Pets at Home Group has launched a £25m share buyback programme as sales growth slowed less than expected.
The programme will be undertaken in two phases, the first of which begins today and ends before September 27, 2024, and follows £100m in completed buybacks over the last two years.
Pets at Home, which is listed on the London Stock Exchange, said the purpose of the move was to “reduce the company’s share capital” and has appointed Numis Securities to conduct the share buyback programme on its behalf.
The company’s update for the year to March 28, 2024, revealed a 13.7 per cent decline in profit before tax to £105.7m, with the group blaming its office consolidation for the dip.
Total group revenue grew by 5.2 per cent to £1.5bn, while vet group revenue grew 16.8 per cent and retail revenue was up four per cent.
Following the release of its annual results, Dan Coatsworth, investment analyst at AJ Bell, said: “Shares in Pets at Home, which have been buffeted by weakening demand and a CMA probe into the vet industry, were steady following the company’s full-year results.
“Profit fell, as expected, but more significantly the company stuck with guidance for what CEO Lyssa McGowan has described as a ‘pivotal year’ ahead as the company launches a new digital platform.”
He added: “It’s no secret that Britons love their pets but while people might still buy the basics, demand for all the little extras like toys and treats, which are lucrative sales for Pets at Home, has waned.
“By offering everything under one roof, including grooming and veterinary services, Pets at Home hopes to drive loyalty and bat off the competitive threat from non-specialists like the supermarkets.”
Last month the competition watchdog confirmed it would press ahead with an investigation into the UK’s vet industry following concerns pet owners are not getting value for money.
Pets at Home, which has 400 surgeries across the UK, will be one of the companies examined by the body.