Pets at Home enters the stock market

Although its share price fell initially in the early days following the launch, the company has attracted considerable public interest. The word has been going around even among investors that the pet industry seems to be an almost recession-free area of household spending. And following a cooling in the relationship between Russia and the western industrialised nations, and the slowdown in growth in China, a sector such as this is welcome at a time in which clouds are once again gathering on the economic horizon.

With over 370 stores and an estimated share of 12 per cent of the British pet supplies market, Pets at Home is a runaway success. The company employs around 6 000 staff, and growth in recent years has been solid. Between 2011 und 2013, sales increased by 15 per cent while underlying profits rose 7.6 per cent. Total revenues are running at £590 mio annually and underlying profits before interest, tax and depreciation are close to £87 mio. Pets at Home was founded in 1991 by Anthony Preston and was sold by venture capital firm Bridgepoint to American private equity outfit KKR in January 2010 for £955 mio.

Pets at Home has embarked on a number of ventures in recent years to expand its market base and cover further niches in the pet supplies market. The retail company bought York-based retailer Ride-Away and moved into the equestrian market. Last year it also acquired Vets4Pets, a chain of 93 vets, in a deal thought to be worth £20 mio. Pets at Home continues to invest steadily in the expansion of its grooming business, The Groom Room, both in respect of new salons and in the infrastructure necessary to operate a national in-store chain of salons. It currently runs around 120 Groom Room salons.
Investment in new products is a further focal point for Pets at Home. The pet retailer extended its food offering under its private label brand Wainwrights with the addition of grain-free products. It has also developed a range of advanced nutrition products for cats. In 2013 the company set about implementing LED lighting in all of its aquatic systems and small animal housings.