Pets At Home’s profits have declined in double figures as its chief executive and non-executive director quit.
Despite the retailer reporting a revenue rise of six per cent to £468 million alongside like-for-like growth of 3.9 per cent in its interim results, Pets At Home has seemingly lost the confidence of its investors.
Share prices dropped seven per cent this morning as the pet retailer reported an 11.3 per cent drop in pre-tax profits to £40.8 million.
Alongside this, chief executive Ian Kellett announced his departure and will be succeeded by retail boss Peter Prichard in May next year.
Elsewhere, non-executive director Nicolas Gheysens – who represents the retailer’s largest investor KKR on the board – has announced his departure.
KKR have also chosen not to replace him.
Last month KKR sold £119 million worth of Pets At Home stock, just under half of its stake, for an estimated 195p per share coming in well below its debut price of 245p per share.
This could suggest that KKR is attempting to distance themselves from the retailer, likely resulting in the significant dip in share prices.
“The actions we have taken this year to reposition retail pricing have landed well, and we have a clearly defined plan that will deliver further results,” Kellett said.
“It is with this in mind that I feel able to move on and pursue my own personal business interests, which will provide me with a different type of challenge at this point in my career.”