Newly listed pet shop chain Pets at Home unveiled higher annual profit and revenue, but cautioned that weak consumer incomes could hold back business.
Pets at Home, which floated on the market in March at a price per share of 245p, said it made underlying pre-tax earnings before interest, depreciation and amortisation (EBITDA) of £110.7m in the year to March 27th, up 12.4% on a year ago. Underlying EBITDA margins expanded 17 basis points to 16.6%.
Revenues grew 11.2% to £665.4m, reflecting the addition of 32 shops - giving it 377 - and strength across food, accessories and services.
Chief Executive Nick Wood said: "Whilst the lack of a sustained increase in consumer disposable incomes gives some caution to the outlook, I believe the potential of our retail and services businesses will enable us to deliver our strategy and achieve long-term returns."
The group's VIP Club loyalty scheme, strength in advanced nutrition and the growing maturity of its 129-strong Groom Room business and vet practices drove a 2.4% rise in like-for-like sales.
Its joint venture vet practices increased like-for-like revenue by 14%, underpinning fee income growth.
The chain said it had also successfully integrated Vets4Pets, which it bought last year, with a single support office now established for the combined vet business.
Engineering support services group Redhall posted half-year results in line with expectations a week after it issued a full-year profit warning and said Chief Executive Richard Shuttleworth had quit with immediate effect.
For the six months ended March 31st, losses before tax widened to £1.02m from a loss of £449,000 a year earlier. Revenue slipped to £50.6m from £56.38m before.
Operating profit before exceptional items rose 9% to £1.1m.
On a more upbeat note, Redhall said it expects to make progress in the second half of the financial year.
"Although as announced June 6th 2014, this progress has been slowed by the delay to certain major projects for existing key customers due to either their budgetary pressures, or an extended design sign-off process."
"Management have now set expectations for the current year which reflect these delays and a more prudent approach has been adopted to future forecasting," the group said.
Chairman David Jackson added: "The new management team has set realistic targets for the future and will concentrate on maximising profitable execution. There has been much change in the group in the last 18 months and we look to a period of stability in order to assist Redhall to reach its full potential."
Redhall said its financial position had improved after its £7m share placing in March.
The board has recommended that no interim dividend will be paid in 2014.