REG - Pets at Home Grp - FY25 Preliminary Results
28/05/2025 07:00
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RNS Number : 3306K Pets At Home Group Plc 28 May 2025
FOR IMMEDIATE RELEASE, 28 MAY 2025
Pets at Home Group Plc: FY25 Preliminary Results
for the 52 week period to 27 March 2025
Platform in place to support future growth
Key financial results
Statutory Metrics FY25 FY24 YoY %
Group Statutory Revenue (£m) 1,482.1 1,480.2(1) 0.1%
Group Statutory PBT (£m) 120.6 105.7 14.1%
Statutory Basic EPS (p) 19.0 16.6 14.5%
Dividend (p) 13.0 12.8 1.6%
Total Indebtedness(#) (£m) (342.1) (372.0) (8.0)%
Financial Performance Metrics FY25 FY24 YoY %
Group Consumer Revenue(#) (£m) 1,961.9 1,909.9 2.7%
- Retail 1,306.8 1,330.1 (1.8)%
- Vet Group 655.1 579.8 13.0%
Group Underlying PBT(#) (£m) 133.0 132.0 0.7%
- Retail 72.9 87.4 (16.6)%
- Vet Group 75.9 61.6 23.3%
Free Cash Flow(#) (£m) 83.8 69.0 21.5%
- Retail 30.6 26.7 14.6%
- Vet Group 67.5 58.3 15.8%
Adjusted Net Cash(#) (£m) 6.2 8.8 (30.1)%
Underlying Basic EPS(#) (p) 21.0 20.7 1.6%
See note 1.26 for an explanation of the prior year restatement.
Lyssa McGowan, Chief Executive Officer:
"The past two years have seen a profound transformation at Pets at Home. We
have moved from a business with a strong presence in pet retail and vets, to a
true pet care platform.
We now have a platform that is fit for the future and capable of delivering
sustained outperformance and market share gains through delighting consumers
and increasingly fulfilling all of their pet care needs. During this period of
transformation, we have completely replatformed our digital infrastructure,
built new capabilities around our data, brand & marketing, and simplified
our distribution network to a single distribution centre fulfilling stores,
online and subscriptions, and we have achieved this against the backdrop of a
normalising pet care market and low consumer confidence.
In FY25, we also saw another outstanding year of growth in our vets business,
fuelled by the commitment and expertise of our partners, supported by our
best-in-class scale services, platform benefits and industry knowhow. Our
practices significantly outperformed a more subdued industry backdrop and
delivered this progress despite the ongoing uncertainty of the CMA
investigation - further demonstration of the power of our unique joint venture
model.
I am tremendously proud of our colleagues and partners for navigating this
challenging but critical period which leaves us in a position to look to the
future with confidence. While FY26 comes with its own challenges as we digest
externally imposed cost headwinds and heightened macro uncertainty, our
objective is clear - to deliver outperformance against our underlying markets,
across our business."
Financial Highlights
• Group consumer revenue(#) up 2.7% to £1.96bn, against a subdued but resilient
market backdrop.
• Vet Group consumer revenue(#) up 13.0%, record sales supported by high quality
growth driven by higher visits, average transaction values and significant
growth in Care Plan revenues.
• Retail consumer revenue(#) down 1.8%, impacted by a period of subdued growth
in the pet sector due to a soft UK consumer backdrop throughout FY25,
deflation and normalising levels of new pet ownership. In addition, we saw
some transitionary impacts from our digital platform launch. However, the
fundamentals of the business remain healthy with consumer satisfaction
improving through the year.
• Total Group statutory revenues up 0.1% to £1.48bn, with Group
like-for-like(#) (LFL) revenue -0.4%. Vet Group revenues up +16.8% (LFL(#)
+16.2%) to £175.3m, with Retail revenues -1.8% (LFL(#) -2.0%) to £1.31bn.
• Group underlying PBT(#) of £133.0m, up 0.7% YoY, in line with guidance, with
Group underlying PBT margin(#) +5bps.
• Vet Group underlying PBT(#) of £75.9m up 23.3%, driven by the increase in fee
income YoY whilst maintaining a broadly flat cost base.
• Retail underlying PBT(#) of £72.9m down 16.6%, driven by the impact of lower
revenues with gross margins broadly stable and good cost control.
• Group statutory PBT £120.6m, up 14.1% with the underlying profit fall offset
by a £13.9m reduction in non-underlying costs YoY to £12.4m in FY25.
• Underlying EPS(#) 21.0p, up 1.6% with a 1.4% underlying profit for the period
decline, offset by 3.0% share buyback accretion.
• Total dividend per share of 13.0p (up 1.6%), final dividend held at 8.3p.
• Free cash flow(#) up 21.5% to £83.8m, reflecting the increase in underlying
PBT(#), lower non-underlying costs and lower share purchases linked to our
employee benefit trust (EBT).
• Vet Group £67.5m up 15.8% driven by strong sales growth, leveraged through
our capital light model.
• Retail £30.6m up 14.6% with lower non-underlying costs helping offset lower
underlying profits.
• Balance sheet remains robust with adjusted net cash(#) of £6.2m (FY24:
£8.8m), before lease liabilities of £348.3m. Cash and cash equivalents of
£39.5m at the end of the year (FY24: £57.1m).
• £25m share buyback announced for FY26, having already completed £125m in
buybacks in last 3 years
Strategic Highlights
FY25 was a year of strategic progress against a more challenging macro
backdrop. Importantly, the key elements of our strategy are now complete and
will underpin future growth. Highlights include:
• Pets Club members grew 5% to 8.2m helped in part by auto-enrolment on the new
digital platform, further increasing our active consumer base from which we
can drive share of wallet gains in the future.
• Our retained consumers(2) continue to see higher ACV(3) - faster consumer
growth than anticipated diluted our total consumer ACV(3) (down 2% to £175)
but retained consumer(2) ACV(3) growing 1% to £216.
• Digital platform fully transitioned providing the foundations to leverage our
Pets Club data to drive an increasingly personalised consumer experience.
• Distribution network optimisation complete, with all sales channels now being
fully serviced by our single site distribution centre in Stafford.
• Subscription revenues(4) +30%, with 13.0% (from 10.0%) of Group Consumer
revenue(#) now generated via subscriptions. Particularly strong growth across
Easy Repeat and Care Plans as our improved offer and functionality resonates
with consumers.
• Retail consumer satisfaction +10pts since start of year driven by improvements
in availability, service and value for money.
• Further growth in vet footprint - 3 new JV practices and 15 JV extensions
completed in the year with accelerated ambitions for future supported by a
robust partner pipeline. In FY26 we plan to open at least 10 new JV practices
alongside 15 extensions.
• Continued investment in our Pet Care Centres with 4 new openings and 32 Pet
Care Centre refits including 4 major refits in our new trial format.
• Progressed our sustainability agenda - In partnership with Meatly we supported
the launch of the world's first cultivated meat dog treat and over 250 own
brand pet food ranges have been carbon footprinted.
Building the world's best pet care platform
Our strategy is clear. We are the UK's only complete pet care provider, and
our recent transformational investments will provide a platform for
outperformance through unlocking new areas of growth in existing and adjacent
markets, generating long-term sustainable value for all stakeholders.
FY25 has been a critical year in the delivery of our strategy, completing and
bedding in two major investment programs, our distribution network
optimisation and our digital platform. This investment has been critical to
futureproof the business and has required significant focus and resource to
deliver, against a challenging and uncertain trading backdrop.
With these two key programs now complete, our focus is now firmly on
delivering the omnichannel benefits of these investments across our 8.2m Pets
Club members. We will continue to improve our experience and broaden our
appeal as we fully integrate vets, grooming and insurance going forward. Our
vision is on track to build the world's best pet care platform, bringing
together a best-in-class omnichannel retail proposition with our unique blend
of services, through an integrated and consumer centric experience.
An integrated consumer experience
• Our new digital platform is now live, completing a key building block of our
strategy. As consumers interact with our platform, we are seeing increased
conversion as consumer journeys are simplified, and higher average baskets as
consumers engage with new features.
• While FY25 was impacted by the transition to the new platform, we have a long
track record of growing our online sales. We expect to return to market
outperformance in FY26 and beyond as we leverage our improved capability with
a particular focus on subscriptions growth and improved mix through growing
own brand and accessories participation.
• Our Pet Care Centres remain central to our omnichannel experience. High
quality assets in their own right, and also providing an important digital
halo, with online sales increasing over 25% in areas with a new Pet Care
Centre opening(5). Our new format stores have performed well, with stronger
subscription and Pets Club sign-ups, supporting a broader rollout, with 30
refreshes planned for FY26.
• Consumers will continue to benefit as we further enhance our experience, truly
integrating our unique blend of products, services and advice. Most
importantly, we can begin to use our best-in-class, first party data much more
effectively to better meet consumer needs and drive incremental demand.
Growing our recurring revenue streams
• Our revenues are increasingly predictable as our business mix improves, with
more of our revenues coming from areas such as vets, grooming, and
subscriptions. We plan to continue to grow this further with subscription
participation still fairly low across our 8.2m Pets Club members and 0.6m
non-Pets Club vet clients (of 1.7m total active vet clients).
• The new digital platform has already unlocked strong growth in Easy Repeat
subscriptions, which are +35% YoY. These consumers are showing c50% higher
frequency and c50% higher ACV3 than prior to taking out a plan.
• We have also recently launched Easy Repeat sign up in store, with over 1,000
sign-ups a day so far. 75% of these in-store sign-ups are opting for 2-4
weekly frequency vs 80% of online sign-ups being 4-12 weeks. In addition, over
90% of new sign-ups are opting for Click & Collect.
• Our headroom for growth remains significant, with only c3% of our 8.2m Pets
Club members having an active Easy Repeat subscription compared to over 50% of
our vet clients who have a Care Plan. Each 1% of consumers moved onto Easy
Repeat would add £10m to our revenues.
• Our relaunched Care Plans have been a success in driving practice revenue
growth. Our Care Plans contributed 9% to Vet Consumer revenue(#) growth as our
relaunched plans resonated well with consumers and we sold more, higher value
plans, increasing the stickiness and predictability of our vet revenues.
Differentiated, sector-leading vets
• Our unique JV model has delivered another year of double-digit growth and
market share gains. Our vet group is a clear #2 in the UK First Opinion sector
and is responsible for 33% of our consumer revenues, over 50% of Group
underlying PBT(#) and the majority of Group Free Cash Flow(#).
• The Nation's Local Vet. The success of our vets business begins with
delivering the best outcomes for consumers and their pets. Our practice owners
operate with clinical freedom, build their business with a long term,
community focus and compete effectively to grow their consumer base, supported
by our national brand, platform and industry leading support.
• This shows up in differentiated economics for us and our partners. In FY25:
• We increased our brand consideration by 7pts and delivered a 4pts increase in
consumer satisfaction from already high levels.
• Average practice revenues grew 12.8% to £1.4m.
• Joint Ventures practices reduced total indebtedness by £6.4m to £24.8m and
paid c£46m out to partners in dividends, averaging over £150k per debt-free
practice.
• This year we surpassed our vets FCF(#) target of £60m. But the ambitions of
us and our partners are not satisfied. We will deliver further growth through
embedded maturity, the rollout of new practices, and investments in advanced
capabilities and extensions. While we expect recovery in Retail FCF(#) in
future, we expect Vets to continue to contribute the majority of Group FCF(#).
• Practice maturity is not a constraint on our growth, in FY25 sales growth in
our 10+ year old practices was 11%. We have a clear track record of growing
practice revenues beyond 10-years old through extensions and advanced
capabilities and plan for c15 further extensions in FY26 and c100 over the
medium term. We also plan to accelerate our openings, delivering >10 in
FY26 and c100 over the medium term.
• We remain confident and consistent in our view that our unique JV model still
insulates us from many areas of the CMA's concern and await the CMA's
provisional findings in July 2025.
Insurance
• Our new insurance venture will bring a disruptive, Pets branded proposition to
the c£2bn pet insurance market. Pet insurance is the largest vertical outside
of Pets at Home's current core operations. It is expected, by Mintel, to grow
at c4% per annum reaching c£2.5bn by 2029.
• We have secured an experienced team, who have a 20% minority stake, to build a
capital light, Pets at Home insurance proposition leveraging our brand, data
and leading consumer base. We will deliver a disruptive consumer experience by
leveraging AI to remove key areas of consumer friction.
• We expect to incur start-up losses for around 2 years as we move towards
launch and begin building our book of business. We expect to reach break-even
point during FY28 before generating meaningful profits thereafter. We believe
over time the business is capable of contributing c10% of Group Profits.
Spotlight on Sustainability
Acting responsibly has always been at the heart of our business. Our
sustainability agenda is fully integrated into our strategy, centred around a
shared purpose of creating a better world for pets and the people who love
them.
Progress we have made this year includes:
• We have carbon footprinted over 250 of our own brand complete cat and dog food
products representing over 65% of own brand complete cat and dog food sales,
this is a key enabler to understanding our Scope 3 emissions and prioritising
where we take action.
• We have Pet food bank collection points in all our Pet Care Centres, in
partnership with the Blue Cross, helping to keep pets in loving homes. In FY25
we collected 1.6m meals bringing the total since this initiative was launched
to over 4 million.
• Over 60,000 children attended one of our 'My Pet pals' or 'Scout Association'
Pet Care Centre workshops over the course of the year.
Our financial framework
As we look forward, we have refined our medium-term framework reflecting the
shape of growth and profits we expect to deliver over the medium term.
• Grow consumer revenue(#) at mid-single digit rate per year, outperforming the
UK pet care market.
• Industry growth in 2024 has been low as we have seen subdued consumer
confidence, lower inflation and the normalisation of the UK pet market drag on
growth.
• But the pet care market remains an attractive one, with growth supported by
premiumisation and humanisation, as consumers treat their pets increasingly as
members of the family.
• So, while we expect consumer confidence to remain subdued in 2025, it is
expected that industry growth will improve gradually towards historic norms.
• We expect to outperform the market as we continue to benefit from our unique
JV Vet model, alongside an accelerated vet rollout, and we begin to deliver
the benefits of our new digital platform.
• We would expect faster growth in vets consumer revenue(#) than in retail with
vets growing on average at high single digit rates with Retail at a low to
mid-single digit rate.
• PBT growth ahead of sales growth through operational leverage and productivity
gains.
• Improving retail sales growth will drop through to profit growth. In addition,
as we move beyond a phase of heavy investment in the business, we will
continue to work hard driving efficiency through our cost base, driving profit
growth ahead of sales growth.
• We also expect margin accretive growth in the vets business to continue,
driven by operational gearing and improving the mix of our business further.
• Normalised capex of c£50m to drive FCF(#) conversion of profit after tax to
c90%.
• Our period of major investment is now complete and investment levels going
forward will reflect normalised levels required to maintain a well invested,
competitive platform.
• Unchanged Capital Allocation Policy and maintained capital discipline
prioritising:
1. Responsible investment in the core operations.
2. A progressive ordinary dividend targeting 50% EPS payout.
3. Inorganic growth opportunities with a focus on strategic investments
and bolt-on M&A.
4. Return excess cash to shareholders subject to maintaining a strong
balance sheet and not constraining the business.
FY26 Guidance
• Our objective for FY26 is to deliver outperformance versus the market in Vets
and Retail, alongside building towards the launch of our insurance offering.
• We expect the current market conditions and subdued consumer backdrop to
remain in FY26, with retail market growth of c2% expected.
• The first 6 weeks of the year have begun as expected with group profits
tracking in line with guidance.
• In Retail:
• We expect revenues to outperform the underlying market as our digital
investments bear fruit.
• Operating costs to increase no more than 5%, which includes productivity
initiatives of c£30m to offset higher than usual underlying cost inflation
including externally imposed headwinds of national living wage / national
insurance contributions (c£18m), new packaging regulations (c£2m), the
rebuild of variable pay (c£10m) and we are investing a further £3m in
marketing costs to drive sales.
• Overall, with our current view of demand and costs we expect Retail underlying
PBT(#) to decline YoY.
• In our Vet Group:
• We expect further progress in underlying PBT# albeit against the comparative
of the exceptional levels of growth delivered in FY24 and FY25.
• We will deliver >10 new vet practices in FY26, together with a further 15
extensions.
• We will invest c£3m in our new insurance proposition.
• We expect to deliver Group underlying PBT# in the range of £115-125m.
• We do not expect to incur any non-underlying costs.
• Effective tax rate is expected to be 26%.
• Capital investment at normalised levels of below £50m.
• £25m share buyback, following the £125m completed over the last 3 years.
Key Performance Indicators(6)
Strategic KPIs FY25 FY24 YoY
Number of active Pets Club members(7) (m) 8.2 7.8 5.0%
Average Consumer Value(3) (£) 175 178 (1.7)%
% of Consumer Revenue from Subscriptions(8) (%) 13.0% 10.0% 30.0%
Clinical FTE Headcount(9) (k) 3.5 3.3 6.0%
2. 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.
3. 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 as
defined above, rather than statutory revenue.
4. Subscription revenue includes our Flea & Worm, Easy Repeat, Complete
Care and Vac4Life plans.
5. Performance of the online catchment surrounding the new Pet Care Centre
relative to the total online performance over the same period. Performance is
analysed prior to the new Pet Care Centre opening vs the performance 3 years
post opening.
6. 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.
7. Number of active Pets Club members who transacted across the group in the
last 365 days prior to the end of the reporting period.
8. Subscription revenue includes our Flea & Worm, Easy Repeat, Complete
Care and Vac4Life plans and is divided by Group consumer revenue.
9. Full time equivalent number of all vets and nurses working across the
group, based on standard working hours.
Results presentation
A presentation for analysts and investors will be held today at 9:30am at
Deutsche Numis, 45 Gresham Street, London, EC2V 7BF, attendance is by
invitation only. To access a live streaming of the event, please click on the
following link https://brrmedia.news/PETS_FY25
(https://brrmedia.news/PETS_FY25) . A webcast and statement of these results
will be available for playback after the event at www.petsathomeplc.com
(http://www.petsathomeplc.com) .
Our next scheduled update will be our Q1 FY26 trading statement on 31 July
2025.
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
# Alternative Performance Measures (APMs) are defined and reconciled to IFRS
information, on pages 74- 76.
About Pets at Home
Pets at Home Group Plc is the UK's leading pet care business, providing pets
and their owners with the very best advice, products and care. Pet products
are available online or from over 450 Pet Care Centres, many of which also
have vet practices and grooming salons. The Group also operates a leading
small animal veterinary business, with over 440 veterinary general practices
located both in our Pet Care Centres and in standalone locations. For more
information visit: http://investors.petsathome.com/
(http://investors.petsathome.com/)
Disclaimer
This trading statement does not constitute an invitation to underwrite,
subscribe for, or otherwise acquire or dispose of any Pets at Home Group Plc
shares or other securities nor should it form the basis of or be relied on in
connection with any contract or commitment whatsoever. It does not constitute
a recommendation regarding any securities. Past performance, including the
price at which the Company's securities have been bought or sold in the past,
is no guide to future performance and persons needing advice should consult an
independent financial adviser. Certain statements in this trading statement
constitute forward-looking statements. Any statement in this document that is
not a statement of historical fact including, without limitation, those
regarding the Company's future plans and expectations, operations, financial
performance, financial condition and business is a forward-looking statement.
Such forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially. These risks and uncertainties
include, among other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect the outcome
and financial effects of the plans and events described in this statement. As
a result you are cautioned not to place reliance on such forward-looking
statements. Nothing in this statement should be construed as a profit
forecast.
Chief Financial Officer's Review
The FY25 period represents the 52 weeks from 29 March 2024 to 27 March 2025.
The comparative period represents the 52 weeks from 31 March 2023 to 28 March
2024.
The Group's results are shown as three segments that represent the size of the
respective businesses and our internal reporting structures; Retail (includes
products purchased online and in-store, pet sales, grooming services and
insurance commissions), Vet Group (includes general practices and our
veterinary telehealth business) and Central (includes Group costs and finance
expenses).
FY25 FY24 YoY
Group statutory revenue (£m) 1,482.1 1,480.2(1) 0.1%
Retail 1,306.8 1,330.1 (1.8)%
Vet Group 175.3 150.1 16.8%
Group consumer revenue (£m)(#) 1,961.9 1,909.9 2.7%
Retail 1,306.8 1,330.1 (1.8)%
Vet Group 655.1 579.8 13.0%
Group like-for-like revenue growth(#) (0.4)% 5.1%
Retail (2.0)% 4.1%
Vet Group 16.2% 16.5%
Group gross profit margin 46.9% 46.7% 17bps
Retail 46.1% 46.2% (7)bps
Vet Group 52.6% 51.5% 118bps
Group statutory PBT (£m) 120.6 105.7 14.1%
Group statutory PBT margin 8.1% 7.1% 99bps
Group underlying PBT(1,2,#) (£m) 133.0 132.0 0.7%
Retail 72.9 87.4 (16.6)%
Vet Group 75.9 61.6 23.3%
Central (15.8) (17.0) (6.7)%
Group underlying PBT margin(1,2,#) 9.0% 8.9% 5bps
Retail 5.6% 6.6% (99)bps
Vet Group 43.3% 41.0% 229bps
Statutory basic EPS (p) 19.0 16.6 14.8%
Statutory diluted EPS (p) 18.8 16.4 14.6%
Underlying basic EPS(1,2,#) (p) 21.0 20.7 1.6%
Non-underlying items(2) (£m) (12.4) (26.3) (52.8)%
Free cash flow(#) (£m) 83.8 69.0 21.5%
Cash and cash equivalents (£m) 39.5 57.1 (30.9)%
Total indebtedness(#) (£m) (342.1) (372.0) (8.0)%
Adjusted net cash(#) (£m) 6.2 8.8 (30.1)%
Dividend (p) 13.0 12.8 1.6%
Number of
Pet Care Centres 459 458 1
Grooming salons 343 347 (4)
Joint Venture vet practices 396 391 5
Company managed vet practices 52 56 (4)
1. See note 1.26 for an explanation of the prior year restatement.
2. FY25 non-underlying items of £12.4m. £6.9m relating to our distribution
network optimisation program, £4.5m relating to restructuring of certain
support functions, £3.3m relating to the CMA investigation. Alongside this we
had a disposal on investment gain of £2.3m which relates to the disposal of
Pure Pet Food. FY24 non-underlying items of £26.3m. £21.5m relate to our
distribution network optimisation program, £3.7m relating to restructuring of
certain support functions, and £1.1m relating to the write down of
investments.
Revenue
Group consumer revenue(#) grew 2.7% to £1,961.9m (Vet Group(3) up 13.0% to
£655.1m, Retail down 1.8% to £1,306.8m).
Consumer Revenue YoY Growth(#) Q1 24 Q2 24 H1 24 Q3 24 Q4 24 H2 24 FY 24
Retail 7.1% 2.9% 5.2% 3.5% 2.0% 2.7% 4.0%
Vet Group 17.9% 15.6% 16.9% 12.9% 13.3% 13.1% 15.1%
Group 10.2% 6.5% 8.6% 6.0% 5.3% 5.6% 7.2%
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%
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'
Group statutory revenue grew 0.1% to £1,482.1m with like-for-like (LFL(#))
revenue down 0.4%.
Vet Group statutory revenue was up 16.8% to £175.3m with LFL(#) revenue up
16.2%.
• LFL(#) growth was higher than Joint Venture fee income which grew by 15.2% to
£103.4m, due to the unwind of fee remediation (c£3m lower YoY).
• Revenues from company managed practices increased by 17.7% to £52.5m.
• The Vet Connection (our telehealth business), generated revenue of £4.0m,
+24.7% YoY.
• During FY25 it became necessary to reappraise our approach to Care Plan
recognition due to changes in the consumer proposition that resulted in a
mismatch between cash receipts and revenue recognised using the previous
approach. Under the new approach cash receipts and revenue recognised are
closely aligned.
• This change resulted in a £19.9m increase in consumer revenues(#) recognised
in FY25 and a £4.9m increase in underlying PBT(#). The £4.9m increase in
underlying PBT(#) is greater than previously expected due to a higher level of
consumer revenues# from Care Plans and a higher proportion coming through our
full consolidated company managed practices than previously expected.
Retail statutory revenue was down 1.8% to £1,306.8m with -2.0% LFL(#) growth.
• Throughout FY25 our LFL(#) performance was impacted by a subdued UK consumer
backdrop, a deflationary environment and the impacts of normalisation of new
pet ownership.
• We also experienced some disruption in our online revenues from transitioning
to our new digital platform and, in the latter part of the year, in moving our
online sales across to our Stafford distribution centre, which was expected.
• By category, Food sales declined 1.2% where we saw elements of deflation due
to higher promotional participation across the industry. Accessories was down
3.5%. Discretionary accessories remains the most impacted area due to the
subdued consumer backdrop, down 5.9%. Consumable accessories was up 0.7%
reflecting strong volume performance.
LFL(#) Revenue Growth Q1 24 Q2 24 H1 24 Q3 24 Q4 24 H2 24 FY 24
Retail 7.1% 2.8% 5.2% 3.7% 2.1% 2.9% 4.1%
Vet Group 16.6% 18.3% 17.3% 13.3% 17.8% 15.6% 16.5%
Group 7.9% 4.1% 6.2% 4.4% 3.4% 3.9% 5.1%
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)%
Gross margin
Group gross margin(4) increased YoY by 17bps to 46.9%. Vets contributed 22bps
towards the Group movement, with Retail down 5bps.
• Gross margin(4) within the Vet Group increased by 118bps to 52.6%. The main
contributor being strong sales performance within our Joint Venture estate
leveraging a relatively fixed cost base and we also saw strong sales and
profit conversion within our company managed practices.
• Gross margin(4) within Retail was 46.1%, a 7bps YoY reduction due to adverse
mix due to faster growth in food and non-discretionary accessories. FX
partially offset this due to a favourable FX contracted rate in FY25 ($1.26)
vs FY24 ($1.19). For FY26 we are currently hedged at a rate of $1.27.
Operating costs
We managed our cost base tightly in FY25. Operating costs(5) of £558.3m were
2.4% lower, driven by a £13.9m reduction in non-underlying costs. In FY25, we
incurred a total of £12.4m of non-underlying operating costs (FY24: £26.3m).
Before non-underlying costs, underlying operating costs(5) were flat YoY
despite the headwinds of National Living Wage increases (c£16m) and the
removal of business rates relief (c£2m).
(£m) FY25 FY24 YoY
Group statutory revenue 1,482.1 1,480.2(1) 0.1%
Selling and distribution expenses 442.9 442.2 0.2%
Administrative expenses 117.6 116.3 1.1%
Other Income (14.6) (12.7) 15.3%
Underlying operating costs 545.9 545.8 0.0%
Non-underlying costs 12.4 26.3 (52.8)%
Operating costs(5) 558.3 572.1 (2.4)%
Underlying operating costs to sales ratio 36.8% 36.9% (4)bps
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.
For FY26 we will continue to keep a tight grip on our costs. FY26 will be
another year where we face higher than usual cost inflation including
externally imposed cost headwinds of:
• +6.7% National Living Wage increase and higher National Insurance
contributions - c£18m in FY26 taking the cumulative cost of NLW and NICs
absorbed over the last 3 years to c£48m.
• New plastic packaging regulations - c£2m.
In addition, we have made choices to continue to invest in the future of the
business in the form of higher marketing (c£3m) and the rebuild of bonuses
(c£10m).
Where possible we will be mitigating these costs as well as other cost
headwinds we face through our ongoing productivity initiatives, our
investments in automation and our ongoing program of lease renegotiations
totalling c£30m in FY26.
As a result of our productivity actions, in FY26 our operating costs(5) will
grow no more than 5%, against gross cost inflation closer to 10%. The extent
to which we can further mitigate cost inflation will depend on the rate of
sales growth we are able to deliver, which is dependent on how consumer demand
evolves and how inflation comes through.
Finance expense
The net finance expense, including interest charged on lease liabilities,
increased to £15.8m (FY24: £13.6m). Of this, £13.2m (FY24: £13.3m) related
to interest expense on lease liabilities.
Profit before tax (PBT)
Group statutory PBT of £120.6m increased £14.9m (14.1% YoY) due to a £13.9m
reduction in non-underlying costs. The bulk of non-underlying costs were due
to the completion of our distribution network optimisation program. No
non-underlying costs are expected to be incurred in FY26.
Group underlying PBT(#) was £133.0m (FY24: £132.0m), with underlying PBT
margin(6) of 9.0%, up 5bps YoY, due to a greater profit contribution from the
Vet Group, which has now overtaken Retail contribution.
• Vet Group statutory PBT was £75.9m (FY24: £58.8m). Vet Group underlying
PBT(#) was £75.9m (FY24: £61.6m) with underlying PBT margin(6) of 43.3%
(FY24: 41.0%), driven by a strong sales performance leveraging a broadly flat
cost base.
• Retail statutory PBT was £66.9m (FY24: £64.8m). Retail underlying PBT(#) was
£72.9m (FY24: £87.4m) with underlying profit margin(6) of 5.6% (FY24: 6.6%).
With gross margins broadly stable and operating costs held flat, the profit
decline was driven by the decline in sales.
• Central costs of £15.8m (FY24: £17.0m) includes payroll costs for Group
functions, professional fees, and PLC related costs. Central costs also
include the initial Insurance set up costs of £0.4m which were incurred in
FY25, with c£3m expected to be incurred in FY26.
(£m) FY25 FY24 YoY
Group statutory PBT (£m) 120.6 105.7 14.1%
Retail 66.9 64.8 3.2%
Vet Group 75.9 58.8 29.1%
Central (22.2) (17.9) 24.0%
Group statutory PBT margin 8.1% 7.1% 99bps
Non-underlying items (£m) (12.4) (26.3) (52.8)%
Group underlying PBT(#) (£m) 133.0 132.0 0.7%
Retail 72.9 87.4 (16.6)%
Vet Group 75.9 61.6 23.3%
Central (15.8) (17.0) (6.7)%
Group underlying PBT margin(6) 9.0% 8.9% 5bps
6. Underlying PBT margin is calculated as underlying profit
before tax as a percentage of revenue.
Taxation, profit after tax & EPS
• Total tax expense was £32.4m for the period. The effective tax rate for FY25
is 26.7% (FY24 25.1%), which is higher than the UK corporation tax rate due to
prior year adjustments in relation to deferred tax which is expected to unwind
in future years with no future impact on cash tax.
• Statutory profit after tax increased by 11.4% to £88.2m.
• Statutory basic earnings per share (EPS) were 19.0 pence (FY24: 16.6 pence)
and underlying basic EPS(#) were 21.0 pence (FY24: 20.7 pence).
Working capital
The cash flow movement in working capital(7) for FY25 was an outflow of
£3.3m, (FY24: £4.6m outflow).
Compared to FY24 last year:
• Inventories increased by £9.4m YoY as we intentionally built up online stock
levels to support the operation as we transitioned to Stafford DC, which is
expected to unwind in FY26.
• Trade and other receivables increased by £0.9m YoY, driven by the reducing
Vet Group operating loan balance offset by timing differences in
supplier-funded marketing activity.
• Trade and other payables have increased by £10.7m YoY linked to higher levels
of inventory.
• Provisions decreased by £3.7m YoY as we unwound the restructuring costs
provided for in FY24 linked to the now complete Distribution network
optimisation program.
Investment
Capex was £45.9m (FY24: £42.9m/FY23 £75.4m) signalling an end to peak
investment in our strategy. Investment remained focused on three strategic
growth areas; £12.1m (FY24: £9.5m) digitising the business via our new
digital platform, £5.0m (FY24: £6.4m) investment into distribution via our
network optimisation, and £27.9m (FY24: £25.9m) investment into our Pet Care
Centre estate including new Pet Care Centres and refits.
Free cash flow(#)
Free cash flow(#) (FCF) was £83.8m (FY24: £69.0m) represents an 86% FCF(#)
conversion against underlying profit after tax.
• Vet Group FCF(#) £67.5m up 15.8% due to double digit consumer revenue(#)
growth flowing into JV fee income.
• Retail FCF(#) £30.6m up 14.6% due to lower non-underlying costs YoY
offsetting the reduced Underlying PBT(#).
Free cash flow (£m) FY25 Group Retail Vet Group Central FY24 Group
Underlying PBT 133.0 72.9 75.9 (15.8) 132.0
Interest (net) 15.8 12.8 (0.7) 3.7 13.4
Depreciation (underlying) 98.8 94.0 4.3 0.5 101.7
Leases 62.2 61.0 1.2 0.0 65.1
PPE & amortisation of assets 36.6 33.0 3.1 0.5 36.6
Underlying EBITDA 247.6 179.7 79.5 (11.6) 247.2
Share-based payment charge 5.9 0.0 0.0 5.9 5.9
Non-underlying cash costs(8) (11.3) (5.0) 0.0 (6.3) (18.3)
Lease payments(9) (80.1) (77.5) (2.6) 0.0 (82.2)
WCAP (3.3) (9.1) 5.8 (0.0) (4.6)
Operating cash flow 158.8 88.1 82.7 (12.0) 147.9
Capex(10) (48.4) (48.1) (0.3) 0.0 (48.0)
Bank interest (net) (1.8) 0.2 1.0 (3.0) 1.0
Debt issue costs 0.0 0.0 0.0 0.0 (0.9)
Tax (20.9) (9.6) (15.9) 4.6 (20.2)
Purchase of own shares (employee share schemes) (3.9) 0.0 0.0 (3.9) (10.8)
Free Cash Flow 83.8 30.6 67.5 (14.3) 69.0
The cash generation described above, enables us to invest to grow our business
as well as fund our dividend payment and £25m buyback programme. Our closing
net cash position(#) at the end of the period was £6.2m (cash £39.5m, debt
£33.3m), and total indebtedness(#) was £342.1m post lease liabilities
(£348.3m). This represents a leverage ratio(#) of 0.0x underlying EBITDA or
1.4x on a lease adjusted basis.
Adjusted Net cash (£m) FY25 FY24
Opening adjusted net cash(#) 8.8 54.7
Free cash flow(#) 83.8 69.0
Equity dividends paid (59.7) (60.7)
Share buyback (25.1) (50.3)
Acquisitions (2.3) (2.4)
Disposals 0.7 (1.5)
Closing adjusted net cash(#) 6.2 8.8
Pre IFRS 16 leverage 0.0x (0.1)x
Lease adjusted leverage 1.4x 1.5x
7. Working capital is the sum of YoY movements in trade and other receivables,
inventories, trade and other payables, and provisions.
8. Non-underlying cash costs excludes income from disposal of investment
(£2.3m) and non-underlying depreciation of right-of-use asset (£3.4m).
9. Lease payments are cash payments for the principal portion of the right-of-use
lease liability, they also include costs to acquire right-of-use assets and
the right-of-use asset costs.
10. Capex is proceeds from the sale of property, plant and equipment less costs
to acquire right-of-use assets and acquisition of property, plant and
equipment and other intangible assets. It also includes investment capital
contributions and proceeds from repayment of partner loans.
The Group's underlying cash return on invested capital (CROIC)(#) in the
period decreased to 18.5% (FY24: 19.4%) having been through a period of peak
investment as we built our digital platform and optimised our distribution
network down to a single site, with the cash benefits to come in future years.
Capital allocation
Our capital allocation policy prioritises investing cash in areas that will
expand the Group and deliver attractive returns. These areas include organic
investment (into our digital capability, our infrastructure, and our store
refit program), our dividend policy (targeting a payout of 50% of earnings per
share over the medium term) and value-accretive opportunities including
M&A (which are strategically aligned to expanding our platform in core and
adjacent markets). We will return to shareholders any surplus cash after these
items, and it is the Board's intention to review this on an annual basis.
Having completed £125m in share buybacks over the past three years, reducing
the shares in issue by c8%, we plan a further £25m buyback in the current
financial year.
Dividend
The Board has recommended a final dividend of 8.3 pence per share, taking the
total dividend for the year to 13.0 pence per share (FY24 12.8 pence per
share). The final dividend will be payable on 16 July 2025 to shareholders on
the register at the close of trading on 6 June 2025.
Mike Iddon
Chief Financial Officer
28 May 2025
Financial statements
Consolidated income statement
Consolidated statement of comprehensive
income
Consolidated balance sheet
Consolidated statement of changes in equity as at 27 March
2025
Consolidated statement of changes in equity as at 28 March
2024
Consolidated statement of cash flows
Notes to the consolidated financial statements
Parent company balance sheet
Parent company statement of changes in equity as at 27 March 2025
Company statement of changes in equity as at 28 March 2024
Notes to the parent company financial statements
Glossary - Alternative Performance Measures
Advisors and contacts
Section 435 statement
The financial information set out below does not constitute the company's
statutory accounts for the periods
ended 27 March 2025 or 28 March 2024 but is derived from those accounts.
Statutory accounts for 2024
have been delivered to the registrar of companies, and those for 2025 will be
delivered in due course. The
auditor has reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to
any matters to which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did
not contain a statement under section 498 (2) or (3) of the Companies Act
2006.
Consolidated income statement for the 52 week period ended 27 March 2025
Note 52 week period ended 27 March 2025 52 week period ended 28 March 2024
(restated)1
Underlying trading Non-underlying items (note 3) £m Total Underlying trading Non-underlying items (note 3) £m Total
£m £m £m £m
Revenue 2 1,482.1 - 1,482.1 1,480.2 - 1,480.2
Cost of sales(2) (787.4) - (787.4) (788.9) - (788.9)
Gross profit 694.7 - 694.7 691.3 - 691.3
Selling and distribution expenses (442.9) (8.3) (451.2) (442.2) (21.4) (463.6)
Administrative expenses 3 (117.6) (6.4) (124.0) (116.3) (4.8) (121.1)
Other income 3 14.6 2.3 16.9 12.7 - 12.7
Operating profit 2,3 148.8 (12.4) 136.4 145.5 (26.2) 119.3
Financial income 6 2.9 - 2.9 4.0 - 4.0
Financial expense 7 (18.7) - (18.7) (17.5) (0.1) (17.6)
Net financing expense (15.8) - (15.8) (13.5) (0.1) (13.6)
Profit before tax 133.0 (12.4) 120.6 132.0 (26.3) 105.7
Taxation 8 (35.5) 3.1 (32.4) (33.1) 6.6 (26.5)
Profit for the period 97.5 (9.3) 88.2 98.9 (19.7) 79.2
(1)See note 1.26 for an explanation of the prior year restatement.
(2)Impairment gains on receivables of £nil (52 weeks to 27 March 2025 £1.0m)
are reported within cost of sales.
Basic and diluted earnings per share attributable to equity shareholders of
the Company:
Note 52 week period ended 27 March 2025 52 week period ended 28 March 2024
Equity holders of the parent - basic 5 19.0p 16.6p
Equity holders of the parent- diluted 5 18.8p 16.4p
( )
Dividends paid and proposed are disclosed in note 9.
The notes on pages 20 to 69 form an integral part of these financial
statements.
Consolidated statement of comprehensive income for the 52 week period ended 27
March 2025
Note 52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Profit for the period 88.2 79.2
Other comprehensive income
Items that are or may be recycled subsequently into profit or loss:
Effective portion of changes in fair value of cash flow hedges 22 0.6 3.3
Net change in fair value of cash flow hedges reclassified to profit or loss 22 0.1 1.3
Other comprehensive income for the period, before income tax 0.7 4.6
Deferred tax on changes in fair value of cash flow hedges 15,22 - (0.3)
Other comprehensive income for the period, net of income tax 0.7 4.3
Total comprehensive income for the period 88.9 83.5
The notes on pages 20 to 69 form an integral part of these financial
statements.
Consolidated balance sheet at 27 March 2025
Note At 27 March 2025 £m At 28 March 2024 £m
Non-current assets
Property, plant and equipment 11 161.7 158.1
Right-of-use assets 12 284.6 319.3
Intangible assets 13 985.1 979.7
Other financial assets 16 15.0 10.9
1,446.4 1,468.0
Current assets
Inventories 14 106.9 97.5
Derivative financial assets 16 0.5 0.3
Income tax receivable 0.2 -
Trade and other receivables 17 63.3 60.9
Cash and cash equivalents 18 39.5 57.1
210.4 215.8
Total assets 1,656.8 1,683.8
Current liabilities
Trade and other payables 20 (255.6) (249.2)
Income tax payable - (1.4)
Other interest-bearing loans and borrowings 19 (4.7) (2.2)
Lease liabilities 12 (78.5) (79.8)
Provisions 21 (5.1) (7.6)
Derivative financial liabilities 16 (1.7) (1.0)
(345.6) (341.2)
Non-current liabilities
Other interest-bearing loans and borrowings 19 (26.7) (43.3)
Lease liabilities 12 (269.8) (301.0)
Provisions 21 (3.9) (5.1)
Deferred tax liabilities 15 (17.6) (4.7)
(318.0) (354.1)
Total liabilities (663.6) (695.3)
Net assets 993.2 988.5
Equity attributable to equity holders of the parent
Ordinary share capital 22 4.6 4.7
Consolidation reserve 22 (372.0) (372.0)
Merger reserve 22 113.3 113.3
Translation reserve 22 (0.1) (0.1)
Capital redemption reserve 22 0.4 0.3
Cash flow hedging reserve 22 (1.2) (0.5)
Retained earnings 22 1,248.2 1,242.8
Total equity 993.2 988.5
On behalf of the Board:
Mike Iddon
Chief Financial Officer
28 May 2025
Company number: 08885072
The notes on pages 20 to 69 form an integral part of these financial
statements.
Consolidated statement of changes in equity as at 27 March 2025
Share capital Consolidation reserve Merger reserve Cash flow hedging reserve Translation reserve Capital redemption reserve Retained earnings Total equity
£m £m £m £m £m £m £m £m
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 (note 22) - - - 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
Consolidated statement of changes in equity as at 28 March 2024
Share capital Consolidation reserve Merger reserve Cash flow hedging reserve Translation reserve Capital redemption reserve Retained earnings Total equity
£m £m £m £m £m £m £m £m
Balance at 30 March 2023 4.8 (372.0) 113.3 (1.6) (0.1) 0.2 1,280.5 1,025.1
Total comprehensive income for the period
Profit for the period - - - - - - 79.2 79.2
Other comprehensive income (note 22) - - - 4.3 - - - 4.3
Total comprehensive income for the period - - - 4.3 - 79.2 83.5
Hedging gains and losses reclassified to inventory - - - (3.2) - - - (3.2)
Total hedging gains and losses reclassified to inventory - - - (3.2) - - - (3.2)
Transactions with owners, recorded directly in equity - -
Equity dividends paid - - - - - - (60.7) (60.7)
Credit to equity for share based payments - - - - - - 5.9 5.9
Deferred tax movement on IFRS2 reserve - - - - - - (1.0) (1.0)
Share buyback (0.1) - - - - 0.1 (50.3) (50.3)
Purchase of own shares - - - - - - (10.8) (10.8)
Total contributions by and distributions to owners (0.1) - - - - 0.1 (116.9) (116.9)
Balance at 28 March 2024 4.7 (372.0) 113.3 (0.5) (0.1) 0.3 1,242.8 988.5
Consolidated statement of cash flows for the 52 week period ended 27 March
2025
Note 52 week period 52 week period
ended ended
27 March 2025 28 March 2024
£m £m
Cash flows from operating activities
Profit for the period 88.2 79.2
Adjustments for:
Depreciation and amortisation 11, 12, 13 102.2 109.6
Non underlying profit on disposal (2.3) -
Financial income 6 (2.9) (4.0)
Financial expense 7 18.7 17.6
Share-based payment charges 3 5.9 5.9
Taxation 8 32.4 26.5
242.2 234.8
Increase in trade and other receivables (0.9) (6.3)
(Increase)/decrease in inventories (9.4) 11.1
Increase/(decrease) in trade and other payables 10.7 (5.3)
Decrease in provisions (3.7) (4.1)
Movement in working capital (3.3) (4.6)
Tax paid (20.9) (20.2)
Net cash flow from operating activities 218.0 210.0
Cash flows from investing activities
Acquisitions of other Investments (1.0) (1.0)
Proceeds from the sale of other investments 2.3 -
Investment capital contributions (0.9) (2.5)
Proceeds from repayment of initial partner loans 1.5 2.1
Interest received 3.0 4.1
Costs to acquire right-of-use assets (0.4) (0.5)
Acquisition of subsidiaries, net of cash acquired 10 (1.3) (1.0)
Disposal of subsidiaries, net of cash disposed (1.6) (1.5)
Acquisition of property, plant and equipment and other intangible assets (49.0) (48.0)
Net cash used in investing activities (47.4) (48.3)
Cash flows from financing activities
Equity dividends paid 9 (59.7) (60.7)
Repayment of borrowings 23 (15.0) (75.0)
Debt issue costs 23 - (0.9)
Cash payments for the principal portion of the right-of-use lease liability (66.5) (68.4)
Purchase of own shares (3.9) (10.8)
Share buyback (25.1) (50.3)
Interest paid (4.8) (3.2)
Interest paid on lease obligations (13.2) (13.3)
Net cash used in financing activities (188.2) (282.6)
Net decrease in cash and cash equivalents (17.6) (120.9)
Cash and cash equivalents at beginning of period 18 57.1 178.0
Cash and cash equivalents at end of period 18 39.5 57.1
( )
The notes on pages 20 to 69 form an integral part of these financial
statements.
Notes to the consolidated financial statements
Pets at Home Group Plc (the Company) is a company incorporated in the United
Kingdom and registered in England and Wales and its registered office is Epsom
Avenue, Stanley Green, Handforth, Cheshire, SK9 3RN.
1 Accounting policies
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these consolidated financial
statements.
1.1 Basis of preparation
The Group financial statements of Pets at Home Group Plc have been prepared in
accordance with UK-adopted international accounting standards (UK-adopted
IFRS) and with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards.
The Parent Company financial statements in the prior year were prepared in
accordance with UK-adopted International Financial Reporting Standards and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
These Parent Company financial statements have been prepared in accordance
with FRS 101 Reduced Disclosure Framework (FRS 101) for all periods presented,
under the historical cost convention, and in accordance with the Companies Act
and other applicable law. The transition has not had an impact on the values
of balances previously presented and therefore no changes are required in the
presentation of the prior period balances.
As permitted by FRS 101, the Parent Company has taken advantage of the
disclosure exemptions available under that standard in relation to standards
not yet effective and presentation of a cash flow statement. The accounting
policies adopted for the Parent Company are otherwise consistent with those
used for the Group as set out within this note. The Company has also taken
advantage of the following disclosure exemptions under FRS 101:
• The requirement of paragraphs 91-99 of IFRS 13 'Fair Value Measurement'
• The requirement of IFRS 7 'Financial Instruments: Disclosure'
• The requirements of 45 (b) and 46-52 of IFRS 2 'Share-based payments'
• The requirements in IAS 24 'Related Party Disclosures' to disclose related
party transactions entered into between two or more members of a group,
provided that any subsidiary which is a party to the transaction is wholly
owned by such a member.
On publishing the Parent Company financial statements here together with the
Group financial statements, the Company has also taken advantage of the
exemption provided under section 408 of the Companies Act 2006 not to publish
its individual income statement and related notes that form a part of these
approved Financial Statements.
New standards and interpretations issued by the International Accounting
Standards Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) becoming effective during the 52 week period
ended 27 March 2025 have not had a material impact on the Group's financial
statements, these include IAS 8 amendments and IAS 1 amendments on
current/non-current classification of liabilities.
The OECD Pillar Two GloBE model rules introduce a global minimum corporation
tax rate of 15% applicable to multinational enterprise groups with global
revenue over €750m. Pillar Two legislation was substantively enacted on 20
June 2023 in the UK, the jurisdiction in which the Group's ultimate parent
company is incorporated, and came into effect from 1 January 2024. The Group
applies the mandatory temporary exception to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two
income taxes, as provided in the amendments to IAS 12 issued in May 2023.
1.2 Measurement convention
The consolidated financial statements are prepared on the historical cost
basis except that the following assets and liabilities are stated at their
fair value: derivative financial instruments, financial instruments classified
as fair value through the profit or loss.
1.3 Going concern
The Group and Company's business activities, together with the factors likely
to affect its future development, performance and position, are set out in the
Strategic Report. The financial position of the Group and Company, its cash
flows, liquidity position and borrowing facilities are described in the Chief
Financial Officer's review. In addition, note 23 to the financial statements
includes the Group and Company's objectives, policies and processes for
managing its capital; its financial risk management objectives; details of its
financial instruments and hedging activities; and its exposures to credit risk
and liquidity risk.
The Directors of the Group have prepared cash flow forecasts for a period of
at least 12 months from the date of the approval of these financial statements
which indicate that, despite taking account of reasonably possible downsides,
the Group will have sufficient funds, through its revolving credit facility,
to meet its liabilities as they fall due for that period.
In preparing the forecasts for the Group, the Directors have carefully
considered the impact of consumer confidence, geopolitical tensions and the
actual and potential impact on supply chains, as well as energy cost inflation
on liquidity and future performance. The Group has also considered the impact
of climate change and the Task Force on Climate Related Financial Disclosures
('TCFD') scenario analysis conducted in undertaking this assessment.
The Group has access to a revolving credit facility of £300m which expires on
30 September 2028 and a £23.3m asset backed loan which expires on 27 March
2030. The Group has £33.3m drawn down at 27 March 2025 and cash balances of
£39.5m. The lowest level of headroom forecast over the next 12 months from
the date of signing of the financial statements is in excess of £329.0m in
the base case scenario. On a sensitised basis, the lowest level of headroom
forecast over the next 12 months from the date of approving of the financial
statements is £301.9m due to the removal of the dividend payment in an
extreme scenario.
The Group has been in compliance with all covenants applicable to this
facility within the financial year and is forecast to continue to be in
compliance for 12 months from the date of signing of the financial statements.
A number of severe but plausible downside scenarios were calculated compared
to the base case forecast of profit and cash flow to assess headroom against
facilities for the next 12 months. These scenarios included:
- Scenario 1: Reduction on Group like-for-like sales growth assumptions of 1% in
each year throughout the forecast period, but ordinary dividends continue to
be paid.
- Scenario 2: Using scenario 1 outcomes and further impacted by a conflated risk
impact of £64.8m on sales and £25.1m on PBT per annum (using specific
financial
Notes to the consolidated financial statements (continued)
1 Accounting policies (continued)
1.3 Going concern (continued)
- risks taken from Group risk register with sales and PBT financial impact
quantified), with dividends held at 13.0p per share per annum.
- Scenario 3: Group like-for-like sales growth at 0% in each year and a
conflated risk impact of £144.8m on sales and £44.2m on PBT is applied
(using the top risks from Group risk register with sales and PBT impact
quantified), with dividends cut to nil to conserve cash.
Against these negative scenarios, adjusted projections showed no breach of
covenants. Further mitigating actions could also be taken in such scenarios
should it be required, including reducing capital expenditure.
Despite net current liabilities of £135.2m at Group level and £922.8m in the
Company, the Directors of Pets at Home Group Plc, having made appropriate
enquiries including the principal risks and uncertainties on pages 21 to 29 of
the Annual Report 2025, consider that the Group and Company will have
sufficient funds to continue to meet their liabilities for a period of at
least 12 months from the date of approval of these financial statements and
that, therefore, it is appropriate to adopt the going concern basis in
preparing the Group consolidated financial statements and the Company only
financial statements as at and for the period ended 27 March 2025.
1.4 Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. In assessing control, the Group takes into
consideration potential voting rights that are currently exercisable. The
acquisition date is the date on which control is transferred to the acquirer.
The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that
control ceases. Losses applicable to the non-controlling interests in a
subsidiary are allocated to the non-controlling interests even if doing
so causes the non-controlling interests to have a deficit balance.
The Group and Company operate an Employee Benefit Trust (EBT) for the purposes
of acquiring shares to fund share awards made to employees. The EBT is deemed
to be a subsidiary of the Group and Company as Pets at Home Group Plc is
considered to be the ultimate controlling party for accounting purposes. The
assets and liabilities of this trust have been included in the consolidated
financial information. The cost of purchasing own shares held by the EBT is
accounted for in retained earnings.
Investment in Joint Venture veterinary practices
The Group has a number of non-participatory shareholdings in veterinary
practice companies, which are considered Joint Venture partnerships . The
veterinary practices were established under terms that require mutual
agreement between the Group and the Joint Venture Partner, and do not give
the Group power over decision making, nor joint control, to affect its
exposure to, or the extent of, the returns from its involvement with the
practices and therefore are not consolidated in these financial statements.
Further, the Group is not entitled to profits, losses, or any surplus on
winding up or disposal of the Joint Venture veterinary practices, and as
such no participatory interest is recognised. The Group's category of
shareholding in the Joint Venture veterinary practices entitles the Group to
charge management fees for support services provided. For further details see
notes 1.22, 16, 17 and 27. The Group's shares are non-participatory, and
therefore the Group does not share in any profits, losses or other
distribution of value from the Joint Venture company; the investments are
held at cost less impairment, which is deemed to be their carrying value as
explained further in note 16.
1.5 Foreign currency
Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at the foreign exchange rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are retranslated to the functional
currency at the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income statement.
Non-monetary assets and liabilities that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate at the date
of the transaction. Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are retranslated to the functional
currency at foreign exchange rates ruling at the dates the fair value was
determined.
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on consolidation, are translated to the Group's
presentational currency, sterling, at foreign exchange rates ruling at the
balance sheet date. The revenues and expenses of foreign operations are
translated at an average rate for the period where this rate approximates to
the foreign exchange rates ruling at the dates of the transactions. Exchange
differences arising from this translation of foreign operations are reported
as an item of other comprehensive income and accumulated in the translation
reserve or non-controlling interest, as the case may be.
Functional currency
The consolidated financial statements are presented in sterling which is the
functional currency of the parent company and the presentational currency of
the Group and Company, these have been rounded to the nearest £0.1m.
1.6 Classification of financial instruments issued by the Group
Debt and equity instruments are classified as either financial liabilities or
as equity in accordance with the substance of the contractual arrangements and
the definitions of a financial liability and an equity instrument. These are
recognised initially at fair value. Subsequent recognition is measured in
accordance with the substance of the contractual agreement.
1.7 Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt
securities, trade and other receivables, cash and cash equivalents, other
interest-bearing loans and borrowings, and trade and other payables.
Trade and other receivables
Trade receivables are recognised initially at their transaction price and
other receivables are initially recognised at fair value. Subsequent to
initial recognition they are both measured at amortised cost using the
effective interest method, less any expected credit loss.
Trade and other payables
Trade payables and other payables are initially recognised at fair value.
Subsequent to initial recognition they are both measured at amortised cost
using the effective interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank
overdrafts that are repayable on demand and form an integral part of the
Group's cash management are included as a component of cash and cash
equivalents for the purposes of the cash flow statement and are only offset
for balance sheet purposes where the offsetting criteria are met.
Notes to the consolidated financial statements (continued)
1 Accounting policies (continued)
1.7 Non-derivative financial instruments (continued)
Other interest-bearing loans and borrowings
Interest-bearing borrowings are recognised initially at fair value, net of
attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost using the effective
interest method.
Investments in equity
Investments in equity are initially and subsequently measured at fair value
through profit or loss ('FVTPL'), with changes recognised in the profit or
loss.
As disclosed in note 1.6: Classification of financial instruments issued by
the Group.
1.8 Derivative financial instruments and hedging
Derivative financial instruments
Derivative financial instruments are recognised at fair value. The gain or
loss on remeasurement to fair value is recognised immediately in profit
or loss. However, where derivatives qualify for hedge accounting, recognition
of any resultant gain or loss depends on the nature of the item being hedged
(see below).
Cash flow hedges
Where a derivative financial instrument is designated as a hedge of the
variability in cash flows of a recognised asset or liability, or a highly
probable forecast transaction, the effective part of any gain or loss on the
derivative financial instrument is recognised directly in the hedging reserve.
Any ineffective portion of the hedge is recognised immediately in the income
statement.
If a hedge of a forecast transaction subsequently results in the recognition
of a financial asset or a financial liability, the associated gains and losses
that were recognised directly in equity are reclassified into profit or loss
in the same period or periods during which the asset acquired or liability
assumed affects profit or loss, i.e. when interest income or expense is
recognised.
When the hedged forecast transaction subsequently results in the recognition
of a non-financial item such as inventory, the amount accumulated in the
hedging reserve and the cost of hedging is included directly in the initial
cost of the non-financial item when it is recognised. For all other hedging
forecast transactions, the amount accumulated in the hedging reserve and the
cost of hedging is reclassified to profit or loss in the same period or
periods during which the hedged expected future cash flows affect the profit
or loss.
For cash flow hedges, other than those covered by the preceding two policy
statements, the associated cumulative gain or loss is removed from equity and
recognised in the income statement in the same period or periods during which
the hedged forecast transaction affects profit or loss.
When a hedging instrument expires or is sold, terminated or exercised, or the
entity revokes designation of the hedge relationship but the hedged forecast
transaction is still expected to occur, the cumulative gain or loss at that
point remains in equity and is recognised in accordance with the above policy
when the transaction occurs. If the hedged transaction is no longer expected
to take place, the cumulative unrealised gain or loss recognised in equity is
recognised in the income statement immediately.
1.9 Intra-group financial instruments
Financial guarantee contracts issued to guarantee the indebtedness of
companies within the Group are accounted for in accordance with 'IFRS 9 -
Financial Instruments'. These guarantees are initially recognised at fair
value and subsequently measured at the higher of:
• The amount of the expected credit loss (ECL) determined in accordance with the
ECL model under IFRS 9, and
• The amount initially recognised, less any cumulative income recognised in
accordance with IFRS 15.
1.10 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and accumulated impairment losses. Where parts of an item of property, plant
and equipment have different useful lives, they are accounted for as separate
items of property, plant and equipment.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of property,
plant and equipment. Land and assets under construction are not depreciated.
The estimated useful lives are as follows:
Freehold property -50 years
Fixtures, fittings, tools and equipment -3 to 20 years
Leasehold improvements -the term of the lease
Depreciation methods, useful lives and residual values are reviewed at each
balance sheet date.
The impact of climate change, particularly in the context of risks identified
in the TCFD scenario analysis have been considered and no material impact on
the carrying value, useful lives or residual values have been identified.
1.11 Intangible assets
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately
from goodwill are initially recognised at their fair value
at the acquisition date (which is regarded as their cost). Subsequent to
initial recognition, intangible assets acquired in a business combination are
reported at cost less accumulated amortisation and accumulated impairment
losses, on the same basis as intangible assets that are acquired separately.
Customer lists are valued based on the forecast net present value of the
future economic relationship with those customers, adjusted for forecast
retention rates. Technology based 'know how' assets are valued based on the
expected cost to reproduce or replace the asset, adjusted for the functional
or economic obsolescence, if present and measurable. Software is stated at
cost less accumulated amortisation.
Notes to the consolidated financial statements (continued)
1 Accounting policies (continued)
1.11 Intangible assets (continued)
Amortisation is charged to the income statement on a straight-line basis over
the estimated useful life of an asset. The estimated useful lives are as
follows:
Software - 2 to 7 years
Customer lists - 10 years
Technology based know-how - 10 years
Amortisation methods, useful lives and residual values are reviewed at each
balance sheet date.
Expenditure on Software as a Service ('SaaS') customisation and configuration
that is distinct from access to the cloud software can only be capitalised to
the extent it gives rise to an asset, i.e. where the Group has the power to
obtain the future economic benefits and can restrict others' access to those
benefits, otherwise such expenditure in relation to developing SaaS for use is
expensed.
The impact of climate change, particularly in the context of risks identified
in the TCFD scenario analysis have been considered and no material impact on
the carrying value, useful lives or residual values have been identified.
1.12 Leases
On completion of a lease, the Group recognises a right-of-use asset,
representing its right to use the underlying asset and a lease liability,
representing its obligation to make lease payments. The lease liability is
measured at the present value of the lease payments over the term of the
lease, discounted using the interest rate implicit in the lease, or if that
rate cannot be readily determined, the Group's incremental borrowing
rate. This rate is adjusted to take into account the risk associated with the
length of the lease. Lease payments will include any fixed payments, including
as a result of stepped rent increases.
The right-of-use asset is measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or before the
lease commencement date and any lease incentives received or premiums paid.
The Group has lease contracts in relation to property and equipment. There are
recognition exemptions for low-value assets and short-term leases with a lease
term of 12 months or less. Any leases under a short-term licence agreement are
excluded as they fall into the lease term of 12 months or less. The Group
recognises the lease payments associated with these leases as an expense on a
straight-line basis over the term of the lease. The total value of leases
where the Group has taken a recognition exemption is disclosed in note 12.
The Group has a small number of leases where it is an intermediate lessor. For
these leases, it accounts for the interest in the head lease and sub-lease
separately. It assesses the lease classification of the sub-lease with
reference to the right-of-use asset arising from the head lease, not with
reference to the underlying asset.
The Group currently receives rental income from related Joint Venture
veterinary practices which are located within the Group's retail
stores. These rental incomes are disclosed in note 3. Under IFRS16, the lease
classification of sub-leases is assessed by reference to the right-of-use
asset under the head lease rather than the underlying asset. This rental
income is presented in other income in the Consolidated Income Statement.
Right-of-use assets may be impaired if the lease becomes onerous. Impairment
costs would be charged to administrative expenses if this occurred.
1.13 Business combinations
Business combinations are accounted for by applying the acquisition method as
at the acquisition date, which is the date on which control is transferred to
the Group.
Acquisitions on or after 26 March 2010
For acquisitions on or after 26 March 2010, the Group measures goodwill at the
acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• the fair value of the existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets
acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately
in profit or loss. Costs related to the acquisition, other than those
associated with the issue of debt or equity securities, are expensed as
incurred.
Any contingent consideration payable is recognised at fair value at the
acquisition date. If the contingent consideration is classified as equity,
it is not remeasured, and settlement is accounted for within equity.
Otherwise, subsequent changes to the fair value of the contingent
consideration are recognised in profit or loss. If contingent consideration is
payable and is dependent on future employment, it is recognised as an expense
over the relevant period as a cost of continuing employment. There can be
significant timing difference between the charges that are recorded in the
Consolidated Income Statement to reflect movements in the fair value of the
liability and the actual cash payments made to settle the liability.
On settlement of the liability, the part of each payment relating to the
original estimate of the fair value of the contingent consideration on
acquisition is reported within investing activities in the cash flow statement
and the part relating to the increase in the liability since the acquisition
is reported within operating cash flows. Any contingent deferred consideration
receivable is recognised at fair value.
On a transaction-by-transaction basis, the Group elects to measure
non-controlling interests, which have both present ownership interests and are
entitled to a proportionate share of net assets of the acquiree in the event
of liquidation, either at its fair value or at its proportionate interest in
the recognised amount of the identifiable net assets of the acquiree at the
acquisition date. All other non-controlling interests are measured at their
fair value at the acquisition date.
Acquisitions prior to 26 March 2010 (date of adoption of IFRS)
IFRS1 grants certain exemptions from the full requirements of Adopted IFRS for
first time adopters. In respect of acquisitions prior to 26 March 2010,
goodwill is included on the basis of its deemed cost.
Notes to the consolidated financial statements (continued)
Accounting policies (continued)
1.14 Investments
Investments in associates and joint ventures are carried in the Consolidated
Balance Sheet at cost and of their post-acquisition retained profits or losses
and other comprehensive income together with any goodwill arising on the
acquisition. The Group recognises the assets, liabilities, revenue and
expenses of joint operations in accordance with its rights and obligations.
Assessment of control with regard to Joint Ventures
Disclosed in 1.22: Accounting estimates and judgements
1.15 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is
based on the weighted average cost principle and includes expenditure incurred
in acquiring the inventories, production or conversion costs and other costs
in bringing them to their existing location and condition, less rebates and
discounts.
Provision is made against specific inventory lines where market conditions
identify an issue in recovering the full cost of that Stock Keeping Unit
('SKU'). The provision focuses on the age of inventory and the length of time
it is expected to take to sell and applies a progressive provision against the
gross inventory based on the numbers of days' stock on hand. Where necessary,
further specific provision is made against inventory lines, where the
calculated provision is not deemed sufficient to carry the inventory at net
realisable value.
To the extent that the ageing profile of gross inventory as calculated by this
provision methodology results in a material provision, it will be disclosed as
an estimate that may have an impact on subsequent periods. To the extent this
is material, it will be disclosed in note 1.22.
1.16 Impairment excluding inventories
Financial assets (including receivables)
Measurement of Expected Credit Losses ('ECLs') and definition of default
ECLs are a probability-weighted estimate of credit losses. Credit losses are
measured as the present value of all cash shortfalls (i.e. the difference
between the cash flows due to the Group in accordance with the contract and
the cash flows that the Group expects to receive). ECLs are discounted at the
effective interest rate of the financial asset.
The definition of default is applicable to intercompany and related party
receivables but not relevant to trade receivables where the lifetime expected
credit loss is considered. The Group considers Joint Venture receivables
(operating loans) to be in default when the underlying veterinary practice is
significantly under-performing against its business plan, assessed based on
future cashflow forecasts for the individual practices which utilise
consistent assumptions across all practices. Any shortfall in repayment of the
Joint Venture loans and receivables following the 10-year forecast period are
considered to be in default as repayment is expected during this time. Loss
given default is also determined based on the forecast shortfall amount. Those
within the performing credit risk category are deemed to have low credit risk.
Practices categorised within the in default credit risk categories are those
considered to be in default based on their cashflow forecast. Significant
increase in credit risk is not applicable to Joint Venture operating loans due
to the on-demand payment terms.
Initial set up loans are considered in default if they cannot be settled
within one day of year end. These loans have no set repayment date but are
expected to be recovered within 15 years. There is no significant increase in
credit risk of any practice which has an operating loan as these are
considered to be on demand, as defined above. All other loans are considered
to be performing and have low credit risk.
The Group considers other intercompany and related party assets to be in
default when the entity does not have the forecast future funds available to
repay the balance, if recalled.
Write-offs
The gross carrying amount of a financial asset is written off (either
partially or in full) to the extent that there is no realistic prospect of
recovery. Details of these provisions are explained in note 16.
Non-financial assets
The carrying amounts of the Group's non-financial assets, other than
inventories and deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such
indication exists, then the asset's recoverable amount is estimated. For
goodwill, and intangible assets that have indefinite useful lives or that are
not yet available for use, the recoverable amount is estimated each period at
the same time.
The recoverable amount of an asset or cash-generating unit as defined by IAS36
is the greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated post-tax future cash flows are
discounted to their present value using a post-tax discount rate that reflects
current market assessments of the time value of money and the risks specific
to the asset. For the purpose of impairment testing, assets that cannot be
tested individually are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets (the 'cash-generating
unit'). The goodwill acquired in a business combination, for the purpose of
impairment testing, is allocated to cash-generating units ('CGUs'). Subject to
an operating segment ceiling test, for the purposes of goodwill impairment
testing, CGUs to which goodwill has been allocated are aggregated so that the
level at which impairment is tested reflects the lowest level at which
goodwill is monitored for internal reporting purposes. Goodwill acquired in a
business combination is allocated to groups of CGUs that are expected to
benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its CGU
exceeds its estimated recoverable amount. Impairment losses are recognised in
profit or loss. Impairment losses recognised in respect of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to the units,
and then to reduce the carrying amounts of the other assets in the unit (group
of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Notes to the consolidated financial statements (continued)
Accounting policies (continued)
1.17 Employee benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the
Group pays fixed contributions into a separate entity and will have no legal
or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution pension plans are recognised as an
expense in the income statement in the periods during which services are
rendered by employees.
Short term benefits
Short term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided. A liability is recognised
for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
Share-based payments
A number of employees of the Company's subsidiaries (including Directors)
receive an element of remuneration in the form of share-based payments,
whereby employees render services in exchange for shares in Pets at Home Group
Plc or rights over shares.
Share-based payments are measured at fair value at the date of grant. The fair
value of transactions involving the granting of shares is determined by the
share price at the date of grant. The fair value of transactions involving the
granting of share options is calculated based on a binomial model. In valuing
share-based payments, no account is taken of any performance conditions, other
than conditions linked to the price of the shares of Pets at Home Group Plc
('market conditions').
The cost of share-based payments is recognised, together with a corresponding
increase in equity, on a straight-line basis over the vesting period based on
the Company's estimate of how many of the awards will eventually vest. No
expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition, which are treated
as vesting irrespective of whether or not the market condition is satisfied,
provided that all other performance conditions are satisfied. Where the terms
of a share-based payment award are modified, as a minimum, an expense is
recognised as if the terms had not been modified. In addition, an expense is
recognised for any increase in the value of the transaction as a result of the
modification, as measured at the date of the modification.
Where a share-based payment award is cancelled, it is treated as if it had
vested on the date of cancellation and any expense not yet recognised for the
award is recognised immediately. However, if a new award is substituted for
the cancelled award and designated as a replacement award on the date that it
is granted, the cancelled and new awards are treated as if they were a
modification to the original award, as described in the previous paragraph.
The dilutive effect of outstanding options is reflected as additional share
dilution in the computation of diluted earnings per share.
Employee Benefit Trust
The assets and liabilities of the Employee Benefit Trust ('EBT') have been
included in the Group and Company accounts. The assets of the EBT are held
separately from those of the Company. Neither the purchase nor sale of own
shares leads to a gain or loss being recognised in the Group consolidated
statement of comprehensive income.
Investments in the Company's own shares held by the EBT are presented as a
deduction from reserves and the number of such shares is deducted from the
number of shares in issue when calculating the diluted earnings per share. The
trustees of the holdings of Pets at Home Group Plc shares under the Pets at
Home Group Employee Benefit Trust have waived or otherwise foregone any and
all dividends paid.
1.18 Provisions
A provision is recognised in the balance sheet when the Group has a present
legal or constructive obligation as a result of a past event, that can
be reliably measured and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects
risks specific to the liability.
1.19 Revenue and cost of sales
Revenue represents the total amount receivable for goods and services, net of
discounts, coupons, returns and excluding value added tax, sold in the
ordinary course of business, and arises substantially from activities in the
United Kingdom.
Revenue is recognised when the Group transfers control of goods or services to
a customer at the amount to which the Group expects to be entitled, and
substantially all of the Group's performance obligations have been fulfilled.
Depending on whether certain criteria are met, revenue is recognised either
over time, in a manner that best reflects the Group's performance, or at a
point in time, when control of the goods or services is transferred to the
customer.
Sale of goods in-store and online
Retail revenue from the sale of goods is recorded net of value added tax,
colleague discounts, coupons, vouchers, returns and the free element of
multi-save transactions. Sale of goods represents food and accessories sold
in-store and online, with revenue recognised at the point in time the customer
obtains control of the goods and substantially all of the Group's performance
obligations have been fulfilled, which is when the transaction is completed
in-store and at point of delivery to the customer for online orders. Revenue
is adjusted to account for estimates for anticipated returns and a provision
is recognised within trade and other payables. Estimates for anticipated
returns are calculated using past data for both in-store and online
transactions. No separate asset has been recognised (with no corresponding
adjustment to cost of sales) in relation to the value of products to be
recovered from the customer as the products are not always in a resaleable
condition.
Gift vouchers and cards
Revenue from the sale of gift vouchers and cards is deferred until the voucher
is redeemed, at which point performance obligations have been fulfilled. In
line with IFRS15 the value of revenue deferred is based on expected redemption
rates. The Group continues to assess the appropriateness of the expected
redemption rates against actual redemptions.
Pets Club loyalty scheme
Under the Pets Club loyalty scheme, points are earned by customers upon the
purchase of goods and services. These points can be converted by nominated
charities into gift cards for redemption against goods and services in-store
and online. The sales value of the points earned under the Pet Club scheme
are treated as deferred income; the sales are only recognised once the points
have been redeemed by the charities, at which point performance obligations
have been fulfilled. The points do not expire and have no value to the
customer.
Notes to the consolidated financial statements (continued)
Accounting policies (continued)
1.19 Revenue and cost of sales (continued)
Subscription orders
Revenue for subscription orders is recognised at the point of delivery of each
incremental order to the customer at which point performance obligations have
been fulfilled. Subscription services primarily relate to the repeat order of
products sold online and in-store.
Provision of services
Revenue from the provision of services is recorded net of value added tax,
colleague discounts, coupons and discount vouchers. Provision of services
represents veterinary group income, grooming revenue and insurance
commissions, with revenue recognised upon provision of the service to the
customer at the point at which the Group has substantially fulfilled its
performance obligations.
Veterinary Group income
Veterinary Group income represents revenue recognised at a point in time from
the provision of veterinary services from Company managed practices and income
from the provision of administrative support services to Joint Venture
veterinary practices. Revenue received for the provision of veterinary
services is recognised at the point of provision of the service and is
recognised net of value added tax, colleague discounts, coupons and vouchers.
Fee income received from the Joint Venture veterinary practice companies
for administrative support services is recognised in the period the services
relate to and recorded net of value added tax. Fee income received from Joint
Venture companies in relation to network purchasing arrangements is recognised
as the contractual commitments are fulfilled to create an entitlement to the
revenue. The Group also receives revenue in relation to business development
for the Joint Venture companies and recognises this within operating income.
The Group launched the new 'Complete Care Health' plans in June 2023, which
offered a more comprehensive package of services available to customers adding
discretionary elements such as clinic visits and telehealth services. Now that
sufficient data is available to assess the membership usage of the component
parts of the health plans we have reviewed the point at which we consider the
treatment/services have been provided. Revenue is recognised in line with
specific performance obligations of the plan as they are completed in line
with the contract. The majority of these are met at a point in time, with
the remainder over time and have been assessed based on the nature of the
individual components.
Under the previous application of the policy, revenue from care plans was
deferred and recognised at the point at which treatment and/or services were
provided against the plan at an amount that reflected the consideration to
which the entity expected to be entitled in exchange for those goods or
services. Once the plan had expired, any unutilised deferred revenue was
recognised as revenue. The impact of this accounting policy application in the
financial statements for the 52 week period ended 27 March 2025 is £4.9m.
Revenue from 'Vac4Life' plans is deferred when payment is received and then
recognised in reducing proportions over the first three years of the plan when
vaccinations/boosters are provided.
Revenue derived from the veterinary telehealth business ('TVC') is recognised
over time on a pro-rated basis over the period the customers have access to
the telehealth service through subscriptions.
Rental income received from in-store Joint Venture veterinary practices is
disclosed within note 3 and is categorised as other income.
ii) Grooming revenue
Grooming revenue is recognised net of value added tax, colleague discounts,
coupons and vouchers, at the point of provision of the service to the
customer. Deposits received are deferred until the grooming service has been
performed.
iii) Insurance commissions
Insurance commissions are recognised over time on a pro-rated basis over the
period the insurance policy relates to.
Accrued income
Accrued income relates to income in relation to fees from Joint Venture
veterinary practices, and overrider and promotional income from suppliers
which has not yet been invoiced. Accrued income has been classified as current
as it is expected to be invoiced and received within 12 months of the period
end. Supplier income is recognised on an accruals basis, based on the expected
entitlement that has been earned up to the balance sheet date for each
relevant supplier contract.
Cost of sales
Cost of sales includes costs of goods sold and other directly attributable
costs, promotional income and rebate income received from suppliers, including
costs to deliver administrative support services to Joint Venture veterinary
practices and costs to deliver grooming services. Supplier early payment
discounts are also included within cost of sales, these are offered from
certain inventory suppliers based on payment of invoices within a certain time
frame resulting in a percentage discount to reduce cost of sales.
Supplier income
A number of different types of supplier income are negotiated with suppliers
via the joint business planning process in connection with the purchase of
goods for resale, the largest of which being overrider income and promotional
income, which are explained below. The supplier income arrangements are
typically not coterminous with the Group's financial period, instead running
alongside the calendar year. Such income is only recognised when there is
reasonable certainty that the conditions for recognition have been met by the
Group, and the income can be measured reliably based on the terms of the
contract. Where the income is directly related to inventory, it is recognised
as a credit within gross margin to cost of sales. To the extent that the
rebate relates to unsold stock purchases it is recognised as a reduction in
the cost of inventory. Where the income is in relation to a distinct service,
it is recognised as other income.
Supplier income is recognised on an accruals basis, based on the expected
entitlement that has been earned up to the balance sheet date for each
relevant supplier contract. The accrued incentives, rebates and discounts
receivable at period end are included within trade and other receivables.
Given the presence of the joint business plans, on the basis of the historic
recoverability of accrued balances, and as amounts are typically agreed with
suppliers prior to recognition, supplier income is not considered to be an
area of significant estimation that could impact on the following financial
year.
Notes to the consolidated financial statements (continued)
Accounting policies (continued)
1.19 Revenue and cost of sales (continued)
Supplier income comprises:
Overrider income
Overrider income comprises three main elements:
1. Fixed percentage-based income: These relate largely to
volumetric rebates based on the joint business plan agreements with suppliers.
The income accrued is based on the Group's latest forecast volumes and the
latest contract agreed with the supplier. Income is not recognised until the
Group has reasonable certainty that the joint business agreement will be
fulfilled, with the amount of income accrued regularly reassessed and
remeasured throughout the contractual period, based on actual performance
against the joint business plan.
2. Fixed lump sum income: These are typically guaranteed lump
sum payments made by the supplier and are not based on volume. Fixed lump sum
income is usually predicated on confirmation of a supplier contract and
typically includes performance conditions upon the Group, such as marketing
and promotional campaigns. These amounts are recognised periodically when
contractual milestones have been met such as the promotion being run or
marketing in-store.
3. Growth income: These are tiered volumetric rebates relating
to growth targets agreed with the supplier in the joint business planning
process. These are retrospective rebates based on sales volumes or purchased
volumes. Income is recognised to the extent that it is reasonably certain that
the conditions will be achieved, with such certainty increasing in the latter
part of the calendar year.
Promotional income
Promotional income relates to supplier funded rebates specific to promotional
activity run in agreement between the Group and its suppliers. Rebates are
agreed at an individual inventory article level for agreed periods of time and
are systemically calculated based on article sales information. No estimation
is applied in calculating the promotional income receivable.
1.20 Finance income and expenses
Financing expenses
Financing expenses comprise interest payable under the effective interest rate
method, incorporating amortisation of loan arrangement fees, interest on lease
liabilities and non-underlying interest on lease liabilities.
Financing income
Financing income comprises interest receivable on funds invested and other
interest receivable. Interest receivable is recognised in profit or loss as it
accrues, using the effective interest method.
1.21 Taxation
Tax on the profit or loss for the period comprises current and deferred tax.
Tax is recognised in the income statement except to the extent that
it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable or receivable on the taxable income or
loss for the period, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous
periods.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The following temporary differences are not
provided for: the initial recognition of goodwill; the initial recognition of
assets or liabilities that affect neither accounting nor taxable profit other
than in a business combination; and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the
foreseeable future. The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the carrying amount of assets
and liabilities, using tax rates enacted or substantively enacted
at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the temporary
difference can be utilised.
1.22 Accounting estimates and judgements
The preparation of consolidated financial statements in conformity with UK
adopted IFRS requires management to make judgements, estimates and assumptions
concerning the future that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses. These
judgements are based on historical experience and management's best knowledge
at the time and the actual results may ultimately differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis and revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected.
Critical accounting judgements
Assessment of control with regard to Joint Ventures
The assessment of control with regard to Joint Ventures is now considered to
be a critical accounting judgement. This is not a change in the judgement
itself which remains unchanged.
The Group has assessed, and continually assesses, whether the level of an
individual Joint Venture veterinary practice's indebtedness to the Group,
particularly those with high levels of indebtedness, implies that the Group
has the practical ability to control the Joint Venture, which would result in
the requirement to consolidate. In making this judgement, the Group reviewed
the terms of the Joint Venture agreement and the question of practical
ability, as a provider of working capital to control the activities of the
practice. This included consideration of barriers to the Group's ability to
exercise such practical or other control which include difficulty in replacing
Joint Venture Partners due to the shortage of veterinarians in the UK and
reputational damage within the veterinary network should the Group attempt to
exercise control, as well as potential barriers to the Joint Venture Partner
exercising their own power over the activities of the practice. We note that
under the terms of the Joint Venture agreement, the partners run their
practices with complete operational and clinical freedom. The Group is
satisfied that on the balance of evidence from the Group's experience as
shareholder and provider of working capital support to the practices, it does
not have the current ability to exercise control over those practices to which
operating loans are advanced, and therefore non-consolidation is appropriate.
Notes to the consolidated financial statements (continued)
Accounting policies (continued)
1.22 Accounting estimates and judgements (continued)
There are no significant estimates or assumptions which would cause a material
change to the carrying value of asset and liabilities within the next 12
months. Other estimates, which are not key source of estimates which could
lead to a material change in carrying value within the next 12 months are
explained below.
Impairment of goodwill and other intangibles (other estimate).
Determining whether goodwill and other intangibles are impaired requires an
estimation of the value in use of the cash-generating units to which goodwill
and other intangible assets have been allocated. The value in use calculation
requires estimation of future cash flows expected to arise from the CGU and a
suitable discount rate in order to calculate present value. Details of CGUs as
well as further information about the assumptions made are disclosed in note
13. The Directors consider that it is not reasonably possible for the
assumptions for the current financial year to change so significantly to
warrant inclusion as a significant estimate but acknowledge that there is
estimation uncertainty over the assumptions used in future financial periods
when calculating future cash flows.
1.23 Dividends
Final dividends are recognised in the Group's financial statements as a
liability in the period in which the dividends are approved by shareholders
such that the Company is obliged to pay the dividend. Interim equity dividends
are recognised in the period in which they are paid.
1.24 Non-underlying items
Income or costs considered by the Directors to be non-underlying are disclosed
separately to facilitate year-on-year comparison of the underlying trade of
the business. The Directors consider non-underlying costs to be those that
are not generated from ordinary business operations, infrequent in nature and
unlikely to reoccur in the foreseeable future.
1.25 Alternative Performance Measures
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by UK-adopted IFRS.
These Alternative Performance Measures may not be directly comparable with
other companies' Alternative Performance Measures and the Directors do not
intend these to be a substitute for, or superior to, IFRS measures. Further
information can be found in the Glossary on page 74 to 76.
1.26 Prior year restatement on supplier discounts
In the current year the Directors have reconsidered the presentation of other
income earned from marketing fees, previously offset against expenses within
cost of sales. Comparatives have been restated for consistency. As a result,
both revenue and cost of sales have increased by £3.6m. There is no effect on
profit for the year or net assets.
2 Segmental reporting
The Group has three strategic business units, Retail, Vet Group and Central.
These are consistent with those reported in the 52 week period ended 28 March
2024. The Group's operating segments are based on the internal management
structure and internal management reports, which are reviewed by the Executive
Directors on a periodic basis. The Executive Directors are considered to be
the Chief Operating Decision Makers.
The Group is a pet care business with the strategic advantage of being able to
provide products, services and advice, addressing all pet owners' needs. The
strategic business units offer different products and services, are managed
separately and require different operational and marketing strategies.
The operations of the Retail reporting segment comprise the retailing of pet
products purchased online and in-store, pet sales, grooming services and
insurance commissions. The operations of the Vet Group reporting segment
comprise General Practice and the veterinary telehealth business. Central
includes group costs and finance expenses.
The following summary describes the operations in each of the Group's
reportable segments. Performance is measured based on segment underlying
operating profit, as included in the management reports that are reviewed by
the Executive Directors. These internal reports are prepared in accordance
with IFRS accounting policies consistent with these financial statements. All
material operations of the reportable segments are carried out in the UK and
all revenue is from external customers. A large proportion of revenue
recognised within the Vet Group relates to fee income from joint venture
veterinary partners which are considered to be related parties. Further
information regarding these related party transactions is disclosed in note
27.
Notes to the consolidated financial statements (continued)
Segmental reporting (continued)
52 week period ended 27 March 2025
Income statement Retail Vet Group Central Total
£m £m £m £m
Revenue 1,306.8 175.3 - 1,482.1
Gross profit 602.4 92.3 - 694.7
Depreciation and amortisation (97.4) (4.3) (0.5) (102.2)
Underlying operating profit/(loss) 85.8 75.1 (12.1) 148.8
Non-underlying items (6.0) - (6.4) (12.4)
Operating profit/(loss) 79.8 75.1 (18.5) 136.4
Net financing expense (12.9) 0.8 (3.7) (15.8)
Profit/(loss) before tax 66.9 75.9 (22.2) 120.6
Non-underlying items 6.0 - 6.4 12.4
Underlying profit/(loss) before tax 72.9 75.9 (15.8) 133.0
Non-underlying operating expenses in the periods ended 27 March 2025 and 28
March 2024 are explained in note 3.
52 week period ended 28 March 2024
(restated)1
Income statement Retail Vet Group Central Total
£m £m £m £m
Revenue 1,330.1 150.1 - 1,480.2
Underlying gross profit 614.1 77.2 - 691.3
Depreciation and amortisation (102.9) (6.2) (0.5) (109.6)
Underlying operating profit/(loss) 100.4 60.9 (15.8) 145.5
Non-underlying items (22.5) (2.8) (0.9) (26.2)
Operating profit/(loss) 77.9 58.1 (16.7) 119.3
Underlying net financing expense (13.0) 0.7 (1.2) (13.5)
Non-underlying net financing expense (0.1) - - (0.1)
Profit/(loss) before tax 64.8 58.8 (17.9) 105.7
Non-underlying items 22.6 2.8 0.9 26.3
Underlying profit/(loss) before tax 87.4 61.6 (17.0) 132.0
(1) See note 1.26 for an explanation of the prior year restatements.
Segmental revenue analysis by revenue stream Retail Vet Group Total
£m £m £m
Retail - Food 804.6 - 804.6
Retail - Accessories 449.2 - 449.2
Retail - Services 53.0 - 53.0
Vet Group - Joint Venture fee income - 103.4 103.4
Vet Group - Company managed practices - 52.5 52.5
Vet Group - Other income - 15.4 15.4
Vet Group - Veterinary telehealth services - 4.0 4.0
Total 1,306.8 175.3 1,482.1
Segmental revenue analysis by revenue stream Retail Vet Group Total
£m £m £m
Retail - Food 814.2 - 814.2
Retail - Accessories 465.5 - 465.5
Retail - Services 50.4 - 50.4
Vet Group - Joint Venture fee income - 89.3 89.3
Vet Group - Company managed practices - 44.6 44.6
Vet Group - Other income - 13.0 13.0
Vet Group - Veterinary telehealth services - 3.2 3.2
Total 1,330.1 150.1 1,480.2
(1) See note 1.26 for an explanation of the prior year restatement.
Notes to the consolidated financial statements (continued)
3 Expenses
Included in operating profit are the following:
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Non-underlying items
Costs relating to the implementation of the new Distribution Centre
Provisions for retention and relocation bonuses for colleagues at existing 0.4 2.4
Distribution Centres
Provisions for voluntary redundancies for colleagues at existing Distribution - 0.8
Centres
Dual running costs of operating new and existing Distribution Centres 1.9 4.5
Depreciation of right-of-use assets 3.4 3.1
Project management costs of opening new Distribution Centre - 1.8
Onerous lease provision 1.6 -
Depreciation of property plant and equipment at legacy sites - 3.4
Transitional costs of opening a new Distribution Centre - 5.4
7.3 21.4
Store redundancy costs 1.0 -
Total included within selling and distribution expenses 8.3 21.4
Group restructure and legal settlement costs 3.1 2.3
Legal costs associated with the CMA review 3.3 -
Depreciation of property plant and equipment (Group restructure costs) - 0.8
Depreciation of right-of-use assets (Group restructure costs) - 0.6
Impairment of investment - 1.1
Total included within administrative expenses 6.4 4.8
Included within other Income - Disposal of investment (2.3) -
Total non-underlying cost within operating profit 12.4 26.2
Interest expense on the lease liabilities of the Distribution Centres - 0.1
Total net non-underlying items 12.4 26.3
Underlying items
Impairment gains on receivables - (1.0)
Depreciation of property, plant and equipment 28.5 26.5
Amortisation of intangible assets 8.1 10.1
Depreciation of right-of-use assets 62.2 65.1
Share-based payment charges 5.9 5.9
Other income
Rental income from sub-leasing right-of-use assets to third parties (0.2) (0.2)
Rental and other occupancy income from related parties(1) (13.0) (12.7)
Supplier funding income (1.6) -
(1)Rental and other occupancy income from related parties is included in other
income.
The presentation of non-underlying costs presented above have been changed to
reflect the income statement categories (selling and distribution expenses,
administrative expenses and other income).
Non-underlying items in operating profit
Stafford Distribution Centre
During the 52 week period ended 27 March 2025, the Group continued to incur a
number of costs in the process of bringing into operation a new Distribution
Centre to replace the existing legacy Distribution Centres. The process was a
significant operational change for the Group, outside of the ordinary course
of business and has now concluded.
As part of the transition, the Group has incurred £7.3m operational costs
which it has classified as non-underlying (£21.4m in the 52 week period ended
28 March 2024)
• £0.4m relates to costs for retention bonuses (£2.4m in the 52 week period
ended 28 March 2024) for colleagues at the existing Distribution Centres to
remain employed by the Group until the point at which the sites closed.
• £1.9m (£4.5m in the 52 week period ended 28 March 2024) relates to costs
incurred whilst the legacy Distribution Centres and the new Distribution
Centres were both in operation.
Notes to the consolidated financial statements (continued)
3 Expenses (continued)
Non-underlying items in operating profit (continued)
• £3.4m in relation to depreciation of the right-of-use assets for the legacy
sites (£3.1m in the 52 week period ended 28 March 2024), which includes
£1.7m in relation to accelerated depreciation of the legacy site.
• All operations ceased at the legacy site before the 27 March 2025. At this
date the remaining right of use asset of the legacy site was fully impaired
(£1.7m included in the number above) and an onerous lease provision (£1.6m)
was created in relation to the remaining lease associated costs.
• Additional non-underlying charges made during the 52 weeks ending 28 March
2024 relate to:
• £0.8m provision for redundancy
• £1.8m project management costs
• £3.4m is in relation to depreciation charges of the legacy property, plant
and equipment assets;
• £5.4m relates to costs incurred to transition the operations over to the new
site. These costs included costs incurred in training new employees, and
£1.8m in relation to project management costs of opening new Distribution
Centre.
Store redundancy costs
Store redundancy costs of £1.0m relate to expected store redundancy costs
following the announcement of the store colleague operating model
simplification process.
Group restructure and legal settlement costs
· Non-underlying Group restructure costs in the 52 week period
ended 27 March 2025 of £3.1m primarily relate to redundancy payments from a
central one-off group- wide redundancy programme.
· Non-underlying charges made during the 52 week period ended 28
March 2024 relate to: £2.3m for a restructure within the Vet Group, £0.8m in
relation to accelerated depreciation of premises no longer required and £0.6m
in relation to depreciation of the associated right-of-use assets.
Legal costs
· Legal costs associated with the CMA review totalled £3.3m (£nil
in the 52 week period ended 28 March 2024)
Impairment of investments
· During the 52 week period ended 28 March 2024 the Group impaired
its investment in Dog Stay Limited ('Tailster') resulting in £1.1m of
non-underlying charges.
Other income
· During the 52 week period ended 27 March 2025, the Group disposed
of its investments in Pure Pet Food Limited which resulted in a profit on
disposal of £2.3m within retail which has been recognised in other income.
Auditor's remuneration
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Audit of the parent company financial statements - -
Amounts receivable by the Company's auditor and its associates in respect of:
Audit of financial statements of subsidiaries pursuant to legislation 1.5 1.3
Review of interim financial statements 0.1 0.1
Other assurance services (sustainability assurance) 0.1 -
1.7 1.4
Prior year auditor remuneration relates to services provided by KPMG.
4 Colleague numbers and costs
The average number of persons employed by the Group (including Directors)
during the period, analysed by category, was as follows:
52 week period ended 27 March 2025 52 week period ended 28 March 2024
Number Number
Sales and distribution - FTE 6,830 7,297
Administration - FTE 1,075 1,072
7,905 8,369
Sales and distribution - total 10,493 10,924
Administration - total 1,104 1,107
11,597 12,031
Notes to the consolidated financial statements (continued)
4 Colleague numbers and costs (continued)
The aggregate payroll costs of these persons were as follows:
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Wages and salaries 288.1 282.9
Social security costs 24.5 24.8
Contributions to defined contribution pension plans 10.9 10.0
323.5 317.7
Remuneration of Directors and Executive Management Team
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Executive Directors' remuneration paid in respect of qualifying services 1.2 2.3
Non-Executive Directors' remuneration paid in respect of qualifying services 0.5 0.6
Executive Directors' amount of gains on the exercise of share options 0.6 0.7
Executive Directors' pension contributions 0.1 0.1
Total Directors' remuneration 2.4 3.7
Executive Management Team remuneration paid in respect of qualifying services 3.1 6.5
Executive Management Team amount of gains on the exercise of share options 0.9 2.6
Executive Management Team pension contributions 0.2 0.2
Total Executive Management Team remuneration 4.2 9.3
In the opinion of the Board, the key management as defined under revised IAS24
Related Party Disclosures are the Executive Directors, Non-Executive Directors
and the Executive Management Team. Executive Directors' emoluments are also
included within the Executive Management Team emoluments disclosed above.
There are no further amounts, other than those noted above, receivable under
long term incentive schemes by the Directors or Executive Management team.
The number of directors who received pensions contributions in the 52 weeks
period ended 27 March 2025 is two for executive directors (two in the 52 week
period ended 28 March 2024) and eight in the executive management team (nine
in the 52 week period ended 28 March 2024).
5 Earnings per share
Basic earnings per share is calculated by dividing the net profit for the
period attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the net profit for the
period attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period plus the weighted average number
of ordinary shares that would be issued on the conversion of all dilutive
potential ordinary shares into ordinary shares.
52 week period ended 27 March 2025 52 week period ended 28 March 2024
Underlying After non-underlying Underlying After non-underlying
trading items trading items
Profit attributable to equity shareholders of the parent (£m) 97.5 88.2 98.9 79.2
Basic weighted average number of shares 463.5 463.5 477.7 477.7
Dilutive potential ordinary shares 5.0 5.0 5.0 5.0
Diluted weighted average number of shares 468.5 468.5 482.7 482.7
Basic earnings per share 21.0p 19.0p 20.7p 16.6p
Diluted earnings per share 20.8p 18.8p 20.5p 16.4p
Notes to the consolidated financial statements (continued)
6 Finance income
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Interest receivable on loans to Joint Venture veterinary practices 0.5 0.5
Other interest receivable 2.4 3.5
Total finance income 2.9 4.0
7 Finance expense
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Bank loans at effective interest rate 4.7 3.5
Amortisation of debt issue costs 0.8 0.8
Underlying interest expense on lease liability 13.2 13.2
Non-underlying interest expense on lease liability - 0.1
Total finance expense 18.7 17.6
8 Taxation
Recognised in the income statement
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Current tax expense
Current period 23.2 22.7
Adjustments in respect of prior periods (3.9) (1.4)
Current tax expense 19.3 21.3
Deferred tax expense
Origination and reversal of temporary differences 7.8 6.9
Adjustments in respect of prior periods 5.3 (1.7)
Deferred tax expense 13.1 5.2
Total tax expense 32.4 26.5
The UK corporation tax standard rate for the period was 25% (2024: 25%).
Deferred tax at 27 March 2025 has been calculated based on the rate of 25%
which is the rate at which the majority of items are expected to reverse.
Deferred tax recognised in comprehensive income
52 week period ended 27 March 2025 52 week period ended 28 March 2024
£m £m
Deferred tax on changes in fair value of cash flow hedges (note 22) - (0.3)
Notes to the consolidated financial statements (continued)
8 Taxation (continued)
Reconciliation of effective tax rate
52 week period ended 27 March 2025 52 week period ended 28 March 2024
Underlying trading Non-underlying items Total Underlying trading Non-underlying items Total
£m £m £m £m £m £m
Profit for the period 97.5 (9.3) 88.2 98.9 (19.7) 79.2
Total tax expense/(credit) 35.5 (3.1) 32.4 33.1 (6.6) 26.5
Profit excluding taxation 133.0 (12.4) 120.6 132.0 (26.3) 105.7
Tax using the UK corporation tax rate for the period of 25% 33.3 (3.1) 30.2 33.0 (6.6) 26.4
Depreciation on expenditure not eligible for tax relief 0.8 - 0.8 1.1 - 1.1
Expenditure not eligible for tax relief - - - 2.1 - 2.1
Adjustments in respect of prior periods 1.4 - 1.4 (3.1) - (3.1)
Total tax expense 35.5 (3.1) 32.4 33.1 (6.6) 26.5
The UK corporation tax standard rate for the 52 week period ended 27 March
2025 was 25% (52 week period ended 28 March 2024: 25%). The effective tax
rate before non-underlying items for the 52 week period ended 27 March 2025
was 26.7% (52 week period ended 28 March 2024: 25.1%). The effective tax rate
after non-underlying items for the 52 week period ended 27 March 2025 was
26.8% (52 week period ended 28 March 2024: 25.1%).
9 Dividends paid and proposed
Group and Company
52 week period ended 52 week period ended
27 March 2025 28 March 2024
£m £m
Declared and paid during the period
Final dividend of 8.3p per share (2023: 8.3p per share) 38.4 39.5
Interim dividend of 4.7p per share (2024: 4.5p per share) 21.3 21.2
Proposed for approval by shareholders at the AGM
Final dividend of 8.3p per share (2024: 8.3p per share) 38.1 38.8
The trustees of the following holdings of Pets at Home Group Plc shares under
the Pets at Home Group Employee Benefit Trust have waived or otherwise
foregone any and all dividends paid in relation to the periods ended 27 March
2025 and 28 March 2024 and to be paid at any time in the future (subject to
the exceptions in the relevant trust deed) on its respective shares for the
time being comprised in the trust funds:
Computershare Nominees (Channel Islands) Limited (holding at 27 March 2025:
5,670,000 shares; holding at 28 March 2024 5,564,701 shares).
10 Business combinations
In the 52 week period ended 27 March 2025, the Group has acquired 100% of the
'A' shares of eight veterinary practices which were previously accounted for
as Joint Venture veterinary practices. These practices were previously
accounted for as Joint Venture veterinary practices as the Group only held
100% of the non-participatory 'B' ordinary shares, equating to 50% of the
total shares. Acquisition of all or the majority of the 'A' shares has led to
the control and consolidation of these practices. The primary reason for the
business combination is to hold these practices as company-owned until a
suitable Joint Venture Partner is found at which point the intention is to
convert them into Joint Venture partnerships. A detailed explanation for the
basis of consolidation can be found in note 1.4.
Up to the date of acquisition and in the comparative period being the 52 week
period ending 28 March 2024, these entities listed below were all accounted
for as a Joint Venture veterinary practice where the Group held 100% of the
non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led
to the control and consolidation of these practices on the dates below,
leading to control from the date of acquisition and consolidation from that
date forward.
Notes to the consolidated financial statements (continued)
10 Business combinations (continued)
Subsidiaries acquired in the 52 week period ended 27 March 2025
Principal activity Date of acquisition Proportion of voting equity instruments acquired Total proportion of voting equity instruments owned following the acquisition Cash consideration transferred
£m
Lichfield Vets4Pets Limited Veterinary practice 04/04/2024 50% 100% 0.1
Bishop's Stortford Vets4Pets Limited Veterinary practice 02/04/2024 50% 100% -
Trafford Park Vets4pets Limited Veterinary practice 04/04/2024 50% 100% 0.1
Merthyr Tydfil Vets4Pets Limited Veterinary practice 17/10/2024 50% 100% -
Llanrumney Vets4Pets Limited Veterinary practice 25/10/2024 50% 100% 0.5
Companion Care (Scarborough) Limited Veterinary practice 25/10/2024 50% 100% 0.2
Warminster Vets4Pets Limited Veterinary practice 24/01/2025 50% 100% 0.2
Bath Vets4Pets Limited Veterinary practice 24/01/2025 50% 100% 0.2
In the 52 week period ended 28 March 2024, the Group has acquired 100% of the
'A' shares of eight veterinary practices and 75% of the 'A' shares of one
veterinary practice, which were previously accounted for as Joint Venture
veterinary practices. These practices were previously accounted for as Joint
Venture
veterinary practices as the Group only held 100% of the non-participatory 'B'
ordinary shares, equating to 50% of the total shares. Acquisition of all or
the majority
of the 'A' shares has led to the control and consolidation of these practices.
A detailed explanation for the basis of consolidation can be found in note
1.4.
During the 52 week period ended 27 March 2025, £1.7m of operating loans which
were deemed to be in default were written off in advance of the acquisition of
the 'A' shares (52 week period ended 28 March 2024: £1.6m) which led to the
control and consolidation of these practices.
Subsidiaries acquired in the 52 week period ended 28 March 2024
Principal activity Date of acquisition Proportion of voting equity instruments acquired Total proportion of voting equity instruments owned following the acquisition Cash consideration transferred
£m
Leigh Vets4Pets Limited Veterinary practice 22/06/2023 50% 100% -
Companion Care (Telford) Limited Veterinary practice 07/07/2023 50% 100% 0.2
Companion Care (Farnham) Limited Veterinary practice 10/11/2023 50% 100% 0.1
Wakefield Vets4Pets Limited Veterinary practice 22/12/2023 50% 100% 0.2
Tilehurst Vets4Pets Limited Veterinary practice 08/01/2024 50% 100% 0.1
Companion Care (Salisbury) Limited Veterinary practice 24/01/2024 50% 100% 0.2
Companion Care (Kings Lynn) Limited Veterinary practice 13/02/2024 50% 100% 0.1
Larne Vets4Pets Limited Veterinary practice 14/03/2024 50% 100% 0.1
Gamston Vets4Pets Limited Veterinary practice 29/02/2024 50% 75% -
Assets acquired and liabilities recognised at the date of acquisition
On acquisition, assets and liabilities are revalued to fair value. Pre
existing arrangements between the Group and acquired Joint Venture Practice
are not considered part of the business combination and have been removed from
the fair values of assets and liabilities recognised on acquisition. The fair
value of net assets of acquisitions during the year was £0.6m (2024: nil) and
is immaterial to the Group.
Goodwill arising on acquisition
27 March 2025 28 March 2024
£m £m
Consideration 1.3 1.0
Less: Fair value of assets acquired (0.6) -
Goodwill arising on acquisition 0.7 1.0
Impairment of goodwill - -
Carrying value of goodwill 0.7 1.0
The consideration shown within the table above relates to both consideration
for the purchase of A-shares and cash settlement of 'A' shareholder Joint
Venture Partner loans, which were repaid to the 'A' shareholder at the point
of acquisition.
The goodwill acquired on the purchase of the eight (2024: nine) Joint Venture
practices has been allocated to the Vet Group of CGUs and relates to expected
future cashflows from combining operations.
Notes to the consolidated financial statements (continued)
11 Property, plant and equipment
Freehold property Leasehold improvements Fixtures, fittings, tools and equipment Assets under construction Total
£m £m £m £m £m
Cost
Balance at 28 March 2024 2.4 82.5 345.4 14.4 444.7
Additions - 9.8 25.9 3.9 39.6
On acquisition (note 10) - 1.2 0.8 - 2.0
Transfers1 - - (5.7) - (5.7)
Brought into use - - 14.4 (14.4) -
Disposals - (8.4) (22.9) - (31.3)
Balance at 27 March 2025 2.4 85.1 357.9 3.9 449.3
Depreciation
Balance at 28 March 2024 0.4 41.5 244.7 - 286.6
Depreciation charge for the period - 5.3 23.2 - 28.5
Transfers(1) - - 1.7 - 1.7
On acquisition - 0.8 0.9 - 1.7
Disposals - (8.0) (22.9) - (30.9)
Balance at 27 March 2025 0.4 39.6 247.6 - 287.6
Net book value
At 28 March 2024 2.0 41.0 100.7 14.4 158.1
At 27 March 2025 2.0 45.5 110.3 3.9 161.7
(1) The transfers balance of £5.7m and £1.7m accumulated depreciation is in
relation to assets previously categorised within fixtures, fittings, tools and
equipment being transferred to software within intangibles.
Freehold property Leasehold improvements Fixtures, fittings, tools and equipment Assets under construction Total
£m £m £m £m £m
Cost
Balance at 30 March 2023 2.4 78.0 296.4 28.5 405.3
Additions - 5.9 30.9 - 36.8
On acquisition (note 10) - 0.4 - - 0.4
Transfers(2) - - - 5.7 5.7
Brought into use - (0.1) 19.9 (19.8) -
Disposals - (1.7) (1.8) - (3.5)
Balance at 28 March 2024 2.4 82.5 345.4 14.4 444.7
Depreciation
Balance at 30 March 2023 0.4 36.7 221.3 - 258.4
Depreciation charge for the period - 5.9 24.8 - 30.7
Disposals - (1.1) (1.4) - (2.5)
Balance at 28 March 2024 0.4 41.5 244.7 - 286.6
Net book value
At 30 March 2023 2.0 41.3 75.1 28.5 146.9
At 28 March 2024 2.0 41.0 100.7 14.4 158.1
(2) The transfers balance of £5.7m is in relation to assets previously
categorised within software under construction within intangibles.
Notes to the consolidated financial statements (continued)
12 Leases
As lessee
The majority of the Group's trading stores, standalone veterinary practices,
distribution centres and support offices are leased under operating leases
with remaining lease terms of between 1 and 20 years. The Group also has a
number of non-property operating leases relating to vehicle, equipment and
material handling equipment with remaining lease terms of between 1 and 6
years.
Right-of-use assets
Property Equipment Total
£m £m £m
Cost
Balance at 28 March 2024 640.5 22.2 662.7
Additions 24.6 6.3 30.9
Disposals (16.1) (8.6) (24.7)
Balance at 27 March 2025 649.0 19.9 668.9
Depreciation
Balance at 28 March 2024 327.8 15.6 343.4
Depreciation charge for the period(1) 61.9 3.7 65.6
Disposals (16.1) (8.6) (24.7)
Balance at 27 March 2025 373.6 10.7 384.3
Net book value
At 28 March 2024 312.7 6.6 319.3
At 27 March 2025 275.4 9.2 284.6
(1)The depreciation charge for the period includes £1.7m in relation to an
impairment charge recognised during the year. See note 3 for further
disclosure.
( )The costs relating to leases for which the Group applied the practical
expedient described in paragraph 5a of IFRS16 (leases with a contract term of
less than 12 months) amounted to £0.0m (2024: £0.0m) in the 52 week period
ended 27 March 2025.
Property Equipment Total
£m £m £m
Cost
Balance at 30 March 2023 614.8 20.3 635.1
Additions 27.2 2.6 29.8
Disposals (1.5) (0.7) (2.2)
Balance at 28 March 2024 640.5 22.2 662.7
Depreciation
Balance at 30 March 2023 263.5 12.0 275.5
Depreciation charge for the period 64.5 4.3 68.8
Disposals (0.2) (0.7) (0.9)
Balance at 28 March 2024 327.8 15.6 343.4
Net book value
At 30 March 2023 351.3 8.3 359.6
At 28 March 2024 312.7 6.6 319.3
The following table sets out the maturity analysis of lease payments, showing
the undiscounted lease payments to be paid after the reporting date:
Maturity analysis - contractual undiscounted cash flows
At 27 March 2025 At 28 March 2024
£m £m
Less than one year 78.5 79.8
Between one and three years 124.9 133.9
Between three and five years 77.8 86.1
Between five and ten years 83.1 96.5
More than ten years 35.7 43.0
Total undiscounted lease liabilities 400.0 439.3
Carrying value of lease liabilities included in the statement of financial 348.3 380.8
position
Current 78.5 79.8
Non-current 269.8 301.0
For the lease liabilities at 27 March 2025 a 0.1% change in the discount rate
used would have increased the carrying value of lease liabilities by £0.3m
(28 March 2024: £1.0m).
Notes to the consolidated financial statements (continued)
12 Leases (continued)
In relation to new leases and lease extensions entered into by the Group
during the period, these are discounted at the rate implicit in the lease
which ranges from 5.2% to 6.1% depending on the length of the lease and
reflect the impact of increases to the Bank of England base rate during the
period.
Surplus and short term leases
The Group has a small number of surplus leases on properties from which it no
longer trades. A small number of these properties are currently vacant or the
sublet is not for the full term of the lease and there is deemed to be a risk
on the sublet. These leases are included within the lease balances disclosed
on the face of the balance sheet and a related provision has been made for
other property costs relating to these properties in note 21.
The Group has a small number of short term leases on properties from which it
no longer trades, or a subsection of a trading retail store. These properties
are sublet to third parties at contracted rates.
In line with IAS36, the carrying value of the right-of-use asset is assessed
for indicators of impairment and an impairment charge will be recognised where
management believes there is a risk of default or where the property remained
vacant for a period of time. As part of this review the Group has assessed the
ability to sub-lease the property and the right-of-use asset has been written
down to £nil where the Group does not consider a sublease likely. The
remaining right-of-use asset at the legacy distribution centre has been
impaired in the period following cessation of operations resulting in an
impairment charge of £1.7m.
13 Intangible assets
Goodwill Customer lists and 'know-how' Software Software under construction Total
£m £m £m £m £m
Cost
Balance at 28 March 2024 959.5 6.6 80.1 0.2 1,046.4
Additions 0.7 - 6.3 - 7.0
Transfers(1) - - 5.7 - 5.7
Impaired (0.2) - - - (0.2)
Disposals (0.6) (0.2) (8.1) - (8.9)
Balance at 27 March 2025 959.4 6.4 84.0 0.2 1,050.0
Amortisation
Balance at 28 March 2024 0.1 1.7 64.9 - 66.7
Amortisation charge for the period - 0.2 7.9 - 8.1
Transfers(1) - - (1.7) - (1.7)
Disposals - (0.1) (8.1) - (8.2)
Balance at 27 March 2025 0.1 1.8 63.0 - 64.9
Net book value
At 28 March 2024 959.4 4.9 15.2 0.2 979.7
At 27 March 2025 959.3 4.6 21.0 0.2 985.1
(1) The transfers balance of £5.7m and £1.7m accumulated depreciation is in
relation to assets previously categorised within fixtures, fittings, tools and
equipment being transferred to software within intangibles.
Goodwill Customer lists and 'know-how' Software Software under construction Total
£m £m £m £m £m
Cost
Balance at 30 March 2023 959.3 7.0 71.7 8.3 1,046.3
Additions 1.0 - 6.1 - 7.1
Transfers - - - (5.7) (5.7)
Brought into use - - 2.4 (2.4) -
Disposals (0.8) (0.4) (0.1) - (1.3)
Balance at 28 March 2024 959.5 6.6 80.1 0.2 1,046.4
Amortisation
Balance at 30 March 2023 0.1 1.7 55.0 - 56.8
Amortisation charge for the period - 0.2 9.9 - 10.1
Disposal - (0.2) - - (0.2)
Balance at 28 March 2024 0.1 1.7 64.9 - 66.7
Net book value
At 30 March 2023 959.2 5.3 16.7 8.3 989.5
At 28 March 2024 959.4 4.9 15.2 0.2 979.7
Notes to the consolidated financial statements (continued)
13 Intangible assets (continued)
Impairment testing
Cash-generating units
For impairment testing of other intangible assets, property plant and
equipment and right of use assets, the Group treats each store as a separate
cash-generating unit ('CGU'). Distribution costs are apportioned to stores
and online sales are apportioned to stores because there is a clear link
between the online sale and the store such as 'click and collect', order in
store, deliver to store and deliver from store stock. Within the Vet
Group, each Company managed practice is considered to be a separate CGU in
addition to the veterinary telehealth business, hereafter disclosed as The
Vet Connection ('TVC'). The Joint Venture General Veterinary practices are
collectively considered to be one CGU due to the structure of the agreements
with the Company.
Goodwill generated from an acquisition is allocated to groups of CGUs at an
operating segment level as shown in the table below as this represents the
lowest level at which goodwill is monitored by management.
Within the Retail operating segment, the group of CGUs comprises the body of
stores, online operations and grooming operations. Within the Vet Group
operating segment, the group of CGUs comprises the Joint Venture General
Veterinary practices, Company Managed practices and TVC.
Within the Vet Group Goodwill balance shown below is £3.8m relating to the
Company Managed veterinary practices. The goodwill is allocated to
individual balances and assessed annually for impairment. In the year we
have impaired £0.2m in relation to one Company Managed practice which was
underperforming. This is not considered to be an indicator of impairment for
the remaining Vet Group goodwill.
As at 27 March 2025 and 28 March 2024, the Group is deemed to have CGUs and
groups of CGUs as follows:
Goodwill
At 27 March 2025 At 28 March 2024
£m £m
Retail 586.1 586.1
Vet Group 373.2 373.3
Total 959.3 959.4
The recoverable amount of the CGU has been calculated with reference to its
value in use. The key assumptions of this calculation are shown below:
52 week period ended 52 week period ended
27 March 2025 28 March 2024
Retail Vet Group Retail Vet Group
Period on which management approved forecasts are based (years) 5 5 5 5
Growth rate applied beyond approved forecast period 2.0% 2.0% 2.0% 3.5%
Discount rate (pre-tax) 12% 13% 11% 12%
Gross profit margin (average over next 5 years) 45% 58% 45% 60%
The goodwill is considered to have an indefinite useful economic life and the
recoverable amount is determined based on 'value-in-use' calculations. The key
assumptions used in estimating the value in use calculations were:
Forecasted cash flows - These calculations use a post-tax cash flow projection
based on a five-year strategic plan approved by the Board. The model has been
adjusted to remove all cash flows associated with business units (for example
stores or practices yet to open, but within the planning horizon) which the
Group has a strategic intention to invest capital in, but has not yet done so,
thus ensuring that the future cash flows used in modelling for impairment
exclude any cash flows where the investment is yet to take place, in
accordance with the requirements of IAS36 to exclude capital expenditure to
improve asset performance. Contributions from and costs associated with new
stores and veterinary practices which are already operational at the
impairment test date are included in the cash flows. Cashflows related to the
central segment have been allocated between both groups of CGUs on a
proportionate basis. The Group reviews individual CGUs such as stores and
groups of veterinary practices for indicators of impairment. This approach is
consistent with impairment reviews carried out in the 2024 financial
statements.
The Retail forecast assumptions reflect continual innovation and our deep
understanding of our customers, incorporating assumptions based on past
experience of the industry, products and markets in which the CGU or group of
CGUs operate, in order to generate the detailed assumptions used in the annual
budget setting process, and five year strategic planning process. The Vet
Group forecast assumptions are based on a deep understanding of the maturity
profile of the practices and their performance, incorporating assumptions
based on past experience of the industry, services and markets in which the
CGU operates in order to generate the detailed assumptions used in the annual
budget setting process, and five year strategic planning process. These
linkages are embedded in the revenue growth assumption as a result of offering
online veterinary consultations as an additional service to Joint Venture
veterinary practices. The projections are based on all available
information. A different set of assumptions may be more appropriate in
future years depending on changes in the macro-economic environment and the
industry in which each CGU operates. The Group has considered key risk factors
such as the continuing issues throughout our global supply chains and climate
change and the likely outcome of the Competition and Markets Authority ('CMA')
review of the veterinary sector. We have also started assessing the possible
long term impacts of the likely levels of tariffs that may be applied by the
USA and retaliatory measures from countries where our supply chains are
located. The situation is developing and at this stage we are keeping a
close watch on the likely long term impacts.
Long-term growth rates - The Directors have assumed a growth rate projection
beyond the projection period of 2% for both units which is lower than market
growth rates based on past experience within the Group, taking into account
the economic growth forecasts within the relevant industries.
Discount rates - The discount rate was estimated based on past experience and
the weighted average cost of capital is adjusted to reflect a market
participant view. A post tax discount rate was used within the value in use
calculation and adjustments made to calculate the pre-tax discount rate which
is disclosed above in line with IAS36 requirements.
Notes to the consolidated financial statements (continued)
13 Intangible assets (continued)
Outcome and sensitivity analysis - The total recoverable amount in respect of
goodwill for the groups of CGUs as assessed by the Directors using the above
assumptions is greater than the carrying amount and therefore no impairment
charge has been recorded in each period.
Within the Retail and Vet Group CGUs, a number of sensitivities have been
applied to the assumptions in reaching this conclusion including:
- Reduction in growth rate applied beyond forecast period by 100 bps
- Increasing the discount rate by 100 bps
- Reduction in gross margin percentage of 100 bps
None of the above, considered reasonably possible changes in assumptions,
would result in impairment when applied either individually or collectively,
after inclusion of mitigating actions which are considered within the
collective sensitivity analysis.
The Directors consider that it is not reasonably possible for the assumptions
to change so significantly as to eliminate the excess of the recoverable
amount over the carrying value.
14 Inventories
At 27 March 2025 £m At 28 March 2024 £m
Finished goods 106.9 97.5
The cost of inventories recognised as an expense and included in 'cost of
sales' is £677.4m (52 week period ended 28 March 2024: £687.1m).
Inventory expensed to cost of sales includes the cost of the Stock Keeping
Units ('SKUs') sold, supplier income, stock wastage and foreign exchange
variances. At 27 March 2025 the inventory provision amounted to £4.4m (28
March 2024: £4.1m). The inventory provision is calculated by reference
to the age of the SKU and the length of time it is expected to take to sell.
The value of inventory against which an ageing provision is held is £9.9m (28
March 2024: £8.5m).
The provision percentages applied in calculating the provision are as follows:
• Discontinued stock greater than 365 days: 100%
• Current stock greater than 365 days with a use by date: 50%
• Current stock within 180 and 365 days with a use by date: 25%
• Greater than 180 days with no use by date: 25%
Included in the provision is an amount held to account for store stock losses
during the period since which the SKU was last counted.
In the 52 week period ended 27 March 2025, the value of inventory written off
to the income statement amounted to £10.1m (52 week period ended 28 March
2024: £10.3m).
15 Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
At 27 March 2025 At 28 March 2024
Assets Liabilities Total Assets Liabilities Total
£m £m £m £m £m £m
Property, plant and equipment - (20.2) (20.2) - (6.1) (6.1)
Financial assets 0.4 - 0.4 0.2 - 0.2
Other short term temporary differences 2.9 (0.8) 2.1 1.9 (0.8) 1.1
Share based payments 0.1 - 0.1 0.1 - 0.1
Net deferred tax assets/(liabilities) 3.4 (21.0) (17.6) 2.2 (6.9) (4.7)
Movement in deferred tax during the period
28 March Recognised in income Recognised in equity 27 March
2024 £m £m 2025
£m £m
Property, plant and equipment (6.1) (14.1) - (20.2)
Net financial assets 0.2 - 0.2 0.4
Other short term timing differences 1.1 1.0 - 2.1
Share based payments 0.1 - - 0.1
(4.7) (13.1) 0.2 (17.6)
Other short-term timing differences primarily relate to inventory provisions.
Notes to the consolidated financial statements (continued)
15 Deferred tax assets and liabilities (continued)
Movement in deferred tax during the prior period
30 March Recognised in income Recognised in equity 28 March
2023 £m £m 2024
£m £m
Property, plant and equipment (2.2) (3.9) - (6.1)
Net financial assets/(liabilities) 0.5 - (0.3) 0.2
Other short term timing differences 2.5 (1.4) - 1.1
Share based payments 1.1 - (1.0) 0.1
1.9 (5.3) (1.3) (4.7)
16 Other financial assets and liabilities
At 27 March 2025 £m At 28 March 2024 £m
Non current- other financial assets
Investments in Joint Venture veterinary practices 2.7 2.7
Loans to Joint Venture veterinary practices - initial set up loans 3.9 5.2
Loans to Joint Venture veterinary practices - other loans - 0.5
Other investments 3.0 2.0
Other receivables 5.4 0.5
15.0 10.9
Investments in Joint Venture veterinary practices
The Investments in Joint Venture veterinary practices balance of £2.7m (2024:
£2.7m) comprises of two parts; nil (2024: £0.2m) represents the 'B' share
capital in Joint Venture veterinary practice companies and £2.7m (2024:
£2.5m) relates to capital contributions made to these companies for
extensions and improvements to their practice residences. These investments
are held at cost less impairment. In relation to the share, the fair values of
investments in unlisted equity securities are considered to be their carrying
value which is the cost to the Group on recognition, as the impact of
discounting future cash flows has been assessed as not material and the
investment is non-participatory. The share capital of the veterinary practice
companies is split equally into 'A' ordinary shares (held by Joint Venture
Partners) and 'B' ordinary shares (held by the Group). Any operational
decisions require the agreement of the Joint Venture Partner. Under the terms
of the agreements, the Group ('B' shareholder) is not entitled to any profits,
losses or dividends, or any surplus on winding up or disposal, although it is
entitled to appoint Directors to the Board and carry the same shareholder
voting rights as 'A' ordinary shareholders. The agreements entitle the Group
to receive income in relation to support services offered in such areas as
clinical development, promotion and methods of operation as well as service
activities including accountancy, legal and property.
Loans to Joint Venture veterinary practices - initial set up loans
Loans to Joint Venture veterinary practices of £3.9m (2024: £5.2m) are
provided to Joint Venture veterinary practice companies trading under the
Companion Care, Vets4Pets or VetsforPets brands, in which the Group's share
interest is non-participatory. These loans support their initial set up and
working capital, and are held at carrying value . Under the terms of the loans
provided to veterinary companies trading under the Companion Care, Vets4Pets
or VetsforPets brands the loans attract varying interest rates between 2% and
3%. There is no set date for repayment of the loans due to the Group. The
balances are shown net of an expected credit loss ('ECL') of £0.4m (2024:
£0.6m).
Gross loan value £m Expected credit loss Carrying value of loan
£m £m
As at 28 March 2024 5.8 (0.6) 5.2
Net repayment and further (1.5) - (1.5)
advances
Provisions released during the period - 0.2 0.2
As at 27 March 2025 4.3 (0.4) 3.9
Analysis of expected credit loss by risk category
The following table presents an analysis of the credit risk and credit
impairment of initial set up loans held at amortised cost. The loans are
categorised as performing, or in default in accordance with the policy set out
in note 1.16. The loss allowance is calculated depending on the credit risk of
each loan, the Group's expectations of future cash flow recoverability and
practice age in accordance with the policy set out in note 1.16.
Notes to the consolidated financial statements (continued)
16 Other financial assets and liabilities (continued)
Credit risk At 27 March 2025 At 28 March 2024
£m £m
Performing 1.3 1.2
In default 3.0 4.6
Gross carrying amount 4.3 5.8
Loss allowance (0.4) (0.6)
Net carrying amount 3.9 5.2
The presentation of performing and in default loans have been revised to
better align with the requirements of IFRS 9. Initial set up loans are
considered in default if they cannot be settled within one day of year end.
This has no impact on the estimated credit loss which is made based on the
10-year cashflow forecast.
Other investments
The balance of £3.0m (2024: £2.0m) relates to investments in Good Dog Food
Limited ('Meatly') and Project Blu Limited as disclosed in Note 28. Other
investments are initially and subsequently measured at FVTPL, with changes
recognised in the profit or loss. The fair values of investments in unlisted
equity securities are considered to be their carrying value.
Other receivables
Included within other receivables is £1.5m which represents deferred rebates
paid to JV practices to support their rebrand and expansion. The rebate will
be released as a deduction to fee income over a period of up to 10 years which
represents the period of time the Group expects to receive economic benefits
from enhanced fee income. Also included within other receivables is £3.7m
which relates to sublet leases.
Derivative financial assets and liabilities
Derivative financial assets and liabilities are held at fair value through
profit or loss.
At 27 March 2025 £m At 28 March 2024 £m
Current assets
Fuel forward contracts - 0.1
Forward exchange contracts 0.2 0.2
0.2 0.3
Derivative financial liabilities
At 27 March 2025 £m At 28 March 2024 £m
Current liabilities
Forward exchange contracts (1.7) (1.0)
(1.7) (1.0)
17 Trade and other receivables
At 27 March 2025 £m At 28 March 2024 £m
Current assets
Trade receivables 16.4 13.9
Amounts owed by JV practices - funding for new practices - 0.4
Amounts owed by Joint Venture veterinary practices - operating loans 3.9 5.8
Amounts owed by Joint Venture veterinary practices - trading balances 14.3 10.9
Other receivables 2.6 6.3
Prepayments 9.9 9.3
Accrued income 16.2 14.3
63.3 60.9
Trade and other receivables
The carrying amount of trade and other receivables approximates to the fair
value. Supplier income is included with trade and other receivables, this has
been invoiced where there is no legal right to offset.
The Group applied the simplified approach under IFRS9 and default to lifetime
expected credit loss based on historical data. The ECL is immaterial on the
trade receivables balance for the 52 week period ended 27 March 2025 (52 week
period ended 28 March 2024: £nil).
Notes to the consolidated financial statements (continued)
17 Trade and other receivables (continued)
Amounts owed by Joint Venture veterinary practices
Amounts owed by Joint Venture veterinary practices represent trading balances
and operating loans owed by Joint Venture veterinary practices to the Group.
The impairment of amounts owed by Joint Venture veterinary practices relating
to trading balances are assessed in line with IFRS 9. As at 27 March 2025 and
28 March 2024, the impact of expected credit loss on these balances was deemed
to be immaterial due to the short term nature of these balances and as such no
provision has been made.
Operating loans are provided on a short-term monthly cycle to the extent that
a practice requires additional funding above their external bank loan.
Practices generate cash on a monthly basis which is applied to the repayment
of brought forward operating loans. For immature practices, loan balances may
increase due to operating requirements. Based on a projected cash flow
forecast on a practice by practice basis, the funding is expected to be
required for a number of years, however as cash is applied against opening
loan balances, the Group's expectation is that the brought forward balance
will be repaid in cash within 12 months. The loans have been classified as
current on this basis and the Group has chosen not to charge interest on these
balances, and they are initially recognised under IFRS9 at their nominal value
as the effect of discounting the expected cash flows based on the effective
interest rate at the market rate of interest is not material. The loans
advanced to the practices are interest free and either repayable on demand or
repayable within 90 days of demand. No facility exists and the levels of loans
are monitored in relation to review of the practices' performance against
business plan and a number of financial and non-financial KPIs in accordance
with the policy set out in note 1.16.
For those practices in default, a credit impairment charge is recognised under
IFRS9 taking into account the Group's expectations of future cash flow
recoverability. For other practices, a credit impairment charge is recognised
under IFRS9, taking into account both the probability of loss and the loss
proportion given default.
The balances above are shown net of allowances for expected credit losses held
for operating loans of £1.3m (2024: £3.0m). The basis for this allowance and
the movement in the period is set out below.
Gross loan value Expected credit Carrying value of loan
£m loss £m
£m
As at 28 March 2024 8.8 (3.0) 5.8
Loans written off (1.7) - (1.7)
Net repayment and further advances (1.9) - (1.9)
Utilisation of provision - 0.9 0.9
Provisions made during the period - 0.8 0.8
As at 27 March 2025 5.2 (1.3) 3.9
During the 52 week period ended 27 March 2025, £1.7m of operating loans which
were deemed to be in default were written off in advance of the acquisition of
the 'A' shares (52 week period ended 28 March 2024: £1.6m) which led to the
control and consolidation of these practices. Further details of these
acquisitions are provided in note 10.
The Group continues to work with a number of Joint Venture Partners, where the
partners choose to follow the Group's recommendations on remediation plans
aimed at improving practice performance. Further details regarding credit risk
are provided in note 1.16.
The following table presents an analysis of the credit risk and credit
impairment of operating loans held at amortised cost. Based on their future
cashflow forecast, loans are categorised as performing or in default. The loss
allowance is calculated in accordance with the policy set out in note 1.16,
depending on the credit risk of each loan.
Credit risk At 27 March 2025 At 28 March 2024 restated
£m £m
Performing - -
In default 5.2 8.8
Gross carrying amount 5.2 8.8
Loss allowance (1.3) (3.0)
Net carrying amount 3.9 5.8
The presentation of performing and in default loans have been revised to
better align with the requirements of IFRS 9. Operating loans are considered
in default if they cannot be settled within one day of year end. This has no
impact on the estimated credit loss which is made based on the 10-year
cashflow forecast.
Should forecast cash flows, as defined by the risk criteria in note 1.16,
decrease by 0.5% over the 10-year time horizon, this would lead to an increase
in the required provision for operating loans of £0.5m (28 March 2024:
£0.8m). This sensitivity is considered by management to represent a
reasonably possible range of estimation uncertainty, based on the variance in
current trading performance within these Joint Venture veterinary practices.
The factors which give rise to the estimation uncertainty include
macro-economic and industry specific factors, including the level of industry
growth, as well as gross margin percentages achieved within the industry,
which contain a number of factors including the availability of suitably
qualified veterinary personnel. Further details are provided in note 27.
Accrued income
Accrued income relates to income in relation to fees to Joint Venture
veterinary practices and overrider and promotional income from suppliers which
have not yet been invoiced. Accrued income is classified as current as it is
expected to be invoiced and received within 12 months of the period end date.
Supplier income is recognised on an accruals basis, based on the expected
entitlement that has been earned up to the balance sheet date for each
relevant supplier contract. As detailed in note 1.19, supplier income is
recognised as a credit within gross margin to cost of sales and is outside of
the scope of IFRS15. Further detail of the Group's revenue recognition policy
is provided in note 1.19.
Notes to the consolidated financial statements (continued)
18 Cash and cash equivalents
At 27 March 2025 £m At 28 March 2024 £m
Cash at bank 39.5 57.1
19 Other interest-bearing loans and borrowings
At 27 March 2025 £m At 28 March 2024 £m
Non-current liabilities
Unsecured bank loans 8.1 22.2
Asset backed loans 18.6 21.1
Total 26.7 43.3
At 27 March 2025 £m At 28 March 2024 £m
Current liabilities
Asset backed loans 4.7 - 2.2
Terms and debt repayment schedule
Currency Nominal interest rate Year of maturity Face value at 27 March Carrying amount at 27 March Face value at 28 March Carrying amount at 28 March
2025 2025 2024 2024
£m £m £m £m
Revolving credit facility GBP SONIA +1.30% 2028 10.0 8.1 25.0 22.2
Asset backed loan GBP SONIA +1.50% 2030 23.3 23.3 23.3 23.3
Total 33.3 31.4 48.3 45.5
The drawn amount on the £300.0m revolving credit facility was £10.0m at 27
March 2025 (drawn amount on the £300.0m revolving credit facility was £25.0m
at 28 March 2024) and this amount is reviewed each month. Interest is charged
at SONIA plus a margin based on leverage on a pre-IFRS16 basis (adjusted net
debt: EBITDA). The loan also has environmental, social and corporate
governance (ESG) linked metrics which will be reflected in the margin payable,
which is +/- 5bps. Face value represents the principal value of the revolving
credit facility. The facility is unsecured.
On 27 March 2023, the Group entered into a loan agreement to fund the purchase
of capital items. Interest is charged on the amount drawn at SONIA plus 1.5%.
The loan will be repaid in monthly repayments from April 2025 until the loan
matures on 27 March 2030.
Interest-bearing borrowings are recognised initially at fair value, being the
principal value of the loan net of attributable transaction costs. Subsequent
to initial recognition, interest-bearing borrowings are stated at a carrying
value, which represents the amortised cost of the loans using the effective
interest method.
The analysis of repayments on the loans is as follows:
At 27 March 2025 £m At 28 March 2024
£m(1)
Within one year or repayable on demand 4.7 2.2
Between one and three years 9.3 8.6
Between three and five years 19.3 33.6
Greater than five years - 3.9
33.3 48.3
(1) The presentation of ageing analysis has been revised to align with the
ageing buckets presented in note 23.
The £10.0m revolving credit facility at 27 March 2025 is held by the Company.
The £23.3m of asset backed loan are held by Pets at Home Limited, a 100%
owned subsidiary company.
The Group's policy with regard to interest rate risk is to hedge the
appropriate level of borrowings by entering into fixed rate agreements where
the Company forecast gross debt at the balance sheet date is no more than
£100m, no interest rate hedging is required. Subsequently, as at 27 March
2025, there were no hedging derivatives held by the Group.
Notes to the consolidated financial statements (continued)
19 Other interest-bearing loans and borrowings (continued)
Analysis of changes in adjusted net cash
At Cash flow Non-cash movement At
28 March 2024 £m £m 27 March 2025 £m
£m
Cash and cash equivalents 57.1 (17.6) - 39.5
Debt due within one year (2.2) - (2.5) (4.7)
Debt due after one year (46.1) 15.0 2.5 (28.6)
Adjusted net cash 8.8 (2.6) - 6.2
20 Trade and other payables
At 27 March 2025 £m At 28 March 2024 £m
Current
Trade payables 138.5 138.2
Accruals and deferred income 73.3 74.9
Amounts owed to Joint Venture veterinary practices 8.2 0.8
Other payables including tax and social security 35.6 35.3
255.6 249.2
Amounts owed to Joint Venture veterinary practices that relate to trading
balances are interest free and repayable on demand.
Within accruals and deferred income above, contract liabilities under IFRS15
of £0.4m (2024: £0.4m) relate to advanced consideration received from
customers in relation to gift vouchers, cards and points redeemable by
charities. This revenue will be recognised as the vouchers, cards and points
are redeemed, which is expected to be over the next two years from the balance
sheet date.
Within accruals above, contract liabilities under IFRS15 of £1.8m (2024:
£1.3m) relate to advanced consideration received from customers in relation
to online orders which have not yet been delivered. This revenue will be
recognised as the online orders are delivered to customers, which is expected
to be in less than one week from the balance sheet date.
21 Provisions
Dilapidation provision Closed stores provision Provisions for exit and closure costs relating to Joint Venture veterinary Provision for exit and closure costs relating to legacy Distribution Centres Total
practices
£m £m
£m £m
£m
Balance at 28 March 2024 4.2 0.1 4.5 3.9 12.7
Provisions made during the period 0.7 0.1 0.8 1.6 3.2
Provisions utilised during the period (1.2) - (1.5) (3.5) (6.2)
Provisions released (0.3) - - - (0.3)
Reclassify to other creditors - - - (0.4) (0.4)
Balance at 27 March 2025 3.4 0.2 3.8 1.6 9.0
At 27 March 2025 £m At 28 March 2024 £m
Current 5.1 7.6
Non-current 3.9 5.1
9.0 12.7
As at 28 March 2024, the Group had a provision of £1.4m for voluntary
redundancies for colleagues employed at legacy Distribution Centres and a
provision of £2.5m for retention bonuses payable to colleagues who remain
from the previous Distribution Centres provided they remain employed by the
Group until the remaining sites close. £3.5m was paid out during the year and
the remaining provision of £0.4m has been reclassified to other creditors as
at 27 March 2025. The remaining provision relates to property costs associated
with the lease of the legacy Distribution Centre which expires in March 2026.
Further information is provided in note 3.
The closed stores provision relates to the rates, service charge and utilities
payable on vacant stores. The timing of the utilisation of these provisions is
variable dependent upon the lease expiry dates of the properties concerned,
which vary between one and three years. Market conditions have an impact and
hence the assumptions on future cash flows are reviewed regularly and
revisions to the provision made where necessary.
The dilapidations provision relates to the expected cost of repairs on leased
properties at future lease expiry dates, all of which are expected to be
within 2 years of
Notes to the consolidated financial statements (continued)
21 Provisions (continued)
the 52 weeks ending 27 March 2025, therefore the provision is not discounted.
The timing of the utilisation of these provisions is variable depending on the
expiry dates of the property leases concerned.
The provisions for exit and closure costs relating to Joint Venture veterinary
practices relate to expenses for any Joint Venture veterinary practices that
the Group has bought out or has offered to buy out from Joint Venture
Partners, and therefore which have been provided for under IAS37. The timing
of the utilisation of these provisions is variable dependent upon the lease
expiry dates of the properties concerned, which vary between 2 and 13 years.
Market conditions have a significant impact and hence the assumptions on
future cash flows are reviewed regularly and revisions to the provision made
where necessary.
22 Capital and reserves
Share capital
Share capital Number Share capital
£m
At 30 March 2023 483,197,785 4.8
At 28 March 2024 467,911,542 4.7
At 27 March 2025 459,491,054 4.6
In the 52 week period ended 27 March 2025, the Company bought back and
cancelled 8,420,488 (1.8%) ordinary shares for total consideration including
stamp duty of £25.1m, at an average market value of 297 pence per share.
Share capital Share capital
27 March 2025 28 March 2024
£m £m
At beginning of period 4.7 4.8
Nominal value of shares cancelled in year following purchase by the Group (0.1) (0.1)
On issue at period end - authorised 4.6 4.7
In the 52 week period ended 28 March 2024, the Company bought back and
cancelled 15,286,243 (3.2%) ordinary shares for total consideration including
stamp duty of £50.3m, at an average market value of 327 pence per share.
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
Consolidation and Merger reserves
The consolidation reserve and the merger reserve arose as a result of the
creation of Pets at Home Group Plc and its purchase of the existing group of
companies as part of the Initial Public Offering in 2014. As part of the IPO,
a number of shares in Plc were issued in exchange for various instruments or
cash. The premium arising on the issue was allocated between the share premium
and merger reserve. A consolidation reserve was also created which reflected
the difference between Plc reserves and the consolidated equity of PAH Lux
S.a.r.l as part of the IPO in 2014.
Capital redemption reserve
The capital redemption reserve comprised the par value of the 8.4m
(2024:15.3m) shares purchased and cancelled as part of the share buyback
programme completed in the 52 week period ended 27 March 2025.
Translation reserve
The translation reserve comprises all foreign exchange differences arising
since 21 November 2011, the date of incorporation of Pets at Home Asia Ltd
where the functional currency differs from that of the rest of the Group.
Cash flow hedging reserve
The cash flow hedging reserve comprises the effective portion of the
cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Included within the Group retained earnings is the Pets at Home Employee
Benefit Trust ('EBT'). The EBT purchases shares to fund the share option
schemes. As at 27 March 2025, the EBT held 5,670,000 ordinary shares (2024:
5,564,701) with a cost of £20,268,243 (2024: £20,300,288). The average
purchase value of these shares as at 27 March 2025 was 357.5 pence per share
(2024: 364.8 pence per share).
Other comprehensive income
27 March 2025
Translation reserve Cash flow hedging reserve Total other comprehensive income
£m £m £m
Other comprehensive income - - -
Effective portion of changes in fair value of cash flow hedges - 0.6 0.6
Net change in fair value of cash flow hedges reclassified to profit or loss 0.1 0.1
Total other comprehensive income - 0.7 0.7
Notes to the consolidated financial statements (continued)
22 Capital and reserves (continued)
Other comprehensive income (continued)
28 March 2024
Translation reserve Cash flow hedging reserve Total other comprehensive income
£m £m £m
Other comprehensive income - - -
Effective portion of changes in fair value of cash flow hedges - 3.3 3.3
Net change in fair value of cash flow hedges reclassified to profit or loss - 1.3 1.3
Deferred tax on changes in fair value of cash flow hedges - (0.3) (0.3)
Total other comprehensive income - 4.3 4.3
23 Financial instruments
Financial risk management
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk and cash flow interest
rate risk), credit risk and liquidity risk.
Risk management framework
Risk management in respect of financial risk is carried out by the Group
Treasury function under policies approved by the Board of Directors.
The Board of Directors has overall responsibility for the establishment and
oversight of the Group's risk management framework. The Board provides
written principles through its Group Treasury Policy for overall risk
management, as well as written policies covering specific areas, such as
foreign exchange risk, interest rate risk, credit risk, use of derivative
financial instruments and non-derivative financial instruments, and investment
of excess liquidity.
The main objectives of the Group Treasury function are:
• To ensure shareholder and management expectations are managed on cash flow and
earnings volatility resulting from financial market movements;
• To protect the expected cash flow and earnings from interest rate and foreign
exchange fluctuations to within parameters acceptable to the Board and
shareholders; and
• To control banking costs and service levels.
Market risk
Foreign currency risk
The Group sources a significant level of purchases in foreign currency, in the
region of US$110m each financial year, and monitors its foreign currency
requirements through short, medium and long-term cash flow forecasting. The
value of purchases in US dollars fluctuates each year and the risk management
policy has evolved with this increased risk.
At 27 March 2025, the Group's policy is to hedge up to 95% of the next 12
months and additionally up to 60% of the following six months out to 18 months
forecast foreign exchange transactions, using foreign currency bank accounts
and forward foreign exchange contracts. The transactions are deemed to be
'highly probable' and are based on historical knowledge and forecast purchase
and sales projections.
The Group's exposure to foreign currency risk is as follows. This is based on
the carrying amount for monetary financial instruments, except
for derivatives which are based on notional amounts:
27 March 2025
Euro US Dollar HKD Total
£m £m £m £m
Cash and cash equivalents 1.1 - - 1.1
Trade payables (2.4) (4.1) - (6.5)
Forward exchange contracts - (1.5) - (1.5)
Balance sheet exposure (1.3) (5.6) - (6.9)
Euro US Dollar HKD Total
28 March 2024 £m £m £m £m
Cash and cash equivalents 0.4 6.1 - 6.5
Trade payables (2.8) (3.2) - (6.0)
Forward exchange contracts (0.2) (0.6) - (0.8)
Balance sheet exposure (2.6) 2.3 - (0.3)
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
Sensitivity analysis
A 5% weakening of the following currencies against the pound sterling at the
period end date in both years would have increased profit or loss or equity by
the amounts shown below. This calculation is post the impact of hedging and
assumes that the change occurred at the balance sheet date and had been
applied to risk exposures existing at that date.
This analysis assumes that all other variables, in particular other exchange
rates and interest rates, remain constant.
Equity Profit or loss
27 March 28 March 27 March 28 March
2025 2024 2025 2024
£m £m £m £m
US Dollar 0.1 - 0.2 (0.1)
Euro - - 0.1 0.1
A 5% strengthening of the above currencies against the pound sterling in any
period would have had the equal but opposite effect on the above currencies to
the amounts shown above, on the basis that all other variables remain
constant.
Interest rate risk
Cash flow and fair value interest rate risk
The Group's interest rate risk arises from long-term borrowings. As at 27
March 2025 the Group had a revolving credit facility with a face value
totalling £10.0m (2024: £25.0m) and an asset backed loan with a face value
of £23.3m (2024: £23.3m). The Group's borrowings as at 27 March 2025 incur
interest at a rate of 1.3% to 1.5% plus SONIA at the leverage prevalent in the
period, which exposes the Group to cash flow interest rate risk. The analysis
of loan repayments is detailed in note 19.
The Group's policy with regard to interest rate risk is to hedge the
appropriate level of borrowings by entering into fixed rate agreements. As at
27 March 2025, the Group held no fixed rate swap agreements since the forecast
level of outstanding debt for the next year was below the de-minimis hedging
requirements as set out in the Group's Treasury Policy. In the 52 week period
ended 28 March 2024, the Group had fixed interest rate swap agreements
covering £50.0m of senior facility borrowing at a blended fixed rate of
5.058% which expired in September 2024. The hedging structure as at 28 March
2024 was to hedge at least 70% of the forecast outstanding debt for the next
year.
Profile
At the balance sheet date the interest rate profile of the Group's
interest-bearing financial instruments was:
Book value Book value
At 27 March 2025 £m At 28 March 2024 £m
Fixed rate instruments
Financial liabilities - 48.3
Variable rate instruments
Financial liabilities 33.3 -
Total financial liabilities 33.3 48.3
All borrowings bear a variable rate of interest based on SONIA. Subject to a
de-minimis level, the Group policy is to hedge at least 70% of forecast loan
balances. As at 27 March 2025, there were no interest rate swaps in place. As
at 28 March 2024, fixed rate instrument above related to the portion of the
loan hedged by a fixed rate interest rate swap.
Sensitivity analysis
A change of 50 basis points in interest rates at the period end date would
have increased/(decreased) profit or loss by the amounts shown below. This
calculation assumes that the change occurred at the balance sheet date and had
been applied to risk exposures existing at that date.
This analysis assumes that all other variables, in particular foreign currency
rates, remain constant and considers the effect of financial instruments with
variable interest rates and financial instruments at fair value through profit
or loss. The analysis is performed on the same basis for the comparative
period.
At 27 March 2025 £m At 28 March 2024 £m
Equity
Increase - 0.1
Decrease - (0.1)
Profit or loss
Increase 0.2 0.1
Decrease (0.2) (0.1)
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
Credit risk
Financial risk management
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group's receivables from
customers, investment securities and operating loans to Joint Venture
veterinary practices. Credit risk also arises from cash and cash equivalents,
derivative financial instruments and deposits with banks and financial
institutions. The Group ensures that the banks used for the financing of the
revolving credit facilities and interest rate swap agreements have
investment-grade credit ratings.
The Group has in place certain guarantees over the bank loans taken out by a
number of Joint Venture veterinary practice companies in which it holds an
investment. Further details of these guarantees are disclosed in note 27. The
performance of the Joint Venture veterinary practice companies is reviewed
on an ongoing basis.
Exposure to credit risk
The Group's maximum exposure to credit risk, being the carrying amount of
financial assets, is summarised in the table within the fair values section
below.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. Management prepares and monitors
rolling forecasts of the Group's cash balances based on expected cash flows to
ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions without
risking damage to the Group's reputation. Covenants are monitored on a regular
basis to ensure there is no risk or breach which would lead to an 'Event of
Default' and compliance certificates are issued as required to the syndicate
agent.
The following are the contractual maturities of financial liabilities
including estimates of interest payable based on SONIA rates at the end of the
financial period:
Group
27 March 2025
Carrying amount £m Contractual cash flows £m 1 year or less £m 1 to 3 years 3 to 5 years 5 years and over £m
£m £m
Non-derivative financial liabilities
Bank loans (note 19) 31.4 33.3 4.7 9.3 19.3 -
Trade payables (note 20) 138.5 138.5 138.5 - - -
Lease liabilities (note 12) 348.3 400.0 78.5 124.9 77.8 118.8
Amounts owed to joint venture veterinary practices (note 20) 8.2 8.2 8.2 - - -
526.4 580.0 229.9 134.2 97.1 118.8
28 March 2024 Carrying amount £m Contractual cash flows £m 1 year or less £m 1 to 3 years 3 to 5 years 5 years and over £m
£m £m
Non-derivative financial liabilities
Bank loans (note 19) 45.5 48.3 2.2 8.6 33.6 3.9
Trade payables (note 20) 138.2 138.2 138.2 - - -
Lease liabilities (note 12)(1) 380.8 439.3 79.8 133.9 86.1 139.5
Amounts owed to joint venture veterinary practices (note 20)(1) 0.8 0.8 0.8 - - -
565.3 626.6 221.0 142.5 119.7 143.4
(1) The presentation of non-derivative financial liabilities has been
revised to include lease liabilities and amounts owed to joint venture
veterinary practices. The ageing of the buckets have been revised to align
with the presentation in note 12 and note 19.
Liquidity risk and cash flow hedges
Cash flow hedges
The following table indicates the periods in which the cash flows associated
with cash flow hedging instruments are expected to occur and to affect profit
or loss:
Group
27 March 2025
Carrying amount £m Expected cash flows 1 year or less 1 to <2 years 2 to <5 years 5 years and over £m
£m £m £m £m
Forward exchange contracts:
Current liabilities (note 16) (1.7) (1.7) (1.7) - - -
(1.7) (1.7) (1.7) - - -
28 March 2024
Carrying amount £m Expected cash flows 1 year or less 1 to <2 years 2 to <5 years 5 years and over £m
£m £m £m £m
Forward exchange contracts:
Current liabilities (note 16) (1.0) (1.0) (1.0) - - -
(1.0) (1.0) (1.0) - - -
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
Fair values of financial instruments
Investments
The fair values of investments are considered to be their carrying value as
the impact of discounting future cash flows has been assessed
as not material and the investment is non-participatory.
Trade and other payables and receivables
The fair values of these items are considered to be their carrying value as
the impact of discounting future cash flows has been assessed
as not material.
Cash and cash equivalents
The fair value of cash and cash equivalents is its carrying amount where the
cash is readily available. The fair value of short term deposits approximates
to the carrying amount because of the short maturity of these instruments.
Amounts owed to Joint Ventures
The fair value of amounts owed to Joint Ventures are considered to be their
carrying value as the impact of discounting future cash flows has been
assessed as not material.
Long term and short term borrowings
The fair value of bank loans and other loans approximates their carrying value
as they have interest rates based on SONIA. The impact of credit risk has an
immaterial impact on the fair value.
Short term deposits
The fair value of short term deposits is considered to be their carrying value
as the balances are held in floating rate accounts where the interest rate is
reset to market rates.
Derivative financial instruments
The fair values of forward exchange contracts and interest rate swap contracts
are calculated by management based on external valuations received from the
Group's bankers and are based on forward exchange rates and anticipated future
interest yield respectively.
Fair values
The fair values of all financial assets and financial liabilities by class
together with their carrying amounts shown in the balance sheet are as
follows:
Fair value hierarchy
The table below shows the carrying amounts and fair values of financial assets
and financial liabilities, including their levels in the fair value hierarchy.
Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities
Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs)
The following tables show the fair values and carrying amounts of financial
assets and liabilities as well as their fair value hierarchy. The tables do
not include fair value detail for financial assets and liabilities not
measured at fair value if their carrying value is a reasonable approximation
of fair value.
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
27 March 2025
Carrying amount Fair value - hedging instruments FVTPL - equity instruments Financial assets at amortised cost Other financial liabilities Total carrying amount
£m £m £m £m £m
Financial assets measured at fair value
Other investments (note 16) - 3.0 - - 3.0
Forward exchange contracts used for hedging (note 16) 0.2 - - - 0.2
0.2 3.0 - - 3.2
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices (note 16) - - 2.7 - 2.7
Current trade and other receivables (note 17) - - 19.0 - 19.0
Amounts owed by Joint Venture veterinary practices - funding, trading and - - 18.2 - 18.2
operating loans (note 17)
Cash and cash equivalents (note 18) - - 39.5 - 39.5
Loans to Joint Venture veterinary practices - initial set up loans (note 16) - - 3.9 - 3.9
Current other receivables (note 16) - - 0.3 - 0.3
Non-current other receivables (note 16) - - 5.6 - 5.6
- - 89.2 - 89.2
Financial liabilities measured at fair value
Forward exchange contracts used for hedging (note 16) (1.7) - - - (1.7)
(1.7) - - - (1.7)
Financial liabilities not measured at fair value
Current lease liabilities (note 12) - - - (78.5) (78.5)
Non-current lease liabilities (note 12) - - - (269.8) (269.8)
Trade payables (note 20) - - - (138.5) (138.5)
Amounts owed to Joint Venture veterinary practices (note 20) - - - (8.2) (8.2)
Other interest-bearing loans and borrowings (note 19) - - - (31.4) (31.4)
- - - (526.4) (526.4)
27 March 2025
Fair value Level 1 Level 2 Level 3 Total
£m £m £m £m
Financial assets and liabilities measured at fair value
Other investments (note 16) - - 3.0 3.0
Forward exchange contracts used for hedging (note 16) - 0.2 - 0.2
Forward exchange contracts used for hedging (note 16) - (1.7) - (1.7)
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
28 March 2024
Carrying amount Fair value - hedging instruments FVTPL - equity instruments Financial assets at amortised cost Other financial liabilities Total carrying amount
£m £m £m £m £m
Financial assets measured at fair value
Other investments (note 16) - 2.0 - - 2.0
Forward exchange contracts used for hedging (note 16) 0.2 - - - 0.2
Fuel forward contracts used for hedging (note 16) 0.1 - - - 0.1
0.3 2.0 - - 2.3
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices (note 16) - - 2.7 - 2.7
Current trade and other receivables (note 17) - - 20.2 - 20.2
Amounts owed by Joint Venture veterinary practices - funding, trading and - - 17.1 - 17.1
operating loans (note 17)
Cash and cash equivalents (note 18) - - 57.1 - 57.1
Loans to Joint Venture veterinary practices - initial set up loans (note 16) - - 5.2 - 5.2
Loans to Joint Venture veterinary practices - other loans (note 16) - - 0.5 - 0.5
Non-current other receivables (note 16) - - 0.5 - 0.5
- - 103.3 - 103.3
Financial liabilities measured at fair value
Forward exchange contracts used for hedging (note 16) (1.0) - - - (1.0)
Interest rate swaps used for hedging (note 16) - - - - -
(1.0) - - - (1.0)
Financial liabilities not measured at fair value
Current lease liabilities (note 12) - - - (79.8) (79.8)
Non-current lease liabilities (note 12) - - - (301.0) (301.0)
Trade payables (note 20) - - - (138.2) (138.2)
Amounts owed to Joint Venture veterinary practices (note 20) - - - (0.8) (0.8)
Other interest-bearing loans and borrowings (note 19) - - - (45.5) (45.5)
- - - (565.3) (565.3)
28 March 2024
Fair value Level 1 Level 2 Level 3 Total
£m £m £m £m
Financial assets and liabilities measured at fair value
Other investments (note 16) - - 2.0 2.0
Forward exchange contracts used for hedging (note 16) - 0.2 - 0.2
Fuel forward exchange contracts used for hedging (note 16) - 0.1 - 0.1
Interest rate swaps used for hedging (note 16) - - - -
Forward exchange contracts used for hedging (note 16) - (1.0) - (1.0)
Measurement of fair values
The following table shows the valuation techniques used in measuring Level 2
and Level 3 fair values at the balance sheet dates, as well as the significant
unobservable inputs used.
Type Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value
measurement
Forward exchange contracts and interest rate swaps Market comparison technique - the fair values are based on broker quotes. Not applicable Not applicable
Similar contracts are traded in an active market and the quotes reflect the
actual transactions on similar instruments.
Other investments The fair values of investments are considered to be their carrying value. Forecasted cashflows. Any changes to the unobservable input would have an Not applicable
immaterial impact on the valuation.
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
Changes in liabilities arising from financing activities
Group
Loans and borrowings Lease liabilities Total
£m £m £m
Balance at 28 March 2024 (note 12,19) 45.5 380.8 426.3
Changes from financing cash flows
Repayment of borrowings (15.0) - (15.0)
Interest payment of borrowings (4.7) - (4.7)
Payment of lease liabilities - (79.7) (79.7)
Total changes from financing cash flows (19.7) (79.7) (99.4)
Other changes
Interest expense on lease liabilities (note 7) - 13.2 13.2
Interest expense on borrowings (note 7) 4.7 - 4.7
Amortisation of debt issue costs (note 7) 0.8 - 0.8
Additions to lease liabilities - 34.0 34.0
Movement on accrued interest 0.1 - 0.1
Total other changes 5.6 47.2 52.8
Balance at 27 March 2025 (note 12, 19) 31.4 348.3 379.7
Loans and borrowings Lease liabilities Total
£m £m £m
Balance at 30 March 2023 120.5 421.4 541.9
Changes from financing cash flows
Repayment of borrowings (75.0) - (75.0)
Interest payment of borrowings (3.2) (3.2)
Payment of lease liabilities - (81.7) (81.7)
Total changes from financing cash flows (78.2) (81.7) (159.9)
Other changes
Interest expense on lease liabilities (note 7) - 13.3 13.3
Interest expense on borrowings (note 7) 3.5 - 3.5
Amortisation of debt issue costs 0.8 - 0.8
Additions to lease liabilities - 29.8 29.8
Disposal of lease liabilities - (2.0) (2.0)
Capitalisation of debt issue costs (0.9) - (0.9)
Movement on accrued interest (0.2) - (0.2)
Total other changes 3.2 41.1 44.3
Balance at 28 March 2024 45.5 380.8 426.3
Cash flow hedge reserve
2025 2024
£m £m
Foreign currency risk
Inventory purchases (1.1) (0.6)
Commodity price risk
Fuel purchases - 0.1
Notes to the consolidated financial statements (continued)
23 Financial instruments (continued)
Commodity price risk Foreign currency risk Interest rate risk
Forward exchange contracts- fuel Forward exchange contracts- inventory Interest rate swaps
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Nominal amount
Carrying amount- asset (note 16) - 0.1 0.2 0.2 - -
Carrying amount- liability (note 16) - - (1.7) (1.0) - -
Changes in the value of hedging instrument recognised in OCI
Amount of hedging reserve transferred to cost of inventory - - (1.6) (3.3) - -
Net change in fair value of cash flow hedges reclassified to profit or loss 0.1 (0.3) - - - 1.6
The following table provides a reconciliation by risk category of hedging
reserve and analysis of OCI items, net of tax, resulting from cash flow
hedging accounting:
27 March 28 March 2024
2025
£m £m
Balance brought forward (0.5) (1.6)
Changes in fair value
Foreign currency risk- inventory purchase (0.7) 2.6
Commodity risk- fuel (0.1) 0.4
Interest rate risk - (1.6)
Tax on movements on reserves during the year 0.2 (0.3)
Balance carried forward (1.1) (0.5)
Hedge accounting
Cash flow hedges
At 27 March 2025 and 28 March 2024, the Group held the following instruments
to hedge exposures to changes in foreign currency. There were no instruments
in relation to interest rate swaps as at 27 March 2025.
Maturity
1-6 months 6-12 months 1-6 months 6-12 months
2025 2025 2024 2024
Foreign currency risk
Forward exchange contracts
Net exposure (£m) 51.4 33.0 50.4 29.1
Average GBP-USD forward contract rate 1.28 1.27 1.24 1.27
Average GBP-EUR forward contract rate 1.19 1.19 1.14 1.16
Interest rate risk
Interest rate swaps
Net exposure (£m) - - 50.0 -
Average fixed interest rate - - 5.06% -
Capital management
The Group's objectives when managing capital, which is deemed to be total
equity plus total debt, are to safeguard the Group's ability to continue as a
going concern in order to provide returns for shareholders and benefits for
other stakeholders, through the optimisation of the debt and equity balance,
and to maintain a strong credit rating and headroom on financial covenants.
The Group manages its capital structure and makes appropriate decisions in
light of the current economic conditions and strategic objectives of the
Group.
The Board's policy is to maintain a strong capital base so as to maintain
investor, creditor and market confidence and to sustain future development of
the Group. The funding requirements of the Group are met by the utilisation of
external borrowings together with available cash, as detailed in note 19.
A key objective of the Group's capital management is to maintain compliance
with the covenants set out in the revolving credit facility and to maintain a
comfortable level of headroom over and above these requirements. Management
have continued to measure and monitor covenant compliance throughout the
period and the Group has complied with the requirements set.
Notes to the consolidated financial statements (continued)
24 Share-based payments
At 27 March 2025 and 28 March 2024, the Group has four share award plans, all
of which are equity settled schemes.
1 Company Share Ownership Plan ('CSOP')
On 25 February 2014 the Company adopted the CSOP. Part I of the CSOP is tax
approved under Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003
and provides for the grant of tax approved options. Part II of the CSOP
provides for the grant of unapproved options.
The tax approved options under Part I of the CSOP will be exercisable between
the third and tenth anniversary of the date of grant, subject to continued
employment with the Group. These awards will be granted with an exercise price
equal to the market value of the shares at the grant date (as agreed with
HMRC).
(a) Eligibility
All colleagues, including the Executive Directors and Senior Executives, are
eligible to participate in the CSOP, at the discretion of the Remuneration
Committee.
(b) Grant of options
No options may be granted more than ten years after the adoption of the CSOP.
Options under the CSOP will not form part of a colleague's pensionable
earnings.
(c) Vesting and performance
Colleagues who receive options under the CSOP and under the PSP in connection
with Admission will be subject to the same performance conditions described in
Section 1 (d) above in respect of both grants. Colleagues who only receive
options under the CSOP in connection with Admission will not be subject to
performance conditions.
(d) Exercise price
The price at which an option holder may acquire shares on the exercise of an
option shall be determined by the Board but shall not be less than
the greater of market value of a share at the time of grant and its nominal
value. The exercise price is therefore fixed at grant date.
(e) Individual limits
No option may be granted to an eligible colleague under Part I of the CSOP
which would result in the aggregate exercise prices of shares comprised in all
outstanding options granted to him/her under Part I, when aggregated with
outstanding options held under any other tax approved executive share option
scheme established by the Company, exceeding the tax approved limit (currently
£30,000).
In addition, (both under Part I and II of the CSOP) the aggregate exercise
price of shares comprised in options granted to a colleague under the CSOP and
the PSP in any financial year shall not exceed 150% of his/her annual salary
for that year.
For the purposes of these limits, market value will be calculated by reference
to the market value of the shares on or prior to the relevant date of grant
as determined by the Board (following consultation with the Remuneration
Committee) and subject to HMRC approval if applicable.
Part II of the CSOP provides for the grant of unapproved options. This enables
options to be granted under the same terms as Part I of the CSOP but without
complying with the particular requirements of the legislation applicable to
tax approved CSOP Schemes. The provisions of the CSOP that do not apply under
Part II include the £30,000 limit and the need to seek HMRC approval for the
scheme and subsequent amendments (as applicable).
2 Save As You Earn ('SAYE')
On 25 February 2014, the Company adopted the SAYE (which was registered with
and self-certified with HMRC on 4 April 2015). The rules of the SAYE were
adopted pursuant to Schedule 3 of the Income Tax (Earnings and Pensions) Act
2003 and provide for the grant of tax approved options. In September each
year, the Company issues invitations under the rules of the SAYE which
provides eligible colleagues with an opportunity to receive share options at a
20% discount to the market price. The maximum monthly savings is £500 per
month. During the 52 weeks ending 27 March 2025, the Executive Directors have
elected to participate in the SAYE, along with 9.73% of eligible colleagues.
The options are granted once a year, and in normal circumstances they are not
exercisable until completion of a savings period, beginning on 1 December each
year, and will then be exercisable for a period of six months following
completion of the relevant savings period.
(a) Eligibility
All colleagues and full-time Directors of the Group, who have been in
continuous service for such period of time (not exceeding five years) as may
be determined by the Board prior to the relevant date of grant of an option
and who are liable to UK income tax, are eligible to participate in the SAYE.
Participation may also be offered, at the discretion of the Board (taking
account of the recommendations of the Remuneration Committee), to other
Directors or employees who otherwise do not satisfy all of the above criteria,
although Non-Executive Directors are not eligible to participate in the SAYE.
(b) Issue of invitations
Invitations to participate in the SAYE may be made during each 42 day period
from (and including) (i) the date on which any amendment to the SAYE is
approved or adopted by the Company's shareholders, (ii) the announcement of
the Company's final or interim results for any financial period, (iii) the
occurrence of an event which the Remuneration Committee considers to be an
non-underlying event concerning the Group or (iv) changes to the legislation
affecting tax approved SAYE option schemes coming into effect. If any of the
above periods is a 'close period' as a result of the application of the Model
Code for Securities Transactions by Directors of Listed Companies (or as a
result of the Company's equivalent internal share dealing rules) and the
Company is prohibited from issuing invitations and/or granting options as a
result, then invitations may be made within 42 days of the end of the close
period.
Invitations may be issued by the trustee of an employee benefit trust. No
invitations may be issued or options granted more than ten years after
the adoption of the SAYE.
(c) Exercise price
The price at which an option holder may acquire shares on the exercise of an
option shall be determined by the Board but shall not be less than
the greater of 80% of the market value of a share at the time of grant and
its nominal value.
Notes to the consolidated financial statements (continued)
Share-based payments (continued)
(d) Savings contract
Options may be granted by the Board or the trustee of an employee benefit
trust. Upon applying for an option, the colleague will be required to enter
into an approved savings contract with a savings institution nominated by the
Company which lasts for three years. The maximum amount which an employee is
permitted to contribute under SAYE contracts is £500 per month. The Board may
set lower savings limits than this for different colleagues by reference to
objective criteria such as levels of salary or length of service. The minimum
contribution is £5 per month (or such greater amount as the Board may
specify, not to exceed £10). The total exercise price of the shares over
which the option is granted may not exceed the aggregate of the monthly
contributions and bonus payable at the end of the colleague's related SAYE
contract.
(e) Scheme limits
The number of newly issued shares over which (or in respect of which) options
may be granted under the SAYE on any date of grant shall be limited so that
the total number of shares issued or capable of being issued in any ten year
period under all the Company's employee share schemes (including the CSOP, PSP
and RSA but other than to satisfy dividend equivalent payments) is restricted
to 10% of the Company's issued shares calculated at the relevant time. Any
options or rights to acquire shares granted before, on or in connection with
Admission will be excluded from this limit, and no account will be taken of
options or awards which have lapsed, been surrendered or otherwise become
incapable of exercise or vesting.
(f) Exercisability
Options will normally be exercisable during a period of six months following
the allocation of a bonus under the related SAYE contract and will normally
lapse upon cessation of employment. Earlier exercise is, however, permitted if
the colleague dies or leaves employment through injury, disability, redundancy
or retirement or where a colleague leaves employment of the Group by reason of
his employing company ceasing to be a member of the Group, or if the
undertaking in which he is employed is sold outside the Group. Early exercise
will also be permitted in the event of a takeover, reconstructions or
voluntary winding up of the Company.
3 Restricted Stock Plan ('RSA')
On 20 July 2017 the Company adopted the RSA. Awards under the RSA were made on
20 July 2017 and annually thereafter and will be exercisable between the
third and tenth anniversary of this date, subject to continued employment with
the Group and the satisfaction of performance conditions. These awards are
granted at nil cost.
(a) Eligibility
All colleagues, including the Executive Directors and Senior Executives, are
eligible to participate in the RSA, at the discretion of the Remuneration
Committee.
(b) Grant of awards
Awards under the RSA will not form part of a colleague's pensionable earnings.
Awards are not transferable (other than on death) without the consent of the
Remuneration Committee.
(c) Exercise price
The price at which a colleague may acquire shares on the exercise or vesting
of an award under the RSA shall be determined by the Remuneration Committee on
the date of grant, and may, if the Remuneration Committee determines, be nil
or nominal value only.
(d) Scheme limits
The number of newly issued shares over which (or in respect of which) awards
may be granted under the RSA on any date shall be limited so that: (i) the
total number of shares issued and issuable in respect of options or awards
granted in any ten year period under the RSA and any other discretionary share
option scheme of the Company (including the PSP and the CSOP but other than to
satisfy dividend equivalent payments) is restricted to 5% of the Company's
issued shares calculated at the relevant time; and (ii) the total number of
shares issued and issuable pursuant to options or awards granted in any ten
year period under the RSA and any other employee share scheme operated by the
Company (including the CSOP, SAYE and PSP but other than to satisfy dividend
equivalent payments) is restricted to 10% of the Company's issued shares
calculated at the relevant time.
For the purposes of these limits, no account will be taken of options or
awards granted before, on or in connection with Admission and no account will
be taken of options or awards which have lapsed, been surrendered or otherwise
become incapable of exercise or vesting. Shares held in treasury will be
treated as newly issued shares for the purposes of these limits (as long as
this is required by institutional investor guidelines), but (for the
avoidance of doubt) shares acquired in the market will not.
(e) Individual limits
The aggregate market value of shares comprised in awards granted to a
colleague under the RSA, PSP and the CSOP in any financial year shall not
exceed 100% of their annual salary for that year. Market value for these
purposes will be calculated by reference to the market value of the shares on
the relevant date of grant as determined by the Board (following consultation
with the Remuneration Committee) in its absolute discretion.
Fair value of share awards
The expected volatility is based on historical volatility of a peer group of
companies over a relevant period prior to award. The expected life is the
average expected period to exercise, which has been taken as three years. The
risk free rate of return is the yield on zero-coupon UK government bonds with
a life equal to this expected life.
Options are valued using a Black-Scholes option-pricing model for the
non-market based (EPS element) performance conditions and a Monte-Carlo
simulation for the market-based (TSR element) performance conditions.
Special provisions allow early exercise in the case of death, injury,
disability, redundancy, retirement or because the Company which employs
the option holder ceases to be part of the Group or in the event of a change
in control, reconstruction or winding up of the Company.
4 Deferred Share Bonus Plan ('DSBP')
On 24 March 2022 the Company adopted the DSBP. Awards under the DSBP represent
the deferral of the discretionary bonus awarded to eligible colleagues into
shares. Awards under the DSBP will be exercisable between the second
anniversary of the first day following the end of the Year in respect of which
the Bonus in question is earned or would have been earned notwithstanding that
it was deferred and the tenth anniversary of the Date of Grant. These awards
are granted at nil cost.
Notes to the consolidated financial statements (continued)
24 Share-based payments (continued)
(a) Eligibility
All colleagues, including the Executive Directors and Senior Executives, are
eligible to participate in the DSBP, at the discretion of the Remuneration
Committee.
(b) Grant of awards
Awards under the DSBP will not form part of a colleague's pensionable
earnings. Awards are not transferable (other than on death) without the
consent of the Remuneration Committee.
(c) Exercise price
The price at which a colleague may acquire shares on the exercise or vesting
of an award under the DSBP shall be determined by the Remuneration Committee
on the date of grant, and may, if the Remuneration Committee determines, be
nil or nominal value only.
(d) Scheme limits
The number of newly issued shares over which (or in respect of which) awards
may be granted under the DSBP on any date shall be limited so that: (i) the
total number of shares issued and issuable in respect of options or awards
granted in any ten year period under the DSBP and any other discretionary
share option scheme of the Company (including the PSP and the CSOP but other
than to satisfy dividend equivalent payments) is restricted to 5% of the
Company's issued shares calculated at the relevant time; and (ii) the total
number of shares issued and issuable pursuant to options or awards granted in
any ten year period under the DSBP and any other employee share scheme
operated by the Company (including the CSOP, SAYE and PSP but other than to
satisfy dividend equivalent payments) is restricted to 10% of the Company's
issued shares calculated at the relevant time.
For the purposes of these limits, no account will be taken of options or
awards granted before, on or in connection with Admission and no account will
be taken of
options or awards which have lapsed, been surrendered or otherwise become
incapable of exercise or vesting. Shares held in treasury will be treated as
newly issued shares for the purposes of these limits (as long as this is
required by institutional investor guidelines), but (for the avoidance of
doubt) shares acquired in the market will not.
(e) Individual limits
The aggregate market value of all the shares awarded to an eligible employee
in respect of any financial year (calculated on the Date of Grant) comprised
in awards granted to them in respect of that financial year under the plan,
shall not exceed 100 percent of the bonus the eligible employee has agreed to,
or has been required to, defer for that financial year.
Fair value of share awards
The expected volatility is based on historical volatility of a peer group of
companies over a relevant period prior to award. The expected life is the
average expected period to exercise, which has been taken as three years. The
risk free rate of return is the yield on zero-coupon UK government bonds with
a life equal to this expected life.
Options are valued using a Black-Scholes option-pricing model for the
non-market based (EPS element) performance conditions and a Monte-Carlo
simulation for the market-based (TSR element) performance conditions. Special
provisions allow early exercise in the case of death, injury, disability,
redundancy, retirement or because the Company which employs the option holder
ceases to be part of the Group or in the event of a change in control,
reconstruction or winding up of the Company.
The key assumptions used in the fair value of the awards were as follows:
RSA
2024 2023 2022 2021 2020 2019 2018 2017
At grant date
Share price £2.91 £3.75 £3.47 £4.57 £2.28 £1.87 £1.37 £2.59
Exercise price £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Expected volatility 30% 37% 32% 32% 32% 32% 32% 32%
Option life (years) 10 10 10 10 10 10 10 10
Expected dividend yield 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Risk free interest rate n/a n/a n/a n/a n/a n/a n/a 0.005
Weighted average fair value of options granted £2.91 £3.75 £3.47 £4.57 £2.28 £1.87 £1.37 £2.06
DSBP CSOP SAYE
2016 2015 2022 2021 2020
2023 2022 2024 2023
At grant date
Share price £3.78 £3.10 £2.75 £2.31 £3,14 £3.49 £3.05 £5.13 £2.87
Exercise price £0.00 £0.00 £2.75 £2.31 £2.51 £2.79 £2.44 £4.10 £2.29
Expected volatility 37% 37% 32% 37% 30% 37% 37% 33% 32%
Option life (years) 10 10 10 10 3 3 3 3 3
Expected dividend yield 2% 2% 2% 2% 2% 2% 2% 2% 2%
Risk free interest rate n/a n/a 2% 2% 4% 4% 1% 1% 0%
Weighted average fair value of options granted £3.78 £3.10 £0.89 £0.75 £1.12 £1.36 £1.16 £1.68 £0.95
Notes to the consolidated financial statements (continued)
24 Share-based payments (continued)
For both the RSA and DSBP awards, the fair value is the share price at the
date of the grant so the risk free rate has no impact on the fair value
calculation.
Movements in awards under share-based payment schemes:
CSOP SAYE RSA DSBP Total
000 000 000 000 000
Outstanding at start of year 201 3,398 4,287 250 8,136
Granted - 1,026 2,098 - 3,124
Forfeited (4) (1,094) (634) - (1,732)
Exercised (32) (181) (809) (145) (1,167)
Lapsed (31) (75) (52) - (158)
Outstanding at end of year 134 3,074 4,890 105 8,203
Weighted average exercise price 2.65 2.64 - - -
The Group income statement charge recognised in respect of share-based
payments for the 52 week period ended 27 March 2025 is £5.9m (52 week period
ended 28 March 2024: £5.9m).
25 Commitments
Capital commitments
At 27 March 2025, the Group is committed to incur capital expenditure of
£1.1m (28 March 2024: £1.9m). At 27 March 2025, the Group has a commitment
to increase the loan funding to Joint Venture companies of £0.2m (28 March
2024: £0.3m), this increase in funding is written into the Joint Venture
agreements and becomes payable when certain criteria are met.
26 Contingencies
Veterinary practices
During the period, the Group also had in place certain guarantees over the
bank loans taken out by a number of veterinary practice companies in which it
holds an investment in non-participatory share capital. Under IFRS 9, the
Group holds provision against a proportion of the guarantees where the
practices are in default in accordance with the policy set out in note 1.16.
At 27 March 2025, the total amount of bank overdrafts and loans guaranteed by
the Group amounted to £4.0m (28 March 2024: £4.5m). The Group is a
guarantor for the lease for veterinary practices that are not located within
Pets at Home stores. The Group is also a guarantor to a small number of third
parties where the lease has been reassigned.
Exemption from audit by parent guarantee
The wholly owned subsidiaries with the exception of Pets at Home Limited,
Companion Care (Services) Limited and Vets4Pets Limited are covered by a
guarantee provided by Pets at Home Group Plc and are consequently entitled to
an exemption under s479A from the requirement of the Act relating to the audit
of individual accounts. Under this guarantee, the Group will guarantee all
outstanding liabilities of these entities. No liability is expected to arise
under the guarantee. The entities covered by this guarantee are disclosed in
note 28 below.
27 Related parties
Joint Venture veterinary practice transactions
The Group has entered into a number of arrangements with third parties in
respect of veterinary practices. These veterinary practices are deemed to be
related parties due to the factors explained in note 1.4. Financial
commitments provided to related party veterinary practices for funding are set
out in note 25.
During the period, the Group had in place certain guarantees over the bank
loans taken out by a number of veterinary practice companies in which it holds
an investment in non-participatory share capital. At the end of the period,
the total amount of bank overdrafts and loans guaranteed by the Group amounted
to £4.0m (28 March 2024: £4.5m).
Notes to the consolidated financial statements (continued)
27 Related parties (continued)
The transactions entered into during the period and the balances outstanding
at the end of the period are as follows:
27 March 2025 £m 28 March 2024 £m
Transactions
- Fees for services provided to Joint Venture veterinary practices 103.4 89.3
- Rental and other occupancy charges to Joint Venture veterinary practices 13.0 12.7
Total income from Joint Venture veterinary practices 116.4 102.0
1.3 1.0
Acquisitions
- Consideration for Joint Venture veterinary practices acquired (note 10)
Included within investments
- Capital contributions for extensions and improvements of practices 2.7 2.5
(note 16)
- B Share Capital (note 16) - 0.2
Included within trade and other receivables (note 17):
- Operating loans
- Gross value of operating loans 5.2 8.8
Allowance for expected credit losses held for operating loans
(1.3) (3.0)
- Net operating loans 3.9 5.8
- Trading balances 14.3 10.9
- Deferred fee income rebate 1.7 -
Included within other financial assets and liabilities (note 16):
- Loans to Joint Venture veterinary practices - initial set up loans
- Gross value of initial set up loans 4.3 5.8
- Allowance for expected credit losses held for initial set up loans (0.4) (0.6)
- Net initial set up loans 3.9 5.2
- Loans to Joint Venture veterinary practices - other loans (note 16)
- Gross value of other loans - 0.5
- Allowance for expected credit losses held for other loans - -
- Net other loans - 0.5
Included within trade and other payables (note 20):
- Trading balances (8.2) (0.8)
Total amounts receivable from veterinary practices (before provisions) 17.3 25.2
Fees for services provided to related party veterinary practices are included
within revenue and relate to charges for support services offered in such
areas as clinical development, promotion and methods of operation as well as
service activities including accountancy, legal and property. In accordance
with IFRS15, revenue in the 52 week period ended 27 March 2025 and the 52 week
period ended 28 March 2024 excludes irrecoverable fee income from Joint
Venture veterinary practices.
Funding for new practices represents the amounts advanced by the Group to
support veterinary practice opening costs. The funding is short term and the
related party Joint Venture veterinary practice draws down their own bank
funding to settle these amounts outstanding with the Group shortly after
opening.
Trading balances represent costs incurred and income received by the Group in
relation to the services provided to the Joint Venture veterinary practices
that have yet to be recharged.
Operating loans represent amounts advanced to related party Joint Venture
veterinary practices to support their working capital requirements and longer
term growth. The loans advanced to the practices are interest free and either
repayable on demand or repayable within 90 days of demand. No facility exists
and the levels of loans are monitored in relation to review of the practice's
performance against business plan. Based on the projected cash flow forecast
on a practice by practice basis, the funding is often expected to be required
for a number of years. As practices generate cash on a monthly basis it is
applied to the repayment of brought forward operating loans. For immature
practices, loan balances may increase due to operating requirements. The
balances above are shown net of allowances for expected credit losses held for
operating loans of £1.3m (28 March 2024: £3.0m).
Loans to Joint Venture veterinary practices for other related parties - other
loans are provided to Joint Venture veterinary practice companies trading
under the Companion Care and Vets4Pets brands, in which the Group's share
interest is non-participatory. These loans represent a long-term investment in
the Joint Venture, supporting their initial set up and working capital, and
are held at amortised cost under IFRS9. The balances above are shown net of
allowances for expected credit losses held for initial set up loans of £0.4m
(28 March 2024: £0.6m).
In the 52 week period ended 27 March 2025, the value of loans written off
recognised in the income statement amounted to £1.7m which relates to
operating loans. In the 52 week period ended 28 March 2024 the value of loans
written off recognised in the income statement amounted to £1.6m, which
relates to operating loans. At 27 March 2025, the Group had a commitment to
increase the loan funding to Joint Venture companies of £0.2m (28 March 2024:
£0.3m); this increase in funding is written into the Joint Venture agreements
and becomes payable when certain criteria are met.
The Group is a guarantor for the leases for veterinary practices that are not
located within Pets at Home stores.
Key management personnel. Details of remuneration paid to key management
personnel are set out in note 4.
Notes to the consolidated financial statements (continued)
28 Investment in subsidiaries
Investments in subsidiaries
£m
At 27 March 2025 and 28 March 2024 936.2
Impairment testing
Management have conducted a full impairment review which has been undertaken
on the Group's cash generating units of which the Company's investments form
part. Management considers whether any impairment triggers existed by
comparing the net assets value of the subsidiary to the carrying value of the
investment. Management have concluded that under IAS36, no impairment trigger
has been identified with regard to the Company's investments in subsidiaries.
In the 52 week period ended 27 March 2025 the Group acquired 100% of the 'A'
shares of eight companies. These practices were previously accounted for as
Joint Venture veterinary practices as the Group held 100% of the
non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led
to the control and consolidation of these companies. A detailed explanation
for the basis of consolidation can be found in note 1.4. Further details of
these acquisitions can be found in note 10.
Subsidiaries incorporated within the United Kingdom
The following wholly owned subsidiaries, with the exception of Pets at Home
Limited, Companion Care (Services) Limited and Vets4Pets Limited are covered
by a guarantee provided by Pets at Home Group Plc and are consequently
entitled to an exemption under s479A from the requirement of the Act relating
to the audit of individual accounts. This exemption has been disclosed in note
26 above.
Registered office address
VetsDirect Limited: Dickson Minto, 16 Charlotte Square, Edinburgh, Scotland,
EH2 4DF
The registered office of all the remaining companies incorporated within the
United Kingdom for which the Group has an interest in the share capital is
Epsom Avenue, Stanley Green, Handforth, Cheshire, England SK9 3RN.
Company Registered number Holding Class of shares held At 27 March 2025 % At 28 March 2024 %
Brand Development Limited 00039522 Indirect Ordinary 100 100
Companion Care (Services) Limited 04141142 Indirect Ordinary 100 100
Companion Care Management Services Limited 08878037 Indirect Ordinary 100 100
Pet Advisory Services Limited 09180974 Indirect Ordinary 100 100
Pet Investments Limited 04428715 Indirect Ordinary 100 100
PAH Financial Services Limited 04635676 Indirect Ordinary 100 100
Pets at Home Holdings Limited 03864149 Indirect Ordinary 100 100
Pets at Home Limited 01822577 Indirect Ordinary 100 100
Pets at Home No.1 Limited 08887355 Direct Ordinary 100 100
Pets at Home Superstores Limited 03119594 Indirect Ordinary 100 100
Pets at Home Vets Group Limited 08595290 Indirect Ordinary 100 100
Pets at Home (ESOT) Limited 03911784 Indirect Ordinary 100 100
Pet City Holdings Limited 02342109 Indirect Ordinary 100 100
Pet City Limited 02466773 Indirect Ordinary 100 100
Pet City Resources Limited 02634797 Indirect Ordinary 100 100
Vets4Pets (Services) Limited 04317414 Indirect Ordinary 100 100
Vets4Pets Services Limited 05055601 Indirect Ordinary 100 100
Vets4Pets UK Limited 03940967 Indirect Ordinary 100 100
Vets4Pets Limited 00038174 Indirect Ordinary 100 100
Vets4Pets Veterinary Group Limited 04263054 Indirect Ordinary 100 100
VetsDirect Limited SC230445 Indirect Ordinary 100 100
Aberdeen North Vets4Pets Limited 11024679 Indirect Ordinary 100 50
Accrington Vets4Pets Limited 10015704 Indirect Ordinary 100 100
Alton Vets4Pets Limited 08132407 Indirect Ordinary 100 100
Andover Vets4Pets Limited 08132407 Indirect Ordinary 100 100
Bangor Wales Vets4Pets Limited 08314827 Indirect Ordinary 100 100
Bath Vets4Pets Limited 09639978 Indirect Ordinary 100 100
Bearsden Vets4Pets Limited 07780175 Indirect Ordinary 100 100
Bedminster Vets4Pets Limited 09267870 Indirect Ordinary 100 100
Belfast Stormont Vets4Pets Limited 09022077 Indirect Ordinary 100 100
Bicester Vets4Pets Limited 10285804 Indirect Ordinary 100 100
Bishop's Stortford Vets4Pets Limited 09674508 Indirect Ordinary 100 50
Bolton Central Vets4Pets Limited 11047742 Indirect Ordinary 100 100
Bonnyrigg Vets4Pets Limited 10757330 Indirect Ordinary 100 100
Borehamwood Vets4Pets Limited 09319066 Indirect Ordinary 100 100
Bourne Vets4Pets Limited 10200670 Indirect Ordinary 100 100
Bracknell Vets4Pets Limited 10605544 Indirect Ordinary 100 100
Bradford Idle Vets4Pets Limited 04238792 Indirect Ordinary 75 50
Bramley Vets4Pets Limited 04238788 Indirect Ordinary 100 100
Bramley Vets4Pets (Newco) Limited 09772761 Indirect Ordinary 100 100
Brighton Vets4Pets Limited 13539268 Indirect Ordinary 100 100
Carmarthen Vets4Pets Limited 09498169 Indirect Ordinary 100 100
Clacton Vets4Pets Limited 13668587 Indirect Ordinary 100 100
Clitheroe Vets4Pets Limited 09878308 Indirect Ordinary 100 100
Companion Care (Ballymena) Limited 08294444 Indirect Ordinary 100 100
Companion Care (Banbury) Limited 08606393 Indirect Ordinary 100 100
Companion Care (Barnsley Cortonwood) Limited 08314805 Indirect Ordinary 100 100
Companion Care (Chippenham) Limited 08107702 Indirect Ordinary 100 100
Companion Care (Ely) Limited 04417089 Indirect Ordinary 100 100
Companion Care (Exeter Marsh) Limited 08314727 Indirect Ordinary 100 100
Companion Care (Exeter) Limited 04930076 Indirect Ordinary 100 100
Companion Care (Farnham) Limited 07877541 Indirect Ordinary 100 100
Companion Care (Kings Lynn) Limited 06797982 Indirect Ordinary 100 100
Companion Care (Llantrisant) Limited 08080307 Indirect Ordinary 100 100
Companion Care (Macclesfield) Limited 08285995 Indirect Ordinary 100 100
Companion Care (Newport) Limited 08425358 Indirect Ordinary 100 100
Companion Care (Nottingham) Limited 04289970 Indirect Ordinary 100 100
Companion Care (Salisbury) Limited 06457719 Indirect Ordinary 100 100
Companion Care (Scarborough) Limited 06555344 Indirect Ordinary 100 50
Companion Care (Speke) Limited 07149744 Indirect Ordinary 100 100
Companion Care (Telford) Limited 04417091 Indirect Ordinary 100 100
Craigavon Vets4Pets Limited 08846831 Indirect Ordinary 100 100
Davidsons Mains Vets4Pets Limited 07726992 Indirect Ordinary 100 100
Denbigh Vets4Pets Limited 10976376 Indirect Ordinary 100 100
Didcot Vets4Pets Limited 14091352 Indirect Ordinary 100 100
East Kilbride South Vets4Pets Limited 09725644 Indirect Ordinary 100 100
Ellesmere Port Vets4Pets Limited 09269582 Indirect Ordinary 100 100
Gamston Vets4Pets Limited 10970617 Indirect Ordinary 75 75
Gillingham Vets4Pets Limited 08361049 Indirect Ordinary 100 100
Guildford Vets4Pets Limited 13470077 Indirect Ordinary 100 100
Haverfordwest Vets4Pets Limited 09485504 Indirect Ordinary 100 100
Horsham Vets4Pets Limited 14345928 Indirect Ordinary 100 100
Huddersfield Vets4Pets Limited 07207906 Indirect Ordinary 100 100
Inverurie Vets4Pets Limited 11056047 Indirect Ordinary 100 100
Kendal Vets4Pets Limited 10163314 Indirect Ordinary 100 100
Larne Vets4Pets Limited 11121715 Indirect Ordinary 100 100
Leeds Kirkstall Vets4Pets Limited 10291543 Indirect Ordinary 100 100
Leicester St Georges Vets4Pets Limited 09881176 Indirect Ordinary 100 100
Leigh Vets4Pets Limited 10601393 Indirect Ordinary 100 100
Linlithgow Vets4Pets Limited 09966547 Indirect Ordinary 100 100
Lichfield Vets4Pets Limited 11180484 Indirect Ordinary 100 50
Liverpool OS Vets4Pets Limited 06959208 Indirect Ordinary 100 100
Llanrumney Vets4Pets Limited 08291716 Indirect Ordinary 75 50
Malvern Vets4Pets Limited 10516552 Indirect Ordinary 100 100
Market Harborough Vets4Pets Limited 10602806 Indirect Ordinary 100 100
Marlborough Vets4Pets Limited 09869384 Indirect Ordinary 100 100
Melton Mowbray Vets4Pets Limited 07893688 Indirect Ordinary 100 100
Merthyr Tydfil Vets4Pets Limited 09847728 Indirect Ordinary 100 50
Monmouth Vets4Pets Limited 10756991 Indirect Ordinary 100 100
Musselburgh Vets4Pets Limited 10425760 Indirect Ordinary 100 100
Newbury Vets4Pets Limited 04633009 Indirect Ordinary 100 100
Newton Mearns Vets4Pets Limited 07957431 Indirect Ordinary 100 100
Newtownards Vets4Pets Limited 10067571 Indirect Ordinary 100 100
Northwich Vets4Pets Limited 11107287 Indirect Ordinary 100 100
Pentland Vets4Pets Limited 09360949 Indirect Ordinary 100 100
Prescot Vets4Pets Limited 08878815 Indirect Ordinary 100 100
Rawtenstall Vets4Pets Limited 09009519 Indirect Ordinary 100 100
Redditch Vets4Pets Limited 05612150 Indirect Ordinary 100 100
Runcorn Vets4Pets Limited 11446894 Indirect Ordinary 100 100
Sheldon Vets4Pets Limited 08822150 Indirect Ordinary 100 100
South Shields Quays Vets4Pets Limited 09848857 Indirect Ordinary 100 100
St Austell Vets4Pets Limited 09878373 Indirect Ordinary 95 95
St Neots Vets4Pets Limited 09811640 Indirect Ordinary 100 100
Staines Vets4Pets Limited 13584062 Indirect Ordinary 100 100
Sudbury Vets4Pets Limited 09916308 Indirect Ordinary 100 100
Thamesmead Vets4Pets Limited 09881179 Indirect Ordinary 100 100
Tilehurst Vets4Pets Limited 10573329 Indirect Ordinary 100 100
Tiverton Vets4Pets Limited 11023079 Indirect Ordinary 100 100
Trafford Park Vets4pets Limited 08915152 Indirect Ordinary 100 50
Uttoxeter Vets4Pets Limited 11145982 Indirect Ordinary 100 100
Wakefield Vets4Pets Limited 04262693 Indirect Ordinary 100 100
Wallasey Bidston Moss Vets4Pets Limited 09190138 Indirect Ordinary 100 100
Warminster Vets4Pets Limited 10067591 Indirect Ordinary 76 76
Wellingborough Vets4Pets Limited 07620413 Indirect Ordinary 100 100
Whetstone Vets4Pets Limited 16120022 Indirect Ordinary 100 0
Wokingham Vets4Pets Limited 09869355 Indirect Ordinary 100 100
Wrexham Vets4Pets Limited 07103838 Indirect Ordinary 100 100
Subsidiaries incorporated outside of the United Kingdom
Registered office address
Les Boues Limited: Herald House, 8 Hill Street, St Helier, Jersey, JE4 9XB
PAH Pty Limited: Herbert Greer and Rundle, Level 21, 385 Bourke Street,
Melbourne, VIC 3000, Australia
Pets at Home (Asia) Limited: Units 704 5A, 7/F, Tower B, Manulife Financial
Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
Vets4Pets Holdings Limited: Vets4pets, Support Centre, Les Merriennes, St
Martins, Guernsey, GY4 6NS
Vets4Pets I.P. Limited: Vets4pets, Support Centre, Les Merriennes, St Martins,
Guernsey, GY4 6NS
Company Holding Country of incorporation Class of shares held At 27 March 2025 % At 28 March 2024 %
Les Boues Limited Indirect Guernsey Ordinary 100 100
PAH Pty Limited Indirect Australia Ordinary 100 100
Pets at Home (Asia) Limited Indirect Hong Kong Ordinary 100 100
Vets4Pets Holdings Limited Indirect Guernsey Ordinary 100 100
Vets4Pets I.P. Limited Indirect Guernsey Ordinary 100 100
Notes to the consolidated financial statements (continued)
28 Investment in subsidiaries (continued)
Investments in Joint Venture practices and other investments
Registered office address
VetsDirect Limited: Dickson Minto, 16 Charlotte Square, Edinburgh, Scotland,
EH2 4DF
Project Blu Limited: 34 Cardiff Road, Dinas Powys, Wales CF64 4JS
Good Dog Food Limited ('Meatly'): Hill Dickinson Llp, The Broadgate Tower, 20
Primrose Street, London, United Kingdom, EC2A 2EW
The registered office of all the remaining companies in which the Group has an
interest in the share capital is Epsom Avenue, Stanley Green, Handforth,
Cheshire, England SK9 3RN.
The Group holds an indirect interest in the share capital of the following
companies:
Company Holding Country of incorporation Class of shares held At 27 March 2025 % At 28 March 2024 %
Aberdeen Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Abingdon Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
ABTW Limited Indirect United Kingdom Ordinary 50 50
Airdrie Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Alsager Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Altrincham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Amesbury Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bagshot Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bangor Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Barnsley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Barnstaple Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Barnwood Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Barry Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Beckenham Vets4Pets Limited Indirect United Kingdom Ordinary 50 0
Bedford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bedlington Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Beeston Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Beverley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Biggleswade Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bishop Auckland Cockton Vets4Pets Limited Indirect United Kingdom Ordinary 50 0
Bishopston Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bitterne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Blackburn Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Blackheath Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Blackpool Squires Gate Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Blackpool Warbreck Vets4Pets Limited Indirect United Kingdom Ordinary 50 100
Blackwood Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bodmin Launceston Road Vets4Pets Limited Indirect United Kingdom Ordinary 50 0
Bolton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bracknell Peel Centre Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Brighouse Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bristol Emerson Green Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bristol Imperial Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bristol Kingswood Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bristol Longwell Green Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bromsgrove Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Buckingham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bulwell Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Burscough Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Burton-On-Trent Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bury St Edmunds Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Bury Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Byfleet Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Caerphilly Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Camborne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cannock Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Canterbury Sturry Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cardiff Ely Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cardiff Newport Road Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Carlisle Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Carrickfergus Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Castleford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Catterick Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Chadwell Heath Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cheadle Hulme Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Chester Caldy Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Chester Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Chesterfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cirencester Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Clevedon Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cleveleys Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Clifton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Clowne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Coalville Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Colchester Vets4Pets Advanced Practice Limited Indirect United Kingdom Ordinary 50 50
Colne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Aintree) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Andover) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Ashford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Ashton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Aylesbury) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Ayr) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Basildon Pipps Hill) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Basildon) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Basingstoke) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Beckton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bedford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Belfast) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bishopbriggs) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bletchley) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bolton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bournemouth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Braintree) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Brentford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bridgend) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bridgwater) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Brislington) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Bristol Filton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Broadstairs) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Burgess Hill) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cambridge Beehive) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cambridge) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cannock) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Canterbury) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cardiff) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Charlton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Chatham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Chelmsford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cheltenham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Chesterfield) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Chichester) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Chingford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Christchurch) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Colchester) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Corstorphine) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Coventry Walsgrave) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Cramlington) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Crawley) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Crayford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Croydon) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Derby Kingsway) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Derby) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Dunstable) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Eastbourne) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Enfield) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Falmouth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Fareham Collingwood) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Fareham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Farnborough) Limited Indirect United Kingdom Ordinary 50 100
Companion Care (Folkestone) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Fort Kinnaird) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Friern Barnet) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Gloucester) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Harlow) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Hatfield) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Hemel Hempstead) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (High Wycombe) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Hove) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Huddersfield) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Huntingdon) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Ilford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Ipswich Martlesham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Keighley) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Kidderminster) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Kirkcaldy) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Leicester Beaumont Leys) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Leicester Fosse Park) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Leighton Buzzard) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Linwood) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Lisburn) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Liverpool Penny Lane) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Livingston) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Maidstone) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Merry Hill) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Milton Keynes) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (New Malden) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Newbury) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Newcastle Kingston Park) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Northampton Nene Valley) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Norwich Hall Road) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Norwich Longwater) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Norwich) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Oldbury) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Oldham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Orpington) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Oxford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Perth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Peterborough Bretton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Peterborough) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Plymouth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Poole) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Portsmouth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Preston Capitol) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Pudsey) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Reading) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Redditch) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Redhill) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Romford) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Rotherham) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Rustington) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Slough) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Southampton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Southend-On-Sea) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Stevenage) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Stirling) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Stockport) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Stoke Festival Park) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Stratford-Upon-Avon) Limited Indirect United Kingdom Ordinary 50 100
Companion Care (Swansea) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Swindon) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Tamworth) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Taunton) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Truro) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Tunbridge Wells) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Wakefield) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Weston-Super-Mare) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Winchester) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Winnersh) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Woking) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Woolwell) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Worcester) Limited Indirect United Kingdom Ordinary 50 50
Companion Care (Wrexham Holt Road) Limited Indirect United Kingdom Ordinary 50 50
Corby Vets4Pets Limited Indirect United Kingdom Ordinary 50 100
Craigleith Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Crescent Link Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Crewe Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cross Hands Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Cumbernauld Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dagenham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Darlington Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Daventry Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Denton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dewsbury Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Doncaster Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dorchester Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dover Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Droitwich Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Drumchapel Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dudley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dumbarton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Dunfermline Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Durham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
East Kilbride Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Eastleigh Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Eastwood Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Eccleshill Vets4Pets (Newco) Limited Indirect United Kingdom Ordinary 50 50
Epsom Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Evesham Vets4Pets Limited Indirect United Kingdom Ordinary 50 100
Falkirk Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Feltham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Filton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Gateshead Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Glasgow Forge Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Glasgow Pollokshaws Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Goldenhill Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Good Dog Food Limited Indirect United Kingdom Ordinary 9 9
Gosport Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Grantham Vets4Pets Limited Indirect United Kingdom Ordinary 50 100
Gravesend Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Greasby Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Greenford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Grimsby Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Guernsey Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Halesowen Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Halifax Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Handforth Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hamilton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Harrogate New Park Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Harrogate Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hartlepool Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hastings Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Havant Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Haverhill Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hayling Island Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Heanor Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hedge End Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hemel Hempstead Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hendon Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hereford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hertford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
High Wycombe Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hinckley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hucknall Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hull Anlaby Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hull Stoneferry Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Hull Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Ilkeston Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Ipswich Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Irvine Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Kettering Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Kidderminster Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Kilmarnock Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Kirkby in Ashfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Lancaster Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Launceston Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leamington Spa Myton Road Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leeds Birstall Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leeds Colton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leeds Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leigh-On-Sea Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Letchworth Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Leyland Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Lincoln South Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Lisburn Longstone Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Llandudno Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Llanelli Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Llanrumney Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Longton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Loughborough Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Loughton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Luton Gipsy Lane Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Luton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Lytham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Maidstone Vets4Pets Limited Indirect United Kingdom Ordinary 50 100
Maidenhead Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Maldon Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Manchester Fort Vets4Pets Limited Indirect United Kingdom Ordinary 100 0
Mansfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Mapperley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Middlesbrough Cleveland Park Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Middlesbrough Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Middleton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Millhouses Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Morpeth Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
New Milton Vets4pets Limited Indirect United Kingdom Ordinary 50 50
Newcastle-Upon-Tyne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Newmarket Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Newport Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Newton Abbot Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Newtownabbey Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
North Tyneside Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Northallerton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Northampton Riverside Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Northampton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Nottingham Chilwell Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Nottingham Netherfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Nuneaton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Oadby Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Old Kent Road Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Oxford Cowley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Paisley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Penrith Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Pentland Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Penzance Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Peterborough Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Pontypridd Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Poole Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Portishead Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Portsmouth Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Prenton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Preston Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Prestwich Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Project Blu Limited Indirect United Kingdom Ordinary 9 9
Quinton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rayleigh Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rhyl Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Richmond Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rochdale Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rotherham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rugby Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rugby Central Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Ruislip Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Rushden Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Saffron Walden Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Salford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Selly Oak Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sevenoaks Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sheffield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sheffield Drakehouse Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sheffield Wadsley Bridge Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Shelfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Shrewsbury Meole Brace Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Shrewsbury Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sidcup Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sittingbourne Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Solihull Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Somercotes Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
South Shields Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Southampton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Southend Airport Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Southend-On-Sea Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Southport Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
St Albans Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
St Helens Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Stafford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Stechford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Stockton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Stourbridge Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Street Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sunderland South Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sunderland Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sutton Coldfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sutton In Ashfield Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Swindon Bridgemead Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Swinton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Sydenham Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Telford Madeley Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Thurrock Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Torquay Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Totton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Trowbridge Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Walkden Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Walsall Reedswood Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Waltham Abbey Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Walton on Thames Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Walton Vale Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Warrington Riverside Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Warrington Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Washington Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Waterlooville Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Watford Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
West Bromwich Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Weymouth Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Whitstable Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Widnes Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Wigan Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Wimbledon Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Wolverhampton Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Worksop Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Worthing Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
WSM Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Yate Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
Yeovil Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
York Clifton Moor Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
York Vets4Pets Limited Indirect United Kingdom Ordinary 50 50
During the 52 week period ended 27 March 2025, the Group has sold 100% of the
'A' shares in nine companies which were previously classified as subsidiaries,
and subsequent to sale of the 'A' shares, have been accounted for as Joint
Venture veterinary practices, which has led to the reduction in the holding in
nine entities listed above to 50% investment.
Company balance sheet at 27 March 2025
Note At 27 March 2025 £m At 28 March 2024 £m
Non-current assets
Investments in subsidiaries C4 936.2 936.2
Deferred tax asset C5 1.6 0.9
Trade and other receivables C6 741.0 663.3
1,678.8 1,600.4
Current assets - -
Total assets 1,678.8 1,600.4
Current liabilities
Trade and other payables C7 (941.2) (816.3)
(941.2) (816.3)
Non-current liabilities
Other interest-bearing loans and borrowings C8 (8.1) (22.2)
(8.1) (22.2)
Total liabilities (949.3) (838.5)
Net assets 729.5 761.9
Equity attributable to equity holders of the parent
Ordinary share capital C9 4.6 4.7
Merger reserve 113.3 113.3
Capital redemption reserve 0.4 0.3
Retained earnings 611.2 643.6
Total equity 729.5 761.9
As permitted by section 408 of the Companies Act 2006, the Company's income
statement has not been included in these financial statements. The Company's
profit for the 52 week period ended 27 March 2025 was £50.4m (profit for the
52 week period ended 28 March 2024 was £75.9m).
On behalf of the Board:
Mike Iddon
Chief Financial Officer
28 May 2025
Company number: 08885072
The notes on pages 72 to 73 form an integral part of these financial
statements.
Company statement of changes in equity as at 27 March 2025
Share capital Merger reserve Cash flow hedging reserve Capital redemption reserve Retained earnings Total equity
£m £m £m £m £m £m
Balance at 28 March 2024 4.7 113.3 - 0.3 643.6 761.9
Total comprehensive income for the period
Profit for the period - - - - 50.4 50.4
Total comprehensive income for the period - - - - 50.4 50.4
Transactions with owners, recorded directly in equity
Equity dividends paid - - - - (59.7) (59.7)
Share-based payment charge - - - - 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 4.6 113.3 - 0.4 611.2 729.5
Company statement of changes in equity as at 28 March 2024
Share capital Merger reserve Cash flow hedging reserve Capital redemption reserve Retained earnings Total equity
£m £m £m £m £m £m
Balance at 30 March 2023 4.8 113.3 1.2 0.2 684.6 804.1
Total comprehensive income for the period
Profit for the period - - - - 75.9 75.9
Other comprehensive income - - (1.2) - - (1.2)
Total comprehensive income for the period - - (1.2) - 75.9 74.7
Transactions with owners, recorded directly in equity
Equity dividends paid - - - - (60.7) (60.7)
Share-based payment charge - - - - 5.9 5.9
Deferred tax movement on IFRS2 reserve - - - - (1.0) (1.0)
Share buyback (0.1) - - 0.1 (50.3) (50.3)
Purchase of own shares - - - - (10.8) (10.8)
Total contributions by and distributions to owners (0.1) - - 0.1 (116.9) (116.9)
Balance at 28 March 2024 4.7 113.3 - 0.3 643.6 761.9
Notes the parent company financial statements
C1. Accounting policies
The principal activities of the Company and the nature of the Company's
operations is as a holding entity.
The Parent Company financial statements of Pets at Home Group Plc have been
prepared in accordance with the Companies Act 2006 as applicable to companies
using Financial Reporting Standard 101 "Reduced disclosure framework" ("FRS
101"). FRS 101 enables the financial statements of the Parent Company to be
prepared in accordance with IFRS but with certain disclosure exemptions. The
main areas of reduced disclosure are in respect of equity-settled share-based
payments, financial instruments, the Cash Flow Statement, and related party
transactions with Group companies. The accounting policies adopted for the
Parent Company, Pets at Home Group Plc, are otherwise consistent with those
used for the Group which are set out on pages 20 to 69.
Critical accounting judgements or key sources of estimation uncertainty
There were no critical accounting judgements that would have a significant
effect on the amounts recognised in the parent company financial statements or
key sources of estimation uncertainty at the balance sheet date that would
have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
C2. Profit for the year
As permitted by s408 of the Companies Act 2006, no separate profit and loss
account or statement of comprehensive income is presented in respect of the
parent Company. The profit attributable to the Company is disclosed in the
footnote to the company's balance sheet.
The auditor's remuneration for the audit and other services is disclosed in
note 3 to the consolidated financial statements.
C3 Colleague numbers and costs
The number of people employed by the Company during the year was 3 (2024: 3)
and relates to Directors. The costs associated with them were borne by a
subsidiary undertaking and included in the disclosure in note 4 on pages 31 to
32.
The Company participates in a defined contribution scheme in which the assets
are held independently. The total net defined contribution costs of this
fund is borne by a subsidiary undertaking and therefore in accordance with IAS
19, no net defined contribution costs are recognised in the Company's
financial statements. Note 4 to the consolidated financial statements provides
further details regarding the pension costs incurred during the year.
C4. Investment in subsidiaries
Management have conducted a full impairment review which has been undertaken
on the Group's cash generating units of which the Company's investments form
part. Management considers whether any impairment triggers existed by
comparing the net assets value of the subsidiary to the carrying value of the
investment. Management have concluded that under IAS36, no impairment trigger
has been identified with regard to the Company's investments in subsidiaries.
The impairment assessment is disclosed in note 28 to the consolidated
financial statements.
C5. Deferred tax
Movement in deferred tax during the period
28 March Recognised in income 27 March
2024 £m 2025
£m £m
Other short term timing differences 0.8 0.7 1.5
Share based payments 0.1 - 0.1
0.9 0.7 1.6
The rate used to calculate deferred tax assets and liabilities is 25% based on
the rate at which the majority of items are expected to reverse.
Movement in deferred tax during the period
30 March Recognised in income Recognised in equity 28 March
2023 £m £m 2024
£m £m
Net financial liabilities (0.4) - 0.4 -
Other short term timing differences 2.1 (1.3) - 0.8
Share based payments 1.1 - (1.0) 0.1
2.8 (1.3) (0.6) 0.9
The rate used to calculate deferred tax assets and liabilities is 25% based on
a blended rate at which the majority of items are expected to reverse.
C6. Trade and other receivables
At 27 March 2025 £m At 28 March 2024 £m
Non-current assets
Amounts owed by Group undertakings 741.0 663.3
741.0 663.3
Amounts owed by Group undertakings are repayable on demand bearing no interest
and with no expectation that it will be settled within the next 12 months. The
ECL calculated under IFRS 9 is not material.
Notes the parent company financial statements (continued)
C7. Trade and other payables
At 27 March 2025 £m At 28 March 2024 £m
Current
Accruals and deferred income 2.7 2.8
Amounts owed to Group undertakings 938.5 813.5
941.2 816.3
Amounts owed to Group undertakings are repayable on demand bearing no interest
and with no expectation that it will be settled within the next 12 months.
C8. Other interest- bearing loans and borrowings
At 27 March 2025 £m At 28 March 2024 £m
Non-current liabilities
Unsecured bank loans 8.1 22.2
Total 8.1 22.2
Interest-bearing borrowings are recognised initially at fair value, being the
principal value of the loan net of attributable transaction costs. Subsequent
to initial recognition, interest-bearing borrowings are stated at a carrying
value, which represents the amortised cost of the loans using the effective
interest method.
Terms and debt repayment schedule
Currency Nominal interest rate Year of maturity Face value at 27 March Carrying amount at 27 March Face value at 28 March Carrying amount at 28 March
2025 2025 2024 2024
£m £m £m £m
Revolving credit facility GBP SONIA +1.30% 2028 10.0 8.1 25.0 22.2
Total 10.0 8.1 25.0 22.2
The drawn amount on the £300.0m revolving credit facility was £10.0m at 27
March 2025 (drawn amount on the £300.0m revolving credit facility was £25.0m
at 28 March 2024) and this amount is reviewed each month. Interest is charged
at SONIA plus a margin based on leverage on a pre-IFRS16 basis (adjusted net
debt: EBITDA). The loan also has environmental, social and corporate
governance (ESG) linked metrics which will be reflected in the margin payable,
which is +/- 5bps. Face value represents the principal value of the revolving
credit facility. The facility is unsecured.
The analysis of repayments on the loans is as follows:
At 27 March 2025 £m At 28 March 2024
£m(1)
Within one year or repayable on demand - -
Between one and three years - -
Between three and five years 10.0 25.0
Greater than five years - -
10.0 25.0
(1) The presentation ageing analysis has been revised to align with the ageing
buckets presented in note 23.
C9. Capital and reserves
As disclosed in note 22: capital and reserves in the notes to the consolidated
financial statements.
Glossary - Alternative Performance Measures
Guidelines on Alternative Performance Measures (APMs) issued by the European
Securities and Markets Authority came into effect for all communications
released on or after 3 July 2016 for issuers of securities on a regulated
market.
In the reporting of financial information, the Directors have adopted various
APMs of historical or future financial performance, position or cash flows
other than those defined or specified under International Financial Reporting
Standards (IFRS).
The Directors measure the performance of the Group based on the following
financial measures which are not recognised under UK-adopted international
accounting standards and consider these to be important measures in evaluating
the Group's strategic and financial performance. The Directors believe that
these APMs assist in providing additional useful information on the underlying
trends, performance and position of the Group.
APMs are also used to enhance the comparability of information between
reporting periods by adjusting for non-underlying items, to aid the user
in understanding the Group's performance.
Consequently, APMs are used by the Directors and management for performance
analysis, planning, reporting and incentive setting purposes and have remained
consistent with prior year. These APMs may not be directly comparable with
other companies' APMs and the Directors do not intend for these to be
considered superior to, or a substitute for, IFRS measures.
All APMs relate to the current period results and comparative period where
provided.
Several APMs exclude non-underlying items (see definition below) in order to
reflect management's view of the performance of the business. Due to this,
APMs should not be regarded as a complete picture of the Group's financial
performance, which is presented in its financial statements. The exclusion of
non-underlying items may result in adjusted earnings being materially higher
or lower than total earnings.
References to Underlying GAAP measures and Underlying APMs throughout the
financial statements are measured before the effect of non-underlying items.
APM Definition Reconciliation
Consumer revenue Consumer revenue being statutory Group revenue, less Joint Venture veterinary Consumer revenue (£m) FY25 FY24 Note
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 (restated)1
which is used in the assessment of market share. Statutory Group revenue 1,482.1 1,480.2 CIS
Joint Venture fee income (103.4) (89.3) 2
Revenue by Joint Venture practices 583.2 519.0 2
Consumer revenue(1) 1,961.9 1,909.9
(1) See note 1.26 for an explanation of the prior year restatement.
(2)Consumer revenue cannot be directly referenced in the financial statements
as revenue by all veterinary practices relates to all Joint Venture customer
revenue.
CIS = Consolidated income statement
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,
Like-for-like revenue (£m) FY25 FY24 Growth Note
grooming salons and veterinary practices that have been trading more than 52 Retail revenue 1,306.8 1,330.1 (1.8)% 2
weeks prior to both the current and prior period reporting date, excluding fee New stores and grooming salons (8.2) (5.5)
income from Joint Venture Practices where the Group has bought out the Joint Retail like-for-like revenue 1,298.6 1,324.6 (2.0)%
Venture Partners. The measure is used widely as an indicator of sales
performance. Vet Group revenue 175.3 150.1 16.8% 2
New practices (11.9) (9.6)
Vet Group other income (15.4) (13.1)
Vet Group like-for-like revenue 148.0 127.4
16.2%
Statutory Group revenue 1,482.1 1,480.2 0.1% CIS
New stores, grooming salons and practices (20.0) (15.3)
Vet Group other income (15.4) (13.1)
Group like-for-like revenue 1,446.7 1,451.8 (0.4%)
CIS = Consolidated income statement
Underlying profit before tax Underlying profit before tax (PBT) is based on pre-tax profit before the Underlying PBT (£m) FY25 FY24 Note
impact of certain costs or incomes that are excluded as they are not generated Underlying PBT 133.0 132.0 CIS
from ordinary business operations, infrequent in nature and unlikely to Non-underlying items (12.4) (26.3) CIS
reoccur in the foreseeable future in order to reflect management's view of the Profit before tax 120.6 105.7
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 Underlying basic EPS (p) FY25 FY24 Note
before the impact of certain costs or incomes that derive from events Underlying basic EPS 21.0 20.7 5
or transactions that fall outside the normal activities of the Group and are Non-underlying items (2.0) (4.1)
excluded by virtue of their size and nature in order to reflect management's Basic earnings per share 19.0 16.6 5
view of the performance of the Group.
Free Net increase (decrease) in cash before the impacts of dividends paid, share Free cash flow (£m) FY25 FY24 Note
buybacks, investment movements, acquisition and disposal of subsidiaries, Net decrease in cash (17.6) (120.9) CFS
cash flow proceeds from new loans and repayment of borrowings. This measure shows the Remove effects of:
cash generated by the Group during the year that is available for strategic Dividends 59.7 60.7 CFS
investments or returning to shareholders. Repayment of borrowings 15.0 75.0 CFS
Share buyback 25.1 50.3 CFS
Investment movements (1.3) 1.4 CFS
Acquisition of subsidiaries 1.3 1.0 CFS
Disposal of subsidiaries 1.6 1.5 CFS
Free cash flow 83.8 69.0
CFS = Consolidated statement of cash flows
Underlying CROIC Cash return on invested capital, represents cash returns divided by the Underlying CROIC FY25 FY24 Note
average of gross capital invested (GCI) for the last 12 months. Cash returns Cash returns:
represent underlying operating profit before share-based payments subject to Underlying operating profit 148.8 145.5 CIS
tax, then adjusted for depreciation of PPE, right-of-use assets and Share-based payment charges 5.9 5.9 3
amortisation. GCI represents gross PPE, right-of-use assets and software, and 154.6 151.4
other intangibles excluding the goodwill created on the acquisition of the Tax rate 25% 25%
Group by KKR (£906,445,000) plus net working capital, before the effect of Tax charge on above (38.7) (37.9)
non-underlying items in the period. It is used as a measure of the level of 116.1 113.5
cash generated from the business. Underlying depreciation and amortisation 98.8 101.7 3
Cash returns 214.9 215.2
Gross capital invested (GCI):
Gross property, plant and equipment 449.3 444.7 11
Gross right-of-use assets 668.9 662.7 12
Intangibles 1,050.0 1,046.4 13
Net working capital movement is a measure of the cash required by the Less KKR goodwill (906.4) (906.4)
business to fund its inventory, trade and other receivables and payables. Investments 9.7 9.9
Payables includes trade and other payables, and other financial liabilities. Net working capital: (100.8) (106.7) see definition
Trade and other receivables 63.3 60.9 CBS
Inventory 106.9 97.5 CBS
Payables (262.0) (252.4) CBS
Provisions (9.0) (12.7) CBS
GCI (at period end) 1,170.7 1,150.6
Average 1,160.8 1,109.2
Underlying CROIC 18.5% 19.4%
CIS = Consolidated income statement
CBS = Consolidated balance sheet
Adjusted net cash Cash and cash equivalents less the face value of loans and borrowings. Lease Adjusted net cash (£m) FY25 FY24 Note
liabilities are excluded. Cash and cash equivalents 39.5 57.1 CBS
Loans and borrowings (face value) (33.3) (48.3) 19
Adjusted net cash 6.2 8.8
CBS = Consolidated balance sheet
Total indebtedness Cash and cash equivalents less face value of loans and borrowings plus lease Total indebtedness (£m) FY25 FY24 Note
liabilities. Net cash (above) 6.2 8.8
Lease liabilities (348.3) (380.8) 12
Total indebtedness (342.1) (372.0)
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.
Like-for-like revenue (£m) FY25 FY24 Growth Note
Retail revenue 1,306.8 1,330.1 (1.8)% 2
New stores and grooming salons (8.2) (5.5)
Retail like-for-like revenue 1,298.6 1,324.6 (2.0)%
Vet Group revenue 175.3 150.1 16.8% 2
New practices (11.9) (9.6)
Vet Group other income (15.4) (13.1)
Vet Group like-for-like revenue 148.0 127.4
16.2%
Statutory Group revenue 1,482.1 1,480.2 0.1% CIS
New stores, grooming salons and practices (20.0) (15.3)
Vet Group other income (15.4) (13.1)
Group like-for-like revenue 1,446.7 1,451.8 (0.4%)
CIS = Consolidated income statement
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.
Underlying PBT (£m) FY25 FY24 Note
Underlying PBT 133.0 132.0 CIS
Non-underlying items (12.4) (26.3) CIS
Profit before tax 120.6 105.7
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.
Underlying basic EPS (p) FY25 FY24 Note
Underlying basic EPS 21.0 20.7 5
Non-underlying items (2.0) (4.1)
Basic earnings per share 19.0 16.6 5
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.
Free cash flow (£m) FY25 FY24 Note
Net decrease in cash (17.6) (120.9) CFS
Remove effects of:
Dividends 59.7 60.7 CFS
Repayment of borrowings 15.0 75.0 CFS
Share buyback 25.1 50.3 CFS
Investment movements (1.3) 1.4 CFS
Acquisition of subsidiaries 1.3 1.0 CFS
Disposal of subsidiaries 1.6 1.5 CFS
Free cash flow 83.8 69.0
CFS = Consolidated statement of cash flows
Underlying CROIC
Cash return on invested capital, represents cash returns divided by the
average of gross capital invested (GCI) for the last 12 months. Cash returns
represent underlying operating profit before share-based payments subject to
tax, then adjusted for depreciation of PPE, right-of-use assets and
amortisation. GCI represents gross PPE, right-of-use assets and software, and
other intangibles excluding the goodwill created on the acquisition of the
Group by KKR (£906,445,000) plus net working capital, before the effect of
non-underlying items in the period. It is used as a measure of the level of
cash generated from the business.
Net working capital movement is a measure of the cash required by the
business to fund its inventory, trade and other receivables and payables.
Payables includes trade and other payables, and other financial liabilities.
Underlying CROIC FY25 FY24 Note
Cash returns:
Underlying operating profit 148.8 145.5 CIS
Share-based payment charges 5.9 5.9 3
154.6 151.4
Tax rate 25% 25%
Tax charge on above (38.7) (37.9)
116.1 113.5
Underlying depreciation and amortisation 98.8 101.7 3
Cash returns 214.9 215.2
Gross capital invested (GCI):
Gross property, plant and equipment 449.3 444.7 11
Gross right-of-use assets 668.9 662.7 12
Intangibles 1,050.0 1,046.4 13
Less KKR goodwill (906.4) (906.4)
Investments 9.7 9.9
Net working capital: (100.8) (106.7) see definition
Trade and other receivables 63.3 60.9 CBS
Inventory 106.9 97.5 CBS
Payables (262.0) (252.4) CBS
Provisions (9.0) (12.7) CBS
GCI (at period end) 1,170.7 1,150.6
Average 1,160.8 1,109.2
Underlying CROIC 18.5% 19.4%
CIS = Consolidated income statement
CBS = Consolidated balance sheet
Adjusted net cash
Cash and cash equivalents less the face value of loans and borrowings. Lease
liabilities are excluded.
Adjusted net cash (£m) FY25 FY24 Note
Cash and cash equivalents 39.5 57.1 CBS
Loans and borrowings (face value) (33.3) (48.3) 19
Adjusted net cash 6.2 8.8
CBS = Consolidated balance sheet
Total indebtedness
Cash and cash equivalents less face value of loans and borrowings plus lease
liabilities.
Total indebtedness (£m) FY25 FY24 Note
Net cash (above) 6.2 8.8
Lease liabilities (348.3) (380.8) 12
Total indebtedness (342.1) (372.0)
APM Definition Reconciliation
Pre IFRS 16 Adjusted net cash (above) divided by underlying Pre IFRS 16 leverage FY25 FY24 Note
Net cash (above) 6.2 8.8
leverage earnings before interest, taxes, depreciation and amortisation ('EBITDA') less Statutory operating profit 136.4 119.3
expected rental charges. Figures have been presented on a rolling 52 week Underlying depreciation of property, plant and equipment 3
proforma basis. This measure is important because it is a covenant metric.
28.5 26.5
Underlying depreciation of right-of-use assets 3
62.2 65.1
Amortisation of intangible assets 8.1 10.1 3
Non-underlying depreciation of property, plant and equipment 3
- 4.2
Non-underlying depreciation of right-of-use assets 3
3.4 3.7
Other non-underlying items in EBITDA 9.0 18.3 3
Underlying EBITDA 247.6 247.2
Less:
Proforma rental charges pre IFRS 16 (78.1) (78.6)
Underlying EBITDA (pre IFRS 16)(1) 169.5 168.6
Pre IFRS 16 leverage (0.0)x (0.1)x
(1)Proforma rental charges pre IFRS 16 cannot be directly referenced in the
financial statements as the balance represents 52 weeks (FY24: 52 weeks) of
rental charges for each lease held at the balance sheet date.
Lease adjusted leverage Total indebtedness divided by underlying EBITDA. Underlying EBITDA has been Lease adjusted leverage FY25 FY24 Note
presented on a rolling 52 week proforma basis. Total indebtedness (above) 342.1 372.0
Underlying EBITDA (above) 247.6 247.2
Lease adjusted leverage 1.4 x 1.5 x
Lease adjusted leverage
Total indebtedness divided by underlying EBITDA. Underlying EBITDA has been
presented on a rolling 52 week proforma basis.
Lease adjusted leverage FY25 FY24 Note
Total indebtedness (above) 342.1 372.0
Underlying EBITDA (above) 247.6 247.2
Lease adjusted leverage 1.4 x 1.5 x
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