Pets at Home's sales boosted by vet clinics and salons

Helen Cahill
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Pets at Home has over 350 pet stores across the UK
Pets at Home has over 350 pet stores across the UK (Source: Getty)

Pets at Home is set to announce a rise in sales this week as its vet clinics continue to provide growth for the business.

Analysts are expecting a sales rise of 4.6 per cent to £462m in Pets at Home's interim results, driven by 14.3 per cent growth in the firm's services arm, which includes its vet and salon services.

Read more: Pets at Home dogged by sliding shares as KKR sells a chunk of its stake

For the full year, analysts at Berenberg expect sales to come in at £882m, up 5.8 per cent year-on-year, from £834m. They said the chain's retail business is "showing signs of like-for-like stability" after a difficult period last year.

Pre-tax profit is expected to fall from £96m to £87m, however, a drop of 10.3 per cent.

"Pets at Home's veterinary business is often overlooked, given the limited clarity provided on it in the company's reporting," the analysts said.

"However, it is of substantial value, in our view, growing by double digits and being operated under a highly cash generative franchise-type model."

Berenberg estimates this arm of the business is worth upwards of £700m.

At the beginning of October, Pets at Home's share price was hit when private equity giant KKR sold £119m worth of stock in the retailer. KKR sold just under half of its stake, reducing its holding to 12.4 per cent.

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