TIDMPETS
RNS Number : 4916I
Pets At Home Group Plc
02 April 2020
FOR IMMEDIATE RELEASE, 02 April 2020
Pets at Home Group Plc: FY20 Trading Update
Pets at Home Group Plc, the UK's leading pet care business,
announces the following post-close trading update for the year
ended 26 March 2020.
Full-year underlying pre-tax profit slightly ahead of
expectations
For most of our fourth quarter the Group traded in line with
market expectations (1) , reflecting the continuous execution of
our proven pet care strategy. In the closing weeks of the financial
year we have, however, experienced exceptional levels of demand,
both in-store and online, as the COVID-19 crisis has developed, and
have seen existing customers increase average basket size by
pulling forward purchases as well as new customers access our pet
products and healthcare services .
Our previous investments in omnichannel capacity, new customer
acquisition channels and subscription services had equipped us to
meet above-trend levels of demand and, with disruption in Far East
supply stabilising relatively quickly, our product availability
held up well.
Accordingly, we now expect underlying pre-tax profit for the
full year to be slightly above the top end of the range of current
market expectations (1.)
Balance sheet and liquidity
Our balance sheet is resilient and we maintain strong and
supportive relationships with our banking partners. We have
extensive headroom on debt capacity and covenants with a
significant proportion of our committed GBP248m Revolving Credit
Facility (RCF) remaining available for drawdown pre maturity in
2023. Total liquidity including cash balances is approximately
GBP160m, and we expect to end FY20 with a net debt/EBITDA ratio pre
IFRS16 of under 1.0x.
In view of the prevailing backdrop, we remain vigilant across
our funding requirements, ongoing measures for cash preservation
and prudent allocation of capital.
COVID-19 Update
Our priorities are first and foremost to safeguard the wellbeing
and safety of our colleagues, Partners, suppliers, customers and
pets, as well as ensure continuity of customer service in our
stores, Distribution Centres and support offices, and we have
implemented a number of protocols in this respect . These include
removing all but essential travel, the adoption of alternative
working arrangements for colleagues, procedures to protect the
health and safety of our colleagues and customers and advice and
support to colleagues on maintaining good health and wellbeing.
Our designation by the UK Government as an "essential retailer",
together with the national distribution of our UK store estate,
means that we can continue providing those pet products and health
care services that are deemed essential to the nation's pet owners,
at a time when pets are playing an increasingly vital role in our
daily lives.
In seeking to strike a balance between providing essential
services to the public alongside safeguarding the health and
wellbeing of our customers and colleagues, we have closed our Groom
Room salons and implemented all Government advice regarding social
distancing across our operations. While nearly all of our First
Opinion veterinary practices, and all of our Specialist Referral
centres, currently remain open to provide urgent and emergency pet
health care, in line with industry guidance, we do anticipate
reduced customer revenues. This, together with the likelihood of
lower store revenues resulting from other necessary measures we
have implemented, is expected to have a negative impact on our
normal levels of Group turnover as we start the new financial
year.
Outlook
Pets at Home is a resilient business with the capability to
adapt and respond quickly to changing market conditions. We have an
experienced management team who are not only determined to
successfully navigate the Group through these unprecedented times,
but also to create a stronger pet care business for the future, in
line with our previously communicated longer-term strategy.
Given the uncertain backdrop, we do not think it is appropriate
to give financial guidance for FY21 and beyond at this stage.
Subject to audit completion timelines, the Group currently plans to
announce its final results on Thursday, 21 May 2020, although this
date will be confirmed in due course.
Peter Pritchard, Group Chief Executive Officer, commented:
"While FY20 has undoubtedly ended strongly for Pets At Home
during this unprecedented time, the period ahead is uncertain for
us all, and Pets At Home will not be immune to these challenges
that we collectively face. I am extremely grateful that our
colleagues and operations have shown such resilience and
flexibility to meet the recent exceptional level of demand from
both existing and new customers. As ever, in difficult times
consumers turn to trusted brands and advice, and that is why we are
working tirelessly to ensure that we continue to provide essential
products and healthcare services for the UK's pets.
The health and safety of our colleagues, Partners, suppliers,
customers and pets remains our top priority. We continue to take
all appropriate action in line with Government advice and remain
vigilant to the potential impact of COVID-19 as we start the new
financial year. We are also providing support for the communities
that need us through GBP1.1m of funding to nominated pet charities,
a GBP1m crisis fund for colleagues and discounts to NHS workers as
they care for the nation's health. Finally, I would like to thank
all our fantastic colleagues, Partners and customers for their
amazing support during this challenging period. Amidst an
unprecedented backdrop, never has our role as a pet care provider
been more important, and never have we been more determined to
serve the nation's pet owners".
1. As at 26 March 2020, the Company compiled consensus for full
year pre-IFRS16 pre-tax profit was GBP93.7m, ranging from GBP92.0m
to GBP97.1m. The impact of IFRS16 is expected to reduce Group
underlying profit before tax by cGBP6-7m in FY20
This release contains inside information
Investor Relations Enquiries
Pets at Home Group Plc:
Roger Tejwani, Director of Investor Relations & External
Communications
+44 (0)1279 927022
Jonny Armstrong, Head of Investor Relations
+44 (0)797 5593237
Media Enquiries
Pets at Home Group Plc:
Gillian Hammond, Head of Media & Public Affairs
+44 (0)7442 500138
Maitland/AMO:
Clinton Manning
+44 (0)7711 972662
Joanna Davidson
+44 (0)7827 254567
About Pets at Home
Pets at Home Group Plc is the UK's leading pet care business;
our commitment is to make sure pets and their owners get the very
best advice, products and care. Pet products are available online
or from our 453 stores, many of which also have vet practices and
grooming salons. Pets at Home also operates a UK leading small
animal veterinary business, with 440 First Opinion practices
located both in our stores and in standalone locations, as well as
four Specialist Referral centres. For more information visit:
http://investors.petsathome.com/
Disclaimer
This trading statement does not constitute an invitation to
underwrite, subscribe for, or otherwise acquire or dispose of any
Pets at Home Group Plc shares or other securities nor should it
form the basis of or be relied on in connection with any contract
or commitment whatsoever. It does not constitute a recommendation
regarding any securities. Past performance, including the price at
which the Company's securities have been bought or sold in the
past, is no guide to future performance and persons needing advice
should consult an independent financial adviser.
Certain statements in this trading statement constitute
forward-looking statements. Any statement in this document that is
not a statement of historical fact including, without limitation,
those regarding the Company's future plans and expectations,
operations, financial performance, financial condition and business
is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially. These risks and uncertainties include, among
other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect
the outcome and financial effects of the plans and events described
in this statement. As a result you are cautioned not to place
reliance on such forward-looking statements. Nothing in this
statement should be construed as a profit forecast.
This information is provided by RNS, the news service of the
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END
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April 02, 2020 02:00 ET (06:00 GMT)
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