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Pets at Home pulls float despite strong year

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By Rory Gallivan

Date: Monday 21 Apr 2008

LONDON (ShareCast) - Pet shop chain Pets at Home reported a more than 50% rise in pretax profits for 2007 but said it has postponed plans for a stock market flotation given the current market turmoil.

Pretax profits jumped to £30.9m from £19.9m as turnover climbed to £354.6m from £306.45m. Like-for-like sales rose 8%.

Pets at Home, which sells fish and other small animals as well as pet food and accessories including ‘fashion’ items, added that sales momentum had been maintained in the 15 weeks since Christmas.

“Given the company's continued strong performance and our confidence in its future prospects, the board and its advisers have decided not to initiate a sale of the business in the current economic environment,” chief executive Matthew Davies said.

“To do so at this time would inevitably undervalue what is a fantastic business.”

Pets at Home, which operates 213 stores across the UK, appointed Rothschild to advise it on future options including a stock market floatation.

Although it is one of several companies wary of listing on the stock exchange in the current climate, such fears have not deterred Longships, an investment company looking to buy into strategic and special situations, from floating. The company’s 23,080,002 shares were admitted for trading on AIM today, after it raised £3m through a placing, giving it gross cash before expenses of £3.4m.

Recent quarterly statistics show that only £848m was raised through rights issues, open offers and placings in the first three months of 2008, compared with £1.69bn the same period a year ago.