FY26 Interim Results

RNS Number : 9965I

Pets At Home Group Plc

26 November 2025

A black text on a white background AI-generated content may be incorrect.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE, 26 NOVEMBER 2025

Pets at Home Group Plc: FY26 Interim Results
for the 28 week period to 09 October 2025

Taking action at pace to address Retail performance; FY expectations unchanged

Key financial results

Statutory Metrics	FY26 H1	FY25 H1	YoY %
Group Statutory Revenue (£m)	778.3	789.0¹	(1.3)%
Group Statutory PBT (£m)	36.2	51.1	(29.1)%
Statutory Basic EPS (p)	5.7	7.9	(27.7)%
Dividend (p)	4.7	4.7	0.0%

Financial Performance Metrics		FY26 H1	FY25 H1	YoY %
Group Consumer Revenue^# (£m)		1,055.8	1,048.5¹	0.7%
	- Retail	679.9	696.2¹	(2.3)%
	- Vet Group	375.9	352.3	6.7%
Group Underlying PBT^# (£m)		36.2	54.5	(33.5)%
	- Retail	3.5	22.0	(84.1)%
	- Vet Group	44.9	41.5	8.3%
Free Cash Flow^# (£m)		34.0	33.1	2.6%
	- Retail	(11.1)	1.2
	- Vet Group	53.6	45.7	17.3%
Adjusted Net Debt^# (£m)		(12.0)	(8.3)	44.6%
Underlying Basic EPS^# (p)		5.7	8.4	(32.1)%

1. £0.1m has been reclassified from cost of sales to revenue in the 28-week period ended 10 October 2024.

Ian Burke, Interim Executive Chair:

"Stepping into the role as Interim CEO 10 weeks ago, I set out with a clear agenda - to establish a firm grip on the issues facing our Retail business, whilst maintaining the positive results we're seeing in areas such as Vets. For over 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base, but it's clear that urgent and necessary action is needed to return the Retail business to growth to meet both our own expectations and those of our investors.

I've spent time visiting over 100 Pet Care Centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of Product, Price, Execution and Cost. We are returning to our retailing roots to stabilise and rebuild momentum in our Retail business, and to lay the foundations for a new CEO in due course.

At the heart of our business remains 17,000 trusted and passionate colleagues and vet partners, and it's through them that we will deliver future growth. I am grateful to them all for their unwavering dedication and energy and together we'll ensure the business can thrive again."

Financial Highlights

●	Group consumer revenue^# up 0.7% to £1.06bn.
	ᵒ	Vet Group consumer revenue^# up 6.7%, high quality growth driven by average transaction values and continued growth in Care Plan revenues with over 50% of clients having one. Visits were more subdued due to more of our clients entering healthy mid-life where visits are lower.
	ᵒ	Retail consumer revenue^# down 2.3%, delivered against a flat market growth and no inflation of note. Q2 performance sequentially improved over Q1 as we saw a full quarter of strong online performance, partially offsetting weaker store sales. Food sales declined 0.3% with accessories sales falling 5.9%, lagging a soft market.
●	Total Group statutory revenues down 1.3% to £778.3m, with Group like-for-like^# (LFL) revenue -1.3%.
●	Group operating costs broadly flat excluding insurance start-up costs. Including them they grew 1.2% YoY. Well within the stated guidance of 'operating costs to increase no more than 5% in FY26'.
●	Group underlying PBT^# of £36.2m down 33.5% YoY, underlying PBT margin^# of 4.7% down c220bps.
	ᵒ	Vet Group underlying PBT^# of £44.9m up 8.3% YoY, underlying PBT margin^# of 45.7% up c90bps driven by the operational gearing from higher JV practice revenues alongside an ongoing improvement in managed practice profitability.
	ᵒ	Retail underlying PBT^# of £3.5m down 84.1% YoY, underlying PBT margin^# of 0.5% down c260bps. Retail gross margins saw a 105bps reduction YoY driven by targeted price investment c40bps, adverse category mix c30bps and lower supplier income c20bps.
●	Group statutory PBT £36.2m down 29.1% YoY, statutory PBT margin of 4.7% down 181bps with no non-underlying costs vs £3.4m in FY25 H1.
●	Underlying Basic EPS^# 5.7p, down 32.1% with an underlying profit for the period decline of 33.5%, partially offset by share buyback accretion.
●	Interim dividend per share of 4.7p is flat YoY
●	Free cash flow^# up 2.6% to £34.0m, the reduction in Group underlying PBT^# is being offset by lower capex, cash tax and non-underlying cash costs as well as a working capital timing benefit.
	ᵒ	Vet Group £53.6m up from £45.7m YoY driven by high quality sales growth, leveraged through our capital light model alongside a working capital timing benefit which will unwind in H2.
	ᵒ	Retail -£11.1m down from £1.2m YoY lower underlying PBT^# being partially offset by a lower capex outflow.
●	Balance sheet remains robust with adjusted net debt^# of £12.0m (before lease liabilities of £338.0m) vs adjusted net debt^# of £8.3m in the prior year. Cash and cash equivalents of £49.0m up from £40.0m in the prior year.
●	FY26 £25m share buyback program is 50% complete, once complete will result in £150m in buybacks in last 4 years.

Business Highlights

●	Pets Club members⁴ down 2.4% to 7.9m due to a decline in our active retail customer base.
●	Pets Club average consumer value⁵ up to £185 due to an increase in spend across our Vet customer base.
●	Subscription % of consumer revenues⁶ continues to grow, 14.6% of Group Consumer revenue^# now generated via subscriptions (YoY up from 11.4²%). Growth continues to be driven by Easy Repeat and Care Plans.
●	Digital platform is performing well with LFL's improving in the half, Q2 delivered double-digit sales growth.
●	'Pets Insurance' on track - We are on track to launch in 2026 having made good progress on building our team, the necessary infrastructure and we are progressing toward regulatory approval.
●	Pets Club Pricing launched - Providing the very best deals for consumers. Our independent brand tracker has shown a meaningful improvement in Value for Money perception.
●	Puppy & Kitten sign up in growth - c17k average weekly sign-ups has increased 13% YoY.
●	Vet expansion on track - We have opened 5 new practices and completed 3 vet extensions in H1 and remain on track for 10 new practice openings and 15 vet extensions in FY26. To support this, we continue to win vet talent, with clinical FTE headcount up 5.5% YoY and 70 new practice owners welcomed in H1.
●	Taking action on costs, we have initiated a restructuring program to reduce Group overheads by £20m. This program will incur non-underlying costs of £6-8m in FY26, but with payback of less than 12 months as we expect a full year of benefit in FY27.
●	CMA provisional decision - we acknowledge the CMA's provisional findings and will continue to engage with the CMA in moving towards a final conclusion in 2026.

Progress against our strategy

Over the past two and a half years the business has gone through a profound period of transformation to realise our strategic ambition of 'Building the world's best Petcare platform', by bringing together a best-in-class omnichannel proposition with our unique blend of services, through an integrated and consumer centric experience. We have made much progress against this strategy, modernising our omnichannel platform and enhancing our capabilities.

An integrated consumer experience

●	Built and launched our new digital and data platform - We have replatformed our digital capabilities, replaced outdated capability with a modern platform which is performing well.
●	Created a single unified master brand - we unified our disparate portfolio of brands under a single 'Pets' brand, supported by the 'We're all for Pets' campaign. Since its launch we have seen an improvement in brand perception, improvement which continues across key brand metrics.
●	Our distribution network is optimised in a single site - We have modernised our distribution capabilities at a single, enterprise grade distribution centre in Stafford. This DC is seeing improving levels of efficiency and supporting very high levels of availability throughout the business.

Growing our recurring revenue streams

●	Relaunched Easy Repeat - we have relaunched our Easy Repeat proposition in FY25 and generating considerable growth in the Easy Repeat revenues. 4% of Pets Club members now have an Easy Repeat subscription, with Easy Repeat revenues up 50% on FY25.
●	Care Plans - we relaunched our Care Plan proposition in our vets in FY24 and continue to innovate and improve our offer. We have seen pleasing growth in the number of plans in recent years, believing our penetration to be industry leading with over 50% of vet clients now having a care plan.

Differentiated, sector-leading vets

●	We have a sector leading and differentiated Veterinary business - Our Vet Group is #2 in the UK First Opinion sector and is responsible for a large proportion of our consumer revenues^# and the majority of our Group underlying PBT^# and Group Free Cash Flow^#.
●	Our JV proposition is unique in the UK vet sector and supports some of the most productive assets in the sector, operated by our expert and trusted vet partners. Over the past 3 years our partners have been able to take over £100m in dividends with average practice revenues growing by an average of 15% per annum.
●	We have proven levers of growth from driving out maturity, extending practices, building out advanced capabilities and opening new practices, and we have plenty of headroom to grow further with an opportunity for 100 new practices and 100 extensions over the medium term, continuing the good progress we have seen to date.
●	Long term growth underpinned by predictable spending behaviour - our Vet Group is in a period where new customer registrations and visits will reflect normalised puppy & kitten numbers and more pets entering mid-life. However, our success in acquiring customers in recent years will drive an acceleration in growth in the medium term as pandemic cohorts age, compounded by the building impact of new practice openings.

Insurance

●	On track to launch a Pets at Home branded insurance in 2026, accessing the largest pet care vertical outside of our current businesses, leveraging a number of existing capabilities we have.
●	We have made good progress to date, defining our product, identifying critical partners and moving towards regulatory approval. We are building out our platform with our partners.

Addressing our shortcomings

We believe the fundamentals of our strategy are the right ones, however we know that recent results in Retail have fallen well below our expectations and those of our investors. We have conducted an in-depth examination of the root causes of our Retail sales shortfall and identified the main causes as being:

●

Advanced Nutrition - In recent years the Advanced Nutrition (AN) market has shifted rapidly to new premium, Direct to Consumer entrants, at the expense of legacy branded players, where innovation has been lacking. We remain the largest player in the AN segment but are over-exposed to these legacy ranges, which has limited our ability to access the premiumisation driven growth in the market. Our own label performance, where we have innovated with our partners, has been much stronger with both sales and volumes growing.

●

Accessories - we have seen declines in accessories sales for >3 years now. While there are undoubtedly headwinds from cyclicality and channel shift, a large part of this has been self-inflicted, by not having the right products at the right price points, with the right execution. Our progress in delivering innovation and breadth to our accessories ranges has been slower than we aimed for and we have underperformed the weak underlying market.

Our Retail business has been additionally impacted by the disruption of two major infrastructure projects: the move to a single fulfilment centre at Stafford and the development and launch of our digital platform. The implementation of these projects was more complex than we originally envisaged leading to extra costs in some areas and execution issues that have led to lost and dissatisfied customers.

Our Retail Turnaround Plan

We have a firm grasp of the issues that are holding us back and are acting now to address them. We are moving quickly to simplify our approach and focus our efforts on 4 clear priorities:

1.	Product - we believe the root cause of our sales shortfall is product related. Such issues can take time to fix but we are moving ahead with a clear plan to reset and revitalise our ranges in Advanced Nutrition. In Accessories, once we have added buying and merchandising capabilities to our existing team, we will focus on the opportunity for better performance through improved own brand product innovation & new partnerships with third-party brands.
2.	Price - price is a fundamental discipline for our business. We monitor it closely and act when required, recently investing £4m reducing prices on over 1,000 Food products by an average of 12%. Combined with Pets Club Prices, Easy Repeat discounts and leading private labels we have an increasingly compelling value proposition for customers and have seen Value for Money perception increase 6 points in H1. However, we are not complacent and will not compromise on price going forward.
3.	Execution - we have launched many new initiatives in recent years, but our execution has not been good enough, for example, our execution of price and promotional changes, and the rollout of Easy Repeat In Store. We are moving quickly to address this. The issues identified are fixable and are within our control. We are focused on improving commercial execution through simplified strategies and better forward planning. By simplifying, we will better support our store colleagues and drive better execution for customers.
4.	Cost - we have controlled cost well in recent years through productivity programs including the implementation of a leaner store operating model which was embedded earlier in the year. This has enabled us to mitigate a number of external cost headwinds, most notably a £48m rise in NICs/National Living Wage over the past 3 years. However, our cost base has also increased due to the increased complexity of the business. We have already initiated actions to address this and will reduce overheads by £20m as we simplify the business. We will continue to look for ways to optimise our cost base either through reducing costs or redirecting them to areas that benefit customers.

While product issues will take time to fully enact and impact our business, it is clear what is required to improve the immediate financial performance of the business. We are getting on with this now, simplifying priorities for our colleagues, looking to compete more effectively and being laser focussed on the customer. We see plenty of room for improvement both in the short and longer-term performance and will continue efforts to build momentum ahead of a new CEO being appointed. The process to identify a new CEO continues to progress.

Building on fundamental strengths

Pets at Home's prospects remain strong. We are the market leader in a structurally attractive market and with the right actions can win and create significant value for shareholders. Pet care remains a very attractive market benefiting from structural growth trends around premiumisation and humanisation. Even while the market has been subdued recently, these trends have continued unabated as indicated by the success of premium direct-to-consumer offerings.

In this market, Pets at Home retains considerable competitive advantages.

●	Leading scale - with 7.9m active Pets Club customers and many more vet clients and non-Pets Club customers, we remain the leading UK pet specialist and most important route to market for any pet brand.
●	Expert colleagues - we have 17,000 highly trained, passionate colleagues and clinicians that help consumers take the best care of their pets and will be at the heart of our turnaround. We have a proven track record in educating consumers, introducing innovation and growing new categories when we support colleagues in the right way, we are determined to improve in this area.
●	Unrivalled reach - our 459 Pet Care Centres give us unrivalled reach to the nation's pet owners, and bring together products, grooming, and vets while enabling much of our digital revenue. We have a well located, well rented, and flexible estate with no long tail of unprofitable stores.
●	A well invested omnichannel platform - we have invested significantly in our capability in recent years with modernised distribution capabilities and a new digital platform, now in place and working well. We are the only UK pet care business capable of offering consumers a complete pet care solution across product and service.
●	Sector leading vets - our Vet Group is a unique asset, operating some of the most productive assets in the industry through empowering our partners with our support and services. Over recent years, on average we have grown sales 15% and profits 20% with significant headroom to grow further through the proven growth levers of maturity, extensions and new practices.

We are confident our strategy is well aimed but know that our execution needs to improve to make better use of the unique and unrivalled assets and capabilities we have at our disposal. We are focussed on delivering this improvement to deliver better outcomes for our customers, our colleagues and our shareholders.

Current trading and outlook

We make no changes to our underlying PBT^# guidance of £90-100m. In September, we reduced our underlying PBT^# guidance to £90-100m, to reflect continued softness in the UK pet retail market and our relative performance. We remain on track to deliver against this range.

●	Vet Group trading remains in line with expectations.
	●	Vet Group revenues continue to grow in line with our expectations, albeit slower than our medium-term ambition of 'high-single digit' this year as we build momentum in our new practice opening program. We expect our Vet Group to deliver PBT >£80m.
●	Retail performance is improving sequentially but remains behind a flat market with no inflation.
	●	Market growth in H1 was flat against which we lost share but with Q2 improving over Q1.
	●	Online continues to generate double-digit digital sales growth with store performance more challenging. The retail turnaround plan is key to improving performance further.
	●	As we look to H2 we expect market growth to remain around 0% and slightly positive Retail LFL growth expected as we lap very soft comps.
●	Insurance is on track to launch in 2026. We have identified our key partners now, and due to the phasing of our tech build with these partners expect losses in FY26 to be around £5m now (from £3m).
●	Our search for a new CEO continues to progress and we will update in due course.
●	Due to the costs of our restructuring programme, we now expect to incur around £6-8m of non-underlying costs in FY26.
●	We continue to maintain tight discipline around our capital expenditures and expect to spend c£50m in FY26
●	We now expect to finish the year with around £25m of net debt.
●	We expect a full year tax rate of 27-28%.

Key Performance Indicators³


Number of active Pets Club members⁴ (m)	7.9	8.1	(2.4)%
Average Consumer Value⁵ (£)	185	177⁸	4.4%
% of Consumer Revenue from Subscriptions⁶ (%)	14.6%	11.4%²	28.8%
Clinical FTE Headcount⁷ (k)	3.7	3.5	5.5%

2.	Restated from 12.4%, prior year now reporting against the last 365 days prior to the end of the reporting period.
3.	Financial KPIs represent those used by the business to monitor performance. Management recognise that as Alternative Performance Measures they differ to statutory metrics, but believe they represent the most appropriate KPIs.
4.	Retained consumers are active Pets Club members who transacted across the group in the last 365 days prior to the end of the reporting period for both the current and prior year.
5.	Average consumer value (ACV) is the average spend of active Pets Club members across the group over the last 365 days based on consumer revenue, rather than statutory revenue.
6.	Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care and Vac4Life plans and is divided by Group consumer revenue.
7.	Full time equivalent number of all vets and nurses working across the group, based on standard working hours.
8.	Restated from £175

Results presentation

A presentation for analysts and investors will be held today at 9:30am at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF, attendance is by invitation only. To access a live streaming of the event, please click on the following link https://brrmedia.news/PETS_FY26_IR. A webcast and statement of these results will be available for playback after the event at www.petsathomeplc.com.

Our next scheduled update will be our Q3 trading update on 28 January 2026.

Investor Relations Enquiries
Pets at Home Group Plc: Andrew Porteous, Director of Investor Relations	+44 (0) 7740 361 849
Aaron Wood, Head of Investor Relations	+44 (0) 7702 083 154
Media Enquiries
Pets at Home Group Plc: Natalie Cullington, Head of Communications	+44 (0) 7974 594 701
Citigate Dewe Rogerson: Angharad Couch	+44 (0) 7507 643 004

About Pets at Home

Pets at Home Group Plc is the UK's leading pet care business, providing pets and their owners with the very best advice, products and care. Pet products are available online or from over 450 Pet Care Centres, many of which also have vet practices and grooming salons. The Group also operates a leading small animal veterinary business, with over 450 veterinary general practices located both in our Pet Care Centres 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.

This announcement contains information that is inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (the Market Abuse Regulation ("MAR")). Upon the publication of this announcement, such information will no longer constitute inside information. Andrew Porteous, the Company's Director of Investor Relations, is the person responsible for making the notification for the purposes of Article 17 of MAR.

Chief Financial Officer's Review

The FY26 period represents the 28 weeks from 28 March 2025 to 09 October 2025. The comparative period represents the 28 weeks from 29 March 2024 to 10 October 2024.

The Group's results are shown as four segments that represent the size of the respective businesses and our internal reporting structures; Retail (includes products purchased online and in-store, pet sales, grooming services and legacy insurance commissions via our 3^rd party arrangement), Vet Group (includes general practices and our veterinary telehealth business), Central (includes Group costs and finance expenses) and our Insurance business (includes start-up costs).

	FY26 H1	FY25 H1	YoY
Group statutory revenue (£m)	778.3	789.0¹	(1.3)%
Retail	679.9	696.2¹	(2.3)%
Vet Group	98.4	92.8	6.1%

Group consumer revenue^# (£m)	1,055.8	1,048.5¹	0.7%
Retail	679.9	696.2	(2.3)%
Vet Group	375.9	352.3	6.7%

Group like-for-like revenue growth^#	(1.3)%	1.5%
Retail	(2.2)%	(0.0)%
Vet Group	6.7%	17.6%

Group gross profit margin	45.5%	46.3%	(80)bps
Retail	44.1%	45.2%	(105)bps
Vet Group	54.7%	54.4%	29bps

Group statutory PBT (£m)	36.2	51.1	(29.1)%
Group statutory PBT margin	4.7%	6.5%	(181)bps

Group underlying PBT^# (£m)	36.2	54.5	(33.5)%
Retail	3.5	22.0	(84.1)%
Vet Group	44.9	41.5	8.3%
Insurance	(2.2)	0.0
Central	(10.0)	(9.0)	11.1%

Group underlying PBT margin^#	4.7%	6.9%	(224)bps
Retail	0.5%	3.2%	(264)bps
Vet Group	45.7%	44.7%	93bps

Statutory basic EPS (p)	5.7	7.9	(27.7)%
Underlying basic EPS^# (p)	5.7	8.4	(32.1)%

Operating Costs (£m)	(309.2)	(305.4)	1.2%
Non-underlying items² (£m)	0.0	(3.4)
Free cash flow^# (£m)	34.0	33.1	2.6%
Cash and cash equivalents (£m)	49.0	40.0	22.5%
Adjusted net debt^# (£m)	(12.0)	(8.3)	44.6%
Dividend (p)	4.7	4.7	0.0%

Number of
Pet care centres	459	461	(2)
% of Pet care centres with a vet practice	69%	67%
Joint Venture vet practices	404	394	10
Company managed vet practices	48	54	(6)
Grooming salons	341	345	(4)

1.	£0.1m has been reclassified from cost of sales to revenue in the 28-week period ended 10 October 2024.
2.	FY25 H1 non-underlying items of £3.4m. £1.7m relates to the transition to our new distribution centre, £3.1m relates to our support office restructuring and £0.9m relates to the costs of the ongoing CMA investigation. Alongside this we had a disposal on investment gain of £2.3m which relates to the disposal of Pure Pet Food.

Revenue

Group consumer revenue^# grew 0.7% to £1,055.8m (Vet Group³ up 6.7% to £375.9m, Retail down 2.3% to £679.9m).

Consumer Revenue YoY Growth^#	Q1 25	Q2 25	H1 25	Q3 25	Q4 25	H2 25	FY 25
Retail	(0.8)%	1.1%	0.1%	(2.4)%	(5.2)%	(3.7)%	(1.8)%
Vet Group	13.3%	12.6%	13.0%	14.2%	11.9%	13.0%	13.0%
Group	3.6%	4.7%	4.1%	2.3%	0.2%	1.2%	2.7%

Consumer Revenue YoY Growth^#	Q1 26	Q2 26	H1 26
Retail	(2.8)%	(1.7)%	(2.3)%
Vet Group	7.1%	6.2%	6.7%
Group	0.5%	1.0%	0.7%

3.	Vet Group consumer revenue^# consists of revenue from both Joint Venture and company managed practices, income generated from non-revenue based fees such as supplier income and income from our telehealth business 'The Vet Connection'

Group statutory revenue declined 1.3% to £778.3m with like-for-like (LFL^#) revenue down 1.3%.

Vet Group statutory revenue was up 6.1% to £98.4m with LFL^# revenue up 6.7%.

●	Joint Venture fee income was up 7.7% (LFL 6.5%) with Joint Venture consumer revenues up 7.1%.
	ᵒ	In the half we saw 8 practices converted from company managed to joint venture.
●	Revenues from company managed practices increased by 1.4% to £28.1m with LFL^# revenue up 7.5%
	ᵒ	In the half we saw 5 practice acquisitions going from joint venture to company managed.
●	The Vet Connection (our telehealth business), generated revenue of £2.1m, +2.3% YoY.

Retail statutory revenue was down 2.3% to £679.9m with -2.2% LFL^# growth.

●

Food sales declined 0.3%, as we saw declines across branded ranges (-2.2% LFL), with our own brands in LFL growth in the period (+2.3% LFL). Discretionary accessories remain the most impacted area lagging a soft market, down 6.5%. Consumable accessories down 5.0% as we had a weak flea & worm season this year alongside annualising a very strong season in the prior year.

LFL^# Revenue Growth	Q1 25	Q2 25	H1 25	Q3 25	Q4 25	H2 25	FY 25
Retail	(0.8)%	0.9%	(0.0)%	(2.8)%	(5.5)%	(4.1)%	(2.0)%
Vet Group	19.5%	15.3%	17.6%	19.9%	9.6%	14.5%	16.2%
Group	1.0%	2.2%	1.5%	(1.0)%	(4.0)%	(2.5)%	(0.4)%

LFL^# Revenue Growth	Q1 26	Q2 26	H1 26
Retail	(2.8)%	(1.4)%	(2.2)%
Vet Group	7.8%	5.2%	6.7%
Group	(1.8)%	(0.8)%	(1.3)%

Gross margin

Group gross margin⁴ decreased YoY by 80bps to 45.5%. Retail contributed 91bps towards the Group movement, with Vets improving the group position by 11bps.

●	Gross margin⁴ within the Vet Group increased by 29bps to 54.7%. The main contributor being the growing contribution of Joint Venture fee income, we also saw strong sales and better profit conversion within our company managed practices.
●	Gross margin⁴ within Retail was 44.1%, a 105bps decline YoY driven by targeted price investment c40bps, adverse category mix c30bps and lower supplier income c20bps.

Operating costs

We continue to manage our cost base tightly to mitigate cost headwinds and remain well within our previously stated guidance for operating costs to grow by no more than 5%. Operating costs were broadly flat excluding insurance start-up costs. Including them they grew 1.2% YoY.

(£m)	FY26 H1	FY25 H1	YoY
Group statutory revenue	778.3	789.0¹	(1.3)%
Selling and distribution expenses	243.3	239.2	1.7%
Administrative expenses	74.4	70.7	5.3%
Other income	(8.5)	(7.9)⁶	8.5%
Underlying operating costs	309.2	302.0	2.4%
Non-underlying costs	0.0	3.4
Operating costs	309.2	305.4	1.2%
Underlying operating costs to sales ratio	39.7%	38.3%	145bps

4.	Gross margin is calculated as gross profit as a percentage of revenue.
5.	Operating costs are the sum of selling and distribution expenses, administrative expenses, other income and non-underlying costs. These can be found on the consolidated income statement.
6.	In the 28 week period ended 10 October 2024, £1.0m relating to amounts earned from supplier funding income has been reclassified from selling and distribution to other income and £10.8m has been reclassified from selling and distribution expenses to administrative expenses. These adjustments have been posted to aid comparability with the current year.

We continue to keep a tight grip on our cost base. ensuring our operational costs align with current performance whilst not adversely impacting sales in the process. Alongside this we have our ongoing productivity initiatives, which span across procurement, lease renegotiations, distribution automation as well as the implementation of a leaner store operating model which was embedded earlier in the year.

Cost is a key component of our retail turnaround plan. We have begun a significant program to reduce our overheads by c£20m as we simplify our business. We expect to incur non-underlying costs of £6-8m in FY26 as we implement this change program, with FY27 seeing a full year benefit from the program.

Finance expense

The net finance expense, including interest charged on lease liabilities, reduced to £8.5m (FY25 H1: £8.6m). Of this, £7.3m (FY25 H1: £7.1m) related to interest expense on lease liabilities.

Profit before tax (PBT)

Group statutory PBT £36.2m decreased £14.9m (29.1% YoY) with no non-underlying costs in the period vs £3.4m in the prior year.

Group underlying PBT^# £36.2m (FY25 H1: £54.5m), with Group underlying PBT margin⁷ of 4.7%, down 224bps YoY due to a reduction in Retail profit conversion. Vet Group positively contributed.

●	Vet Group statutory and underlying^# PBT was £44.9m (FY25 H1: £41.5m) with underlying PBT margin⁶ of 45.7% (FY25 H1: 44.7%), driven by strong sales performance across both Joint Venture and company managed practices being leveraged on a broadly flat cost base.
●	Retail statutory PBT was £3.5m (FY25 H1: £22.6m). Retail underlying PBT^# was £3.5m (FY25 H1: £22.0m) with underlying profit margin⁷ of 0.5% (FY25 H1: 3.2%). Gross margins reduced by 105bps YoY (see relevant section). In addition, the profit decline was driven by the decline in sales with operating costs stable.
●	Underlying Central costs of £10.0m (FY25 H1: £9.0m) includes payroll costs for Group functions, professional fees, and PLC related costs.
●	Insurance set up costs of £2.2m which were incurred in period as we build the team, with c£5m expected to be incurred in FY26.

(£m)	FY26 H1	FY25 H1	YoY
Group statutory PBT (£m)	36.2	51.1	(29.1)%
Retail	3.5	22.6	(84.5)%
Vet Group	44.9	41.5	8.3%
Insurance	(2.2)	0.0
Central	(10.0)	(13.0)	(23.2)%
Group statutory PBT margin	4.7%	6.5%	(181)bps

Non-underlying items (£m)	0.0	(3.4)

Group underlying PBT^# (£m)	36.2	54.5	(33.5)%
Retail	3.5	22.0	(84.1)%
Vet Group	44.9	41.5	8.3%
Insurance	(2.2)	0.0
Central	(10.0)	(9.0)	11.1%
Group underlying PBT margin⁷	4.7%	6.9%	(224)bps

7.	Group underlying PBT margin is calculated as underlying profit before tax as a percentage of revenue.

Taxation, profit after tax & EPS

●	Total tax expense was £10.0m for the period. The effective tax rate for the period is 27.6% (FY25 H1 26.4%), which is higher than the UK corporation tax rate due to expenditure not allowable for tax relief.
●	Statutory profit after tax decreased by 30.2% to £26.2m.
●	Statutory basic earnings per share (EPS) 5.7 pence (FY25 H1: 7.9 pence) and underlying basic EPS^# 5.7 pence (FY25 H1: 8.4 pence).

Working capital

The cash flow movement in working capital⁹ for FY26 H1 was an inflow of £12.2m from the year end, (FY25 H1: £3.4m inflow).

Compared to H1 last year:

●	Inventories decreased by £3.9m YoY (inflow), lower inventory due to carrying more stock in the prior year for the online transition to Stafford DC.
●	Trade and other receivables increased by £13.0m YoY (outflow), part of which is due to an increase in deferred consideration due to a higher volume of successful Vet practice conversions from company managed to joint venture.
●	Trade and other payables have increased by £17.3m YoY (inflow) due to timing differences within Vet Group payments being made to joint venture partners which will unwind in H2.

Investment

Capex was £20.5m (FY25 H1: £24.1m) down £3.6m YoY as we keep capex investment at normalised levels following peak investment in prior years. Investment remains focused on our strategic priorities; £14.4m (FY25 H1: £15.6m) investment into our Pet Care Centre estate. £5.1m (FY25 H1: £4.4m) digitising the business, £0.4m (FY25 H1: £3.5m) into distribution which is lower following completion of our network optimisation in Spring 2025.

Free cash flow^#

Free cash flow^# (FCF) was £34.0m (FY25 H1: £33.1m).

●	Vet Group FCF# £53.6m up £7.9m YoY due to consumer revenue# growth flowing into JV fee income alongside a working capital timing benefits which will unwind in H2.
●	Retail FCF# -£11.1m down £12.3m YoY due to lower underlying PBT# (£18.5m) with lower capex partially offsetting as we return to a more normalised level of investment.


Underlying PBT^#	36.2	3.5	44.9	(12.2)	54.5
Interest (net)	8.5	6.9	(0.3)	1.9	8.6
Depreciation (underlying)	55.9	53.6	2.1	0.2	53.3
Leases	33.9	33.2	0.5	0.2	34.0
PPE & amortisation of assets	22.0	20.4	1.6	0.0	19.3
Underlying EBITDA	100.6	64.0	46.7	(10.1)	116.4
Share-based payment charge	3.9	0.0	0.0	3.9	3.2
Non-underlying cash costs	0.0	0.0	0.0	0.0	(4.8)
Lease payments⁸	(47.3)	(46.5)	(0.8)	0.0	(43.3)
WCAP⁹	12.2	(3.6)	15.3	0.5	3.4
Operating cash flow	69.4	13.9	61.2	(5.7)	74.9
Capex¹⁰	(20.9)	(21.0)	0.1	0.0	(24.9)
Bank interest (net)	(0.7)	0.2	0.4	(1.3)	(1.5)
Tax	(9.6)	(4.2)	(8.1)	2.7	(12.5)
Purchase of own shares (employee share schemes)	(4.2)	0.0	0.0	(4.2)	(2.9)
Free Cash Flow	34.0	(11.1)	53.6	(8.5)	33.1


8.	Lease payments are cash payments for the principal portion of the right-of-use lease liability, they also include interest paid on lease obligations, costs to acquire right-of-use assets and the right-of-use asset costs.
9.	Working capital is the sum of YoY movements in trade and other receivables, inventories, trade and other payables, and provisions.
10.	Capex is the net proceeds from the sale of property, plant and equipment less costs to acquire right of and acquisition of property, plant and equipment and other intangible assets. It also includes investment capital contributions and proceeds from repayment of partner loans.
11.	Central includes £2.2m of insurance set up costs

The cash generation described above, enables us to invest to grow our business as well as fund our equity dividend and share buyback programme. Our balance sheet remains robust, our closing adjusted net debt position^# at the end of the period was £12.0m (cash £49.0m, debt £61.0m). This represents a leverage ratio^# of 0.1x underlying EBITDA.

Adjusted Net cash (£m)	FY26 H1	FY25 H1
Opening adjusted net cash^#	6.2	8.8
Free cash flow^#	34.0	33.1
Equity dividends paid	(37.7)	(38.4)
Share buyback	(12.6)	(12.5)
Acquisitions	(0.7)	(1.3)
Disposals	(1.2)	2.0
Closing adjusted net cash^#	(12.0)	(8.3)

Pre IFRS 16 leverage	0.1x	0.0x

Capital allocation

Our capital allocation policy prioritises investing cash in areas that will expand the Group and deliver attractive returns. These areas include organic investment (into our digital capability, our infrastructure, and our store refit program), our dividend policy (targeting a payout of 50% of earnings per share over the medium term) and value-accretive opportunities including M&A (which are strategically aligned to expanding our platform in core and adjacent markets). We will return to shareholders any surplus cash after these items, and it is the Board's intention to review this on an annual basis. We have completed £125m in share buybacks over the past three years and are 50% through a £25m buyback in the current financial year, in total reducing the shares in issue by c9%.

Dividend

The Board has recommended an interim dividend of 4.7 pence per share vs the prior year which was 4.7 pence per share. The interim dividend will be payable on 9th January 2026 to shareholders on the register at the close of trading on 5th December 2025.

25 November 2025

Mike Iddon
Chief Financial Officer

# Alternative Performance Measures (APMs) are defined and reconciled to IFRS information, on pages 16- 18. To simplify reporting, the number of APMs have been reduced from 10 to 7.

Risks and Uncertainties

An effective risk management process has been adopted to help the Group achieve its strategic objectives and enjoy long term success. The Board have reviewed the principal risks and uncertainties since the publication of the annual report for the 52 week period ended 27 March 2025, whilst some of the risks have been updated in the period, the principal risk remain unchanged. The principal risks and uncertainties comprise:

· Brand and reputation

· Information security and business critical systems

· Omnichannel consumer proposition

· Sustainability and climate change

· People and organisational capability

· Competition and consumers

· Responsible sourcing and supply chain

· Liquidity and credit

· Treasury and finance

· Legal and compliance

The Board continues to review the risks and uncertainties that may arise as a result of geopolitical tensions and the actual and potential impact on supply chains, as well as energy cost inflation and foreign exchange volatility.

A detailed explanation of the risks and uncertainties which were identified for the 52 week period ended 27 March 2025 can be found on pages 21 to 29 of the 2025 Annual Report which is available at http://investors.petsathome.com.

Responsibility Statement

We confirm that to the best of our knowledge:

a) the condensed set of financial statements has been prepared in accordance with UK-adopted IAS 34 'Interim Financial Reporting';

b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events and their impact during the first 28 weeks and description of principal risks and uncertainties for the remaining 24 weeks of the year); and

c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board on 25 November 2025

A drawing of a fire and a hand drawn object AI-generated content may be incorrect.

Ian Burke, Interim Executive Chair Mike Iddon, Chief Financial Officer

Disclaimer

This statement of interim financial results 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 advisor.

Certain statements in this statement of interim financial results 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 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 of interim financial results. 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.

INDEPENDENT REVIEW REPORT TO PETS AT HOME GROUP PLC

Conclusion

We have been engaged by the company to review the condensed set of financial statements in the interim financial report for the 28 week period ended 9 October 2025 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and related notes 1 to 16.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the 28 week period ended 9 October 2025 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this interim financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusion Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however, future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the Directors

The directors are responsible for preparing the interim financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the interim financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Review of the Financial Information

In reviewing the interim financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the interim financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our Report

This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Deloitte LLP

Statutory Auditor

Manchester, United Kingdom

25 November 2025

Alternative Performance Measures ('APMs')

Guidelines on Alternative Performance Measures (APMs) issued by the European Securities and Markets Authority came into effect for all communications released on or after 3 July 2016 for issuers of securities on a regulated market.

In the reporting of financial information, the Directors have adopted various APMs of historical or future financial performance, position or cash flows other than those defined or specified under International Financial Reporting Standards (IFRS).

The Directors measure the performance of the Group based on the following financial measures which are not recognised under UK-adopted IFRS and consider these to be important measures in evaluating the Group's strategic and financial performance. The Directors believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.

APMs are also used to support the comparability of information between reporting periods, by adjusting for non-underlying items to aid the user in understanding the Group's performance.

In previous reporting periods, the Group disclosed total indebtedness, lease adjusted leverage and cash return on invested capital ('CROIC') as APMs. To simplify the reporting we have reduced the number of APMs reported from ten to seven. As a result, these APMs have not been reported in the current period. The remaining APMs are used by the Directors and management for performance analysis, planning, reporting and incentive setting purposes and are consistent with prior year. These APMs may not be directly comparable with other companies' APMs and the directors do not intend to for these to be superior to, or a substitute for, IFRS measures.

All APMs relate to the current period's results and comparative periods where provided.

Several APMs exclude non-underlying items (see definition below) in order to reflect management's view of the performance of the business. Due to this, APMs should not be regarded as a complete picture of the Group's financial performance, which is presented in its financial statements. The exclusion of non-underlying items may result in adjusted earnings being materially higher or lower than total earnings.

A full glossary of APMs is included in the most recent Annual Report & Accounts which are available at http://investors.petsathome.com.

References to Underlying GAAP measures and Underlying APMs throughout the interim statements are measured before the effect of non-underlying items.

Alternative Performance Measures ('APMs') (continued)

APM

Definition and purpose

Reconciliation

Consumer revenue

Consumer revenue being statutory Group revenue, less Joint Venture veterinary practice fee income (which forms part of statutory revenue within the Vet Group), plus gross consumer sales made by Joint Venture veterinary practices (unaudited). This is an important measure as it includes the revenue from all vet practices whether they be under the Joint Venture or Company managed model which is used in the assessment of market share.

Consumer revenue (£m)	HY26	HY25	Note
Statutory Group revenue	778.3	789.0¹	CIS
Joint Venture fee income	(60.6)	(56.3)	2
Revenue by Joint Venture practices	338.1	315.8
Consumer revenue²	1,055.8	1,048.5
¹£0.1m has been reclassified from cost of sales to revenue in the 28 week period ended 10 October 2024. ²Consumer revenue cannot be directly referenced in the financial statements as revenue by all veterinary practices relates to all Joint Venture consumer revenue. CIS = Consolidated Income Statement

Like-for-like revenue

Like-for-like revenue growth comprises total revenue in a financial period compared to revenue achieved in a prior period for stores, online operations, grooming salons and veterinary practices that have been trading more than 52 weeks prior to both the current and prior period reporting date, excluding fee income from Joint Venture practices where the Group has bought out the Joint Venture Partners. The measure is used widely as an indicator of sales performance.

¹£0.1m has been reclassified from cost of sales to revenue in the 28 week period ended 10 October 2024.

Like-for-like revenue (£m)	HY26	HY25	Growth	Note
¹Retail revenue	679.9	696.2	-2.3%	2
New stores and grooming salons	(3.7)	(4.7)
Retail like-for-like revenue	676.2	691.5	-2.2%

Vet Group revenue	98.4	92.8	6.1%	2
New practices	(7.6)	(8.1)
Vet Group other income	(7.6)	(6.7)
Vet Group like-for-like revenue	83.2	78.0	6.7%

¹Statutory Group revenue	778.3	789.0	-1.3%	CIS
New stores, grooming salons and practices	(11.3)	(12.8)
Vet Group other income	(7.6)	(6.7)
Group like-for-like revenue	759.4	769.5	-1.3%

Underlying profit before tax

Underlying profit before tax (PBT) is based on pre-tax profit before the impact of certain costs or incomes that are excluded as they are not generated from ordinary business operations, infrequent in nature and unlikely to reoccur in the foreseeable future in order to reflect management's view of the performance of the Group. The underlying profitability of the Group is an important measure of delivery against strategic objectives.

Underlying PBT (£m)	HY26	HY25	Note
Underlying PBT	36.2	54.5	CIS
Non-underlying items (note 3)	-	(3.4)	CIS
Profit before tax	36.2	51.1

CIS = Consolidated Income Statement

Underlying basic EPS

Underlying basic earnings per share (EPS) is based on earnings per share before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying basic EPS (p)	HY26	HY25	Note
Underlying basic EPS	5.7	8.4	4
Non-underlying items	-	(0.5)
Basic earnings per share	5.7	7.9	4

Free

cash flow

Net increase/(decrease) in cash before the impacts of dividends paid, share buybacks, investment movements, acquisition and disposal of subsidiaries, proceeds from new loans and repayment of borrowings. This measure shows the cash generated by the Group during the year that is available for strategic investments or returning to shareholders.

Free cash flow (£m)	HY26	HY25	Note
Net increase/(decrease) in cash	9.5	(17.1)	CFS
Remove effects of:
Dividends (note 6)	37.7	38.4	CFS
Loan drawdown	(50.0)	-	CFS
Repayment of borrowings	22.3	-	CFS
Share buyback	12.6	12.5	CFS
Investment movements	-	(1.3)	CFS
Acquisition of subsidiaries	0.7	0.3	CFS
Disposal of subsidiaries	1.2	0.3	CFS
Free cash flow	34.0	33.1
CFS = Consolidated Statement of Cash Flows

Alternative Performance Measures ('APMs') (continued)

Adjusted net debt

Cash and cash equivalents less the face value of loans and borrowings. Lease liabilities are excluded.

Adjusted net (debt)/cash (£m)	HY26	HY25	Note
Cash and cash equivalents	49.0	40.0	CBS
Loans and borrowings (face value)	(61.0)	(48.3)	12
Adjusted net debt	(12.0)	(8.3)

Pre IFRS 16 leverage

Adjusted net cash (above) divided by underlying

earnings before interest, taxes, depreciation and amortisation ('EBITDA') less expected rental charges. Figures have been presented on a rolling 52 week proforma basis. This measure is important because it is a covenant metric.

Pre IFRS 16 Leverage (£m)	HY26	HY25	Note
Adjusted net debt (above)	(12.0)	(8.3)
Statutory operating profit	121.4	137.1
Underlying depreciation of property, plant and equipment	31.2	27.5
Underlying depreciation of right-of-use assets	62.1	63.5
Amortisation of intangible assets	8.1	8.8
Non-underlying depreciation of property, plant and equipment	-	1.1
Non-underlying depreciation of right-of-use assets	2.5	2.8
Other non-underlying items in EBITDA	6.5	12.8
Underlying EBITDA	231.8	253.6
Less:
Proforma rental charges	(75.8)	(76.7)
Underlying EBITDA (pre IFRS 16)¹	156.0	176.9
Pre IFRS 16 Leverage	0.1x	0.0x
¹Proforma rental charges pre IFRS 16 cannot be directly referenced in the financial statements as the balance represents 52 weeks (FY24: 52 weeks) of rental charges for each lease held at the balance sheet date.

Condensed consolidated income statement

	Note	28 week period ended 9 October 2025			28 week period ended 10 October 2024 restated¹
	Note	Underlying trading £m	Non-underlying items (note 3) £m	Total £m	Underlying trading £m	Non-underlying items (note 3) £m	Total £m
Revenue	2	778.3	-	778.3	789.0¹	-	789.0¹
Cost of sales		(424.4)	-	(424.4)	(423.9) ¹	-	(423.9) ¹
Gross profit		353.9	-	353.9	365.1	-	365.1
Selling and distribution expenses		(243.3)	-	(243.3)	(239.2)²	(1.7)	(240.9)²
Administrative expenses		(74.4)	-	(74.4)	(70.7)²	(4.0)	(74.7)²
Other income	3	8.5	-	8.5	7.9¹	2.3	10.2¹
Operating profit	2	44.7	-	44.7	63.1	(3.4)	59.7
Financial income		1.4	-	1.4	1.7	-	1.7
Financial expense		(9.9)	-	(9.9)	(10.3)	-	(10.3)
Net financing expense		(8.5)	-	(8.5)	(8.6)	-	(8.6)
Profit before tax		36.2	-	36.2	54.5	(3.4)	51.1
Taxation	5	(10.0)	-	(10.0)	(14.9)	1.4	(13.5)
Profit for the period		26.2	-	26.2	39.6	(2.0)	37.6

¹During the current financial period, management identified a misallocation in the prior year's expense classification. An amount of £10.8m previously reported under selling and distribution expenses has been reclassified to administrative expenses. Additionally, in the 28 week period ended 10 October 2024, £0.1m has been reclassified from cost of sales to revenue and £1.0m relating to amounts earned from supplier funding income has been reclassified from selling and distribution to other income. These adjustments have been posted to aid comparability with the current year.

Basic and diluted earnings per share attributable to equity shareholders of the Company:

Note

28 week period ended

9 October 2025

28 week period ended

10 October 2024

Equity holders of the parent - basic

5.7p

7.9p

Equity holders of the parent - diluted

5.6p

7.8p

Dividends paid and proposed are disclosed in note 6.

Condensed consolidated statement of comprehensive income

	28 week period ended 9 October 2025 £m	28 week period ended 10 October 2024 £m
Profit for the period	26.2	37.6
Other comprehensive income/(expense)
Items that are or may be recycled subsequently into profit or loss:
Effective portion of changes in fair value of cash flow hedges	1.3	(0.4)
Net change in fair value of cash flow hedges reclassified to profit or loss	-	0.1
Other comprehensive income/(expense) for the period, before income tax	1.3	(0.3)
Income tax on other comprehensive (expense)/ income (note 5)	(0.1)	0.2
Other comprehensive income/(expense) for the period, net of income tax	1.2	(0.1)
Total comprehensive income for the period	27.4	37.5

The notes on pages 24 to 44 form an integral part of these consolidated interim financial statements.

Condensed consolidated balance sheet

	Note	At 9 October 2025 £m	At 10 October 2024 £m	At 27 March 2025 £m
Non-current assets
Property, plant and equipment	8	163.3	159.3	161.7
Right-of-use assets	9	280.4	305.4	284.6
Intangible assets	10	982.7	983.3	985.1
Other financial assets		19.1	11.3	15.0
		1,445.5	1,459.3	1,446.4
Current assets
Inventories	11	110.2	114.1	106.9
Derivative financial assets		0.5	0.4	0.5
Income tax receivable		1.8	1.1	0.2
Trade and other receivables		77.2	64.2	63.3
Cash and cash equivalents		49.0	40.0	39.5
		238.7	219.8	210.4
Total assets		1,684.2	1,679.1	1,656.8
Current liabilities
Trade and other payables		(290.1)	(272.8)	(255.6)
Interest-bearing loans and borrowings	12	(4.7)	(2.8)	(4.7)
Lease liabilities	9	(75.3)	(80.0)	(78.5)
Provisions		(4.2)	(6.4)	(5.1)
Derivative financial liabilities		(2.2)	(2.0)	(1.7)
		(376.5)	(364.0)	(345.6)
Non-current liabilities
Interest-bearing loans and borrowings	12	(54.8)	(43.2)	(26.7)
Lease liabilities	9	(262.7)	(284.7)	(269.8)
Provisions		(2.0)	(5.4)	(3.9)
Deferred tax liabilities		(19.5)	(7.2)	(17.6)
Derivative financial liabilities		(0.1)	-	-
		(339.1)	(340.5)	(318.0)
Total liabilities		(715.6)	(704.5)	(663.6)
Net assets		968.6	974.6	993.2
Equity attributable to equity holders of the parent
Ordinary share capital		4.5	4.6	4.6
Consolidation reserve		(372.0)	(372.0)	(372.0)
Merger reserve		113.3	113.3	113.3
Translation reserve		(0.1)	(0.1)	(0.1)
Capital redemption reserve		0.5	0.4	0.4
Cash flow hedging reserve		(1.3)	(1.4)	(1.2)
Retained earnings		1,223.7	1,229.8	1,248.2
Total equity		968.6	974.6	993.2

The notes on pages 24 to 44 form an integral part of these consolidated interim financial statements.

Condensed consolidated statement of changes in equity as at 9 October 2025

	Share capital £m	Consolidation reserve £m	Merger reserve £m	Cash flow hedging reserve £m	Translation reserve £m	Capital redemption reserve £m	Retained earnings £m	Total equity £m
Balance at 27 March 2025	4.6	(372.0)	113.3	(1.2)	(0.1)	0.4	1,248.2	993.2
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	26.2	26.2
Other comprehensive income	-	-	-	1.2	-	-		1.2
Total comprehensive income for the period	-	-	-	1.2	-	-	26.2	27.4
Hedging gains & losses reclassified to inventory	-	-	-	(1.7)	-	-	-	(1.7)
Deferred tax on hedging gains and losses	-	-	-	0.4	-	-	-	0.4
Total hedging gains & losses reclassified to inventory	-	-	-	(1.3)	-	-	-	(1.3)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	-	-	-	(37.7)	(37.7)
Share based payment charge	-	-	-	-	-	-	3.9	3.9
Deferred tax movement on IFRS 2 reserve	-	-	-	-	-	-	(0.1)	(0.1)
Share buyback	(0.1)	-	-	-	-	0.1	(12.6)	(12.6)
Purchase of own shares	-	-	-	-	-	-	(4.2)	(4.2)
Total contributions by and distributions to owners	(0.1)	-	-	-	-	0.1	(50.7)	(50.7)
Balance at 9 October 2025	4.5	(372.0)	113.3	(1.3)	(0.1)	0.5	1,223.7	968.6

Condensed consolidated statement of changes in equity as at 10 October 2024

	Share capital £m	Consolidation reserve £m	Merger reserve £m	Cash flow hedging reserve £m	Translation reserve £m	Capital redemption reserve £m	Retained earnings £m	Total equity £m
Balance at 28 March 2024	4.7	(372.0)	113.3	(0.5)	(0.1)	0.3	1,242.8	988.5
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	37.6	37.6
Other comprehensive expense	-	-	-	(0.1)	-	-	-	(0.1)
Total comprehensive income for the period	-	-	-	(0.1)	-	-	37.6	37.5
Hedging gains & losses reclassified to inventory	-	-	-	(0.8)	-	-	-	(0.8)
Total hedging gains & losses reclassified to inventory	-	-	-	(0.8)	-	-	-	(0.8)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	-	-	-	(38.4)	(38.4)
Share based payment charge	-	-	-	-	-	-	3.2	3.2
Deferred tax movement on IFRS 2 reserve	-	-	-	-	-	-	0.8	0.8
Share buyback	(0.1)	-	-	-	-	0.1	(12.5)	(12.5)
Purchase of own shares	-	-	-	-	-	-	(3.7)	(3.7)
Total contributions by and distributions to owners	(0.1)	-	-	-	-	0.1	(50.6)	(50.6)
Balance at 10 October 2024	4.6	(372.0)	113.3	(1.4)	(0.1)	0.4	1,229.8	974.6

Consolidated statement of changes in equity as at 27 March 2025

	Share capital £m	Consolidation reserve £m	Merger reserve £m	Cash flow hedging reserve £m	Translation reserve £m	Capital redemption reserve £m	Retained earnings £m	Total equity £m
Balance at 28 March 2024	4.7	(372.0)	113.3	(0.5)	(0.1)	0.3	1,242.8	988.5
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	88.2	88.2
Other comprehensive income	-	-	-	0.7	-	-	-	0.7
Total comprehensive income for the period	-	-	-	0.7	-	-	88.2	88.9
Hedging gains and losses reclassified to inventory	-	-	-	(1.6)	-	-	-	(1.6)
Deferred tax on hedging gain and losses	-	-	-	0.2				0.2
Total hedging gains and losses reclassified to inventory	-	-	-	(1.4)	-	-	-	(1.4)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	-	-	-	(59.7)	(59.7)
Credit to equity for share based payments	-	-	-	-	-	-	5.9	5.9
Share buyback	(0.1)	-	-	-	-	0.1	(25.1)	(25.1)
Purchase of own shares	-	-	-	-	-	-	(3.9)	(3.9)
Total contributions by and distributions to owners	(0.1)	-	-	-	-	0.1	(82.8)	(82.8)
Balance at 27 March 2025	4.6	(372.0)	113.3	(1.2)	(0.1)	0.4	1,248.2	993.2

The notes on pages 24 to 44 form an integral part of these consolidated interim financial statements.

Condensed consolidated statement of cash flows

	Note	28 week period ended 9 October 2025 £m	28 week period ended 10 October 2024 £m
Cash flows from operating activities
Profit for the period		26.2	37.6
Adjustments for:
Depreciation and amortisation		55.9	54.2
Financial income		(1.4)	(1.7)
Financial expense		9.9	10.3
Non-underlying profit on disposal		-	(2.3)
Share based payment charges		3.9	3.2
Taxation	5	10.0	13.5
		104.5	114.8
Increase in trade and other receivables		(16.1)	(2.3)
Increase in inventories		(3.3)	(16.7)
Increase in trade and other payables		34.4	23.3
Decrease in provisions		(2.8)	(0.9)
Movement in working capital		12.2	3.4
Tax paid		(9.6)	(12.5)
Net cash flow from operating activities		107.1	105.7
Cash flows from investing activities
Acquisitions of other investments		-	(1.0)
Proceeds from the sale of other investments		-	2.3
Investment capital contributions		-	(0.7)
Proceeds from repayment of initial partner loans		0.6	0.9
Interest received		1.4	1.7
Costs to acquire right-of-use assets		(0.8)	(0.3)
Acquisition of subsidiaries, net of cash acquired		(0.7)	(0.3)
Disposal of subsidiaries, net of cash disposed		(1.2)	(0.3)
Acquisition of property, plant and equipment and other intangible assets		(21.5)	(25.1)
Net cash used in investing activities		(22.2)	(22.8)
Cash flows from financing activities
Equity dividends paid	6	(37.7)	(38.4)
Repayment of borrowings		(22.3)	-
Loan drawdown		50.0	-
Cash payments for the principal portion of the right-of-use liability		(39.2)	(35.9)
Purchase of own shares		(4.2)	(2.9)
Share buyback		(12.6)	(12.5)
Interest paid		(2.1)	(3.2)
Interest paid on lease obligations		(7.3)	(7.1)
Net cash used in financing activities		(75.4)	(100.0)
Net increase/(decrease) in cash and cash equivalents		9.5	(17.1)
Cash and cash equivalents at beginning of period		39.5	57.1
Cash and cash equivalents at end of period		49.0	40.0

The notes on pages 24 to 44 form an integral part of these consolidated interim financial statements.

Notes to the condensed consolidated interim financial statements

Pets at Home Group Plc (the 'Company') is a company incorporated in the United Kingdom and registered in England and Wales, its registered office is Epsom Avenue, Stanley Green, Handforth, Cheshire, SK9 3RN. The Company is listed on the London Stock Exchange.

1 Accounting policies

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these consolidated interim financial statements.

Basis of preparation

The condensed consolidated interim financial statements as at and for the 28 week period ended 9 October 2025 comprise the Company and its subsidiaries (together referred to as the 'Group').

The consolidated financial statements of the Group as at and for the 52 week period ended 27 March 2025 are available on request from the Company's registered office and via the Company's website.

The annual financial statements of Pets at Home Group Plc will be prepared in accordance with UK- adopted international accounting standards (UK-adopted IFRS) and with the requirements of the Companies Act 2006. The condensed set of financial statements included in this half‑yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34 'Interim Financial Reporting'.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and with IAS 34 Interim Financial Reporting as adopted by the UK. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the 52 week period ended 27 March 2025.

The financial information included in this interim statement of results does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 (the 'Act'). The statutory accounts for the 52 weeks ended 27 March 2025 have been reported on by the Company's auditors and delivered to the Registrar of Companies. The auditor's report was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

Going concern

The Company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report of the Annual Report for the 52 week period ended 27 March 2025. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the Chief Financial Officer's Review. In addition, note 12 and 13 to these interim financial statements include the Company's objectives, policies and processes for managing its capital; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.

The Directors of the Group have prepared cash flow forecasts for a period of at least 12 months from the date of the approval of these interim financial statements which indicate that, despite taking account of reasonably possible downsides, the Group will have sufficient funds, through its revolving credit facility, to meet its liabilities as they fall due for that period.

In preparing the forecasts for the Group, the Directors have carefully considered the impact of market performance, consumer confidence, climate change, geopolitical tensions, and the actual and potential impact on supply chains, energy cost inflation and foreign exchange volatility on liquidity and future performance.

The Group has access to a revolving facility of £300m, which expires on 30 September 2028 and a £21.0m asset backed loan which expires on 27 March 2030. The Group has £40.0m drawn down in relation to the RCF, in addition to £21.0m on the asset backed loan at 9 October 2025 and cash balances of £49.0m. The lowest level of headroom forecast over the next 12 months from the date of signing of the interim results is in excess of £268.0m in the base case scenario. On a sensitised basis, the lowest level of headroom forecast over the next 12 months from the date of approving of the financial statements is £226.1m due to the removal of the dividend payment in an extreme scenario.

The Group has been in compliance with all covenants applicable to this facility within the financial year and is forecast to continue to be in compliance for 12 months from the date of signing of the interim financial statements.

Notes (continued)

1 Accounting policies (continued)

Going concern (continued)

A number of severe but plausible downside scenarios were calculated compared to the base case forecast of profit and cash flow to assess headroom against facilities for the next 12 months. These scenarios included:

- Scenario 1: Reduction on Group like-for-like sales assumptions of 1% in each year throughout the forecast period, but ordinary dividends continue to be paid.

- Scenario 2: Using scenario 1 outcomes and further impacted by a conflated risk impact of £62.5m on sales and £23.8m on PBT per annum (using specific financial risks taken from Group risk register with sales and PBT financial impact quantified), with dividends held at 13.0 per share per annum.

- Scenario 3: Group like-for-like sales no stronger than 0% in each year and a conflated risk impact of £122.5m on sales and £46.7m on PBT is applied (using the top risks from corporate risk register with sales and PBT impact quantified), with dividends cut to nil to conserve cash.

Against these negative scenarios, adjusted projections showed no breach of covenants. Further mitigating actions could also be taken in such scenarios should they be required, including reducing capital expenditure.

Despite net current liabilities of £137.8m in the Group, the Directors of Pets at Home Group Plc having made appropriate enquiries, including the principal risk and uncertainties on page 13 consider that the Group will have sufficient funds to continue to meet their liabilities for a period of at least 12 months from the date of approval of these interim financial statements and that, therefore, it is appropriate to adopt the going concern basis in preparing the consolidated interim financial statements as at and for the 28 weeks ended 9 October 2025.

Material accounting policies

The accounting policies adopted in preparation of the condensed consolidated interim financial statements as at and for the 28 week period ended 9 October 2025 are consistent with the policies applied by the Group in its consolidated financial statements as at and for the 52 week period ended 27 March 2025.

Accounting estimates and judgments

The preparation of condensed consolidated interim financial statements in conformity with UK adopted IFRS requires management to make judgements, estimates and assumptions concerning the future that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These judgements are based on historical experience and management's best knowledge at the time and the actual results may ultimately differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis and revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Critical accounting judgements

Assessment of control with regard to Joint Ventures

The assessment of control with regard to Joint Ventures is considered to be a critical accounting judgement.

The Group has assessed, and continually assesses, whether the level of an individual Joint Venture veterinary practice's indebtedness to the Group, particularly those with high levels of indebtedness, implies that the Group has the practical ability to control the Joint Venture, which would result in the requirement to consolidate. In making this judgement, the Group reviewed the terms of the Joint Venture agreement and the question of practical ability, as a provider of working capital to control the activities of the practice. This included consideration of barriers to the Group's ability to exercise such practical or other control which include difficulty in replacing Joint Venture Partners due to the shortage of veterinarians in the UK and reputational damage within the veterinary network should the Group attempt to exercise control, as well as potential barriers to the Joint Venture Partner exercising their own power over the activities of the practice. We note that under the terms of the Joint Venture agreement, the partners run their practices with complete operational and clinical freedom. The Group is satisfied that on the balance of evidence from the Group's experience as shareholder and provider of working capital support to the practices, it does not have the current ability to exercise control over those practices to which operating loans are advanced, and therefore non-consolidation is appropriate.

Key sources of estimation uncertainty

Impairment of goodwill and other indefinite life intangibles

Goodwill and other indefinite life intangibles, in accordance with IAS 36 'Impairment of Assets', are subject to annual impairment testing at the year end date, or more frequent testing if there are indicators of impairment. The method used for impairment testing is to allocate assets (including goodwill) to appropriate cash-generating units (CGUs) based on the smallest identifiable group of assets that generate independent cash inflows, and to estimate the recoverable amount of the CGUs as the higher of an asset's fair value less costs of disposal and its value in use. The value in use is determined using cash flow projections from the approved business and strategic plans over a period of five years which are then extrapolated based on estimated long-term growth rates applicable to the markets in which the CGUs operate. The cash flow projections are discounted based on a post-tax weighted average cost of capital.

During the period, the reduction in profit in the Retail segment compared to the prior reporting period was identified as an indicator of impairment in relation to the carrying amount of assets allocated to the group of CGUs within the Retail segment. As a result, an impairment test was performed at the interim date, and the key assumptions and estimates used in the test are disclosed in note 10.

There are no other significant estimates or assumptions which would cause a material change to the carrying value of asset and liabilities within the next 12 months.

Notes (continued)

2 Segmental reporting

The Group has four strategic business units, Retail, Vet Group, Insurance and Central. These business units, with the exception of Insurance are consistent with those reported in the 28 week period ended 10 October 2024. 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. 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 commissions via our 3rd party arrangement. The operations of the Vet Group reporting segment comprise General Practices and the veterinary telehealth business. Insurance includes costs incurred as part of the Group's new insurance venture for pet insurance. Central includes Group costs and finance expenses.

The following summary describes the operations in each of the Group's reportable segments. Performance is measured based on segment underlying 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 interim financial statements. All material operations of the reportable segments are carried out in the UK and all revenue is from external customers. A large proportion of revenue recognised within the Vet Group relates to fee income from Joint Venture veterinary partners which are considered to be related parties. Further information regarding these related party transactions is disclosed in note 15.

	Retail £m	Vet Group £m	Insurance¹ £m	Central £m	Total £m
Income statement
Revenue	679.9	98.4	-	-	778.3
Gross profit	300.1	53.8	-	-	353.9
Depreciation and amortisation	(53.6)	(2.1)	-	(0.2)	(55.9)
Underlying operating profit/(loss)	10.4	44.6	(2.2)	(8.1)	44.7
Non-underlying items	-	-	-	-	-
Operating profit/(loss)	10.4	44.6	(2.2)	(8.1)	44.7
Net financing income/(expenses)	(6.9)	0.3	-	(1.9)	(8.5)
Profit/(loss) before tax	3.5	44.9	(2.2)	(10.0)	36.2
Total non-underlying items	-	-	-	-	-
Underlying profit/(loss) before tax	3.5	44.9	(2.2)	(10.0)	36.2

¹The insurance business unit included within the table above relates to the Group's new insurance venture and relates to costs incurred during the current year. There were no such costs incurred in the prior year.

		28 week period ended 10 October 2024
	Retail £m		Vet Group £m	Central £m	Total £m
Income statement
Revenue	696.2¹		92.8	-	789.0¹
Gross profit	314.6		50.5	-	365.1
Depreciation and amortisation	(50.7)		(2.4)	(0.2)	(53.3)
Underlying operating profit/(loss)	29.0		41.1	(7.0)	63.1
Non-underlying items	0.6		-	(4.0)	(3.4)
Operating profit/(loss)	29.6		41.1	(11.0)	59.7
Net financing expenses	(7.0)		0.4	(2.0)	(8.6)
Profit/(loss) before tax	22.6		41.5	(13.0)	51.1
Total non-underlying items	(0.6)		-	4.0	3.4
Underlying profit/(loss) before tax	22.0		41.5	(9.0)	54.5

¹ £0.1m has been reclassified from cost of sales to revenue in the 28 week period ended 10 October 2024.

Non-underlying operating expenses in the period ended 10 October 2024 are explained in note 3.

Notes (continued)

1 Segmental reporting (continued)

		28 week period ended 9 October 2025
Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Total £m
Retail - Food	426.9	-	426.9
Retail - Accessories	225.0	-	225.0
Retail - Services	28.0	-	28.0
Vet Group - Joint Venture fee income	-	60.6	60.6
Vet Group - Company managed practices	-	28.1	28.1
Vet Group - Other income	-	7.6	7.6
Vet Group - Veterinary telehealth services	-	2.1	2.1
Total	679.9	98.4	778.3

		28 week period ended 10 October 2024
Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Total £m
Retail - Food	428.2¹	-	428.2¹
Retail - Accessories	239.3	-	239.3
Retail - Services	28.7	-	28.7
Vet Group - Joint Venture fee income	-	56.3	56.3
Vet Group - Company managed practices	-	27.7	27.7
Vet Group - Other income	-	6.7	6.7
Vet Group - Veterinary telehealth services	-	2.1	2.1
Total	696.2¹	92.8	789.0¹

¹ £0.1m has been reclassified from cost of sales to revenue in the 28 week period ended 10 October 2024.

Notes (continued)

3 Expenses

Included in operating profit are the following:

	28 week period ended 9 October 2025 £m	28 week period ended 10 October 2024 £m
Non-underlying items
Costs relating to the implementation of the new Distribution Centre
Dual running costs of operating new and existing Distribution Centres	-	0.8
Depreciation of right-of-use assets dual running costs	-	0.9
Total included within selling and distribution expenses	-	1.7

Group restructure costs and legal settlement costs	-	3.1
Legal costs associated with the CMA review	-	0.9
Total included within administrative expenses	-	4.0

Included within other income- disposal of investment	-	(2.3)
Total non-underlying cost within operating profit	-	3.4
Underlying items
Depreciation of property, plant and equipment	17.5	14.8
Amortisation of intangible assets	4.5	4.5
Depreciation of right-of-use assets	33.9	34.0
Share based payment charges	3.9	3.2

Other income
Rental income from sub-leasing right-of-use assets to third parties	(0.1)	(0.1)
Rental and other occupancy income from related parties	(7.4)	(6.9)
Supplier funding income	(1.0)	(0.9)

The presentation of non-underlying costs presented above have been changed to reflect the income statement categories (selling and distribution expenses, administrative expenses and other income).

Non-underlying items in operating profit

The Group did not have any non-underlying items in the 28 week period ended 9 October 2025. The information below relates to non-underlying items incurred in the 28 week period ended 10 October 2024.

Stafford Distribution Centre

During the 28 week period ended 10 October 2024, the Group incurred a number of costs in the process of bringing into operation a new retail Distribution Centre to replace the legacy Distribution Centres. The process was a significant operational change for the Group, outside of the ordinary course of business and has now concluded.

As part of the transition, the Group incurred operational costs which it has classified as non-underlying:

- £0.8m relates to costs incurred whilst the legacy Distribution Centres and the new Distribution Centre were both in operation.

- £0.9m in relation to depreciation of rights-of-use assets at legacy sites.

Group restructure and legal settlement costs

Non-underlying Group restructure costs in the 28 week period ended 10 October 2024 of £3.1m primarily relate to redundancy payments from a central group- wide redundancy programme.

Legal costs; Legal costs associated with the CMA review in the 28 week period ended 10 October 2024 totalled £0.9m.

Other income; During the 28 week period ended 10 October 2024, the Group disposed of its investment in Pure Pet Food Limited which resulted in a profit on disposal of £2.3m within retail which has been recognised in non underlying other income.

Rental and other occupancy income from related parties as well as supplier funding income are included in other income. See the income statement for further details on the reclassification of supplier funding income and restatement of other income.

Notes (continued)

4 Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period plus the weighted average number of Ordinary Shares that would be issued on the conversion of all dilutive potential Ordinary Shares into Ordinary Shares.

	28 week period ended 9 October 2025		28 week period ended 10 October 2024
	Underlying trading	After non-underlying items	Underlying trading	After non-underlying items
Profit attributable to equity shareholders of the parent (£m)	26.2	26.2	39.6	37.6
Basic weighted average number of shares (m)	457.5	457.5	473.8	473.8
Dilutive potential ordinary shares (m)	6.9	6.9	6.4	6.4
Diluted weighted average number of shares	464.4	464.4	480.2	480.2
Basic earnings per share	5.7p	5.7p	8.4p	7.9p
Diluted earnings per share	5.6p	5.6p	8.2p	7.8p

5 Taxation

Recognised in the income statement

	28 week period ended 9 October 2025 £m	28 week period ended 10 October 2024 £m
Current tax expense
Current period	8.3	9.8
Adjustments in respect of prior periods	(0.3)	-
Current tax expense	8.0	9.8
Deferred tax expense
Origination and reversal of temporary differences	1.6	3.7
Adjustments in respect of prior periods	0.4	-
Deferred tax expense	2.0	3.7
Total tax expense	10.0	13.5

The UK corporation tax and deferred tax standard rate for the period was 25% (2024: 25%). Deferred tax at 9 October 2025 has been calculated based on the rate of 25% which is the rate at which the majority of items are expected to reverse.

Deferred tax recognised in comprehensive income

28 week period ended

9 October 2025

£m

28 week period ended

10 October 2024

£m

Deferred tax on changes in fair value of cash flow hedges

0.1

(0.2)

Notes (continued)

5 Taxation (continued)

Reconciliation of effective tax rate

	28 week period ended 9 October 2025			28 week period ended 10 October 2024
	Underlying trading £m	Non-underlying items £m	Total £m	Underlying trading £m	Non-underlying items £m	Total £m
Profit for the period	26.2	-	26.2	39.6	(2.0)	37.6
Total tax expense/(credit)	10.0	-	10.0	14.9	(1.4)	13.5
Profit excluding taxation	36.2	-	36.2	54.5	(3.4)	51.1
Tax using the UK corporation tax rate for the period of 25%	9.1	-	9.1	13.6	(0.8)	12.8
Depreciation on expenditure not eligible for tax relief	0.2	-	0.2	-	-	-
Expenditure not eligible for tax relief	0.6	-	0.6	1.3	(0.6)	0.7
Adjustments in respect of prior periods	0.1	-	0.1	-	-	-
Total tax expense	10.0	-	10.0	14.9	(1.4)	13.5

The UK corporation tax standard rate for the period was 25% (28 week period ended 10 October 2024: 25%). The effective tax rate before non-underlying items for the 28 week period ended 9 October 2025 was 27.6% (28 week period ended 10 October 2024: 27.3%). The effective tax rate after non-underlying items for the 28 week period ended 9 October 2025 was 27.6% (28 week period ended 10 October 2024: 26.4%).

6 Dividends paid and proposed

	28 week period ended 9 October 2025 £m	28 week period ended 10 October 2024 £m
Declared and paid during the period
Final dividend of 8.3p per share (2024: 8.3p per share)	37.7	38.4
Proposed for approval by shareholders
Interim dividend of 4.7p per share (2024: 4.7p per share)	21.3	21.8

The trustees of the following holdings of Pets at Home Group Plc shares under the Pets at Home Group Employee Benefit Trusts have waived or otherwise foregone any and all dividends paid in relation to the period ended 9 October 2025 and to be paid at any time in the future (subject to the exceptions in the relevant trust deed) on its respective shares for the time being comprised in the trust funds:

Computershare Nominees (Channel Islands) Limited (holding at 9 October 6,178,816 shares, holding at 10 October 2024 5,751,440 shares).

Notes (continued)

7 Business combinations

In the 28 week period ended 9 October 2025, the Group has acquired 100% of the 'A' shares of five veterinary practices, which were previously accounted for as Joint Venture veterinary practices. These practices were previously accounted for as Joint Venture veterinary practices as the Group only held 100% of the non-participatory 'B' ordinary shares equating to 50% of the total shares. Acquisition of the 'A' shares has led to the control and consolidation of these practices. The primary reason for the business combination is to hold these practices as company-owned until a suitable Joint Venture partner is found at which point the intention is to convert them into Joint Venture partnerships. A detailed explanation for the basis of consolidation can be found in note 1.4 of the annual consolidated financial statements for the 52 week period ended 27 March 2025.

Up to the date of acquisition and in the comparative period being 52 week period ended 27 March 2025, the entities listed below were all accounted for as Joint Venture veterinary practices where the Group held 100% of the non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led to control and consolidation of these practices on the dates below, leading to control from the date of acquisition and consolidation from that date forward.

Subsidiaries acquired

	Principal activity		Date of acquisition	Proportion of voting equity instruments acquired	Total proportion of voting equity instruments owned following the acquisition	Cash consideration transferred £m
Companion Care (Stockport) Limited		Veterinary practice	03/04/2025	50%	100%	-
Rayleigh Vets4Pets Limited		Veterinary practice	09/06/2025	50%	100%	-
Walkden Vets4Pets Limited		Veterinary practice	29/05/2025	50%	100%	-
Longton Vets4Pets Limited		Veterinary practice	08/08/2025	50%	100%	0.7
Companion Care (Cardiff) Limited		Veterinary practice	07/07/2025	50%	100%	-

During the 28 week period ended 9 October 2025, £1.2m of operating loans which were deemed to be in default were written off in the acquisitions of the 'A' shares (28 week period ended 10 October 2024: £0.9m) which led to the control and consolidation of these practices.

Assets acquired and liabilities recognised at the date of acquisition

On acquisition, assets and liabilities are revalued to fair value. Pre-existing relationships between the Group and acquired Joint Venture practice are not considered part of the business combination and have been removed from the fair values of assets and liabilities recognised on acquisition. The fair value of net assets of acquisitions during the year was £0.7m (9 October 2024: nil) and is immaterial to the Group.

Goodwill arising on acquisition

	9 October 2025 £m	27 March 2025 £m
Consideration	0.7	1.3
Less: Fair value of liabilities/(assets) acquired	0.5	(0.6)
Goodwill arising on acquisition and carrying value	1.2	0.7

The consideration shown within the table above relates to both consideration for the purchase of A-shares and cash settlement of 'A' shareholder Joint Venture Partner loans, which were repaid to the 'A' shareholder at the point of acquisition.

The goodwill acquired on the purchase of the five (27 March 2025: eight) Joint Venture practices has been allocated to the Vet Group of CGUs and relates to expected future cashflows from combining operations.

Notes (continued)

8 Property, plant and equipment

	Freehold property £m	Leasehold improvements £m	Fixtures, fittings, tools and equipment £m	Assets under construction £m	Total £m
Cost
Balance at 27 March 2025	2.4	85.1	357.9	3.9	449.3
Additions	-	2.5	15.9	-	18.4
On acquisition	0.2	1.5	1.0	-	2.7
Brought into use	-	-	2.1	(2.1)	-
Disposals	-	(1.2)	(1.5)	-	(2.7)
Balance at 9 October 2025	2.6	87.9	375.4	1.8	467.7
Depreciation
Balance at 27 March 2025	0.4	39.6	247.6	-	287.6
Depreciation charge for the period	-	2.9	14.6	-	17.5
On acquisition	0.1	0.6	0.7	-	1.4
Disposals	-	(0.9)	(1.2)	-	(2.1)
Balance at 9 October 2025	0.5	42.2	261.7	-	304.4
Net book value
At 27 March 2025	2.0	45.5	110.3	3.9	161.7
At 9 October 2025	2.1	45.7	113.7	1.8	163.3

	Freehold property £m	Leasehold improvements £m	Fixtures, fittings, tools and equipment £m	Assets under construction £m	Total £m
Cost
Balance at 28 March 2024	2.4	82.5	345.4	14.4	444.7
Additions	-	6.2	11.4	5.7	23.3
On acquisition	-	0.4	0.4	-	0.8
Transfers¹	-	-	(5.7)	-	(5.7)
Disposals	-	(0.5)	(0.5)	-	(1.0)
Balance at 12 October 2024	2.4	88.6	351.0	20.1	462.1
Depreciation
Balance at 28 March 2024	0.4	41.5	244.7	-	286.6
Depreciation charge for the period	0.1	2.7	12.0	-	14.8
On acquisition	-	0.3	0.3	-	0.6
Transfers1	-	-	1.7	-	1.7
Disposals	-	(0.5)	(0.4)	-	(0.9)
Balance at 12 October 2024	0.5	44.0	258.3	-	302.8
Net book value As 28 March 2024	2.0	41.0	100.7	14.4	158.1
As 10 October 2024	1.9	44.6	92.7	20.1	159.3

1 The transfers balance of £5.7m cost and £1.7m accumulated depreciation is in relation to assets previously categorised within fixtures, fittings, tools and equipment being transferred to software within intangibles.

Notes (continued)

9 Leases

As lessee

The majority of the Group's trading stores, standalone veterinary practices, distribution centres and support offices are leased under operating leases, with remaining lease terms of between 1 and 20 years. The Group also has a number of non-property leases relating to vehicle, equipment and material handling equipment, with remaining lease terms of between 1 and 6 years.

Right-of-use assets

	Property £m	Equipment £m	Total £m
Cost
Balance at 27 March 2025	649.0	19.9	668.9
Additions	23.2	6.5	29.7
Disposals	(0.2)	(0.7)	(0.9)
Balance at 9 October 2025	672.0	25.7	697.7
Depreciation
Balance at 27 March 2025	373.6	10.7	384.3
Depreciation charge for the period	31.5	2.4	33.9
Disposals	(0.2)	(0.7)	(0.9)
Balance at 9 October 2025	404.9	12.4	417.3
Net book value
At 27 March 2025	275.4	9.2	284.6
At 9 October 2025	267.1	13.3	280.4

	Property £m	Equipment £m	Total £m
Cost
Balance at 27 March 2024	640.5	22.2	662.7
Additions	20.2	0.8	21.0
Disposals	-	(0.2)	(0.2)
Balance at 10 October 2024	660.7	22.8	683.5
Depreciation
Balance at 27 March 2024	327.8	15.6	343.4
Depreciation charge for the period	32.9	2.0	34.9
Disposals	-	(0.2)	(0.2)
Balance at 10 October 2024	360.7	17.4	378.1
Net book value
At 27 March 2024	312.7	6.6	319.3
At 10 October 2024	300.0	5.4	305.4

Notes (continued)

9 Leases (continued)

The following table sets out the maturity analysis of lease payments, showing the undiscounted lease payments to be paid after the reporting date:

Maturity analysis - contractual undiscounted cash flows

	At 9 October 2025 £m	At 10 October 2024 £m	At 27 March 2025 £m
Less than one year	75.3	80.0	78.5
Between one and three years	109.5	133.3	124.9
Between three and five years	72.3	85.6	77.8
Between five and ten years	79.6	90.2	83.1
More than ten years	44.1	39.5	35.7
Total undiscounted lease liabilities	380.8	428.6	400.0
Carrying value of lease liabilities in the statement of financial position	338.0	364.7	348.3
Current	75.3	80.0	78.5
Non-current	262.7	284.7	269.8

For lease liabilities at 9 October 2025, a 0.1% reduction in the discount rate would have increased the carrying value of lease liabilities by £0.8m (10 October 2024: £1.1m).

In relation to new leases and lease extensions entered into by the Group during the period, these are discounted at the rate implicit in the lease which ranges from 5.2% to 6.1% depending on the length of the lease and reflect the impact of increases to the Bank of England base rate during the period.

Surplus and short term leases

The Group has a small number of surplus leases on properties from which it no longer trades. A small number of these properties are currently vacant, or the sublet is not for the full term of the lease and there is deemed to be a risk on the sublet. These leases are included within the lease balances disclosed on the face of the balance sheet and a related provision has been made for other property costs relating to these properties.

The Group has a small number of short term leases on properties from which it no longer trades, or a subsection of a trading retail store. These properties are sublet to third parties at contracted rates.

In line with IAS36, the carrying value of the right-of-use asset is assessed for indicators of impairment and an impairment charge will be recognised where management believed there is a risk of default or where the property remained vacant for a period of time. As part of this review the Group has assessed the ability to sub-lease the property and the right-of-use asset has been written down to £nil where the Group does not consider a sublease likely.

Notes (continued)

10 Intangible assets

	Goodwill £m	Customer list £m	Software £m	Software under construction £m		Total £m
Cost
Balance at 27 March 2025	959.4	6.4	84.0	0.2	1,050.0
Additions	-	-	2.1	-	2.1
On acquisition	1.2	-	-	-	1.2
Disposals	(0.9)	(0.9)	-	-	(1.8)
Balance at 9 October 2025	959.7	5.5	86.1	0.2	1,051.5
Amortisation
Balance at 27 March 2025	0.1	1.8	63.0	-	64.9
Amortisation charge for the period	-	0.1	4.4	-	4.5
Disposals	-	(0.6)	-	-	(0.6)
Balance at 9 October 2025	0.1	1.3	67.4	-	68.8
Net book value
At 27 March 2025	959.3	4.6	21.0	0.2	985.1
At 9 October 2025	959.6	4.2	18.7	0.2	982.7

	Goodwill £m	Customer list £m	Software £m	Software under construction £m		Total £m
Cost
Balance at 28 March 2024	959.5	6.6	80.1	0.2	1,046.4
Additions	-	-	0.7	0.1	0.8
Transfers1	-	-	5.7	-	5.7
Disposals	-	(0.1)	-	-	(0.1)
Balance at 10 October 2024	959.5	6.5	86.5	0.3	1,052.8
Amortisation
Balance at 28 March 2024	0.1	1.7	64.9	-	66.7
Amortisation charge for the period	-	0.1	4.4	-	4.5
Transfers1	-	-	(1.7)	-	(1.7)
Balance at 9 October 2025	0.1	1.8	67.6	-	69.5
Net book value
At 28 March 2024	959.4	4.9	15.2	0.2	979.7
At 10 October 2024	959.4	4.7	18.9	0.3	983.3

1 The transfers balance of £5.7m cost and £1.7m accumulated depreciation is in relation to assets previously categorised within fixtures, fittings, tools and equipment in property, plant and equipment being transferred to software.

Impairment testing

The reduction in profit in the Retail segment compared to the prior reporting period is a potential indicator of impairment and therefore we have carried out impairment testing over the carrying value of the Retail goodwill balance at the interim date. No indicators of impairment have been identified within the Vet Group segment and therefore in line with the IAS36 requirement for an annual impairment test of intangible assets with an indefinite useful life, the next full impairment test of goodwill allocated to the group of CGUs within the Vet Group segment will be carried out at 26 March 2026.

The Group reviews individual CGUs such as stores for indicators of impairment by comparing the net cash flows generated at a store level against the carrying value of assets including property, plant and equipment, right of use assets and other intangible assets. Key operational metrics are also considered as part of this review. As at the 9 October 2025, no material triggers of impairment have been identified at an individual CGU level.

The disclosures below relate to the impairment testing of the goodwill allocated to the group of CGUs within the Retail segment.

Notes (continued)

10 Intangible assets (continued)

Cash-generating units

For impairment testing of other intangible assets, property plant and equipment and right of use assets, the Group treats each store as a separate CGU, as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Distribution costs are apportioned to stores and online sales are apportioned to stores where there is a clear link between the online sale and the store such as 'click and collect'.

Goodwill generated from an acquisition is allocated to groups of CGUs at an operating segment level as shown in the table below as this represents the lowest level at which goodwill is monitored by management.

Within the Retail operating segment, the group of CGUs comprises the body of stores, online operations and grooming operations.

As at 9 October 2025, 27 March 2025 and 10 October 2024 the Group allocated goodwill to groups of CGUs as follows:

		Goodwill
	At 9 October 2025 £m		At 10 October 2024 £m	At 27 March 2025 £m
Retail	586.1		586.1	586.1
Vet Group	373.6		373.4	373.3
Total	959.7		959.5	959.4

	At 9 October 2025		At 27 March 2025
		Retail		Retail
Period on which management approved forecasts are based (years)		5		5
Growth rate applied beyond approved forecast period		2.0%		2.0%
Discount rate (pre-tax)		11%		12%
Revenue CAGR		5.5%		5.5%
Gross profit margin (average over next 5 years)		45%		45%

The goodwill is considered to have an indefinite useful economic life and the recoverable amount of the group of CGUs within the Retail segment has been calculated with reference to its value in use.

The key assumptions used in estimating the value in use calculations were:

Forecasted cash flows - These calculations use a post-tax cash flow projection based on a five-year strategic plan approved by the Board, rebased to reflect the actual trading in the 28 week period ended 9 October 2025 and the forecasted results for the 52 week period ending 26 March 2026. The model has been adjusted to remove all cash flows associated with business units which the Group has a strategic intention to invest capital in, but has not yet done so (for example stores yet to open, but within the planning horizon, or any expected cost savings as a result of the support office reorganisation disclosed in note 16), thus ensuring that the future cash flows used in modelling for impairment exclude any cash flows where the investment is yet to take place, in accordance with the requirements of IAS36 to exclude capital expenditure to improve asset performance. Contributions from and costs associated with new stores which are already operational at the impairment test date are included in the cash flows. Cash flows related to the central segment have been allocated on a equal basis to the Vet Group and Retail segment, as this is considered to be the most appropriate apportionment of time and costs expended in managing the two divisions. This is a change in allocation methodology since the prior reporting period, where costs were allocated proportionate to the asset base. Other than the change in allocation of central cash flows, this approach is consistent with impairment reviews carried out in the 2025 financial statements.

The Retail forecast assumptions reflect continual innovation and our deep understanding of our customers, incorporating assumptions based on past experience of the industry, products and markets in which the CGU or group of CGUs operate, in order to generate the detailed assumptions used in the annual budget setting process, and five year strategic planning process. The projections are based on all available information.

A different set of assumptions may be more appropriate in future years depending on changes in the macro-economic environment and the industry in which each CGU operates. The Group has considered key risk factors such as the continuing issues throughout our global supply chains and climate change. We have continued to assess the possible long term impacts of the likely levels of tariffs that may be applied by the USA and retaliatory measures from countries where our supply chains are located.

Long-term growth rates - The Directors have assumed a growth rate projection beyond the projection period of 2% which is lower than market growth rates based on past experience within the Group, taking into account the economic growth forecasts within the relevant industries.

Discount rates - The discount rate was estimated based on past experience and the weighted average cost of capital is adjusted to reflect a market participant view. A post tax discount rate was used within the value in use calculation and adjustments made to calculate the pre-tax discount rate which is disclosed above in line with IAS36 requirements.

Outcome and sensitivity analysis - The total recoverable amount in respect of goodwill for the groups of CGUs as assessed by the Directors using the above assumptions is greater than the carrying amount and therefore no impairment charge has been recorded in the period.

Notes (continued)

10 Intangible assets (continued)

The cash flows used in the impairment models are based on assumptions which are sources of estimated uncertainties and movements in these assumptions could potentially lead to an impairment. A number of sensitivities have been applied to the key assumptions in the model. The sensitivities have been selected based on the inherent business and market risks.

Key assumption	Decrease in value in use £m	Impact on carrying value
Reduction of 1% in the growth rate applied beyond approved forecast period	(133)	-
Increase of 1% to the discount rate (pre-tax)	(97)	-
Reduction of 3% to the compound annual growth rate in cashflows over the forecasted period compared to plan	(199)	-

The Directors consider that it would require a change in a combination in these assumptions, notwithstanding mitigating actions that could be taken to reduce costs, as to eliminate the excess of the recoverable amount over the carrying value.

11 Inventories

At 9 October 2025

£m

At 10 October 2024

£m

At 27 March 2025

£m

Finished goods

110.2

114.1

106.9

The cost of inventories recognised as an expense and included in 'cost of sales' is £362.7m (period ended 10 October 2024: £366.0m).

Inventory expensed to cost of sales includes the cost of the Stock Keeping Units ('SKUs') sold, supplier income, stock wastage and foreign exchange variances.

At 9 October 2025 the inventory provision amounted to £4.2m (10 October 2024: £4.2m). The inventory provision is calculated by reference to the age of the SKU and the length of time it is expected to take to sell. The value of inventory against which an ageing provision is held is £8.8m (10 October 2024: £8.3m).

The provision percentages applied in calculating the provision are as follows:

- Discontinued stock greater than 365 days: 100%

- Current stock greater than 365 days with a use by date: 50%

- Current stock within 180 and 365 days with a use by date: 25%

- Greater than 180 days with no use by date: 25%

Included in the provision is an amount held to account for store stock losses during the period since which the SKU was last counted.

In the 28 week period ended 9 October 2025, the value of inventory written off to the income statement amounted to £4.4m (28 week period ended 10 October 2024: £5.4m).

Notes (continued)

12 Interest-bearing loans and borrowings

		At 9 October 2025 £m				At 10 October 2024 £m			At 27 March 2025 £m
Non-current liabilities
Unsecured bank loans		38.5				22.7			8.1
Asset backed loans		16.3				20.5			18.6
		54.8				43.2			26.7
Current liabilities
Asset backed loans		4.7				2.8			4.7

Terms and debt repayment schedule
					At 9 October 2025		At 10 October 2024		At 27 March 2025
	Currency	Nominal interest rate	Year of maturity		Face value £m	Carrying amount £m	Face value £m	Carrying amount £m	Face value £m	Carrying amount £m
Revolving credit facility	GBP	SONIA +1.30%	2028		40.0	38.5	25.0	22.7	10.0	8.1
Asset backed loan	GBP	SONIA +1.50%	2030		21.0	20.9	23.3	23.3	23.3	23.3
				61.0		59.4	48.3	46.0	33.3	31.4

The drawn amount on the revolving credit facility of £300.0m was £40.0m at 9 October 2025 (£25.0m at 10 October 2024) and this amount is reviewed each month. Interest is charged at SONIA plus a margin based on leverage on a pre-IFRS 16 basis (net debt: EBITDA). The loan also has environmental, social, and corporate governance (ESG) linked metrics which are reflected in the margin payable, which is +/- 5bps. Face value represents the principal value of the revolving credit facility. The facility is unsecured.

The Group has a loan agreement to fund the purchase of capital items. Interest is charged on the amount drawn down at SONIA plus 1.5% and the loan is repaid monthly until it matures on 27 March 2030.

Interest-bearing borrowings are recognised initially at fair value, being the principal value of the loan net of attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at a carrying value, which represents the amortised cost of the loans using the effective interest method.

The analysis of repayments on the loans is as follows:

	At 9 October 2025 £m	At 10 October 2024 £m	At 27 March 2025 £m
Within one year or repayable on demand	4.7	2.3	4.7
Between one and three years	49.3	34.3	9.3
Between three and five years	7.0	11.7	19.3
Greater than 5 years	-		-
	61.0	48.3	33.3

The £40.0m revolving credit facility at 9 October 2025 is held by the Company. The £21.0m asset backed loan is held by Pets at Home Limited, a 100% owned subsidiary company.

The Group's policy with regard to interest rate risk is to hedge the appropriate level of borrowings by entering into fixed rate agreements where the Company forecasts gross debt at the balance sheet date is no more than £100m, no interest rate hedging is required. Subsequently, as at 9 October 2025, there were no hedging derivatives held by the Group.

Notes (continued)

13 Financial instruments

Fair value hierarchy

The table below shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

At 9 October 2025
Carrying amount	Fair value - hedging instruments	FVTPL - equity instruments	Financial assets at amortised cost	Other financial liabilities	Total carrying amount
	£m	£m	£m	£m	£m
Financial assets measured at fair value
Other investments	-	2.0¹	-	-	2.0¹
Forward exchange contracts used for hedging	0.5	-	-	-	0.5
	0.5	2.0	-	-	2.5
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices	-	-	2.4	-	2.4
Current trade and other receivables	-	-	22.2	-	22.2
Amounts owed by Joint Venture veterinary practices - funding, trading and operating loans	-	-	21.0	-	21.0
Cash and cash equivalents	-	-	49.0	-	49.0
Loans to Joint Venture veterinary practices - initial set up loans	-	-	3.4	-	3.4
Other current receivables	-	-	0.3	-	0.3
Non-current other receivables	-	-	11.4	-	11.4
	-	-	109.7	-	109.7
Financial liabilities measured at fair value
Forward exchange contracts used for hedging	(2.2)	-	-	-	(2.2)
	(2.2)	-	-	-	(2.2)
Financial liabilities not measured at fair value
Current lease liabilities (note 9)	-	-	-	(75.3)	(75.3)
Non-current lease liabilities (note 9)	-	-	-	(262.7)	(262.7)
Trade payables	-	-	-	(141.2)	(141.2)
Amounts owed to Joint Venture veterinary practices	-	-	-	(8.2)	(8.2)
Other interest-bearing loans and borrowings (note 12)	-	-	-	(59.4)	(59.4)
	-	-	-	(546.8)	(546.8)

¹£1.0m in relation to the Project Blu investment was impaired during the 28 week period ended 9 October 2025 (10 October 2024: nil). The impairment charge has been recognised within administrative expenses in the condensed consolidated income statement.

Notes (continued)

13 Financial instruments (continued)

At 9 October 2025

Fair value	Level 1		Level 2	Level 3	Total
	£m		£m	£m	£m
Financial assets and liabilities measured at fair value
Other investments	-		-	2.0	2.0
Forward exchange contracts used for hedging	-		0.5	-	0.5
Forward exchange contracts used for hedging	-		(2.2)	-	(2.2)

At 10 October 2024
Carrying amount	Fair value - hedging instruments	FVTPL - equity instruments	Financial assets at amortised cost	Financial liabilities at amortised cost		Total carrying amount
	£m	£m	£m	£m		£m
Financial assets measured at fair value
Other investments	-	3.1	-	-		3.1
Forward exchange contracts used for hedging	0.1	-	-	-		0.1
	0.1	3.1	-	-		3.2
Financial assets not measured at fair value
Investments in Joint Venture veterinary practices	-	-	3.3	-		3.3
Current trade and other receivables	-	-	25.7	-		25.7
Amounts owed by Joint Venture veterinary practices - funding, trading and operating loans	-	-	13.2	-		13.2
Cash and cash equivalents	-	-	40.0	-		40.0
Loans to Joint Venture veterinary practices - initial set up loans	-	-	4.4	-		4.4
Loans to Joint Venture veterinary practices - other loans	-	-	0.1	-		0.1
Non-current other receivables	-	-	0.7	-		0.7
	-	-	87.4	-		87.4
Financial liabilities measured at fair value
Fuel forward contract used for hedging	(0.1)	-	-	-		(0.1)
Forward exchange contracts used for hedging	(1.9)	-	-	-		(1.9)
	(2.0)	-	-	-		(2.0)
Financial liabilities not measured at fair value
Current lease liabilities (note 9)	-	-	-	(80.0)		(80.0)
Non-current lease liabilities (note 9)	-	-	-	(284.7)		(284.7)
Trade payables	-	-	-	(151.0)		(151.0)
Amounts owed to Joint Venture veterinary practices	-	-	-	(4.8)		(4.8)
Other interest-bearing loans and borrowings (note 12)	-	-	-	(46.0)		(46.0)
	-	-	-	(566.5)		(566.5)

Notes (continued)

13 Financial instruments (continued)

At 10 October 2024

Fair value	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m
Financial assets and liabilities measured at fair value
Other investments	-	-	3.1	3.1
Forward exchange contracts used for hedging	-	0.1	-	0.1
Fuel forward contract used for hedging	-	(0.1)	-	(0.1)
Forward exchange contracts used for hedging	-	(1.9)	-	(1.9)

27 March 2025
Carrying amount	Fair value - hedging instruments £m	FVTPL - equity instruments £m	Financial assets at amortised cost £m	Other financial liabilities £m	Total carrying amount £m
Financial assets measured at fair value
Other investments	-	3.0	-	-	3.0
Forward exchange contracts used for hedging	0.2	-	-	-	0.2
	0.2	3.0	-	-	3.2

Financial assets not measured at fair value
Investments in Joint Venture veterinary practices	-	-	2.7	-	2.7
Current trade and other receivables	-	-	19.0	-	19.0
Amounts owed by Joint Venture veterinary practices - funding, trading and operating loans	-	-	18.2	-	18.2
Cash and cash equivalents	-	-	39.5	-	39.5
Loans to Joint Venture veterinary practices - initial set up loans	-	-	3.9	-	3.9
Current other receivables	-	-	0.3	-	0.3
Non-current other receivables	-	-	5.6	-	5.6
	-	-	89.2	-	89.2
Financial liabilities measured at fair value
Forward exchange contracts used for hedging	(1.7)	-	-	-	(1.7)
	(1.7)	-	-	-	(1.7)
Financial liabilities not measured at fair value
Current lease liabilities	-	-	-	(78.5)	(78.5)
Non-current lease liabilities	-	-	-	(269.8)	(269.8)
Trade payables	-	-	-	(138.5)	(138.5)
Amounts owed to Joint Venture veterinary practices	-	-	-	(8.2)	(8.2)
Other interest-bearing loans and borrowings	-	-	-	(31.4)	(31.4)
	-	-	-	(526.4)	(526.4)

27 March 2025
Fair value	Level 1 £m	Level 2 £m	Level 3 £m	Total £m
Financial assets and liabilities measured at fair value
Other investments	-	-	3.0	3.0
Forward exchange contracts used for hedging	-	0.2	-	0.2
Forward exchange contracts used for hedging	-	(1.7)	-	(1.7)

Notes (continued)

13 Financial instruments (continued)

Measurement of fair values

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values at the balance sheet dates, as well as the significant unobservable inputs used.

Type	Valuation technique			Significant unobservable inputs				Inter-relationship between significant unobservable inputs and fair value measurement
Forward exchange contracts and fuel swaps.	Market comparison technique- the fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions on similar instruments.			Not applicable				Not applicable

Other investments.	The fair values of investments are considered to be their carrying values.			Forecasted cashflows. Any changes to the unobservable input would have an immaterial impact on the valuation.				Not applicable
	Maturity
	1-6 months	6-12 months	More than 1 year		1-6 months	6-12 months	More than 1 year
	9 October 2025				10 October 2024
Foreign currency risk
Forward exchange contracts
Net exposure (£m)	49.5	26.3	-		43.2	24.8	-
Average GBP-USD forward contract rate	1.27	1.34	-		1.27	1.29	-
Average GBP-EUR forward contract rate	1.16	1.14	-		1.16	-	-

14 Seasonality of operations

The Group's sales can be sensitive to periods of extreme weather conditions. The Group sometimes sees a reduction in sales during periods of hot weather in the UK, due to reduced customer footfall and reduced demand as pets eat less and generally spend more time outdoors, reducing the need for essentials such as food and cat litter. If temperatures are extremely high for a prolonged period, declines in sales can be material. The number of customers visiting Pets at Home's stores also declines during periods of snow or extreme weather conditions affecting the local catchment area. In addition, the sales of certain products and services designed to address pet health needs, such as flea and tick problems, can also be seasonal, increasing in times of warm and wet weather. The financial performance in the four-week period to the end of December is stronger than in the other periods, due to Christmas purchasing. Purchasing of accessories is also more prevalent during this season. Timing of the holiday season and any adverse weather conditions that may occur during that season impacting delivery may adversely affect sales in our stores.

Notes (continued)

15 Related parties

Joint Venture veterinary practice transactions

The Group has entered into a number of arrangements with third parties in respect of veterinary practices. These veterinary practices are deemed to be related parties due to the factors explained in note 1.4 of the Group consolidated financial statements as at 27 March 2025.

During the period, the Group had in place certain guarantees over the bank loans taken out by a number of veterinary practice companies in which it holds an investment in non-participatory share capital. At the end of the period, the total amount of bank overdrafts and loans guaranteed by the Group amounted to £3.7m (10 October 2024: £3.3m).

The transactions entered into during the period, and the balances outstanding at the end of the period are as follows:

	9 October 2025 £m	10 October 2024 £m	27 March 2025 £m
Transactions
- Fees for services provided to Joint Venture veterinary practices (note2)	60.6	56.3	103.4
- Rental and other occupancy charges to Joint Venture veterinary practices (note 3)	7.4	6.9	13.0
Total income from Joint Venture veterinary practices	68.0	63.2	116.4
Acquisitions
Consideration for Joint Venture veterinary practices acquired (note 7)	0.7	-	1.3
Included within investments - Investments
- Capital contributions for practices extensions and improvements	2.3	3.2	2.7
- B Share Capital	-	0.2	-
Included within trade and other receivables:
- Operating loans
- Gross value of operating loans	2.3	5.5	5.2
- Allowance for expected credit losses held for operating loans	(0.8)	(1.9)	(1.3)
Net operating loans	1.5	3.6	3.9
Trading balances	13.9	9.6	14.3
Deferred fee income rebate	2.1	-	1.7
Deferred consideration	5.6	1.8	3.2
Included within other financial assets and liabilities:
Loans to Joint Venture veterinary practices - initial set up loans
- Gross value of initial set up loans	3.7	4.9	4.3
- Allowance for expected credit losses for initial set up loans	(0.4)	(0.5)	(0.4)
- Net initial set up loans	3.3	4.4	3.9
Loans to Joint Venture veterinary practices - other loans
- Gross value of other loans	-	0.1	-
- Allowance for expected credit losses held for other loans	-	-	-
- Net other loans	-	0.1	-
Included within trade and other payables:
- Trading balance	(8.2)	(4.8)	(8.2)
Total amounts receivable from veterinary practices (before provisions)	19.4	17.1	20.5

Fees for services provided to related party veterinary practices are included within revenue and relate to charges for support services offered in such areas as clinical development, promotion and methods of operation as well as service activities including accountancy, legal and property. In accordance with IFRS 15, revenue in the 28 week period ended 9 October 2025, the 52 week period ended 27 March 2025 and the 28 week period ended 10 October 2024 excludes irrecoverable fee income from Joint Venture veterinary practices.

Funding for new practices represents the amounts advanced by the Group to support veterinary practice opening costs. The funding is short term and the related party Joint Venture veterinary practice draws down their own bank funding to settle these amounts outstanding with the Group shortly after opening.

Notes (continued)

15 Related parties (continued)

Trading balances represent costs incurred/income received by the Group in relation to the services provided to the veterinary practices that have yet to be recharged.

Operating loans represent amounts advanced to related party Joint Venture veterinary practices to support their working capital requirements and longer term growth. The loans advanced to the practices are interest free and either repayable on demand or repayable within 90 days of demand. No facility exists and the levels of loans are monitored in relation to review of the practice's performance against business plan. Based on the projected cash flow forecast on a practice by practice basis, the funding is often expected to be required for a number of years. As practices generate cash on a monthly basis it is applied to the repayment of brought forward operating loans. For immature practices, loan balances may increase due to operating requirements. The balances above are shown net of allowances for expected credit losses held for operating loans of £0.8m (10 October 2024: £1.9m).

Loans to Joint Venture veterinary practices for other related parties - other loans are provided to Joint Venture veterinary practice companies trading under the Companion Care and Vets4Pets brands, in which the Group's share interest is non-participatory. These loans represent a long-term investment in the Joint Venture, supporting their initial set up and working capital, and are held at amortised cost under IFRS9. The balances above are shown net of allowances for expected credit losses held for initial set up loans of £0.4m (10 October 2024: £0.4m).

In the 28 week period ended 9 October 2025, the value of loans written off recognised in the income statement amounted to £1.2m (10 October 2024: £0.9m) which relates to operating loans.

At 9 October 2025, the Group had a commitment to increase the loan funding to Joint Venture companies of £0.3m (10 October 2024: £0.2m), this increase in funding is written into the Joint Venture agreements and becomes payable when certain criteria are met.

Deferred fee income rebate of £2.1m (9 October 2025: £nil) represents deferred rebates paid to JV practices to support their rebrand and expansion. The rebate will be released as a deduction to fee income over a period of up to 10 years which represents the period of time the Group expects to receive economic benefits from enhanced fee income.

The Group is a guarantor for the leases for veterinary practices that are not located within Pets at Home stores.

16 Subsequent events

On 10 October 2025, the Group entered into an agreement with Jefferies International Limited committing to £12.5m spend in relation to the share buyback programme to be completed by 26 March 2026.

On 25 November 2025, the Group announced a restructuring of its Support Office functions, aimed at simplifying the organisational structure and improving operational efficiency. The proposed restructure is expected to result in the removal of a number of roles and the consolidation of certain support activities across the business.

As the decision to implement the restructure was made after the reporting date of 9 October 2025, no provision for the associated costs has been recognised in these financial statements, in accordance with IAS 10 Events After the Reporting Period.

The restructure is expected to give rise to a one-off cost which cannot yet be accurately reported but within the range of £6.0m- £8.0m, primarily relating to redundancy payments, notice period obligations, outplacement support and settlement agreements. These costs will be recognised as non-underlying costs in the Group's full-year FY26 financial statements to 26 March 2026, when the Group has a present obligation under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

No other significant non-adjusting events have occurred between the reporting date and the date these financial statements were authorised for issue.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR DXBDBLSDDGUU

TIDM	PETS
Share Price	213.20p-2.56%
Market Cap	£941.27m

TIDM	PETS
Share Price	213.20p-2.56%
Market Cap	£941.27m

t

Company Information

AI Summary

RNS Metadata

Company Information

AI Summary

RNS Metadata

FY26 Interim Results

About Pets at Home

Disclaimer

Alternative Performance Measures ('APMs')

Condensed consolidated balance sheet

Condensed consolidated statement of changes in equity as at 9 October 2025

Condensed consolidated statement of changes in equity as at 10 October 2024

Consolidated statement of changes in equity as at 27 March 2025

Condensed consolidated statement of cash flows

Notes to the condensed consolidated interim financial statements

1 Accounting policies

2 Segmental reporting

3 Expenses

4 Earnings per share

5 Taxation

6 Dividends paid and proposed

7 Business combinations

8 Property, plant and equipment

9 Leases

9 Leases (continued)

10 Intangible assets

10 Intangible assets (continued)

10 Intangible assets (continued)

11 Inventories

12 Interest-bearing loans and borrowings

13 Financial instruments

14 Seasonality of operations

15 Related parties

Date	26 Nov 2025
Time	07:00:12
Category	Results
ID	9965I

Date	26 Nov 2025
Time	07:00:12
Category	Results
ID	9965I