating costs are the sum of selling and distribution expenses, administrative expenses, other income and non-underlying costs. These can be found on the consolidated income statement.

6.

In the 28 week period ended 10 October 2024, £1.0m relating to amounts earned from supplier funding income has been reclassified from selling and distribution to other income and £10.8m has been reclassified from selling and distribution expenses to administrative expenses. These adjustments have been posted to aid comparability with the current year.

●

Vet Group statutory and underlying# PBT was £44.9m (FY25 H1: £41.5m) with underlying PBT margin6 of 45.7% (FY25 H1: 44.7%), driven by strong sales performance across both Joint Venture and company managed practices being leveraged on a broadly flat cost base.

●

Retail statutory PBT was £3.5m (FY25 H1: £22.6m). Retail underlying PBT# was £3.5m (FY25 H1: £22.0m) with underlying profit margin7 of 0.5% (FY25 H1: 3.2%). Gross margins reduced by 105bps YoY (see relevant section). In addition, the profit decline was driven by the decline in sales with operating costs stable.

●

Underlying Central costs of £10.0m (FY25 H1: £9.0m) includes payroll costs for Group functions, professional fees, and PLC related costs.

●

Insurance set up costs of £2.2m which were incurred in period as we build the team, with c£5m expected to be incurred in FY26.

(£m)

FY26 H1

FY25 H1

YoY

Group statutory PBT (£m)

36.2

51.1

(29.1)%

Retail

3.5

22.6

(84.5)%

Vet Group

44.9

41.5

8.3%

Insurance

(2.2)

0.0

Central

(10.0)

(13.0)

(23.2)%

Group statutory PBT margin

4.7%

6.5%

(181)bps

Non-underlying items (£m)

0.0

(3.4)

Group underlying PBT# (£m)

36.2

54.5

(33.5)%

Retail

3.5

22.0

(84.1)%

Vet Group

44.9

41.5

8.3%

Insurance

(2.2)

0.0

Central

(10.0)

(9.0)

11.1%

Group underlying PBT margin7 

4.7%

6.9%

(224)bps

7.

Group underlying PBT margin is calculated as underlying profit before tax as a percentage of revenue.

●

Total tax expense was £10.0m for the period. The effective tax rate for the period is 27.6% (FY25 H1 26.4%), which is higher than the UK corporation tax rate due to expenditure not allowable for tax relief.

●

Statutory profit after tax decreased by 30.2% to £26.2m.

●

Statutory basic earnings per share (EPS) 5.7 pence (FY25 H1: 7.9 pence) and underlying basic EPS# 5.7 pence (FY25 H1: 8.4 pence).

●

Inventories decreased by £3.9m YoY (inflow), lower inventory due to carrying more stock in the prior year for the online transition to Stafford DC.

●

Trade and other receivables increased by £13.0m YoY (outflow), part of which is due to an increase in deferred consideration due to a higher volume of successful Vet practice conversions from company managed to joint venture.

●

Trade and other payables have increased by £17.3m YoY (inflow) due to timing differences within Vet Group payments being made to joint venture partners which will unwind in H2.

●

Vet Group FCF# £53.6m up £7.9m YoY due to consumer revenue# growth flowing into JV fee income alongside a working capital timing benefits which will unwind in H2.

●

Retail FCF# -£11.1m down £12.3m YoY due to lower underlying PBT# (£18.5m) with lower capex partially offsetting as we return to a more normalised level of investment.

Underlying PBT#

36.2

3.5

44.9

(12.2)

54.5

Interest (net)

8.5

6.9

(0.3)

1.9

8.6

Depreciation (underlying)

55.9

53.6

2.1

0.2

53.3

Leases

33.9

33.2

0.5

0.2

34.0

PPE & amortisation of assets

22.0

20.4

1.6

0.0

19.3

Underlying EBITDA

100.6

64.0

46.7

(10.1)

116.4

Share-based payment charge

3.9

0.0

0.0

3.9

3.2

Non-underlying cash costs

0.0

0.0

0.0

0.0

(4.8)

Lease payments8

(47.3)

(46.5)

(0.8)

0.0

(43.3)

WCAP9

12.2

(3.6)

15.3

0.5

3.4

Operating cash flow

69.4

13.9

61.2

(5.7)

74.9

Capex10

(20.9)

(21.0)

0.1

0.0

(24.9)

Bank interest (net)

(0.7)

0.2

0.4

(1.3)

(1.5)

Tax

(9.6)

(4.2)

(8.1)

2.7

(12.5)

Purchase of own shares (employee share schemes)

(4.2)

0.0

0.0

(4.2)

(2.9)

Free Cash Flow

34.0

(11.1)

53.6

(8.5)

33.1

8.

Lease payments are cash payments for the principal portion of the right-of-use lease liability, they also include interest paid on lease obligations, costs to acquire right-of-use assets and the right-of-use asset costs.

9.

Working capital is the sum of YoY movements in trade and other receivables, inventories, trade and other payables, and provisions.

10.

Capex is the net proceeds from the sale of property, plant and equipment less costs to acquire right of and acquisition of property, plant and equipment and other intangible assets. It also includes investment capital contributions and proceeds from repayment of partner loans.

11.

Central includes £2.2m of insurance set up costs

Adjusted Net cash (£m)

FY26 H1

FY25 H1

Opening adjusted net cash#

6.2

8.8

Free cash flow#

34.0

33.1

Equity dividends paid

(37.7)

(38.4)

Share buyback

(12.6)

(12.5)

Acquisitions

(0.7)

(1.3)

Disposals

(1.2)

2.0

Closing adjusted net cash#

(12.0)

(8.3)

Pre IFRS 16 leverage

0.1x

0.0x

APM

Definition and purpose

Reconciliation

Consumer revenue

Consumer revenue being statutory Group revenue, less Joint Venture veterinary practice fee income (which forms part of statutory revenue within the Vet Group), plus gross consumer sales made by Joint Venture veterinary practices (unaudited). This is an important measure as it includes the revenue from all vet practices whether they be under the Joint Venture or Company managed model which is used in the assessment of market share.

Like-for-like revenue

Like-for-like revenue growth comprises total revenue in a financial period compared to revenue achieved in a prior period for stores, online operations, grooming salons and veterinary practices that have been trading more than 52 weeks prior to both the current and prior period reporting date, excluding fee income from Joint Venture practices where the Group has bought out the Joint Venture Partners. The measure is used widely as an indicator of sales performance. 

1£0.1m has been reclassified from cost of sales to revenue in the 28 week period ended 10 October 2024.

Underlying profit before tax

Underlying profit before tax (PBT) is based on pre-tax profit before the impact of certain costs or incomes that are excluded as they are not generated from ordinary business operations, infrequent in nature and unlikely to reoccur in the foreseeable future in order to reflect management's view of the performance of the Group. The underlying profitability of the Group is an important measure of delivery against strategic objectives.

CIS = Consolidated Income Statement 

Underlying basic EPS 

Underlying basic earnings per share (EPS) is based on earnings per share before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Free

cash flow

Net increase/(decrease) in cash before the impacts of dividends paid, share buybacks, investment movements, acquisition and disposal of subsidiaries, proceeds from new loans and repayment of borrowings. This measure shows the cash generated by the Group during the year that is available for strategic investments or returning to shareholders.

Alternative Performance Measures ('APMs') (continued)

Adjusted net debt

Cash and cash equivalents less the face value of loans and borrowings. Lease liabilities are excluded.

Pre IFRS 16 leverage

Adjusted net cash (above) divided by underlying

earnings before interest, taxes, depreciation and amortisation ('EBITDA') less expected rental charges. Figures have been presented on a rolling 52 week proforma basis. This measure is important because it is a covenant metric.

Note

 28 week period ended 9 October 2025

 28 week period ended 10 October 2024 restated1

Underlying trading

£m

Non-underlying items

(note 3)

 £m

Total

£m

Underlying trading

£m

Non-underlying items

(note 3)

 £m

Total

£m

Revenue

2

778.3

-

778.3

789.01

-

789.01

Cost of sales

(424.4)

-

(424.4)

(423.9) 1

-

(423.9) 1

Gross profit

353.9

-

353.9

365.1

-

365.1

Selling and distribution expenses

(243.3)

-

(243.3)

(239.2)2

(1.7)

(240.9)2

Administrative expenses

(74.4)

-

(74.4)

(70.7)2

(4.0)

(74.7)2

Other income

3

8.5

-

8.5

7.91

2.3

10.21

Operating profit

2

44.7

-

44.7

63.1

(3.4)

59.7

Financial income

1.4

-

1.4

1.7

-

1.7

Financial expense

(9.9)

-

(9.9)

(10.3)

-

(10.3)

Net financing expense

(8.5)

-

(8.5)

(8.6)

-

(8.6)

Profit before tax

36.2

-

36.2

54.5

(3.4)

51.1

Taxation

5

(10.0)

-

(10.0)

(14.9)

1.4

(13.5)

Profit for the period

26.2

-

26.2

39.6

(2.0)

37.6

Note

28 week period ended

9 October 2025

28 week period ended

10 October 2024

Equity holders of the parent - basic

4

5.7p

7.9p

Equity holders of the parent - diluted

4

5.6p

7.8p

28 week period ended

9 October 2025

£m

28 week period ended

10 October 2024 £m

Profit for the period

26.2

37.6

Other comprehensive income/(expense)

Items that are or may be recycled subsequently into profit or loss:

Effective portion of changes in fair value of cash flow hedges

1.3

(0.4)

Net change in fair value of cash flow hedges reclassified to profit or loss

-

0.1

Other comprehensive income/(expense) for the period, before income tax

1.3

(0.3)

Income tax on other comprehensive (expense)/ income (note 5)

(0.1)

0.2

Other comprehensive income/(expense) for the period, net of income tax

1.2

(0.1)

Total comprehensive income for the period

27.4

37.5

Note

At 9 October

2025

£m

At 10 October

2024

£m

At 27 March

2025

£m

Non-current assets

Property, plant and equipment

8

163.3

159.3

161.7

Right-of-use assets

9

280.4

305.4

284.6

Intangible assets

10

982.7

983.3

985.1

Other financial assets

19.1

11.3

15.0

1,445.5

1,459.3

1,446.4

Current assets

Inventories

11

110.2

114.1

106.9

Derivative financial assets

0.5

0.4

0.5

Income tax receivable

1.8

1.1

0.2

Trade and other receivables

77.2

64.2

63.3

Cash and cash equivalents

49.0

40.0

39.5

238.7

219.8

210.4

Total assets

1,684.2

1,679.1

1,656.8

Current liabilities

Trade and other payables

(290.1)

(272.8)

(255.6)

Interest-bearing loans and borrowings

12

(4.7)

(2.8)

(4.7)

Lease liabilities

9

(75.3)

(80.0)

(78.5)

Provisions

(4.2)

(6.4)

(5.1)

Derivative financial liabilities

(2.2)

(2.0)

(1.7)

(376.5)

(364.0)

(345.6)

Non-current liabilities

Interest-bearing loans and borrowings

12

(54.8)

(43.2)

(26.7)

Lease liabilities

9

(262.7)

(284.7)

(269.8)

Provisions

(2.0)

(5.4)

(3.9)

Deferred tax liabilities

(19.5)

(7.2)

(17.6)

Derivative financial liabilities

(0.1)

-

-

(339.1)

(340.5)

(318.0)

Total liabilities

(715.6)

(704.5)

(663.6)

Net assets

968.6

974.6

993.2

Equity attributable to equity holders of the parent

Ordinary share capital

4.5

4.6

4.6

Consolidation reserve

(372.0)

(372.0)

(372.0)

Merger reserve

113.3

113.3

113.3

Translation reserve

(0.1)

(0.1)

(0.1)

Capital redemption reserve

0.5

0.4

0.4

Cash flow hedging reserve

(1.3)

(1.4)

(1.2)

Retained earnings

1,223.7

1,229.8

1,248.2

Total equity

968.6

974.6

993.2

Balance at 27 March 2025

4.6

(372.0)

113.3

(1.2)

(0.1)

0.4

1,248.2

993.2

Total comprehensive income for the period

Profit for the period

-

-

-

-

-

-

26.2

26.2

Other comprehensive income

-

-

-

1.2

-

-

1.2

Total comprehensive income for the period

-

-

-

1.2

-

-

26.2

27.4

Hedging gains & losses reclassified to inventory

-

-

-

(1.7)

-

-

-

(1.7)

Deferred tax on hedging gains and losses

-

-

-

0.4

-

-

-

0.4

Total hedging gains & losses reclassified to inventory

-

-

-

(1.3)

-

-

-

(1.3)

Transactions with owners, recorded directly in equity

Equity dividends paid

-

-

-

-

-

-

(37.7)

(37.7)

Share based payment charge

-

-

-

-

-

-

3.9

3.9

Deferred tax movement on IFRS 2 reserve

-

-

-

-

-

-

(0.1)

(0.1)

Share buyback

(0.1)

-

-

-

-

0.1

(12.6)

(12.6)

Purchase of own shares

-

-

-

-

-

-

(4.2)

(4.2)

Total contributions by and distributions to owners

(0.1)

-

-

-

-

0.1

 (50.7)

 (50.7)

Balance at 9 October 2025

4.5

(372.0)

113.3

(1.3)

(0.1)

0.5

1,223.7

968.6

Balance at 28 March 2024

4.7

(372.0)

113.3

(0.5)

(0.1)

0.3

1,242.8

988.5

Total comprehensive income for the period

Profit for the period

-

-

-

-

-

-

37.6

37.6

Other comprehensive expense

-

-

-

(0.1)

-

-

-

(0.1)

Total comprehensive income for the period

-

-

-

(0.1)

-

-

37.6

37.5

Hedging gains & losses reclassified to inventory

-

-

-

(0.8)

-

-

-

(0.8)

Total hedging gains & losses reclassified to inventory

-

-

-

(0.8)

-

-

-

(0.8)

Transactions with owners, recorded directly in equity

Equity dividends paid

-

-

-

-

-

-

(38.4)

(38.4)

Share based payment charge

-

-

-

-

-

-

3.2

3.2

Deferred tax movement on IFRS 2 reserve

-

-

-

-

-

-

0.8

0.8

Share buyback

(0.1)

-

-

-

-

0.1

(12.5)

(12.5)

Purchase of own shares

-

-

-

-

-

-

(3.7)

(3.7)

Total contributions by and distributions to owners

(0.1)

-

-

-

-

0.1

(50.6)

(50.6)

Balance at 10 October 2024

4.6

(372.0)

113.3

(1.4)

(0.1)

0.4

1,229.8

974.6

Balance at 28 March 2024

4.7

(372.0)

113.3

(0.5)

(0.1)

0.3

1,242.8

988.5

Total comprehensive income for the period

Profit for the period

-

-

-

-

-

-

88.2

88.2

Other comprehensive income

-

-

-

0.7

-

-

-

0.7

Total comprehensive income for the period

-

-

-

0.7

-

-

88.2

88.9

Hedging gains and losses reclassified to inventory

-

-

-

(1.6)

-

-

-

(1.6)

Deferred tax on hedging gain and losses

-

-

-

0.2

0.2

Total hedging gains and losses reclassified to inventory

-

-

-

(1.4)

-

-

-

(1.4)

Transactions with owners, recorded directly in equity

Equity dividends paid

-

-

-

-

-

-

(59.7)

(59.7)

Credit to equity for share based payments

-

-

-

-

-

-

5.9

5.9

Share buyback

(0.1)

-

-

-

-

0.1

(25.1)

(25.1)

Purchase of own shares

-

-

-

-

-

-

(3.9)

(3.9)

Total contributions by and distributions to owners

(0.1)

-

-

-

-

0.1

(82.8)

(82.8)

Balance at 27 March 2025

4.6

(372.0)

113.3

(1.2)

(0.1)

0.4

1,248.2

993.2

Cash flows from operating activities

Profit for the period

26.2

37.6

Adjustments for:

Depreciation and amortisation

55.9

54.2

Financial income

(1.4)

(1.7)