Pets at Home has seen its shares rise 8% in trading today (writing at 2.50pm) despite reporting a big drop in profits in its latest annual results.
In the Cheshire-based company’s first full-year results announcement since the departure of former CEO Lyssa McGowan in September 2025, revenue fell 0.8% and remains just under £1.5 billion.
However profit before tax was £86.5m, representing a 28.3% drop.
Pets at Home’s retail business was down 1% to under £1.3bn, but its vets business grew 5% to £688m. However it said the launch of its ‘retail turnaround plan’ in Q3 had brought improved focus and clear priorities to that side of the business, driving improving sequential sales and volume growth through H2.
The percentage of consumer revenues from subscriptions grew from 13% to 15.2%. Care plans grew strongly, with now well over 50% of its vet clients having a plan.
It remains on track to launch its pets insurance arm this year, it added.
New CEO James Bailey painted a positive picture. A former boss at Waitrose, he was appointed to lead a turnaround following the sudden departure of McGowan, a former McKinsey consultant and Sky executive with no retail experience.
He has been in post for just a few weeks. Sarah Pollard, formerly of PZ Cussons, has also taken over the CFO role from the retiring Mike Iddon this month.
“Pets at Home is a business with many strengths, a strong shared purpose and great potential and I am excited to lead it through its next chapter,” said Bailey.
“I have spent my early weeks immersing myself in the business, meeting colleagues and practice owners, understanding our customers and learning about the capabilities we have across the group. I have found a business full of talented and committed people who want to do the best for our customers and their pets.
“This time in the business has increased my conviction on the opportunity to create value for customers, colleagues and investors of Pets at Home.
“We are the clear leader in the growing UK pet care market with a unique set of highly complementary businesses. We have considerable, sustainable competitive advantages including our unrivalled reach through our 460 pet care centres, our sector-leading vet business, our large and loyal customer base and well invested infrastructure.
“Material progress has been made over the past six months stabilising the retail business, delivering improved satisfaction and better availability. We have the opportunity now to build momentum through profitable volume led growth in retail while continuing to execute the proven growth levers of our vet business and launch our insurance offering.”
Pets at Home’s shares are more than 2% up in the year to date but have lost a quarter of their value in the last 12 months.
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