Pets at home Share Chat (PETS)

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.

Https://www.proactiveinvestors.co.uk/companies/news/1030788/pets-at-home-suffers-operational-hiccups-as-vet-probe-looms-1030788.html

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

''Investors have sold shares in CVS Group and Pets at Home, listed veterinary companies exposed to the review, but City analysts believe that the sell-off has gone too far. Davy, the broker, said there appeared to be “little risk of price controls being introduced”.

Berenberg also expects any focus from the regulator to be on “sunlight remedies”, requiring better-quality consumer information and price transparency.''

Analysts expect review to be 'light touch'

Its in the RNS dated 26.06.2023

Good morning,

I was just wondering if anyone knew how long it will take for the buy back to be complete please. Thank you kindly. Robert

I agree too. If I remember correctly, a couple of years ago, there was media coverage regarding the criticism CMA levied at DTY for high funeral costs and their share price went like a rocket. Go figure!

Same for me. And I probably wont stop using them as a vet either. Big vet bills would be covered by insurance anyway, so unless PETS are in the insurance business, rather than just an agent for the insurer, then if the insurance premiums get cheaper in 2024 as a result of this investigation, I somehow doubt that would affect PETS' profitability. Still a buy.

While the Vet side of PETS is an increasing arm of the business, PETS also have many retail outlets, food, toys, bedding etc catering for dogs, cats, small mammals, fish etc. The retail outlet near me is always busy, often with me! Can't see this drop lasting. Until yesterday, it was a definite buy, think it still is.

Good point Dulwichman. CVS are struggling because they can only recruit Vets. by paying very high salaries. Maybe because some "self employed" vets can charge excessive amounts to pet owners !

Well something is wrong within the Vet industry. Here in my neck of the woods vets charge between £250 to £550 for the same procedure (Spading of a medium size dog) the other issue is the price of drugs ie the % mark up by vets vary a lot. As to if vets are making excessive profits I think that is full of too many variables rents etc. I think this is a bit of a market over reaction but what do I know

CVS not doing very well yet their shares crashed. CMA clowns will waste everyones time . Pathetic but what we can expect from our shoddy government. If Pets really are ripping of their customers this would be a good buying chance. They are not but just being hastled by inept political intervention. Medium term it will damage the sp.

CVS group suffered an even bigger fall of around 30%

Definitely a chance to buy. The precise 10% drop looks like a random knee jerk reaction.

Could this be an opportunity to top up?

Geez, didnt think the reaction was going to be this bad! Surely PETS are not overcharging their client lol

Ultimately, if you cant afford the vet, dont get that pet.

Yep , seems the Competition and Mergers association ( CMA ) have opened an investigation in Vetinary practices and whether pet owners are getting value for money and proper information regarding there choices .