REG - Pets at Home Grp - FY26 Interim Results
Today 07:00
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RNS Number : 9965I Pets At Home Group Plc 26 November 2025
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FOR IMMEDIATE RELEASE, 26 NOVEMBER 2025
Pets at Home Group Plc: FY26 Interim Results
for the 28 week period to 09 October 2025
Taking action at pace to address Retail performance; FY expectations unchanged
Key financial results
Statutory Metrics FY26 H1 FY25 H1 YoY %
Group Statutory Revenue (£m) 778.3 789.0(1) (1.3)%
Group Statutory PBT (£m) 36.2 51.1 (29.1)%
Statutory Basic EPS (p) 5.7 7.9 (27.7)%
Dividend (p) 4.7 4.7 0.0%
Financial Performance Metrics FY26 H1 FY25 H1 YoY %
Group Consumer Revenue(#) (£m) 1,055.8 1,048.5(1) 0.7%
- Retail 679.9 696.2(1) (2.3)%
- Vet Group 375.9 352.3 6.7%
Group Underlying PBT(#) (£m) 36.2 54.5 (33.5)%
- Retail 3.5 22.0 (84.1)%
- Vet Group 44.9 41.5 8.3%
Free Cash Flow(#) (£m) 34.0 33.1 2.6%
- Retail (11.1) 1.2
- Vet Group 53.6 45.7 17.3%
Adjusted Net Debt(#) (£m) (12.0) (8.3) 44.6%
Underlying Basic EPS(#) (p) 5.7 8.4 (32.1)%
1. £0.1m has been reclassified from cost of sales to revenue in the 28-week
period ended 10 October 2024.
Ian Burke, Interim Executive Chair:
"Stepping into the role as Interim CEO 10 weeks ago, I set out with a clear
agenda - to establish a firm grip on the issues facing our Retail business,
whilst maintaining the positive results we're seeing in areas such as Vets.
For over 30 years, Pets at Home has been a business with a clear purpose, an
established market and loyal customer base, but it's clear that urgent and
necessary action is needed to return the Retail business to growth to meet
both our own expectations and those of our investors.
I've spent time visiting over 100 Pet Care Centres and engaging with
colleagues at all levels of the business to establish where the challenges are
isolated, resulting in the implementation of a retail turnaround plan with
four clear priorities of Product, Price, Execution and Cost. We are returning
to our retailing roots to stabilise and rebuild momentum in our Retail
business, and to lay the foundations for a new CEO in due course.
At the heart of our business remains 17,000 trusted and passionate colleagues
and vet partners, and it's through them that we will deliver future growth. I
am grateful to them all for their unwavering dedication and energy and
together we'll ensure the business can thrive again."
Financial Highlights
● Group consumer revenue(#) up 0.7% to £1.06bn.
ᵒ Vet Group consumer revenue(#) up 6.7%, high quality growth driven by average
transaction values and continued growth in Care Plan revenues with over 50% of
clients having one. Visits were more subdued due to more of our clients
entering healthy mid-life where visits are lower.
ᵒ Retail consumer revenue(#) down 2.3%, delivered against a flat market growth
and no inflation of note. Q2 performance sequentially improved over Q1 as we
saw a full quarter of strong online performance, partially offsetting weaker
store sales. Food sales declined 0.3% with accessories sales falling 5.9%,
lagging a soft market.
● Total Group statutory revenues down 1.3% to £778.3m, with Group
like-for-like(#) (LFL) revenue -1.3%.
● Group operating costs broadly flat excluding insurance start-up costs.
Including them they grew 1.2% YoY. Well within the stated guidance of
'operating costs to increase no more than 5% in FY26'.
● Group underlying PBT(#) of £36.2m down 33.5% YoY, underlying PBT margin(#) of
4.7% down c220bps.
ᵒ Vet Group underlying PBT(#) of £44.9m up 8.3% YoY, underlying PBT margin(#)
of 45.7% up c90bps driven by the operational gearing from higher JV practice
revenues alongside an ongoing improvement in managed practice profitability.
ᵒ Retail underlying PBT(#) of £3.5m down 84.1% YoY, underlying PBT margin(#) of
0.5% down c260bps. Retail gross margins saw a 105bps reduction YoY driven by
targeted price investment c40bps, adverse category mix c30bps and lower
supplier income c20bps.
● Group statutory PBT £36.2m down 29.1% YoY, statutory PBT margin of 4.7% down
181bps with no non-underlying costs vs £3.4m in FY25 H1.
● Underlying Basic EPS(#) 5.7p, down 32.1% with an underlying profit for the
period decline of 33.5%, partially offset by share buyback accretion.
● Interim dividend per share of 4.7p is flat YoY
● Free cash flow(#) up 2.6% to £34.0m, the reduction in Group underlying PBT(#)
is being offset by lower capex, cash tax and non-underlying cash costs as well
as a working capital timing benefit.
ᵒ Vet Group £53.6m up from £45.7m YoY driven by high quality sales growth,
leveraged through our capital light model alongside a working capital timing
benefit which will unwind in H2.
ᵒ Retail -£11.1m down from £1.2m YoY lower underlying PBT(#) being partially
offset by a lower capex outflow.
● Balance sheet remains robust with adjusted net debt(#) of £12.0m (before
lease liabilities of £338.0m) vs adjusted net debt(#) of £8.3m in the prior
year. Cash and cash equivalents of £49.0m up from £40.0m in the prior year.
● FY26 £25m share buyback program is 50% complete, once complete will result in
£150m in buybacks in last 4 years.
Business Highlights
● Pets Club members(4) down 2.4% to 7.9m due to a decline in our active retail
customer base.
● Pets Club average consumer value(5) up to £185 due to an increase in spend
across our Vet customer base.
● Subscription % of consumer revenues(6) continues to grow, 14.6% of Group
Consumer revenue(#) now generated via subscriptions (YoY up from 11.4(2)%).
Growth continues to be driven by Easy Repeat and Care Plans.
● Digital platform is performing well with LFL's improving in the half, Q2
delivered double-digit sales growth.
● 'Pets Insurance' on track - We are on track to launch in 2026 having made good
progress on building our team, the necessary infrastructure and we are
progressing toward regulatory approval.
● Pets Club Pricing launched - Providing the very best deals for consumers. Our
independent brand tracker has shown a meaningful improvement in Value for
Money perception.
● Puppy & Kitten sign up in growth - c17k average weekly sign-ups has
increased 13% YoY.
● Vet expansion on track - We have opened 5 new practices and completed 3 vet
extensions in H1 and remain on track for 10 new practice openings and 15 vet
extensions in FY26. To support this, we continue to win vet talent, with
clinical FTE headcount up 5.5% YoY and 70 new practice owners welcomed in H1.
● Taking action on costs, we have initiated a restructuring program to reduce
Group overheads by £20m. This program will incur non-underlying costs of
£6-8m in FY26, but with payback of less than 12 months as we expect a full
year of benefit in FY27.
● CMA provisional decision - we acknowledge the CMA's provisional findings and
will continue to engage with the CMA in moving towards a final conclusion in
2026.
Progress against our strategy
Over the past two and a half years the business has gone through a profound
period of transformation to realise our strategic ambition of 'Building the
world's best Petcare platform', by bringing together a best-in-class
omnichannel proposition with our unique blend of services, through an
integrated and consumer centric experience. We have made much progress against
this strategy, modernising our omnichannel platform and enhancing our
capabilities.
An integrated consumer experience
● Built and launched our new digital and data platform - We have replatformed
our digital capabilities, replaced outdated capability with a modern platform
which is performing well.
● Created a single unified master brand - we unified our disparate portfolio of
brands under a single 'Pets' brand, supported by the 'We're all for Pets'
campaign. Since its launch we have seen an improvement in brand perception,
improvement which continues across key brand metrics.
● Our distribution network is optimised in a single site - We have modernised
our distribution capabilities at a single, enterprise grade distribution
centre in Stafford. This DC is seeing improving levels of efficiency and
supporting very high levels of availability throughout the business.
Growing our recurring revenue streams
● Relaunched Easy Repeat - we have relaunched our Easy Repeat proposition in
FY25 and generating considerable growth in the Easy Repeat revenues. 4% of
Pets Club members now have an Easy Repeat subscription, with Easy Repeat
revenues up 50% on FY25.
● Care Plans - we relaunched our Care Plan proposition in our vets in FY24 and
continue to innovate and improve our offer. We have seen pleasing growth in
the number of plans in recent years, believing our penetration to be industry
leading with over 50% of vet clients now having a care plan.
Differentiated, sector-leading vets
● We have a sector leading and differentiated Veterinary business - Our Vet
Group is #2 in the UK First Opinion sector and is responsible for a large
proportion of our consumer revenues(#) and the majority of our Group
underlying PBT(#) and Group Free Cash Flow(#).
● Our JV proposition is unique in the UK vet sector and supports some of the
most productive assets in the sector, operated by our expert and trusted vet
partners. Over the past 3 years our partners have been able to take over
£100m in dividends with average practice revenues growing by an average of
15% per annum.
● We have proven levers of growth from driving out maturity, extending
practices, building out advanced capabilities and opening new practices, and
we have plenty of headroom to grow further with an opportunity for 100 new
practices and 100 extensions over the medium term, continuing the good
progress we have seen to date.
● Long term growth underpinned by predictable spending behaviour - our Vet Group
is in a period where new customer registrations and visits will reflect
normalised puppy & kitten numbers and more pets entering mid-life.
However, our success in acquiring customers in recent years will drive an
acceleration in growth in the medium term as pandemic cohorts age, compounded
by the building impact of new practice openings.
Insurance
● On track to launch a Pets at Home branded insurance in 2026, accessing the
largest pet care vertical outside of our current businesses, leveraging a
number of existing capabilities we have.
● We have made good progress to date, defining our product, identifying critical
partners and moving towards regulatory approval. We are building out our
platform with our partners.
Addressing our shortcomings
We believe the fundamentals of our strategy are the right ones, however we
know that recent results in Retail have fallen well below our expectations and
those of our investors. We have conducted an in-depth examination of the root
causes of our Retail sales shortfall and identified the main causes as being:
● Advanced Nutrition - In recent years the Advanced Nutrition (AN) market has
shifted rapidly to new premium, Direct to Consumer entrants, at the expense of
legacy branded players, where innovation has been lacking. We remain the
largest player in the AN segment but are over-exposed to these legacy ranges,
which has limited our ability to access the premiumisation driven growth in
the market. Our own label performance, where we have innovated with our
partners, has been much stronger with both sales and volumes growing.
● Accessories - we have seen declines in accessories sales for >3 years now.
While there are undoubtedly headwinds from cyclicality and channel shift, a
large part of this has been self-inflicted, by not having the right products
at the right price points, with the right execution. Our progress in
delivering innovation and breadth to our accessories ranges has been slower
than we aimed for and we have underperformed the weak underlying market.
Our Retail business has been additionally impacted by the disruption of two
major infrastructure projects: the move to a single fulfilment centre at
Stafford and the development and launch of our digital platform. The
implementation of these projects was more complex than we originally envisaged
leading to extra costs in some areas and execution issues that have led to
lost and dissatisfied customers.
Our Retail Turnaround Plan
We have a firm grasp of the issues that are holding us back and are acting now
to address them. We are moving quickly to simplify our approach and focus our
efforts on 4 clear priorities:
1. Product - we believe the root cause of our sales shortfall is product related.
Such issues can take time to fix but we are moving ahead with a clear plan to
reset and revitalise our ranges in Advanced Nutrition. In Accessories, once we
have added buying and merchandising capabilities to our existing team, we will
focus on the opportunity for better performance through improved own brand
product innovation & new partnerships with third-party brands.
2. Price - price is a fundamental discipline for our business. We monitor it
closely and act when required, recently investing £4m reducing prices on over
1,000 Food products by an average of 12%. Combined with Pets Club Prices, Easy
Repeat discounts and leading private labels we have an increasingly compelling
value proposition for customers and have seen Value for Money perception
increase 6 points in H1. However, we are not complacent and will not
compromise on price going forward.
3. Execution - we have launched many new initiatives in recent years, but our
execution has not been good enough, for example, our execution of price and
promotional changes, and the rollout of Easy Repeat In Store. We are moving
quickly to address this. The issues identified are fixable and are within our
control. We are focused on improving commercial execution through simplified
strategies and better forward planning. By simplifying, we will better support
our store colleagues and drive better execution for customers.
4. Cost - we have controlled cost well in recent years through productivity
programs including the implementation of a leaner store operating model which
was embedded earlier in the year. This has enabled us to mitigate a number of
external cost headwinds, most notably a £48m rise in NICs/National Living
Wage over the past 3 years. However, our cost base has also increased due to
the increased complexity of the business. We have already initiated actions to
address this and will reduce overheads by £20m as we simplify the business.
We will continue to look for ways to optimise our cost base either through
reducing costs or redirecting them to areas that benefit customers.
While product issues will take time to fully enact and impact our business, it
is clear what is required to improve the immediate financial performance of
the business. We are getting on with this now, simplifying priorities for our
colleagues, looking to compete more effectively and being laser focussed on
the customer. We see plenty of room for improvement both in the short and
longer-term performance and will continue efforts to build momentum ahead of a
new CEO being appointed. The process to identify a new CEO continues to
progress.
Building on fundamental strengths
Pets at Home's prospects remain strong. We are the market leader in a
structurally attractive market and with the right actions can win and create
significant value for shareholders. Pet care remains a very attractive market
benefiting from structural growth trends around premiumisation and
humanisation. Even while the market has been subdued recently, these trends
have continued unabated as indicated by the success of premium
direct-to-consumer offerings.
In this market, Pets at Home retains considerable competitive advantages.
● Leading scale - with 7.9m active Pets Club customers and many more vet clients
and non-Pets Club customers, we remain the leading UK pet specialist and most
important route to market for any pet brand.
● Expert colleagues - we have 17,000 highly trained, passionate colleagues and
clinicians that help consumers take the best care of their pets and will be at
the heart of our turnaround. We have a proven track record in educating
consumers, introducing innovation and growing new categories when we support
colleagues in the right way, we are determined to improve in this area.
● Unrivalled reach - our 459 Pet Care Centres give us unrivalled reach to the
nation's pet owners, and bring together products, grooming, and vets while
enabling much of our digital revenue. We have a well located, well rented, and
flexible estate with no long tail of unprofitable stores.
● A well invested omnichannel platform - we have invested significantly in our
capability in recent years with modernised distribution capabilities and a new
digital platform, now in place and working well. We are the only UK pet care
business capable of offering consumers a complete pet care solution across
product and service.
● Sector leading vets - our Vet Group is a unique asset, operating some of the
most productive assets in the industry through empowering our partners with
our support and services. Over recent years, on average we have grown sales
15% and profits 20% with significant headroom to grow further through the
proven growth levers of maturity, extensions and new practices.
We are confident our strategy is well aimed but know that our execution needs
to improve to make better use of the unique and unrivalled assets and
capabilities we have at our disposal. We are focussed on delivering this
improvement to deliver better outcomes for our customers, our colleagues and
our shareholders.
Current trading and outlook
We make no changes to our underlying PBT(#) guidance of £90-100m. In
September, we reduced our underlying PBT(#) guidance to £90-100m, to reflect
continued softness in the UK pet retail market and our relative performance.
We remain on track to deliver against this range.
● Vet Group trading remains in line with expectations.
● Vet Group revenues continue to grow in line with our expectations, albeit
slower than our medium-term ambition of 'high-single digit' this year as we
build momentum in our new practice opening program. We expect our Vet Group to
deliver PBT >£80m.
● Retail performance is improving sequentially but remains behind a flat market
with no inflation.
● Market growth in H1 was flat against which we lost share but with Q2 improving
over Q1.
● Online continues to generate double-digit digital sales growth with store
performance more challenging. The retail turnaround plan is key to improving
performance further.
● As we look to H2 we expect market growth to remain around 0% and slightly
positive Retail LFL growth expected as we lap very soft comps.
● Insurance is on track to launch in 2026. We have identified our key partners
now, and due to the phasing of our tech build with these partners expect
losses in FY26 to be around £5m now (from £3m).
● Our search for a new CEO continues to progress and we will update in due
course.
● Due to the costs of our restructuring programme, we now expect to incur around
£6-8m of non-underlying costs in FY26.
● We continue to maintain tight discipline around our capital expenditures and
expect to spend c£50m in FY26
● We now expect to finish the year with around £25m of net debt.
● We expect a full year tax rate of 27-28%.
Key Performance Indicators(3)
Number of active Pets Club members(4) (m) 7.9 8.1 (2.4)%
Average Consumer Value(5) (£) 185 177(8) 4.4%
% of Consumer Revenue from Subscriptions(6) (%) 14.6% 11.4%(2) 28.8%
Clinical FTE Headcount(7) (k) 3.7 3.5 5.5%
2. Restated from 12.4%, prior year now reporting against the last 365 days prior
to the end of the reporting period.
3. Financial KPIs represent those used by the business to monitor performance.
Management recognise that as Alternative Performance Measures they differ to
statutory metrics, but believe they represent the most appropriate KPIs.
4. Retained consumers are active Pets Club members who transacted across the
group in the last 365 days prior to the end of the reporting period for both
the current and prior year.
5. Average consumer value (ACV) is the average spend of active Pets Club members
across the group over the last 365 days based on consumer revenue, rather than
statutory revenue.
6. Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care
and Vac4Life plans and is divided by Group consumer revenue.
7. Full time equivalent number of all vets and nurses working across the group,
based on standard working hours.
8. Restated from £175
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_FY26_IR
(https://brrmedia.news/PETS_FY26_IR) . 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 Q3 trading update on 28 January 2026.
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
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 450 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.
This announcement contains information that is inside information for the
purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended (the Market Abuse Regulation ("MAR")). Upon the publication of this
announcement, such information will no longer constitute inside information.
Andrew Porteous, the Company's Director of Investor Relations, is the person
responsible for making the notification for the purposes of Article 17 of MAR.
Chief Financial Officer's Review
The FY26 period represents the 28 weeks from 28 March 2025 to 09 October 2025.
The comparative period represents the 28 weeks from 29 March 2024 to 10
October 2024.
The Group's results are shown as four 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
legacy insurance commissions via our 3(rd) party arrangement), Vet Group
(includes general practices and our veterinary telehealth business), Central
(includes Group costs and finance expenses) and our Insurance business
(includes start-up costs).
FY26 H1 FY25 H1 YoY
Group statutory revenue (£m) 778.3 789.0(1) (1.3)%
Retail 679.9 696.2(1) (2.3)%
Vet Group 98.4 92.8 6.1%
Group consumer revenue(#) (£m) 1,055.8 1,048.5(1) 0.7%
Retail 679.9 696.2 (2.3)%
Vet Group 375.9 352.3 6.7%
Group like-for-like revenue growth(#) (1.3)% 1.5%
Retail (2.2)% (0.0)%
Vet Group 6.7% 17.6%
Group gross profit margin 45.5% 46.3% (80)bps
Retail 44.1% 45.2% (105)bps
Vet Group 54.7% 54.4% 29bps
Group statutory PBT (£m) 36.2 51.1 (29.1)%
Group statutory PBT margin 4.7% 6.5% (181)bps
Group underlying PBT(#) (£m) 36.2 54.5 (33.5)%
Retail 3.5 22.0 (84.1)%
Vet Group 44.9 41.5 8.3%
Insurance (2.2) 0.0
Central (10.0) (9.0) 11.1%
Group underlying PBT margin(#) 4.7% 6.9% (224)bps
Retail 0.5% 3.2% (264)bps
Vet Group 45.7% 44.7% 93bps
Statutory basic EPS (p) 5.7 7.9 (27.7)%
Underlying basic EPS(#) (p) 5.7 8.4 (32.1)%
Operating Costs (£m) (309.2) (305.4) 1.2%
Non-underlying items(2) (£m) 0.0 (3.4)
Free cash flow(#) (£m) 34.0 33.1 2.6%
Cash and cash equivalents (£m) 49.0 40.0 22.5%
Adjusted net debt(#) (£m) (12.0) (8.3) 44.6%
Dividend (p) 4.7 4.7 0.0%
Number of
Pet care centres 459 461 (2)
% of Pet care centres with a vet practice 69% 67%
Joint Venture vet practices 404 394 10
Company managed vet practices 48 54 (6)
Grooming salons 341 345 (4)
1. £0.1m has been reclassified from cost of sales to revenue in the 28-week
period ended 10 October 2024.
2. FY25 H1 non-underlying items of £3.4m. £1.7m relates to the transition to
our new distribution centre, £3.1m relates to our support office
restructuring and £0.9m relates to the costs of the ongoing CMA
investigation. Alongside this we had a disposal on investment gain of £2.3m
which relates to the disposal of Pure Pet Food.
Revenue
Group consumer revenue(#) grew 0.7% to £1,055.8m (Vet Group(3) up 6.7% to
£375.9m, Retail down 2.3% to £679.9m).
Consumer Revenue YoY Growth(#) Q1 25 Q2 25 H1 25 Q3 25 Q4 25 H2 25 FY 25
Retail (0.8)% 1.1% 0.1% (2.4)% (5.2)% (3.7)% (1.8)%
Vet Group 13.3% 12.6% 13.0% 14.2% 11.9% 13.0% 13.0%
Group 3.6% 4.7% 4.1% 2.3% 0.2% 1.2% 2.7%
Consumer Revenue YoY Growth(#) Q1 26 Q2 26 H1 26
Retail (2.8)% (1.7)% (2.3)%
Vet Group 7.1% 6.2% 6.7%
Group 0.5% 1.0% 0.7%
3. Vet Group consumer revenue(#) consists of revenue from both Joint Venture and
company managed practices, income generated from non-revenue based fees such
as supplier income and income from our telehealth business 'The Vet
Connection'
Group statutory revenue declined 1.3% to £778.3m with like-for-like (LFL(#))
revenue down 1.3%.
Vet Group statutory revenue was up 6.1% to £98.4m with LFL(#) revenue up
6.7%.
● Joint Venture fee income was up 7.7% (LFL 6.5%) with Joint Venture consumer
revenues up 7.1%.
ᵒ In the half we saw 8 practices converted from company managed to joint
venture.
● Revenues from company managed practices increased by 1.4% to £28.1m with
LFL(#) revenue up 7.5%
ᵒ In the half we saw 5 practice acquisitions going from joint venture to company
managed.
● The Vet Connection (our telehealth business), generated revenue of £2.1m,
+2.3% YoY.
Retail statutory revenue was down 2.3% to £679.9m with -2.2% LFL(#) growth.
● Food sales declined 0.3%, as we saw declines across branded ranges (-2.2%
LFL), with our own brands in LFL growth in the period (+2.3% LFL).
Discretionary accessories remain the most impacted area lagging a soft market,
down 6.5%. Consumable accessories down 5.0% as we had a weak flea & worm
season this year alongside annualising a very strong season in the prior year.
LFL(#) Revenue Growth Q1 25 Q2 25 H1 25 Q3 25 Q4 25 H2 25 FY 25
Retail (0.8)% 0.9% (0.0)% (2.8)% (5.5)% (4.1)% (2.0)%
Vet Group 19.5% 15.3% 17.6% 19.9% 9.6% 14.5% 16.2%
Group 1.0% 2.2% 1.5% (1.0)% (4.0)% (2.5)% (0.4)%
LFL(#) Revenue Growth Q1 26 Q2 26 H1 26
Retail (2.8)% (1.4)% (2.2)%
Vet Group 7.8% 5.2% 6.7%
Group (1.8)% (0.8)% (1.3)%
Gross margin
Group gross margin(4) decreased YoY by 80bps to 45.5%. Retail contributed
91bps towards the Group movement, with Vets improving the group position by
11bps.
● Gross margin(4) within the Vet Group increased by 29bps to 54.7%. The main
contributor being the growing contribution of Joint Venture fee income, we
also saw strong sales and better profit conversion within our company managed
practices.
● Gross margin(4) within Retail was 44.1%, a 105bps decline YoY driven by
targeted price investment c40bps, adverse category mix c30bps and lower
supplier income c20bps.
Operating costs
We continue to manage our cost base tightly to mitigate cost headwinds and
remain well within our previously stated guidance for operating costs to grow
by no more than 5%. Operating costs were broadly flat excluding insurance
start-up costs. Including them they grew 1.2% YoY.
(£m) FY26 H1 FY25 H1 YoY
Group statutory revenue 778.3 789.0(1) (1.3)%
Selling and distribution expenses 243.3 239.2 1.7%
Administrative expenses 74.4 70.7 5.3%
Other income (8.5) (7.9)(6) 8.5%
Underlying operating costs 309.2 302.0 2.4%
Non-underlying costs 0.0 3.4
Operating costs 309.2 305.4 1.2%
Underlying operating costs to sales ratio 39.7% 38.3% 145bps
4. Gross margin is calculated as gross profit as a percentage of revenue.
5. Operating costs are the sum of selling and distribution expenses,
administrative expenses, other income and non-underlying costs. These can be
found on the consolidated income statement.
6. In the 28 week period ended 10 October 2024, £1.0m relating to amounts earned
from supplier funding income has been reclassified from selling and
distribution to other income and £10.8m has been reclassified from selling
and distribution expenses to administrative expenses. These adjustments have
been posted to aid comparability with the current year.
We continue to keep a tight grip on our cost base. ensuring our operational
costs align with current performance whilst not adversely impacting sales in
the process. Alongside this we have our ongoing productivity initiatives,
which span across procurement, lease renegotiations, distribution automation
as well as the implementation of a leaner store operating model which was
embedded earlier in the year.
Cost is a key component of our retail turnaround plan. We have begun a
significant program to reduce our overheads by c£20m as we simplify our
business. We expect to incur non-underlying costs of £6-8m in FY26 as we
implement this change program, with FY27 seeing a full year benefit from the
program.
Finance expense
The net finance expense, including interest charged on lease liabilities,
reduced to £8.5m (FY25 H1: £8.6m). Of this, £7.3m (FY25 H1: £7.1m) related
to interest expense on lease liabilities.
Profit before tax (PBT)
Group statutory PBT £36.2m decreased £14.9m (29.1% YoY) with no
non-underlying costs in the period vs £3.4m in the prior year.
Group underlying PBT(#) £36.2m (FY25 H1: £54.5m), with Group underlying PBT
margin(7) of 4.7%, down 224bps YoY due to a reduction in Retail profit
conversion. Vet Group positively contributed.
● Vet Group statutory and underlying(#) PBT was £44.9m (FY25 H1: £41.5m) with
underlying PBT margin(6) of 45.7% (FY25 H1: 44.7%), driven by strong sales
performance across both Joint Venture and company managed practices being
leveraged on a broadly flat cost base.
● Retail statutory PBT was £3.5m (FY25 H1: £22.6m). Retail underlying PBT(#)
was £3.5m (FY25 H1: £22.0m) with underlying profit margin(7) of 0.5% (FY25
H1: 3.2%). Gross margins reduced by 105bps YoY (see relevant section). In
addition, the profit decline was driven by the decline in sales with operating
costs stable.
● Underlying Central costs of £10.0m (FY25 H1: £9.0m) includes payroll costs
for Group functions, professional fees, and PLC related costs.
● Insurance set up costs of £2.2m which were incurred in period as we build the
team, with c£5m expected to be incurred in FY26.
(£m) FY26 H1 FY25 H1 YoY
Group statutory PBT (£m) 36.2 51.1 (29.1)%
Retail 3.5 22.6 (84.5)%
Vet Group 44.9 41.5 8.3%
Insurance (2.2) 0.0
Central (10.0) (13.0) (23.2)%
Group statutory PBT margin 4.7% 6.5% (181)bps
Non-underlying items (£m) 0.0 (3.4)
Group underlying PBT(#) (£m) 36.2 54.5 (33.5)%
Retail 3.5 22.0 (84.1)%
Vet Group 44.9 41.5 8.3%
Insurance (2.2) 0.0
Central (10.0) (9.0) 11.1%
Group underlying PBT margin(7) 4.7% 6.9% (224)bps
7. Group underlying PBT margin is calculated as underlying profit before tax as a
percentage of revenue.
Taxation, profit after tax & EPS
● Total tax expense was £10.0m for the period. The effective tax rate for the
period is 27.6% (FY25 H1 26.4%), which is higher than the UK corporation tax
rate due to expenditure not allowable for tax relief.
● Statutory profit after tax decreased by 30.2% to £26.2m.
● Statutory basic earnings per share (EPS) 5.7 pence (FY25 H1: 7.9 pence) and
underlying basic EPS(#) 5.7 pence (FY25 H1: 8.4 pence).
Working capital
The cash flow movement in working capital(9) for FY26 H1 was an inflow of
£12.2m from the year end, (FY25 H1: £3.4m inflow).
Compared to H1 last year:
● Inventories decreased by £3.9m YoY (inflow), lower inventory due to carrying
more stock in the prior year for the online transition to Stafford DC.
● Trade and other receivables increased by £13.0m YoY (outflow), part of which
is due to an increase in deferred consideration due to a higher volume of
successful Vet practice conversions from company managed to joint venture.
● Trade and other payables have increased by £17.3m YoY (inflow) due to timing
differences within Vet Group payments being made to joint venture partners
which will unwind in H2.
Investment
Capex was £20.5m (FY25 H1: £24.1m) down £3.6m YoY as we keep capex
investment at normalised levels following peak investment in prior years.
Investment remains focused on our strategic priorities; £14.4m (FY25 H1:
£15.6m) investment into our Pet Care Centre estate. £5.1m (FY25 H1: £4.4m)
digitising the business, £0.4m (FY25 H1: £3.5m) into distribution which is
lower following completion of our network optimisation in Spring 2025.
Free cash flow(#)
Free cash flow(#) (FCF) was £34.0m (FY25 H1: £33.1m).
● Vet Group FCF# £53.6m up £7.9m YoY due to consumer revenue# growth flowing
into JV fee income alongside a working capital timing benefits which will
unwind in H2.
● Retail FCF# -£11.1m down £12.3m YoY due to lower underlying PBT# (£18.5m)
with lower capex partially offsetting as we return to a more normalised level
of investment.
Underlying PBT(#) 36.2 3.5 44.9 (12.2) 54.5
Interest (net) 8.5 6.9 (0.3) 1.9 8.6
Depreciation (underlying) 55.9 53.6 2.1 0.2 53.3
Leases 33.9 33.2 0.5 0.2 34.0
PPE & amortisation of assets 22.0 20.4 1.6 0.0 19.3
Underlying EBITDA 100.6 64.0 46.7 (10.1) 116.4
Share-based payment charge 3.9 0.0 0.0 3.9 3.2
Non-underlying cash costs 0.0 0.0 0.0 0.0 (4.8)
Lease payments(8) (47.3) (46.5) (0.8) 0.0 (43.3)
WCAP(9) 12.2 (3.6) 15.3 0.5 3.4
Operating cash flow 69.4 13.9 61.2 (5.7) 74.9
Capex(10) (20.9) (21.0) 0.1 0.0 (24.9)
Bank interest (net) (0.7) 0.2 0.4 (1.3) (1.5)
Tax (9.6) (4.2) (8.1) 2.7 (12.5)
Purchase of own shares (employee share schemes) (4.2) 0.0 0.0 (4.2) (2.9)
Free Cash Flow 34.0 (11.1) 53.6 (8.5) 33.1
8. Lease payments are cash payments for the principal portion of the right-of-use
lease liability, they also include interest paid on lease obligations, costs
to acquire right-of-use assets and the right-of-use asset costs.
9. Working capital is the sum of YoY movements in trade and other receivables,
inventories, trade and other payables, and provisions.
10. Capex is the net proceeds from the sale of property, plant and equipment less
costs to acquire right of and acquisition of property, plant and equipment and
other intangible assets. It also includes investment capital contributions and
proceeds from repayment of partner loans.
11. Central includes £2.2m of insurance set up costs
The cash generation described above, enables us to invest to grow our business
as well as fund our equity dividend and share buyback programme. Our balance
sheet remains robust, our closing adjusted net debt position(#) at the end of
the period was £12.0m (cash £49.0m, debt £61.0m). This represents a
leverage ratio(#) of 0.1x underlying EBITDA.
Adjusted Net cash (£m) FY26 H1 FY25 H1
Opening adjusted net cash(#) 6.2 8.8
Free cash flow(#) 34.0 33.1
Equity dividends paid (37.7) (38.4)
Share buyback (12.6) (12.5)
Acquisitions (0.7) (1.3)
Disposals (1.2) 2.0
Closing adjusted net cash(#) (12.0) (8.3)
Pre IFRS 16 leverage 0.1x 0.0x
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. We
have completed £125m in share buybacks over the past three years and are 50%
through a £25m buyback in the current financial year, in total reducing the
shares in issue by c9%.
Dividend
The Board has recommended an interim dividend of 4.7 pence per share vs the
prior year which was 4.7 pence per share. The interim dividend will be payable
on 9th January 2026 to shareholders on the register at the close of trading on
5th December 2025.
25 November 2025
Mike Iddon
Chief Financial Officer
# Alternative Performance Measures (APMs) are defined and reconciled to IFRS
information, on pages 16- 18. To simplify reporting, the number of APMs have
been reduced from 10 to 7.
Risks and Uncertainties
An effective risk management process has been adopted to help the Group
achieve its strategic objectives and enjoy long term success. The Board have
reviewed the principal risks and uncertainties since the publication of the
annual report for the 52 week period ended 27 March 2025, whilst some of the
risks have been updated in the period, the principal risk remain unchanged.
The principal risks and uncertainties comprise:
· Brand and reputation
· Information security and business critical systems
· Omnichannel consumer proposition
· Sustainability and climate change
· People and organisational capability
· Competition and consumers
· Responsible sourcing and supply chain
· Liquidity and credit
· Treasury and finance
· Legal and compliance
The Board continues to review the risks and uncertainties that may arise as a
result of geopolitical tensions and the actual and potential impact on supply
chains, as well as energy cost inflation and foreign exchange volatility.
A detailed explanation of the risks and uncertainties which were identified
for the 52 week period ended 27 March 2025 can be found on pages 21 to 29 of
the 2025 Annual Report which is available at http://investors.petsathome.com
(http://investors.petsathome.com) .
Responsibility Statement
We confirm that to the best of our knowledge:
a) the condensed set of financial statements has been prepared in accordance
with UK-adopted IAS 34 'Interim Financial Reporting';
b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events and their impact during
the first 28 weeks and description of principal risks and uncertainties for
the remaining 24 weeks of the year); and
c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
By order of the Board on 25 November 2025
Ian Burke, Interim Executive Chair
Mike Iddon, Chief Financial Officer
Disclaimer
This statement of interim financial results 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 advisor.
Certain statements in this statement of interim financial results 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 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 of
interim financial results. 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.
INDEPENDENT REVIEW REPORT TO PETS AT HOME GROUP PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the interim financial report for the 28 week period ended 9
October 2025 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated statement of changes in
equity, the condensed consolidated statement of cash flows and related notes 1
to 16.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the 28 week period ended 9 October 2025 is not prepared,
in all material respects, in accordance with United Kingdom adopted
International Accounting Standard 34 and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this interim
financial report has been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however, future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the Directors
The directors are responsible for preparing the interim financial report in
accordance with the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
In preparing the interim financial report, the directors are responsible for
assessing the group's ability to continue as a going concern, disclosing as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Review of the Financial Information
In reviewing the interim financial report, we are responsible for expressing
to the company a conclusion on the condensed set of financial statements in
the interim financial report. Our Conclusion, including our Conclusion
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our Report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Manchester, United Kingdom
25 November 2025
Alternative Performance Measures ('APMs')
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 IFRS 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 support the comparability of information between
reporting periods, by adjusting for non-underlying items to aid the user in
understanding the Group's performance.
In previous reporting periods, the Group disclosed total indebtedness, lease
adjusted leverage and cash return on invested capital ('CROIC') as APMs. To
simplify the reporting we have reduced the number of APMs reported from ten to
seven. As a result, these APMs have not been reported in the current period.
The remaining APMs are used by the Directors and management for performance
analysis, planning, reporting and incentive setting purposes and are
consistent with prior year. These APMs may not be directly comparable with
other companies' APMs and the directors do not intend to for these to be
superior to, or a substitute for, IFRS measures.
All APMs relate to the current period's results and comparative periods 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.
A full glossary of APMs is included in the most recent Annual Report &
Accounts which are available at http://investors.petsathome.com
(http://investors.petsathome.com) .
References to Underlying GAAP measures and Underlying APMs throughout the
interim statements are measured before the effect of non-underlying items.
Alternative Performance Measures ('APMs') (continued)
APM Definition and purpose Reconciliation
Consumer revenue Consumer revenue being statutory Group revenue, less Joint Venture veterinary Consumer revenue (£m) HY26 HY25 Note
practice fee income (which forms part of statutory revenue within the Vet Statutory Group revenue 778.3 789.0(1) CIS
Group), plus gross consumer sales made by Joint Venture veterinary practices Joint Venture fee income (60.6) (56.3) 2
(unaudited). This is an important measure as it includes the revenue from all Revenue by Joint Venture practices 338.1 315.8
vet practices whether they be under the Joint Venture or Company managed model Consumer revenue(2) 1,055.8 1,048.5
which is used in the assessment of market share. (1)£0.1m has been reclassified from cost of sales to revenue in the 28 week
period ended 10 October 2024.
(2)Consumer revenue cannot be directly referenced in the financial statements
as revenue by all veterinary practices relates to all Joint Venture consumer
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) HY26 HY25 Growth Note
grooming salons and veterinary practices that have been trading more than 52 (1)Retail revenue 679.9 696.2 -2.3% 2
weeks prior to both the current and prior period reporting date, excluding fee New stores and grooming salons (3.7) (4.7)
income from Joint Venture practices where the Group has bought out the Joint Retail like-for-like revenue 676.2 691.5 -2.2%
Venture Partners. The measure is used widely as an indicator of sales
performance. Vet Group revenue 98.4 92.8 6.1% 2
New practices (7.6) (8.1)
Vet Group other income (7.6) (6.7)
Vet Group like-for-like revenue 83.2 78.0
(1)£0.1m has been reclassified from cost of sales to revenue in the 28 week
period ended 10 October 2024.
6.7%
(1)Statutory Group revenue 778.3 789.0 -1.3% CIS
New stores, grooming salons and practices (11.3) (12.8)
Vet Group other income (7.6) (6.7)
Group like-for-like revenue 759.4 769.5 -1.3%
Underlying profit before tax Underlying profit before tax (PBT) is based on pre-tax profit before the Underlying PBT (£m) HY26 HY25 Note
impact of certain costs or incomes that are excluded as they are not generated Underlying PBT 36.2 54.5 CIS
from ordinary business operations, infrequent in nature and unlikely to Non-underlying items (note 3) - (3.4) CIS
reoccur in the foreseeable future in order to reflect management's view of the Profit before tax 36.2 51.1
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) HY26 HY25 Note
before the impact of certain costs or incomes that derive from events or Underlying basic EPS 5.7 8.4 4
transactions that fall outside the normal activities of the Group and are Non-underlying items - (0.5)
excluded by virtue of their size and nature in order to reflect management's Basic earnings per share 5.7 7.9 4
view of the performance of the Group.
Free Net increase/(decrease) in cash before the impacts of dividends paid, share Free cash flow (£m) HY26 HY25 Note
buybacks, investment movements, acquisition and disposal of subsidiaries, Net increase/(decrease) in cash 9.5 (17.1) 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 (note 6) 37.7 38.4 CFS
investments or returning to shareholders. Loan drawdown (50.0) - CFS
Repayment of borrowings 22.3 - CFS
Share buyback 12.6 12.5 CFS
Investment movements - (1.3) CFS
Acquisition of subsidiaries 0.7 0.3 CFS
Disposal of subsidiaries 1.2 0.3 CFS
Free cash flow 34.0 33.1
CFS = Consolidated Statement of Cash Flows
Alternative Performance Measures ('APMs') (continued)
Adjusted net debt Cash and cash equivalents less the face value of loans and borrowings. Lease Adjusted net (debt)/cash (£m) HY26 HY25 Note
liabilities are excluded. Cash and cash equivalents 49.0 40.0 CBS
Loans and borrowings (face value) (61.0) (48.3) 12
Adjusted net debt (12.0) (8.3)
Pre IFRS 16 leverage Adjusted net cash (above) divided by underlying Pre IFRS 16 Leverage (£m) HY26 HY25 Note
Adjusted net debt (above) (12.0) (8.3)
earnings before interest, taxes, depreciation and amortisation ('EBITDA') less
expected rental charges. Figures have been presented on a rolling 52 week
proforma basis. This measure is important because it is a covenant metric.
Statutory operating profit 121.4 137.1
Underlying depreciation of property, plant and equipment 31.2 27.5
Underlying depreciation of right-of-use assets 62.1 63.5
Amortisation of intangible assets 8.1 8.8
Non-underlying depreciation of property, plant and equipment
- 1.1
Non-underlying depreciation of right-of-use assets 2.5 2.8
Other non-underlying items in EBITDA 6.5 12.8
Underlying EBITDA 231.8 253.6
Less:
Proforma rental charges (75.8) (76.7)
Underlying EBITDA (pre IFRS 16)(1) 156.0 176.9
Pre IFRS 16 Leverage 0.1x 0.0x
(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.
Like-for-like revenue
Like-for-like revenue growth comprises total revenue in a financial period
compared to revenue achieved in a prior period for stores, online operations,
grooming salons and veterinary practices that have been trading more than 52
weeks prior to both the current and prior period reporting date, excluding fee
income from Joint Venture practices where the Group has bought out the Joint
Venture Partners. The measure is used widely as an indicator of sales
performance.
(1)£0.1m has been reclassified from cost of sales to revenue in the 28 week
period ended 10 October 2024.
Like-for-like revenue (£m) HY26 HY25 Growth Note
(1)Retail revenue 679.9 696.2 -2.3% 2
New stores and grooming salons (3.7) (4.7)
Retail like-for-like revenue 676.2 691.5 -2.2%
Vet Group revenue 98.4 92.8 6.1% 2
New practices (7.6) (8.1)
Vet Group other income (7.6) (6.7)
Vet Group like-for-like revenue 83.2 78.0
6.7%
(1)Statutory Group revenue 778.3 789.0 -1.3% CIS
New stores, grooming salons and practices (11.3) (12.8)
Vet Group other income (7.6) (6.7)
Group like-for-like revenue 759.4 769.5 -1.3%
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) HY26 HY25 Note
Underlying PBT 36.2 54.5 CIS
Non-underlying items (note 3) - (3.4) CIS
Profit before tax 36.2 51.1
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) HY26 HY25 Note
Underlying basic EPS 5.7 8.4 4
Non-underlying items - (0.5)
Basic earnings per share 5.7 7.9 4
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) HY26 HY25 Note
Net increase/(decrease) in cash 9.5 (17.1) CFS
Remove effects of:
Dividends (note 6) 37.7 38.4 CFS
Loan drawdown (50.0) - CFS
Repayment of borrowings 22.3 - CFS
Share buyback 12.6 12.5 CFS
Investment movements - (1.3) CFS
Acquisition of subsidiaries 0.7 0.3 CFS
Disposal of subsidiaries 1.2 0.3 CFS
Free cash flow 34.0 33.1
CFS = Consolidated Statement of Cash Flows
Alternative Performance Measures ('APMs') (continued)
Adjusted net debt
Cash and cash equivalents less the face value of loans and borrowings. Lease
liabilities are excluded.
Adjusted net (debt)/cash (£m) HY26 HY25 Note
Cash and cash equivalents 49.0 40.0 CBS
Loans and borrowings (face value) (61.0) (48.3) 12
Adjusted net debt (12.0) (8.3)
Pre IFRS 16 leverage
Adjusted net cash (above) divided by underlying
earnings before interest, taxes, depreciation and amortisation ('EBITDA') less
expected rental charges. Figures have been presented on a rolling 52 week
proforma basis. This measure is important because it is a covenant metric.
Pre IFRS 16 Leverage (£m) HY26 HY25 Note
Adjusted net debt (above) (12.0) (8.3)
Statutory operating profit 121.4 137.1
Underlying depreciation of property, plant and equipment 31.2 27.5
Underlying depreciation of right-of-use assets 62.1 63.5
Amortisation of intangible assets 8.1 8.8
Non-underlying depreciation of property, plant and equipment
- 1.1
Non-underlying depreciation of right-of-use assets 2.5 2.8
Other non-underlying items in EBITDA 6.5 12.8
Underlying EBITDA 231.8 253.6
Less:
Proforma rental charges (75.8) (76.7)
Underlying EBITDA (pre IFRS 16)(1) 156.0 176.9
Pre IFRS 16 Leverage 0.1x 0.0x
(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.
Condensed consolidated income statement
Note 28 week period ended 9 October 2025 28 week period ended 10 October 2024 restated(1)
Underlying trading Non-underlying items Total Underlying trading Non-underlying items Total
£m (note 3) £m £m (note 3) £m
£m £m
Revenue 2 778.3 - 778.3 789.0(1) - 789.0(1)
Cost of sales (424.4) - (424.4) (423.9) (1) - (423.9) (1)
Gross profit 353.9 - 353.9 365.1 - 365.1
Selling and distribution expenses (243.3) - (243.3) (239.2)(2) (1.7) (240.9)(2)
Administrative expenses (74.4) - (74.4) (70.7)(2) (4.0) (74.7)(2)
Other income 3 8.5 - 8.5 7.9(1) 2.3 10.2(1)
Operating profit 2 44.7 - 44.7 63.1 (3.4) 59.7
Financial income 1.4 - 1.4 1.7 - 1.7
Financial expense (9.9) - (9.9) (10.3) - (10.3)
Net financing expense (8.5) - (8.5) (8.6) - (8.6)
Profit before tax 36.2 - 36.2 54.5 (3.4) 51.1
Taxation 5 (10.0) - (10.0) (14.9) 1.4 (13.5)
Profit for the period 26.2 - 26.2 39.6 (2.0) 37.6
(1)During the current financial period, management identified a misallocation
in the prior year's expense classification. An amount of £10.8m previously
reported under selling and distribution expenses has been reclassified to
administrative expenses. Additionally, in the 28 week period ended 10 October
2024, £0.1m has been reclassified from cost of sales to revenue and £1.0m
relating to amounts earned from supplier funding income has been reclassified
from selling and distribution to other income. These adjustments have been
posted to aid comparability with the current year.
Basic and diluted earnings per share attributable to equity shareholders of
the Company:
Note 28 week period ended 28 week period ended
9 October 2025 10 October 2024
Equity holders of the parent - basic 4 5.7p 7.9p
Equity holders of the parent - diluted 4 5.6p 7.8p
Dividends paid and proposed are disclosed in note 6.
Condensed consolidated statement of comprehensive income
28 week period ended 28 week period ended
9 October 2025 10 October 2024 £m
£m
Profit for the period 26.2 37.6
Other comprehensive income/(expense)
Items that are or may be recycled subsequently into profit or loss:
Effective portion of changes in fair value of cash flow hedges 1.3 (0.4)
Net change in fair value of cash flow hedges reclassified to profit or loss - 0.1
Other comprehensive income/(expense) for the period, before income tax 1.3 (0.3)
Income tax on other comprehensive (expense)/ income (note 5) (0.1) 0.2
Other comprehensive income/(expense) for the period, net of income tax 1.2 (0.1)
Total comprehensive income for the period 27.4 37.5
The notes on pages 24 to 44 form an integral part of these consolidated
interim financial statements.
Condensed consolidated balance sheet
Note At 9 October At 10 October At 27 March
2025 2024 2025
£m £m £m
Non-current assets
Property, plant and equipment 8 163.3 159.3 161.7
Right-of-use assets 9 280.4 305.4 284.6
Intangible assets 10 982.7 983.3 985.1
Other financial assets 19.1 11.3 15.0
1,445.5 1,459.3 1,446.4
Current assets
Inventories 11 110.2 114.1 106.9
Derivative financial assets 0.5 0.4 0.5
Income tax receivable 1.8 1.1 0.2
Trade and other receivables 77.2 64.2 63.3
Cash and cash equivalents 49.0 40.0 39.5
238.7 219.8 210.4
Total assets 1,684.2 1,679.1 1,656.8
Current liabilities
Trade and other payables (290.1) (272.8) (255.6)
Interest-bearing loans and borrowings 12 (4.7) (2.8) (4.7)
Lease liabilities 9 (75.3) (80.0) (78.5)
Provisions (4.2) (6.4) (5.1)
Derivative financial liabilities (2.2) (2.0) (1.7)
(376.5) (364.0) (345.6)
Non-current liabilities
Interest-bearing loans and borrowings 12 (54.8) (43.2) (26.7)
Lease liabilities 9 (262.7) (284.7) (269.8)
Provisions (2.0) (5.4) (3.9)
Deferred tax liabilities (19.5) (7.2) (17.6)
Derivative financial liabilities (0.1) - -
(339.1) (340.5) (318.0)
Total liabilities (715.6) (704.5) (663.6)
Net assets 968.6 974.6 993.2
Equity attributable to equity holders of the parent
Ordinary share capital 4.5 4.6 4.6
Consolidation reserve (372.0) (372.0) (372.0)
Merger reserve 113.3 113.3 113.3
Translation reserve (0.1) (0.1) (0.1)
Capital redemption reserve 0.5 0.4 0.4
Cash flow hedging reserve (1.3) (1.4) (1.2)
Retained earnings 1,223.7 1,229.8 1,248.2
Total equity 968.6 974.6 993.2
The notes on pages 24 to 44 form an integral part of these consolidated
interim financial statements.
Condensed consolidated statement of changes in equity as at 9 October 2025
Share capital Consolidation reserve Merger reserve Cash flow hedging reserve Translation reserve Capital redemption reserve Retained earnings Total
£m £m £m £m £m £m £m equity
£m
Balance at 27 March 2025 4.6 (372.0) 113.3 (1.2) (0.1) 0.4 1,248.2 993.2
Total comprehensive income for the period
Profit for the period - - - - - - 26.2 26.2
Other comprehensive income - - - 1.2 - - 1.2
Total comprehensive income for the period - - - 1.2 - - 26.2 27.4
Hedging gains & losses reclassified to inventory - - - (1.7) - - - (1.7)
Deferred tax on hedging gains and losses - - - 0.4 - - - 0.4
Total hedging gains & losses reclassified to - - - (1.3) - - - (1.3)
inventory
Transactions with owners, recorded directly in equity
Equity dividends paid - - - - - - (37.7) (37.7)
Share based payment charge - - - - - - 3.9 3.9
Deferred tax movement on IFRS 2 reserve - - - - - - (0.1) (0.1)
Share buyback (0.1) - - - - 0.1 (12.6) (12.6)
Purchase of own shares - - - - - - (4.2) (4.2)
Total contributions by and distributions to owners (0.1) - - - - 0.1 (50.7) (50.7)
Balance at 9 October 2025 4.5 (372.0) 113.3 (1.3) (0.1) 0.5 1,223.7 968.6
Condensed consolidated statement of changes in equity as at 10 October 2024
Share capital Consolidation reserve Merger reserve Cash flow hedging reserve Translation reserve Capital redemption reserve Retained earnings Total
£m £m £m £m £m £m £m equity
£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 - - - - - - 37.6 37.6
Other comprehensive expense - - - (0.1) - - - (0.1)
Total comprehensive income for the period - - - (0.1) - - 37.6 37.5
Hedging gains & losses reclassified to inventory - - - (0.8) - - - (0.8)
Total hedging gains & losses reclassified to inventory - - - (0.8) - - - (0.8)
Transactions with owners, recorded directly in equity
Equity dividends paid - - - - - - (38.4) (38.4)
Share based payment charge - - - - - - 3.2 3.2
Deferred tax movement on IFRS 2 reserve - - - - - - 0.8 0.8
Share buyback (0.1) - - - - 0.1 (12.5) (12.5)
Purchase of own shares - - - - - - (3.7) (3.7)
Total contributions by and distributions to owners (0.1) - - - - 0.1 (50.6) (50.6)
Balance at 10 October 2024 4.6 (372.0) 113.3 (1.4) (0.1) 0.4 1,229.8 974.6
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 - - - 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
The notes on pages 24 to 44 form an integral part of these consolidated
interim financial statements.
Condensed consolidated statement of cash flows
Note 28 week period ended 28 week period ended
9 October 2025 10 October 2024
£m £m
Cash flows from operating activities
Profit for the period 26.2 37.6
Adjustments for:
Depreciation and amortisation 55.9 54.2
Financial income (1.4) (1.7)
Financial expense 9.9 10.3
Non-underlying profit on disposal - (2.3)
Share based payment charges 3.9 3.2
Taxation 5 10.0 13.5
104.5 114.8
Increase in trade and other receivables (16.1) (2.3)
Increase in inventories (3.3) (16.7)
Increase in trade and other payables 34.4 23.3
Decrease in provisions (2.8) (0.9)
Movement in working capital 12.2 3.4
Tax paid (9.6) (12.5)
Net cash flow from operating activities 107.1 105.7
Cash flows from investing activities
Acquisitions of other investments - (1.0)
Proceeds from the sale of other investments - 2.3
Investment capital contributions - (0.7)
Proceeds from repayment of initial partner loans 0.6 0.9
Interest received 1.4 1.7
Costs to acquire right-of-use assets (0.8) (0.3)
Acquisition of subsidiaries, net of cash acquired (0.7) (0.3)
Disposal of subsidiaries, net of cash disposed (1.2) (0.3)
Acquisition of property, plant and equipment and other intangible assets (21.5) (25.1)
Net cash used in investing activities (22.2) (22.8)
Cash flows from financing activities
Equity dividends paid 6 (37.7) (38.4)
Repayment of borrowings (22.3) -
Loan drawdown 50.0 -
Cash payments for the principal portion of the right-of-use liability (39.2) (35.9)
Purchase of own shares (4.2) (2.9)
Share buyback (12.6) (12.5)
Interest paid (2.1) (3.2)
Interest paid on lease obligations (7.3) (7.1)
Net cash used in financing activities (75.4) (100.0)
Net increase/(decrease) in cash and cash equivalents 9.5 (17.1)
Cash and cash equivalents at beginning of period 39.5 57.1
Cash and cash equivalents at end of period 49.0 40.0
The notes on pages 24 to 44 form an integral part of these consolidated
interim financial statements.
Notes to the condensed consolidated interim financial statements
Pets at Home Group Plc (the 'Company') is a company incorporated in the United
Kingdom and registered in England and Wales, its registered office is Epsom
Avenue, Stanley Green, Handforth, Cheshire, SK9 3RN. The Company is listed
on the London Stock Exchange.
1 Accounting policies
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these consolidated interim
financial statements.
Basis of preparation
The condensed consolidated interim financial statements as at and for the 28
week period ended 9 October 2025 comprise the Company and its subsidiaries
(together referred to as the 'Group').
The consolidated financial statements of the Group as at and for the 52 week
period ended 27 March 2025 are available on request from the Company's
registered office and via the Company's website.
The annual financial statements of Pets at Home Group Plc will be prepared in
accordance with UK- adopted international accounting standards (UK-adopted
IFRS) and with the requirements of the Companies Act 2006. The condensed set
of financial statements included in this half‑yearly financial report has
been prepared in accordance with United Kingdom adopted International
Accounting Standard 34 'Interim Financial Reporting'.
Statement of compliance
These condensed consolidated interim financial statements have been prepared
in accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority and with IAS 34 Interim Financial Reporting as
adopted by the UK. They do not include all of the information required for
full annual financial statements and should be read in conjunction with the
consolidated financial statements of the Group as at and for the 52 week
period ended 27 March 2025.
The financial information included in this interim statement of results does
not constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006 (the 'Act'). The statutory accounts for the 52 weeks ended
27 March 2025 have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The auditor's report was (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.
Going concern
The Company's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Strategic
Report of the Annual Report for the 52 week period ended 27 March 2025. The
financial position of the Company, its cash flows, liquidity position and
borrowing facilities are described in the Chief Financial Officer's Review. In
addition, note 12 and 13 to these interim financial statements include the
Company's objectives, policies and processes for managing its capital; 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 interim 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 market performance, consumer confidence, climate
change, geopolitical tensions, and the actual and potential impact on supply
chains, energy cost inflation and foreign exchange volatility on liquidity and
future performance.
The Group has access to a revolving facility of £300m, which expires on 30
September 2028 and a £21.0m asset backed loan which expires on 27 March 2030.
The Group has £40.0m drawn down in relation to the RCF, in addition to
£21.0m on the asset backed loan at 9 October 2025 and cash balances of
£49.0m. The lowest level of headroom forecast over the next 12 months from
the date of signing of the interim results is in excess of £268.0m 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 £226.1m 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 interim financial
statements.
Notes (continued)
1 Accounting policies (continued)
Going concern (continued)
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
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 £62.5m on sales and £23.8m on PBT per
annum (using specific financial risks taken from Group risk register with
sales and PBT financial impact quantified), with dividends held at 13.0 per
share per annum.
- Scenario 3: Group like-for-like sales no stronger than
0% in each year and a conflated risk impact of £122.5m on sales and £46.7m
on PBT is applied (using the top risks from corporate 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 they be required, including reducing capital expenditure.
Despite net current liabilities of £137.8m in the Group, the Directors of
Pets at Home Group Plc having made appropriate enquiries, including the
principal risk and uncertainties on page 13 consider that the Group 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 interim financial
statements and that, therefore, it is appropriate to adopt the going concern
basis in preparing the consolidated interim financial statements as at and for
the 28 weeks ended 9 October 2025.
Material accounting policies
The accounting policies adopted in preparation of the condensed consolidated
interim financial statements as at and for the 28 week period ended 9 October
2025 are consistent with the policies applied by the Group in its consolidated
financial statements as at and for the 52 week period ended 27 March 2025.
Accounting estimates and judgments
The preparation of condensed consolidated interim 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 considered to be a
critical accounting judgement.
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.
Key sources of estimation uncertainty
Impairment of goodwill and other indefinite life intangibles
Goodwill and other indefinite life intangibles, in accordance with IAS 36
'Impairment of Assets', are subject to annual impairment testing at the year
end date, or more frequent testing if there are indicators of impairment. The
method used for impairment testing is to allocate assets (including goodwill)
to appropriate cash-generating units (CGUs) based on the smallest identifiable
group of assets that generate independent cash inflows, and to estimate the
recoverable amount of the CGUs as the higher of an asset's fair value less
costs of disposal and its value in use. The value in use is determined using
cash flow projections from the approved business and strategic plans over a
period of five years which are then extrapolated based on estimated long-term
growth rates applicable to the markets in which the CGUs operate. The cash
flow projections are discounted based on a post-tax weighted average cost of
capital.
During the period, the reduction in profit in the Retail segment compared to
the prior reporting period was identified as an indicator of impairment in
relation to the carrying amount of assets allocated to the group of CGUs
within the Retail segment. As a result, an impairment test was performed at
the interim date, and the key assumptions and estimates used in the test are
disclosed in note 10.
There are no other significant estimates or assumptions which would cause a
material change to the carrying value of asset and liabilities within the next
12 months.
Notes (continued)
2 Segmental reporting
The Group has four strategic business units, Retail, Vet Group, Insurance and
Central. These business units, with the exception of Insurance are consistent
with those reported in the 28 week period ended 10 October 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 via our 3rd party arrangement. The operations of the Vet
Group reporting segment comprise General Practices and the veterinary
telehealth business. Insurance includes costs incurred as part of the Group's
new insurance venture for pet insurance. 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 interim 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 15.
Retail Vet Group Insurance(1) Central Total
£m £m £m £m £m
Income statement
Revenue 679.9 98.4 - - 778.3
Gross profit 300.1 53.8 - - 353.9
Depreciation and amortisation (53.6) (2.1) - (0.2) (55.9)
Underlying operating profit/(loss) 10.4 44.6 (2.2) (8.1) 44.7
Non-underlying items - - - - -
Operating profit/(loss) 10.4 44.6 (2.2) (8.1) 44.7
Net financing income/(expenses) (6.9) 0.3 - (1.9) (8.5)
Profit/(loss) before tax 3.5 44.9 (2.2) (10.0) 36.2
Total non-underlying items - - - - -
Underlying profit/(loss) before tax 3.5 44.9 (2.2) (10.0) 36.2
( )
(1)The insurance business unit included within the table above relates to the
Group's new insurance venture and relates to costs incurred during the current
year. There were no such costs incurred in the prior year.
28 week period ended 10 October 2024
Retail Vet Group Central Total
£m £m £m £m
Income statement
Revenue 696.2(1) 92.8 - 789.0(1)
Gross profit 314.6 50.5 - 365.1
Depreciation and amortisation (50.7) (2.4) (0.2) (53.3)
Underlying operating profit/(loss) 29.0 41.1 (7.0) 63.1
Non-underlying items 0.6 - (4.0) (3.4)
Operating profit/(loss) 29.6 41.1 (11.0) 59.7
Net financing expenses (7.0) 0.4 (2.0) (8.6)
Profit/(loss) before tax 22.6 41.5 (13.0) 51.1
Total non-underlying items (0.6) - 4.0 3.4
Underlying profit/(loss) before tax 22.0 41.5 (9.0) 54.5
(1) £0.1m has been reclassified from cost of sales to revenue in the 28 week
period ended 10 October 2024.
Non-underlying operating expenses in the period ended 10 October 2024 are
explained in note 3.
Notes (continued)
1 Segmental reporting (continued)
28 week period ended 9 October 2025
Retail Vet Group Total
Segmental revenue analysis by revenue stream £m £m £m
Retail - Food 426.9 - 426.9
Retail - Accessories 225.0 - 225.0
Retail - Services 28.0 - 28.0
Vet Group - Joint Venture fee income - 60.6 60.6
Vet Group - Company managed practices - 28.1 28.1
Vet Group - Other income - 7.6 7.6
Vet Group - Veterinary telehealth services - 2.1 2.1
Total 679.9 98.4 778.3
28 week period ended 10 October 2024
Retail Vet Group Total
Segmental revenue analysis by revenue stream £m £m £m
Retail - Food 428.2(1) - 428.2(1)
Retail - Accessories 239.3 - 239.3
Retail - Services 28.7 - 28.7
Vet Group - Joint Venture fee income - 56.3 56.3
Vet Group - Company managed practices - 27.7 27.7
Vet Group - Other income - 6.7 6.7
Vet Group - Veterinary telehealth services - 2.1 2.1
Total 696.2(1) 92.8 789.0(1)
( )
(1) £0.1m has been reclassified from cost of sales to revenue in the 28 week
period ended 10 October 2024.
Notes (continued)
3 Expenses
Included in operating profit are the following:
28 week period ended 28 week period ended
9 October 2025 10 October 2024
£m £m
Non-underlying items
Costs relating to the implementation of the new Distribution Centre
Dual running costs of operating new and existing Distribution Centres - 0.8
Depreciation of right-of-use assets dual running costs - 0.9
Total included within selling and distribution expenses - 1.7
Group restructure costs and legal settlement costs - 3.1
Legal costs associated with the CMA review - 0.9
Total included within administrative expenses - 4.0
Included within other income- disposal of investment - (2.3)
Total non-underlying cost within operating profit - 3.4
Underlying items
Depreciation of property, plant and equipment 17.5 14.8
Amortisation of intangible assets 4.5 4.5
Depreciation of right-of-use assets 33.9 34.0
Share based payment charges 3.9 3.2
Other income
Rental income from sub-leasing right-of-use assets to third parties (0.1) (0.1)
Rental and other occupancy income from related parties (7.4) (6.9)
Supplier funding income (1.0) (0.9)
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
The Group did not have any non-underlying items in the 28 week period ended 9
October 2025. The information below relates to non-underlying items incurred
in the 28 week period ended 10 October 2024.
Stafford Distribution Centre
During the 28 week period ended 10 October 2024, the Group incurred a number
of costs in the process of bringing into operation a new retail Distribution
Centre to replace the 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 incurred operational costs which it has
classified as non-underlying:
- £0.8m relates to costs incurred whilst the legacy Distribution Centres and
the new Distribution Centre were both in operation.
- £0.9m in relation to depreciation of rights-of-use assets at legacy sites.
Group restructure and legal settlement costs
Non-underlying Group restructure costs in the 28 week period ended 10
October 2024 of £3.1m primarily relate to redundancy payments from a central
group- wide redundancy programme.
Legal costs; Legal costs associated with the CMA review in the 28 week period
ended 10 October 2024 totalled £0.9m.
Other income; During the 28 week period ended 10 October 2024, the Group
disposed of its investment in Pure Pet Food Limited which resulted in a profit
on disposal of £2.3m within retail which has been recognised in non
underlying other income.
( )
Rental and other occupancy income from related parties as well as supplier
funding income are included in other income. See the income statement for
further details on the reclassification of supplier funding income and
restatement of other income.
Notes (continued)
4 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.
28 week period ended 28 week period ended
9 October 2025 10 October 2024
Underlying After non-underlying items Underlying After non-underlying items
trading trading
Profit attributable to equity shareholders of the parent (£m) 26.2 26.2 39.6 37.6
Basic weighted average number of shares (m) 457.5 457.5 473.8 473.8
Dilutive potential ordinary shares (m) 6.9 6.9 6.4 6.4
Diluted weighted average number of shares 464.4 464.4 480.2 480.2
Basic earnings per share 5.7p 5.7p 8.4p 7.9p
Diluted earnings per share 5.6p 5.6p 8.2p 7.8p
5 Taxation
Recognised in the income statement
28 week period ended 28 week period ended
9 October 2025 10 October 2024
£m £m
Current tax expense
Current period 9.8
8.3
Adjustments in respect of prior periods (0.3) -
Current tax expense 9.8
8.0
Deferred tax expense
Origination and reversal of temporary differences 3.7
1.6
Adjustments in respect of prior periods -
0.4
Deferred tax expense 3.7
2.0
Total tax expense 13.5
10.0
The UK corporation tax and deferred tax standard rate for the period was 25%
(2024: 25%). Deferred tax at 9 October 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
28 week period ended 28 week period ended
9 October 2025 10 October 2024
£m £m
Deferred tax on changes in fair value of cash flow hedges 0.1 (0.2)
Notes (continued)
5 Taxation (continued)
Reconciliation of effective tax rate
28 week period ended 9 October 2025 28 week period ended 10 October 2024
Underlying trading Non-underlying items Total Underlying trading Non-underlying Total
£m £m £m £m items £m
£m
Profit for the period 26.2 - 26.2 39.6 (2.0) 37.6
Total tax expense/(credit) 10.0 - 10.0 14.9 (1.4) 13.5
Profit excluding taxation 36.2 - 36.2 54.5 (3.4) 51.1
Tax using the UK corporation tax rate for the period of 25% 9.1 - 9.1 13.6 (0.8) 12.8
Depreciation on expenditure not eligible for tax relief 0.2 - 0.2 - - -
Expenditure not eligible for tax relief 0.6 - 0.6 1.3 (0.6) 0.7
Adjustments in respect of prior periods 0.1 - 0.1 - - -
Total tax expense 10.0 - 10.0 14.9 (1.4) 13.5
The UK corporation tax standard rate for the period was 25% (28 week period
ended 10 October 2024: 25%). The effective tax rate before non-underlying
items for the 28 week period ended 9 October 2025 was 27.6% (28 week period
ended 10 October 2024: 27.3%). The effective tax rate after non-underlying
items for the 28 week period ended 9 October 2025 was 27.6% (28 week period
ended 10 October 2024: 26.4%).
6 Dividends paid and proposed
28 week period ended 28 week period ended
9 October 2025 10 October 2024
£m £m
Declared and paid during the period
Final dividend of 8.3p per share (2024: 8.3p per share) 37.7 38.4
Proposed for approval by shareholders
Interim dividend of 4.7p per share (2024: 4.7p per share) 21.3 21.8
The trustees of the following holdings of Pets at Home Group Plc shares under
the Pets at Home Group Employee Benefit Trusts have waived or otherwise
foregone any and all dividends paid in relation to the period ended 9 October
2025 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 9 October
6,178,816 shares, holding at 10 October 2024 5,751,440 shares).
Notes (continued)
7 Business combinations
In the 28 week period ended 9 October 2025, the Group has acquired 100% of the
'A' shares of five 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 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 of the annual consolidated financial statements for the 52
week period ended 27 March 2025.
Up to the date of acquisition and in the comparative period being 52 week
period ended 27 March 2025, the entities listed below were all accounted for
as Joint Venture veterinary practices where the Group held 100% of the
non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led
to control and consolidation of these practices on the dates below, leading to
control from the date of acquisition and consolidation from that date forward.
Subsidiaries acquired
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
Companion Care (Stockport) Limited Veterinary practice 03/04/2025 50% 100% -
Rayleigh Vets4Pets Limited Veterinary practice 09/06/2025 50% 100% -
Walkden Vets4Pets Limited Veterinary practice 29/05/2025 50% 100% -
Longton Vets4Pets Limited Veterinary practice 08/08/2025 50% 100% 0.7
Companion Care (Cardiff) Limited Veterinary practice 07/07/2025 50% 100% -
During the 28 week period ended 9 October 2025, £1.2m of operating loans
which were deemed to be in default were written off in the acquisitions of the
'A' shares (28 week period ended 10 October 2024: £0.9m) which led to the
control and consolidation of these practices.
Assets acquired and liabilities recognised at the date of acquisition
On acquisition, assets and liabilities are revalued to fair value.
Pre-existing relationships 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
£0.7m (9 October 2024: nil) and is immaterial to the Group.
Goodwill arising on acquisition
9 October 2025 27 March 2025
£m £m
Consideration 0.7 1.3
Less: Fair value of liabilities/(assets) acquired 0.5 (0.6)
Goodwill arising on acquisition and carrying value 1.2 0.7
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 five (27 March 2025: eight) Joint
Venture practices has been allocated to the Vet Group of CGUs and relates to
expected future cashflows from combining operations.
Notes (continued)
8 Property, plant and equipment
Freehold Leasehold improvements Fixtures, fittings, tools and equipment Assets under construction Total
property £m £m £m £m
£m
Cost
Balance at 27 March 2025 2.4 85.1 357.9 3.9 449.3
Additions - 2.5 15.9 - 18.4
On acquisition 0.2 1.5 1.0 - 2.7
Brought into use - - 2.1 (2.1) -
Disposals - (1.2) (1.5) - (2.7)
Balance at 9 October 2025 2.6 87.9 375.4 1.8 467.7
Depreciation
Balance at 27 March 2025 0.4 39.6 247.6 - 287.6
Depreciation charge for the period - 2.9 14.6 - 17.5
On acquisition 0.1 0.6 0.7 - 1.4
Disposals - (0.9) (1.2) - (2.1)
Balance at 9 October 2025 0.5 42.2 261.7 - 304.4
Net book value
At 27 March 2025 2.0 45.5 110.3 3.9 161.7
At 9 October 2025 2.1 45.7 113.7 1.8 163.3
Freehold Leasehold improvements Fixtures, fittings, tools and equipment Assets under construction Total
property £m £m £m £m
£m
Cost
Balance at 28 March 2024 2.4 82.5 345.4 14.4 444.7
Additions - 6.2 11.4 5.7 23.3
On acquisition - 0.4 0.4 - 0.8
Transfers(1) - - (5.7) - (5.7)
Disposals - (0.5) (0.5) - (1.0)
Balance at 12 October 2024 2.4 88.6 351.0 20.1 462.1
Depreciation
Balance at 28 March 2024 0.4 41.5 244.7 - 286.6
Depreciation charge for the period 0.1 2.7 12.0 - 14.8
On acquisition - 0.3 0.3 - 0.6
Transfers1 - - 1.7 - 1.7
Disposals - (0.5) (0.4) - (0.9)
Balance at 12 October 2024 0.5 44.0 258.3 - 302.8
Net book value 2.0 41.0 100.7 158.1
As 28 March 2024 14.4
As 10 October 2024 1.9 44.6 92.7 20.1 159.3
1 The transfers balance of £5.7m cost and £1.7m accumulated depreciation is
in relation to assets previously categorised within fixtures, fittings, tools
and equipment being transferred to software within intangibles.
Notes (continued)
9 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 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 27 March 2025 649.0 19.9 668.9
Additions 23.2 6.5 29.7
Disposals (0.2) (0.7) (0.9)
Balance at 9 October 2025 672.0 25.7 697.7
Depreciation
Balance at 27 March 2025 373.6 10.7 384.3
Depreciation charge for the period 31.5 2.4 33.9
Disposals (0.2) (0.7) (0.9)
Balance at 9 October 2025 404.9 12.4 417.3
Net book value
At 27 March 2025 275.4 9.2 284.6
At 9 October 2025 267.1 13.3 280.4
Property Equipment Total
£m £m £m
Cost
Balance at 27 March 2024 640.5 22.2 662.7
Additions 20.2 0.8 21.0
Disposals - (0.2) (0.2)
Balance at 10 October 2024 660.7 22.8 683.5
Depreciation
Balance at 27 March 2024 327.8 15.6 343.4
Depreciation charge for the period 32.9 2.0 34.9
Disposals - (0.2) (0.2)
Balance at 10 October 2024 360.7 17.4 378.1
Net book value
At 27 March 2024 312.7 6.6 319.3
At 10 October 2024 300.0 5.4 305.4
Notes (continued)
9 Leases (continued)
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 9 October 2025 At 10 October 2024 At 27 March 2025
£m £m £m
Less than one year 75.3 80.0 78.5
Between one and three years 109.5 133.3 124.9
Between three and five years 72.3 85.6 77.8
Between five and ten years 79.6 90.2 83.1
More than ten years 44.1 39.5 35.7
Total undiscounted lease liabilities 380.8 428.6 400.0
Carrying value of lease liabilities in the statement of financial position 338.0 364.7 348.3
Current 75.3 80.0 78.5
Non-current 262.7 284.7 269.8
For lease liabilities at 9 October 2025, a 0.1% reduction in the discount rate
would have increased the carrying value of lease liabilities by £0.8m (10
October 2024: £1.1m).
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.
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 believed 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.
Notes (continued)
10 Intangible assets
Goodwill Customer list Software Software under construction Total
£m £m £m £m £m
Cost
Balance at 27 March 2025 959.4 6.4 84.0 0.2 1,050.0
Additions - 2.1 - 2.1
-
On acquisition - - - 1.2
1.2
Disposals (0.9) (0.9) - - (1.8)
Balance at 9 October 2025 959.7 5.5 86.1 0.2 1,051.5
Amortisation
Balance at 27 March 2025 0.1 1.8 63.0 - 64.9
Amortisation charge for the period - 0.1 4.4 - 4.5
Disposals - (0.6) - - (0.6)
Balance at 9 October 2025 0.1 1.3 67.4 - 68.8
Net book value
At 27 March 2025 959.3 4.6 21.0 0.2 985.1
At 9 October 2025 959.6 4.2 18.7 0.2 982.7
Goodwill Customer list 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 0.1 0.8
Transfers1 - - 5.7 - 5.7
Disposals - (0.1) - - (0.1)
Balance at 10 October 2024 959.5 6.5 86.5 0.3 1,052.8
Amortisation
Balance at 28 March 2024 0.1 1.7 64.9 - 66.7
Amortisation charge for the period - 0.1 4.4 - 4.5
Transfers1 - - (1.7) - (1.7)
Balance at 9 October 2025 0.1 1.8 67.6 - 69.5
Net book value
At 28 March 2024 959.4 4.9 15.2 0.2 979.7
At 10 October 2024 959.4 4.7 18.9 0.3 983.3
1 The transfers balance of £5.7m cost and £1.7m accumulated depreciation is
in relation to assets previously categorised within fixtures, fittings, tools
and equipment in property, plant and equipment being transferred to software.
Impairment testing
The reduction in profit in the Retail segment compared to the prior reporting
period is a potential indicator of impairment and therefore we have carried
out impairment testing over the carrying value of the Retail goodwill balance
at the interim date. No indicators of impairment have been identified within
the Vet Group segment and therefore in line with the IAS36 requirement for an
annual impairment test of intangible assets with an indefinite useful life,
the next full impairment test of goodwill allocated to the group of CGUs
within the Vet Group segment will be carried out at 26 March 2026.
The Group reviews individual CGUs such as stores for indicators of impairment
by comparing the net cash flows generated at a store level against the
carrying value of assets including property, plant and equipment, right of use
assets and other intangible assets. Key operational metrics are also
considered as part of this review. As at the 9 October 2025, no material
triggers of impairment have been identified at an individual CGU level.
The disclosures below relate to the impairment testing of the goodwill
allocated to the group of CGUs within the Retail segment.
Notes (continued)
10 Intangible assets (continued)
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
CGU, as the smallest identifiable group of assets that generates cash inflows
that are largely independent of the cash inflows from other assets or groups
of assets. Distribution costs are apportioned to stores and online sales are
apportioned to stores where there is a clear link between the online sale and
the store such as 'click and collect'.
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.
As at 9 October 2025, 27 March 2025 and 10 October 2024 the Group allocated
goodwill to groups of CGUs as follows:
Goodwill
At 9 October 2025 At 10 October 2024 At 27 March 2025
£m £m £m
Retail 586.1 586.1 586.1
Vet Group 373.6 373.4 373.3
Total 959.7 959.5 959.4
At 9 October At 27 March
2025 2025
Retail Retail
Period on which management approved forecasts are based (years) 5 5
Growth rate applied beyond approved forecast period 2.0% 2.0%
Discount rate (pre-tax) 11% 12%
Revenue CAGR 5.5% 5.5%
Gross profit margin (average over next 5 years) 45% 45%
The goodwill is considered to have an indefinite useful economic life and the
recoverable amount of the group of CGUs within the Retail segment has been
calculated with reference to its value in use.
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, rebased to reflect
the actual trading in the 28 week period ended 9 October 2025 and the
forecasted results for the 52 week period ending 26 March 2026. The model has
been adjusted to remove all cash flows associated with business units which
the Group has a strategic intention to invest capital in, but has not yet done
so (for example stores yet to open, but within the planning horizon, or any
expected cost savings as a result of the support office reorganisation
disclosed in note 16), 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 which are already operational at the impairment
test date are included in the cash flows. Cash flows related to the central
segment have been allocated on a equal basis to the Vet Group and Retail
segment, as this is considered to be the most appropriate apportionment of
time and costs expended in managing the two divisions. This is a change in
allocation methodology since the prior reporting period, where costs were
allocated proportionate to the asset base. Other than the change in allocation
of central cash flows, this approach is consistent with impairment reviews
carried out in the 2025 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
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. We
have continued to assess 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.
Long-term growth rates - The Directors have assumed a growth rate projection
beyond the projection period of 2% 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.
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 the period.
Notes (continued)
10 Intangible assets (continued)
The cash flows used in the impairment models are based on assumptions which
are sources of estimated uncertainties and movements in these assumptions
could potentially lead to an impairment. A number of sensitivities have been
applied to the key assumptions in the model. The sensitivities have been
selected based on the inherent business and market risks.
Key assumption Decrease in value in use £m Impact on carrying value
Reduction of 1% in the growth rate applied beyond approved forecast period (133) -
Increase of 1% to the discount rate (pre-tax) (97) -
Reduction of 3% to the compound annual growth rate in cashflows over the (199) -
forecasted period compared to plan
The Directors consider that it would require a change in a combination in
these assumptions, notwithstanding mitigating actions that could be taken to
reduce costs, as to eliminate the excess of the recoverable amount over the
carrying value.
11 Inventories
At 9 October 2025 At 10 October 2024 At 27 March 2025
£m £m £m
Finished goods 110.2 114.1 106.9
The cost of inventories recognised as an expense and included in 'cost of
sales' is £362.7m (period ended 10 October 2024: £366.0m).
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 9 October 2025 the inventory provision amounted to £4.2m (10 October 2024:
£4.2m). 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 £8.8m (10 October
2024: £8.3m).
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 28 week period ended 9 October 2025, the value of inventory written off
to the income statement amounted to £4.4m (28 week period ended 10 October
2024: £5.4m).
Notes (continued)
12 Interest-bearing loans and borrowings
At 9 October 2025 At 10 October 2024 At 27 March 2025
£m £m £m
Non-current liabilities
Unsecured bank loans 38.5 22.7 8.1
Asset backed loans 16.3 20.5 18.6
54.8 43.2 26.7
Current liabilities
Asset backed loans 4.7 2.8 4.7
Terms and debt repayment schedule
At 9 October 2025 At 10 October 2024 At 27 March 2025
Currency Nominal interest rate Year of maturity Face Carrying amount Face Carrying amount Face Carrying amount
value £m value £m value £m
£m £m £m
Revolving credit facility GBP SONIA +1.30% 2028 40.0 38.5 25.0 22.7 10.0 8.1
Asset backed loan GBP SONIA +1.50% 2030 21.0 20.9 23.3 23.3 23.3 23.3
61.0 59.4 48.3 46.0 33.3 31.4
The drawn amount on the revolving credit facility of £300.0m was £40.0m at 9
October 2025 (£25.0m at 10 October 2024) and this amount is reviewed each
month. Interest is charged at SONIA plus a margin based on leverage on a
pre-IFRS 16 basis (net debt: EBITDA). The loan also has environmental, social,
and corporate governance (ESG) linked metrics which are reflected in the
margin payable, which is +/- 5bps. Face value represents the principal value
of the revolving credit facility. The facility is unsecured.
The Group has a loan agreement to fund the purchase of capital items. Interest
is charged on the amount drawn down at SONIA plus 1.5% and the loan is repaid
monthly until it 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 9 October 2025 At 10 October 2024 At 27 March 2025
£m £m £m
Within one year or repayable on demand 4.7 2.3 4.7
Between one and three years 49.3 34.3 9.3
Between three and five years 7.0 11.7 19.3
Greater than 5 years - -
61.0 48.3 33.3
The £40.0m revolving credit facility at 9 October 2025 is held by the
Company. The £21.0m asset backed loan is 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 forecasts gross debt at the balance sheet date is no more than
£100m, no interest rate hedging is required. Subsequently, as at 9 October
2025, there were no hedging derivatives held by the Group.
Notes (continued)
13 Financial instruments
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)
At 9 October 2025
Carrying amount Fair value - hedging instruments FVTPL - equity instruments Financial assets at amortised cost Other Total carrying amount
financial liabilities
£m £m £m £m £m
Financial assets measured at fair value
Other investments - 2.0(1) - - 2.0(1)
Forward exchange contracts used for hedging 0.5 - - - 0.5
0.5 2.0 - - 2.5
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices - - 2.4 - 2.4
Current trade and other receivables - - 22.2 - 22.2
Amounts owed by Joint Venture veterinary practices - funding, trading and - - 21.0 - 21.0
operating loans
Cash and cash equivalents - - 49.0 - 49.0
Loans to Joint Venture veterinary practices - initial set up loans - - 3.4 - 3.4
Other current receivables - - 0.3 - 0.3
Non-current other receivables - - 11.4 - 11.4
- - 109.7 - 109.7
Financial liabilities measured at fair value
Forward exchange contracts used for hedging (2.2) - - - (2.2)
(2.2) - - - (2.2)
Financial liabilities not measured at fair value
Current lease liabilities (note 9) - - - (75.3) (75.3)
Non-current lease liabilities (note 9) - - - (262.7) (262.7)
Trade payables - - - (141.2) (141.2)
Amounts owed to Joint Venture veterinary practices - - - (8.2) (8.2)
Other interest-bearing loans and borrowings (note 12) - - - (59.4) (59.4)
- - - (546.8) (546.8)
(1)£1.0m in relation to the Project Blu investment was impaired during the 28
week period ended 9 October 2025 (10 October 2024: nil). The impairment charge
has been recognised within administrative expenses in the condensed
consolidated income statement.
Notes (continued)
13 Financial instruments (continued)
At 9 October 2025
Fair value Level 1 Level 2 Level 3 Total
£m £m £m £m
Financial assets and liabilities measured at fair value
Other investments - - 2.0 2.0
Forward exchange contracts used for hedging - 0.5 - 0.5
Forward exchange contracts used for hedging - (2.2) - (2.2)
At 10 October 2024
Carrying amount Fair value - hedging instruments FVTPL - equity instruments Financial assets at amortised cost Financial liabilities at amortised cost Total carrying amount
£m £m £m £m £m
Financial assets measured at fair value
Other investments - 3.1 - - 3.1
Forward exchange contracts used for hedging 0.1 - - - 0.1
0.1 3.1 - - 3.2
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices - - 3.3 - 3.3
Current trade and other receivables - - 25.7 - 25.7
Amounts owed by Joint Venture veterinary practices - funding, trading and 13.2 13.2
operating loans
- - -
Cash and cash equivalents - - 40.0 - 40.0
Loans to Joint Venture veterinary practices - initial set up loans 4.4 4.4
- - -
Loans to Joint Venture veterinary practices - other loans 0.1 - 0.1
- -
Non-current other receivables - - 0.7 - 0.7
- - 87.4 - 87.4
Financial liabilities measured at fair value
Fuel forward contract used for hedging (0.1) - - - (0.1)
Forward exchange contracts used for hedging (1.9) - - - (1.9)
(2.0) - - - (2.0)
Financial liabilities not measured at fair value
Current lease liabilities (note 9) - - - (80.0) (80.0)
Non-current lease liabilities (note 9) - - - (284.7) (284.7)
Trade payables - - - (151.0) (151.0)
Amounts owed to Joint Venture veterinary practices - - - (4.8) (4.8)
Other interest-bearing loans and borrowings (note 12) - - - (46.0) (46.0)
- - - (566.5) (566.5)
Notes (continued)
13 Financial instruments (continued)
At 10 October 2024
Fair value Level 1 Level 2 Level 3 Total
£m £m £m £m
Financial assets and liabilities measured at fair value
Other investments - - 3.1 3.1
Forward exchange contracts used for hedging - 0.1 - 0.1
Fuel forward contract used for hedging - (0.1) - (0.1)
Forward exchange contracts used for hedging - (1.9) - (1.9)
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 - 3.0 - - 3.0
Forward exchange contracts used for hedging 0.2 - - - 0.2
0.2 3.0 - - 3.2
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices - - 2.7 - 2.7
Current trade and other receivables - - 19.0 - 19.0
Amounts owed by Joint Venture veterinary practices - funding, trading and - - 18.2 - 18.2
operating loans
Cash and cash equivalents - - 39.5 - 39.5
Loans to Joint Venture veterinary practices - initial set up loans - - 3.9 - 3.9
Current other receivables - - 0.3 - 0.3
Non-current other receivables - - 5.6 - 5.6
- - 89.2 - 89.2
Financial liabilities measured at fair value
Forward exchange contracts used for hedging (1.7) - - - (1.7)
(1.7) - - - (1.7)
Financial liabilities not measured at fair value
Current lease liabilities - - - (78.5) (78.5)
Non-current lease liabilities - - - (269.8) (269.8)
Trade payables - - - (138.5) (138.5)
Amounts owed to Joint Venture veterinary practices - - - (8.2) (8.2)
Other interest-bearing loans and borrowings - - - (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 - - 3.0 3.0
Forward exchange contracts used for hedging - 0.2 - 0.2
Forward exchange contracts used for hedging - (1.7) - (1.7)
Notes (continued)
13 Financial instruments (continued)
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 fuel 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 values. Forecasted cashflows. Any changes to the unobservable input would have an Not applicable
immaterial impact on the valuation.
Maturity
1-6 months 6-12 months More than 1 year 1-6 months 6-12 months More than 1 year
9 October 2025 10 October 2024
Foreign currency risk
Forward exchange contracts
Net exposure (£m) 49.5 26.3 - 43.2 24.8 -
Average GBP-USD forward contract rate 1.27 1.34 - 1.27 1.29 -
Average GBP-EUR forward contract rate 1.16 1.14 - 1.16 - -
14 Seasonality of operations
The Group's sales can be sensitive to periods of extreme weather conditions.
The Group sometimes sees a reduction in sales during periods of hot weather in
the UK, due to reduced customer footfall and reduced demand as pets eat less
and generally spend more time outdoors, reducing the need for essentials such
as food and cat litter. If temperatures are extremely high for a prolonged
period, declines in sales can be material. The number of customers visiting
Pets at Home's stores also declines during periods of snow or extreme weather
conditions affecting the local catchment area. In addition, the sales of
certain products and services designed to address pet health needs, such as
flea and tick problems, can also be seasonal, increasing in times of warm and
wet weather. The financial performance in the four-week period to the end of
December is stronger than in the other periods, due to Christmas purchasing.
Purchasing of accessories is also more prevalent during this season. Timing of
the holiday season and any adverse weather conditions that may occur during
that season impacting delivery may adversely affect sales in our stores.
Notes (continued)
15 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 of the Group
consolidated financial statements as at 27 March 2025.
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 £3.7m (10 October 2024: £3.3m).
The transactions entered into during the period, and the balances outstanding
at the end of the period are as follows:
9 October 2025 10 October 2024 27 March 2025
£m £m £m
Transactions
- Fees for services provided to Joint Venture veterinary practices (note2) 60.6 56.3 103.4
- Rental and other occupancy charges to Joint Venture veterinary practices 7.4 6.9 13.0
(note 3)
Total income from Joint Venture veterinary practices 68.0 63.2 116.4
Acquisitions
Consideration for Joint Venture veterinary practices acquired (note 7) 0.7 - 1.3
Included within investments
- Investments
- Capital contributions for practices extensions and improvements 2.3 3.2 2.7
- B Share Capital - 0.2 -
Included within trade and other receivables:
- Operating loans
- Gross value of operating loans 2.3 5.5 5.2
- Allowance for expected credit losses held for operating loans (0.8) (1.9) (1.3)
Net operating loans 1.5 3.6 3.9
Trading balances 13.9 9.6 14.3
Deferred fee income rebate 2.1 - 1.7
Deferred consideration 5.6 1.8 3.2
Included within other financial assets and liabilities:
Loans to Joint Venture veterinary practices - initial set up loans
- Gross value of initial set up loans 3.7 4.9 4.3
- Allowance for expected credit losses for initial set up loans (0.4) (0.5) (0.4)
- Net initial set up loans 3.3 4.4 3.9
Loans to Joint Venture veterinary practices - other loans
- Gross value of other loans - 0.1 -
- Allowance for expected credit losses held for other loans - - -
- Net other loans - 0.1 -
Included within trade and other payables:
- Trading balance (8.2) (4.8) (8.2)
Total amounts receivable from veterinary practices (before provisions) 19.4 17.1 20.5
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 IFRS 15, revenue in the 28 week period ended 9 October 2025, the 52 week
period ended 27 March 2025 and the 28 week period ended 10 October 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.
Notes (continued)
15 Related parties (continued)
Trading balances represent costs incurred/income received by the Group in
relation to the services provided to the 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 £0.8m (10 October 2024: £1.9m).
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
(10 October 2024: £0.4m).
In the 28 week period ended 9 October 2025, the value of loans written off
recognised in the income statement amounted to £1.2m (10 October 2024:
£0.9m) which relates to operating loans.
At 9 October 2025, the Group had a commitment to increase the loan funding to
Joint Venture companies of £0.3m (10 October 2024: £0.2m), this increase in
funding is written into the Joint Venture agreements and becomes payable when
certain criteria are met.
Deferred fee income rebate of £2.1m (9 October 2025: £nil) 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.
The Group is a guarantor for the leases for veterinary practices that are not
located within Pets at Home stores.
16 Subsequent events
On 10 October 2025, the Group entered into an agreement with Jefferies
International Limited committing to £12.5m spend in relation to the share
buyback programme to be completed by 26 March 2026.
On 25 November 2025, the Group announced a restructuring of its Support Office
functions, aimed at simplifying the organisational structure and improving
operational efficiency. The proposed restructure is expected to result in the
removal of a number of roles and the consolidation of certain support
activities across the business.
As the decision to implement the restructure was made after the reporting date
of 9 October 2025, no provision for the associated costs has been recognised
in these financial statements, in accordance with IAS 10 Events After the
Reporting Period.
The restructure is expected to give rise to a one-off cost which cannot yet be
accurately reported but within the range of £6.0m- £8.0m, primarily relating
to redundancy payments, notice period obligations, outplacement support and
settlement agreements. These costs will be recognised as non-underlying costs
in the Group's full-year FY26 financial statements to 26 March 2026, when the
Group has a present obligation under IAS 37 Provisions, Contingent Liabilities
and Contingent Assets.
No other significant non-adjusting events have occurred between the reporting
date and the date these financial statements were authorised for issue.
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