Vets and grooming boost Pets At Home

SHARES IN Pets At Home surged as its growing raft of grooming and vet services helped drive third-quarter revenues up 9.6 per cent.

The specialist retailer said revenues totalled £223.3m for the 12 weeks to January 4, following a 13.6 per cent jump in its services business to £29.9m.

That includes a 19.3 per cent rise in income from its joint venture vet practice to £12.1m for the period.

The company has been working to expand its Vets4Pets and Groom Room services, with plans to open up to 50 new veterinary sites and up to 30 additional grooming salons over the full year.

It also cheered “excellent progress” in its merchandise division, where revenues increased 9 per cent to £193m – aided by a decision to cut prices as well as the addition of major “advanced nutrition” brands for dogs and cats.

Pets At Home Group shares were up more than 7 per cent in early trading at around 195p, sending it top of the FTSE 250.

Hargreaves Lansdown equity analyst George Salmon said it was good to see top-line growth “firmly back in the black”.

“It shouldn’t be forgotten sales have been boosted by the decision to cut prices, meaning the group is taking the hit on margins in the core pets merchandise division. However, the opportunity to grow its array of vet services and grooming salons is dependent on footfall in the core business rising.”