Pets At Home (LON: PETS) has reported a 17 percent fall in pre-tax profits in full-year results.
Chief executive Peter Pritchard remained positive despite the fall in profits, saying there is “a bright future” for the pet shop.
The group has said the next financial year will be the second of its three-year “financial transition” as it aims for sustainable profit growth.
Margins fell to 51.7 percent from 54.2 percent in the same period last year. Like-for-like revenue rose by 5.5 percent.
“The veterinary services market is a very attractive space in which we can grow. We have a profitable business delivering strong returns, achieved largely through our preference to work in partnership with vets who share in the success of their practice,” said Pritchard.
“The shortage of qualified vets in the UK remains an industry wide problem, so we have chosen to slow our practice rollout to be sure we open practices in quality locations for the best vet partners.”
Pets At Home are hoping to open five superstores, 20-25 vet practices, and 10-20 grooming salons in the next year.
“Our plans to reposition retail are working, more customers are coming back to shop with us, and we are committed to returning the business to profit growth. But it hasn’t been easy. We took decisive action, threw passion and energy into it, and delivered targeted pricing changes to give customers the products that mattered most to them, with the service and value they expect from us,” said Pritchard.
In Tuesday’s early morning trading, Pets at Home shares were down 3.9 percent at 151.8p.
