A PETCARE chain has blamed supply problems and weak sales for a dip in profits.

Handforth-based Pets at Home revealed a pre-tax profit of £105.7 million for the year to March, down 13.7 per cent on the same period last year.

The petcare retailer and vet operator nevertheless said it is confident in its growth strategy and is ‘not threatened’ by an ongoing watchdog review into the vet industry.

READ > Knutsford residents could win £100 to spend in shops in new survey

The firm, which has 453 stores across the U,K revealed a pre-tax profit of £105.7 million for the year to March, down 13.7 per cent on the same period last year.

The company said profitability was ‘impacted by short-term availability issues as we transitioned to our new DC (distribution centre) and weaker performance of discretionary accessories’.

It comes after the group cut its profit guidance in January in the face of slowing retail demand.

Pets at Home has reported that total group revenues grew 5.2 per cent to £1.5 billion for the year, with 5.1 per cent like-for-like growth.

Retail revenues grew four per cent for the period, as it reported continued volume growth in the final quarter, helping to offset slowing inflation in food and ‘softer’ accessories sales.

Meanwhile, it saw continued growth in its vet business, where revenues jumped 16.8 per cent amid the division’s continued expansion.

Nevertheless, it comes amid a backdrop of increased scrutiny over the UK’s vet sector, after Competition and Market Authority raised concerns pet owners could be overpaying for medicines and pushed forward with a full market investigation.

Pets at Home said: “We believe that our vets growth strategy is not threatened by the CMA’s review into the vet sector.

“Our key building blocks for growth support competition and deliver better outcomes for consumers.”

The group held firm its guidance for the new financial year, highlighting ‘low single-digit’ growth in its vet business over the past six weeks, with a two per cent decline in retail.

Lyssa McGowan, chief executive officer, said: “Full-year 2024 has been a pivotal year for the business, having delivered some key building blocks of our platform for long-term growth.

“I am proud of the progress we have made in the year; we relaunched our brand, opened our new DC, built our new digital platform, made progress in our sustainability agenda, and enhanced our physical estate.

“The business has come together brilliantly to navigate any challenges faced this year, and we have delivered some key milestones of our strategy.”

Business at the retail chain boomed during the pandemic as Britain’s cat and dog population soared by five million to 23 million.