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The price increase since the interims is (I would have thought) down to the contents of the interims.
All things being equal when the x div day arrives the share price will drop by the value of the dividend.
Does anyone think this steady climb is due to the ex Div date drawing close or just some organic growth back up to its position prior to the vet pricing release. Thank you
Anyone watching as ROVR taken out by Blackstone, and now Musti by a group. They were also taken out at high valuations compared to Pets. Hope we dont get taken out for something measly like 400-450p...
RNS on Second Tranche of Share Buy Back programme to start.
Also update from HL has Forward price/earnings ratio of 12.9
and stated Average forward price/earnings ratio is 15.9....
so potentially +25% upside......
Comment below about cash reducing significantly, this is true but keep in mind about £75m was paid to reduced the (fairly small) debt pile significantly. Seeing as it’s SONIA+1.5% I believe, this is smart. I would say they should still push on withbuyback as it’s ‘only’ £25m but their guidance suggested still will remain highly cash generative now hiccups largely over.
Mr Picky,
The RNS was conveying an upbeat position despite all these one-off costs to consolidate systems and the Distribution Centre into Stafford this year and next year as well as being scored highly on the best place to work.
On an eps basis, they have maintained PBT at £136m. That equates to a figure after tax of £100.64m with eps at 21.13p on the current level of 476.4m shares.
If we take the last ten tear's p/e ratio of 15.8. Analysts can arrive at a £3.36 share price figure on Final results.
Good post "surprised"
A few other points that struck me.
* They provided a figure for the impact of the bungled transition to the new Stafford Distribution Centre "In total, we
estimate this period of disruption resulted in a c3% LFL drag on Retail sales, and we expect to incur extra logistics costs
in FY24 of £14m (£9m underlying and £6m non-underlying) as a result."
* Proposing a change of auditor from KPMG to Deloitte.
* Net cash balances have been reduced substantially (£54.7m to £12.1m) they say only "We expect to finish the year in a
net cash position". Is there really enough to pay for the £25m share buyback and maintain the interim dividend?
* The are cooperating with the Competition and Markets Authority's investigation into the UK veterinary sector and
boldly say " We
expect no impact on our growth strategy or ambitions, with the strength of our consumer proposition
underpinned by the high-quality growth the business is seeing and an increase in the number of new
consumers we are seeing switch to our business with older pets over recent months.
Not easy to say if all the bad news is in the price....if it is then they are a "weak buy".
Revenue rose 6.5% to GBP774.2 million from GBP727.2 million. Cost of sales increased 9.7% to GBP419.0 million from GBP382.1 million, while administrative expenses increased 9.6% to GBP248.6 million from GBP226.8 million.
The company maintained its interim dividend at 4.5 pence per share. It added that the first GBP25 million of its GBP50 million buyback programme has been completed, with the second GBP25 million tranche to start soon.
Pets At Home highlighted that it has transitioned its stores to the new Stafford distribution centre as it builds a new digital platform.
"The first half saw us move our store logistics operations into our new Stafford DC. This was the period of highest risk in our move to a single DC and the DC is now fulfilling deliveries to 100% of stores, with
availability having now normalised. However, in getting to this position, we experienced a period of disruption during Q2. From the early part of Q2, we saw a deterioration in our in-store availability from normal levels of around 95%, to around 80% at peak disruption," the company said.
Chief Executive Lyssa McGowan said: "As we stand today, through our point of peak investment, with the benefits of our new distribution centre and new digital platform still ahead of us, we look to the future with confidence that we can deliver our plan, to build the world's best pet care platform."
For the current financial year 2024, Pets At Home expects consumer sales to grow in line with its medium-term goal of 7% and expects an underlying pretax profit of GBP136 million, in line with current analyst consensus
What's not to like in that RNS ,onwards and upwards from here.
How can PETS reflect it's true value of P/e ratio 17 x eps 23.7p = £4.02?
Ok. Some distribution problems and unwarranted investigation into all VET practices in the UK ...I blame the government for launching the investigation. Then Jeremy Hunt asking me to put hard earned cash into UK companies...No Thank You! Constantly shorted and someone stealing my pension by driving the price down!!
The Results are out tomorrow.................. we all know the share price should be much higher than £2.89.
Yet another prime candidate for a UK company to be taken over!!
Agree, Short 5cum. Let's see them when Half Year results out next week.
P/E 17 x eps 23.7p = £4.02 for this year....
Let's see some pants on fire!
And so glad I have only a few UK shares!!!! Most of my money parked where i can make mnoney
Severely undervalued!!!
Short 5cum have got hold of this.
Hope their houses burn down
The sp was too high in fairness, but it's corrected now I think. Divi is looking better again. Time to take some small stakes here I think.
Things don’t change!!
When they first opened Stoke NDC - there was chaos - huge distribution problems - systems didn’t work - management were sacked.
When the opened Northampton DC - similar problems - management from Stoke that were sent to ensure smooth opening - failed - sacked.
So they never learn but we have new management! Without experience.
They will eventually get it running smoothly - let’s hope the floor doesn’t fail on this one.
Will the the CEO succeed? I doubt it, the company is slowly loosing its path, look at all the fancy new job titles with new managers - this is a retail business not a media bussiness.
Shore now state this morning that '' the Competition and Markets Authority’s review is unlikely to result in a negative outcome''
The Pets share price in early trading is down from 400p just 12 weeks ago to 286p, a second tranche of the Share Buy Back Programme is expected to be undertaken and details are due to be published.
'PETS management said teething problems at the new distribution centre resulted in lower product availability for a few weeks between August to mid-September, these temporary issues are now resolved. '
'Shore Capital, says it has added pressure on the second half to deliver more than 55 per cent of the annual profit.' ..
Pets have not gone out of fashion, Xmas period is likely to make up for a few weeks shortfall and the importantly the new distribution centre will aid quicker more cost effective deliveries over the next period.
I have answered my own question ShoreCap have have downgraded the stock from Buy to Hold and perhaps the Competition and Markets Authority investigation is not going well.
The share price has been falling like a stone and I am baffled as to why. Have all the cats and dogs in the UK died without me knowing? Or are we about to get some bad news. If I thought all was well I would buy some more.
Is this what it is to witness a share price being walked down (now 25%) for the balance of the buy back to commence?
In general buy backs are instigated when a company generates good free cash flow and percieves the share price as cheap and in time it should provide investors with an increase in value on their holdings.....I have not seen a date when HSBC will commence the second tranche but would expect it to be imminent, particularly with the share price at current levels as they can mop a great deal more ..........in fact I added to my holding yesterday, seemed rude not to :-)
@surprised thank you kindly for that.
Is this normally perceived as a good thing when a buy back finishes (or part thereof?)
Do you know when the second tranche is due to start?
Thanks again
A £50 million share buyback programme (the "Programme"). The Programme will be undertaken in two tranches.
Under the terms of the engagement with Numis, the First Tranche Programme will be for maximum aggregate consideration of £25 million. The First Tranche Programme will commence today, 26 June 2023, and will end on or before 29 September 2023.
The second tranche of the Programme is expected to be undertaken by HSBC Bank plc.
Has the buy back finished