Company Announcements

FOR IMMEDIATE RELEASE, 03 November 2021

Pets at Home Group Plc: Directorate Change & Trading Update

Chief Executive Officer to step down post successful turnaround

Pets at Home Group Plc, the UK's leading pet care business, announces that Peter Pritchard has, after eleven years in the business, agreed with the Board that he intends to step down from his role as Chief Executive Officer and director of the Company next summer.

This follows the successful turnaround of the business, in which he developed and implemented the Group's pet care strategy, in support of its ambition to become the Best Petcare Business in the World.

Peter will remain fully engaged in his role as Chief Executive Officer until late May 2022, to oversee the presentation of the Group's 2022 preliminary results to investors and to ensure a smooth transition period to his successor. The search for his suitable successor has commenced across internal and external candidates, and a further announcement will be made in due course.

Becoming the Best Petcare Business in the World

Pets at Home is thriving under Peter's leadership. In the four years since his appointment as CEO, its share of the pet care market has grown significantly and its market capitalisation has increased almost fourfold, with the exceptional progress being made recognised externally through numerous awards including Transformation of the Year (PLC Awards 2020) and Best Place to Work and Best Retailer (Retail Week Awards 2021).

His strategy to leverage the Group's capabilities, bringing together joint venture veterinary services, grooming, product, multi-channel, and subscriptions has transformed the business into the UK's market leading omnichannel pet care provider focused on serving the needs of the pet owner. 

Underpinning this turnaround and Pets at Home's future growth has been strong investment in capacity and capability, creating a best-in-class data capability around an award-winning VIP loyalty club of more than 6.5m active members and, more recently, the £20m investment into building a unique, proprietary digital interface that seamlessly connects the Group's ecosystem of products and services for customers across all channels. The opening of a purpose-built, highly automated warehouse in Stafford in 2023 will enable a significant further increase in capacity and productivity to serve the UK's growing pet population, and the development of the new pet care centre format is the cornerstone of the Group's revitalised physical estate.

Peter's tenure has embodied a firm commitment to responsible leadership across the Group and a clear focus on values and purpose. Since the onset of the Covid-19 pandemic, Pets at Home has created a £1m colleague hardship fund, raised over £6m for pet charities, implemented discounts for NHS workers and returned £28m of business rates relief, all of which without Government support. Last year, Pets at Home also launched a new social value strategy and has made good progress against clearly defined targets across the three pillars of Planet, People and Pets.

Ian Burke, Chairman of Pets at Home, said:

"On behalf of the Board and colleagues across the Group, I would like to thank Peter for his significant contribution to Pets at Home since becoming CEO in 2018. His tireless work and dedication as leader of this great business has given it a very firm foundation for growth long into the future, for which we are all very grateful. We will all be very sorry to see Peter go, and he will leave us next summer with all our best wishes."

Peter Pritchard said:

"I have loved my time at Pets at Home. It is a privilege to lead such a talented and passionate group of colleagues on this journey and I am incredibly proud of the results we have collectively achieved. We are the market-leading pet care business which, supported by a highly capable Executive Management Team, has really good momentum and is primed to continue growing its share of market for many years to come.

Having completed everything that I set out to achieve in 2018, next summer is the right time to take well-earned rest and to hand over the reins to a new leader who will continue this journey in becoming the Best Petcare Business in the World. I would like to thank the Board for their support, and I look forward to maintaining the strong momentum in the business through the next few months and working with them to find and appoint a suitable successor."

Trading update

Pets at Home will announce its FY22 interim results on 23 November 2021. The UK pet market remains robust, and the strong performance witnessed across both parts of the business during the second half of last year has continued throughout the past six months.

Based on trading year to date, the Board now anticipates that Group underlying pre-tax profit for the 53 weeks to 31 March 2022 will be at the top end of the current range of analyst expectations*, ahead of previous guidance.

*As at 2 November 2021, the company-compiled consensus estimate of analyst expectations for the 53-weeks FY22 full-year post IFRS-16 underlying pre-tax profit was £131m, with a range of £128m to £135m.

-       End of announcement   -

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulations (Regulation (EU) No.596/2014). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Roger Tejwani, Director of Investor Relations & External Communication.

Notes

(i)         There is no further information to be disclosed in accordance with Listing Rule 9.6.13.

(ii)         Peter Pritchard will receive his normal salary and associated benefits until his leaving date. Peter will remain entitled to any bonus payable for FY22 in accordance with the remuneration policy (Policy). Any bonus for FY22 will be subject to the normal assessment of performance achieved over the period and will be subject to deferral in line with the Policy.  Peter will not be entitled to participate in the annual bonus scheme for FY23.

(iii)        Peter will be treated as a good leaver for the purposes of the outstanding tranches of the 2017 and 2018 restricted stock plan (RSP) awards. He will also be treated as a good leaver for the first tranche of the 2019 RSP award which is equal to 50% of the total award.  All of these awards will continue to vest on their usual vesting dates.  Good leaver treatment is being permitted because the performance period in respect of all grants referenced has, or will have, by the date of cessation, been completed. The remaining outstanding awards under the RSP will lapse in their entirety on cessation.

(iv)        The save as you earn scheme maturing in 2021 will be exercisable as normal.

(v)        Shares will continue to be subject to the post-cessation shareholding requirement for a period of two years after cessation.

(vi)        The above remuneration arrangements are compliant with the Group's Policy that was approved by shareholders in 2020.

Investor Relations Enquiries

Pets at Home Group Plc:

Roger Tejwani, Director of Investor Relations & External Communication
+44 (0)1279 927022  

Chris Ridgway, Head of Investor Relations
+44 (0)7788 783925

Media Enquiries

Pets at Home Group Plc:

Natalie Cullington, Head of Media & Corporate Affairs
+44 (0)7974 594 701

Maitland/AMO:  

Clinton Manning
+44 (0)7711 972662

Joanna Davidson
+44 (0)7827 254567

Kate Pledger

+44 (0)7879117238

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 453 stores, many of which also have vet practices and grooming salons. Pets at Home also operates a UK leading small animal veterinary business, with 442 First Opinion practices located both in our stores and in standalone locations. For more information visit: http://investors.petsathome.com/

Disclaimer

This trading statement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Pets at Home Group Plc shares or other securities nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever. It does not constitute a recommendation regarding any securities. Past performance, including the price at which the Company's securities have been bought or sold in the past, is no guide to future performance and persons needing advice should consult an independent financial adviser. Certain statements in this trading statement constitute forward-looking statements. Any statement in this document that is not a statement of historical fact including, without limitation, those regarding the Company's future plans and expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this statement. As a result you are cautioned not to place reliance on such forward-looking statements. Nothing in this statement should be construed as a profit forecast.