Segmental Reporting Information

RNS Number : 7597C

Pets At Home Group Plc

03 October 2018

 

FOR IMMEDIATE RELEASE, 3^rd October 2018

Pets at Home Group Plc

Pets at Home Group Plc, the UK's leading pet care business, today issues prior year unaudited financial information for the H1 FY18 and FY18 period, under the new financial segmentation. This provides a comparable set of financial statements for the upcoming announcement of H1 FY19 interim results on the 27^th November 2018.

In FY19, the Group's financial reporting has changed to two segments that represent the size of the respective businesses and our new internal reporting structures; Retail (includes products purchased online and in-store, pet sales, grooming services and insurance products) and Vet Group (includes our First Opinion practices and Specialist Referral Centres).  

Investor Relations Enquiries

Pets at Home Group Plc:

[phone]

Amie Gramlick, Director of Investor Relations

About Pets at Home

Pets at Home Group Plc is the UK's leading pet care business; our commitment is to make sure pets and their owners get the very best advice, products and care. Pet products are available online or from our 449 superstores, many of which also have vet practices and grooming salons. Pets at Home also operates a UK leading small animal veterinary business, with 468 First Opinion practices located both in our stores and in standalone locations, as well as four Specialist Referral centres. For more information visit: http://investors.petsathome.com/

Pets at Home Group Plc, Segmental reporting information for the 52 week period ended 29 March 2018

The Group has moved to two reportable segments, Retail and Vet Group, which are the Group's strategic business units for the 52 week period ending 28 March 2019. In the 52 week period ended 29 March 2018, the Group only reported under one segment.

Presented below, are the unaudited financial metrics for the 52 week period ending on 28 March 2018, under the new reportable segments.

Key Performance Indicators

FINANCIALS		Q1 FY18	HY FY18		Q3 FY18		FY18
Revenue	Revenue Split (£m)
	Retail	229.2	418.5		202.3		804.8
	Vet group	27.3	49.5		21.0		94.1
	Total Group	256.5	468.0		223.3		898.9
	Revenue Mix (% of total revenues)
	Retail	89%	89%		91%		90%
	Vet group	11%	11%		9%		10%
	Like-for-like growth (%)
	Retail like-for-like growth	1.4%	2.8%		6.4%		4.6%
	Vet Group like-for-like growth	17.3%	16.7%		16.9%		15.0%
	Total Group like-for-like growth	2.7%	3.9%		7.2%		5.5%

Segmental reporting

The Group's operating segments are based on the internal management structure and internal management reports, which are reviewed by the Executive Directors on a periodic basis.  The Executive Directors are considered to be the Chief Operating Decision Makers.

The Group is a pet care business with the strategic advantage of being able to provide products, services and advice, addressing all pet owners' needs. Within this strategic umbrella, the Group has two reportable segments, Retail and Vet Group, which are the Group's strategic business units, and a central support function. The strategic business units offer different products and services, are managed separately and require different operational and marketing strategies.

The operations of the Retail reporting segment comprise the retailing of pet products purchased online and in-store, pet sales, grooming services and insurance products. The operations of the Vet Group reporting segment comprise First Opinion practices and Specialist Referral Centres.  Central includes group costs and finance expenses. Revenue and costs are allocated to a segment where reasonably possible. 

The following summary describes the operations in each of the Group's reportable segments.  Performance is measured based on segment operating profit, as included in the management reports that are reviewed by the Executive Directors. These internal reports are prepared in accordance with IFRS accounting policies consistent with these Group Financial Statements. All material operations of the reportable segments are carried out in the UK and all revenue is from external customers.

			52 week period ended 29 March 2018
Income Statement - Underlying trading			Retail £000				Vet Group £000				Central £000		Total £000
Revenue			804,849				94,075				-		898,924
Gross Profit			420,278				44,330				-		464,608
Underlying Operating profit			65,137				29,572				(5,906)		88,803
Non-underlying items			(2,685)				(2,244)				-		(4,929)
Segment operating profit			62,452				27,328				(5,906)		83,874
Net financing expenses			-				-				(4,278)		(4,278)
Profit before tax			62,452				27,328				(10,184)		79,596
Non-underlying items in Retail operating profit in the 52 week period ended 29 March 2018 of £2,685,000 relates to the closure of our seven trial Barkers stores and the associated lease commitments, including disposal of fixed assets. Non-underlying operating items in Vet Group operating profit includes £1,625,000 in relation to the ownership structures and accounting treatment of the Specialist Referral Centres (Dick White Referrals Limited, Eye-Vet Limited and Anderson Moores Veterinary Specialists Limited), where the discounted future value of shares owned by clinician partners is recognised as an expense over the period to which their value can be realised. Other Vet Group non-underlying items includes £619,000 in relation to halted merger and acquisition costs. Vet group Underlying Operating profit is shown net of provisions charged against operating loan funding provided by the Group to First Opinion veterinary practices of £5,673,000 for the 52 week period ended 29 March 2018.  This includes £701,000 in relation to balances written off.
				26 week period ended 12 October 2017
Income Statement - Underlying trading				Retail £000				Vet Group £000			Central £000		Total £000
Revenue				418,505				49,509			-		468,014
Gross Profit				218,646				24,461			-		243,107
Underlying Operating profit				31,009				16,286			(3,180)		44,115
Non-underlying items				-				(966)			-		(966)
Segment operating profit				31,009				15,320			(3,180)		43,149
Net financing expenses				-				-			(2,370)		(2,370)
Profit before tax				31,009				15,320			(5,550)		40,779
Non-underlying operating items in Vet Group operating profit includes £966,000 in relation to the ownership structures and accounting treatment of the Specialist Referral Centres (Dick White Referrals Limited, Eye-Vet Limited and Anderson Moores Veterinary Specialists Limited), where the discounted future value of shares owned by clinician partners is recognised as an expense over the period to which their value can be realised. Vet group Underlying Operating profit is shown net of provisions charged against operating loan funding provided by the Group to First Opinion veterinary practices of £452,000 for the 26 week period ended 12 October 2017.
					52 week period ended 29 March 2018
Reconciliation of EBITDA before Non-Underlying items					Retail £000				Veterinary £000		Central £000		Total £000
Underlying Operating profit					65,137				29,572		(5,906)		88,803
Depreciation expense					26,306				1,974		-		28,280
Amortisation expense					5,845				358		-		6,203
Underlying EBITDA					97,288				31,904		(5,906)		123,286
					26 week period ended 12 October 2017
Reconciliation of EBITDA before Non-Underlying items					Retail £000				Veterinary £000		Central £000		Total £000
Underlying Operating profit					31,009				16,286		(3,180)		44,115
Depreciation expense					14,005				945		-		14,950
Amortisation expense					2,880				211		-		3,091
Underlying EBITDA					47,894				17,442		(3,180)		62,156

 

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