Britain’s largest pet retailer has witnessed its shares plummet more than 13 per cent after slashing its annual profit forecast amid mounting pressure from recent budget measures and dampened consumer spending on pet accessories.
The FTSE 250-listed Pets at Home now anticipates only modest profit growth for the year, with analysts projecting annual pre-tax profits around £144 million for the 2025 financial year. The Cheshire-based organisation faces an £18 million cost surge following measures introduced in Rachel Reeves’s recent budget.
Chief Executive Lyssa McGowan highlighted the significant impact of lowering the national insurance contribution threshold from £9,100 to £5,000, noting the particular burden this places on retailers with flexible workforces. The company plans to implement various measures including automation, productivity programmes and selective price adjustments to offset these additional costs.
Despite challenges in its retail segment, the company’s veterinary division demonstrated robust performance, with like-for-like revenues climbing 18.2 per cent to £92.8 million. The veterinary practices benefited from increased transaction values and higher patient volumes.
Overall revenue reached £789.1 million for the 28 weeks to October 10, marking a modest 1.9 per cent increase from the previous year. The retail side remained flat, which the company attributed to unusually subdued market conditions.
The pet care giant, operating more than 450 centres across Britain, continues its strategic transformation into a unified pet care platform, integrating retail, grooming, and veterinary services through a new digital application. The company remains engaged with the Competition and Markets Authority’s ongoing investigation into the veterinary sector.
The market’s reaction was swift and severe, with shares tumbling 47p to 230p, reaching a four-year low and reflecting growing investor concerns about the company’s near-term prospects amidst challenging economic conditions.
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