Pets at Home raises profit expectations after strong quarter

Pets at Home Group PLC (LON:PETS) has raised its full-year profit expectations after posting ‘high-teens’ group sales growth during December.

The pet products retailer estimates full-year underlying pre-tax profit, including the previously announced repayment of business rates relief of £28.9mln, to be at least £77mln.

READ: Pets at Home to take £35mln hit as it joins business rates repayment train

Last month, the FTSE 250 group said it would take a profit hit of £35mln on profit expectations of £93.5mln as it would no longer be able to offset coronavirus (COVID-19) specific costs and restrictions against the relief.

However, as the strong momentum seen in the half-year to October 8, 2020, has continued into the third quarter, it has raised its expectations.

The firm is classified as an essential retailer so it is allowed to trade even during the current lockdown.

At the end of 2020, Pets at Home said it strengthened further its cash position after receiving £80mln in initial cash proceeds relating to the completion of the disposal of its specialist group.