Drop in profits at Pets at Home

The leading UK pet store chain Pets at Home has suffered an 80 per cent drop in profits before tax to £8 mio in the first six months of its financial year, as compared with the same period a year ago. The company ended its first six months of the fiscal year on 11 October.
The massive drop is attributable to unplanned costs on restructuring of the veterinary business. Together with its joint venture partners, Pets at Home operates 471 veterinary clinics. 55 of these will be bought back by Pets at Home, with 25 being operated by the company itself and 30 likely to be closed. Pets at Home will have to factor in unbudgeted costs amounting to £49 mio for the restructuring of its veterinary division by 2020. £29.9 mio of this was allocated in the first six months of the current financial year alone.
As of the end of the first six months, Pets at Home operated 451 pet stores and 471 veterinary practices in the UK. Sales during this period amounted to £499.3 mio, an increase of 6.7 per cent compared with the first six months of 2018.