Pets at Home puts sale on hold

Source: Retail Digital

Date :22/04/2008 10:16:40

Private equity firm Bridgepoint has scrapped the planned £600 million sale of Pets at Home Ltd, the pet shop chain, despite strong 2007 figures.

The Cheshire-based group appointed advisors before Christmas about a possible sale or float however, the group is now worried it will not get a fair price for the firm in the current climate.

Pets at Home chief executive Matthew Davies said: "The board and its advisers have decided not to initiate a sale of the business in the current economic environment. To do so at this time would inevitably undervalue what is a fantastic business."

Momentum

On Monday, the 213-store retailer also announced record full year results.

Underlying pre-tax profits at the retailer rose 55.6 percent to £30.9 million in the year to March 27. Like for like sales rose eight percent.

'In the 15 weeks since Christmas we have continued to maintain our sales momentum and we remain confident about the year ahead,' said Mr. Davies.

'We continue to focus on improving the in-store experience for our customers, increasing margin growth, introducing new ranges and services and developing colleagues across the business. This, coupled with our plans to open further stores and new veterinary practices this year gives us confidence for the year ahead.'

April 22, 2008