Pets at Home warns of an £18 million hit from Labour’s Budget – London Business News | Londonlovesbusiness.com

Pets at Home has issued a profit growth warning due to weaker consumer demand and they are expecting “unusually subdued” conditions.

The retailer also cautioned they will take a hit from the Autumn Budget tax increases and on Wednesday shares fell 10%.

Int the 28 weeks to 10 October total revenues grew by 1.9% to £789.1 million shareholders were told.

There was strong growth in their vet business which offset by 0.1% growth in their retail revenues, this was affected by “declining retail markets” along with the impact of their new digital platform transition.

Lyssa McGowan, Pets at Home chief executive, said, “We are operating in an unusually subdued pet retail market which we now expect to continue through the second half.

“We are confident this will be temporary and growth will return to historical norms with the longer-term attractive outlook for the UK pet care market unchanged.”

The retailer reported that pre-tax profits were up 47.3% to £51.1 million in the half year.

Pets at Home warned they will face an £18 million hit in the next financial year amid the increase in the minimum wage and employer’s national insurance contributions.