Pre-tax Profit Expected to Reach £77m Amid Pandemic Resilience
- Pets at Home raises full-year guidance due to sales boost
- Pre-tax profit expected around £77m, up from previous guidance
- Robust balance sheet and liquidity position
- Strong sales momentum in retail and veterinary operations
- High-teens like-for-like sales growth in December
- Group remains an essential retailer amid Covid-19 restrictions
Pets at Home has raised its full-year guidance following a period of accelerated momentum in its third quarter of trading. Based on its current year-to-date trading and assuming no change to its ‘essential retailer’ designation, it now anticipates full-year pre-tax profit to be ahead of its previous guidance at around £77m, including the previously announced repayment of business rates relief of £28.9m from December. The group also highlighted its strong balance sheet and liquidity position, strengthened further by £80m in initial cash proceeds from the disposal of its Specialist Group. This comes after its half-year results for the period ended 8 October 2020 showcased the inherent resilience of both its pet care model and the underlying pet care market. The group reported ‘high-teens’ like-for-like sales growth during December, despite an extremely challenging environment. Pets at Home made the decision to up its guidance after this momentum accelerated across all channels during its third quarter. In its latest trading update, the group said: ‘While renewed Covid-related restrictions on a national level may constrain trade, we remain an essential retailer and the measures we continue to take across our stores, veterinary practices, and online operations are ensuring we remain in a strong position to meet all of our customers’ pet care needs.’
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Pets at Home’s financial performance and its resilience during the pandemic, with no signs of sensationalism or personal perspective presented as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Pets at Home’s financial performance and its resilience during the pandemic, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Pets at Home’s stock price and related retail/pet care industry stocks
Financial Rating Justification: The article discusses Pets at Home raising its full-year guidance due to strong sales momentum, which could impact the company’s financial performance and potentially affect the stock price. It also mentions the pet care market, which may have implications for related stocks in that sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
www.retailsector.co.uk