Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Pets At Home: a recent IPO that’s actually quite interesting?!

By Chris Bailey of Financial Orbit

4 December 2014 07:20

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Another week, another set of numbers from a 2014 float. After Poundland (PLND) last week it is the turn of Ptes At Home (PETS) to pucker up and unburden its latest earnings thoughts onto an expectant market.

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Comments

alcira16247

4 December 2014, 08:40

Good analysis. Chris.

Have been keeping my eye on this one, since they opened a new store, earlier this year in my home town. My impression that business was brisk, observing local store footfall, seems to be borne out by today’s strong interims.

And whilst sales are geared towards food and accessories the new growth from vets and grooming services are booming with very attractive margins.

I also liked the free cash flow figure.

Given how a lot of us Brits would rather starve than let our moggy/doggy go without and perhaps a uplift in retail generally, on the back of an improving economy, think this one could prove a nice little nest egg, hence bought just a few, half an hour ago!
T.Welbourn

4 December 2014, 10:37

As a regular customer, I agree it’s a splendid retailer & if you measure quality by the manners of the staff (Brentford branch) then this company should grow. And today I see they have opened a branch in Richmond upon Thames. Even better for me.
Chris Bailey

4 December 2014, 11:04

Thanks very much, glad you find the analysis useful. Good luck with the shareholding. I think it could do a solid job for your portfolio inline with my analysis. Good also to hear consumers on the ground are giving solid feedback. It is probably impossible to measure but I reckon manners of staff / a customer-centric approach is positively correlated with share prices over time.
J P Spaghetti

4 December 2014, 13:10

“I reckon manners of staff / a customer-centric approach is positively correlated with share prices over time.”

It’s nice to think so and I suspect you’re right as they certainly influence my choice of vendor – just a shame the converse doesn’t always seem to be the case (I’m thinking Ryanair – grrrr!).