Pets At Home has posted rocketing annual sales as it cashes in on the success of its veterinary service, although online competition fears loom.
In 12 months to March the retailer saw pre-tax profits rise by 5.8 per cent to £95.4 million, enhanced by a 7.2 per cent jump in sales to £834 million, alongside a like-for-like rise of 1.5 per cent across the group.
Meanwhile revenues shot up 25 per cent to £47 million, culminating in a 2.5 per cent boost on share prices to 164.7p per share.
Despite warning that trading was likely to slow down at the end of last year, the retailer has opened 15 new stores, 50 vet practices and 50 grooming salons over the past year.
“We have delivered a solid performance over the year with profits in line with expectations,” chief executive Ian Kellett said.
READ MORE: Pets at Home posts rise in sales and profits
“In an evolving consumer environment, we are taking steps to reposition prices on own label Advanced Nutrition and pet essentials and have made some initial changes to branded food lines.
“We are confident this is the right path for success and will give us a strong platform for sustainable future growth.”
Despite the promising figures, some analysts doubt whether the retailer can compete with a growing online market.
Hargreaves Lansdown‘s equity analyst George Salmon added: “Pets At Home has a leading position in a reliable and growing market, and offers pretty much exactly what you would want when tasked with picking up some goodies for your pet; a clean and efficient service.
“Unfortunately, an even more convenient service can be found online, and this market is growing at an accelerating rate.”
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