FY21 Preliminary Results

RNS Number : 9608Z

Pets At Home Group Plc

27 May 2021

FOR IMMEDIATE RELEASE, 27 MAY 2021

Pets at Home Group Plc: FY21 Preliminary Results
for the 52 week period to 25 March 2021

A step change in our journey to become the best pet care business in the world

· Total Group revenue growth of 7.9% to £1,142.8m; Retail revenue reached £1.0bn for the first time with growth of 8.7% during the year, despite Covid-related restrictions.

· Group like-for-like^# (LFL) revenue growth of 8.7%, or 17.0% on a 2-year basis; H2 LFL^# revenue growth of 12.4%

· Retail LFL^# revenue growth of 8.8%, or 17.3% on a 2-year basis; H2 LFL^# revenue growth of 11.9%

· Omnichannel revenue^# growth of 71.7%, or 119.0% on a 2-year basis, with previous investment in distribution capacity and fulfilment capability supporting participation of Retail revenue of 15.8% in the year up from 10.0% in the prior year

· Vet Group revenue and LFL^# revenue growth of 1.6% and 7.9% respectively, with LFL revenue growth of 13.2% on a 2-year basis. LFL customer sales^#1 growth across all First Opinion practices of 9.5%, and LFL Joint Venture fee income up 6.3%; LFL customer sales^# growth across all First Opinion practices was 19.1% in H2, with H2 LFL Joint Venture fee income +17.6%

· Group underlying PBT^# of £87.5m, ahead of guidance. Represents a decline of 6.4% YoY and is post an adverse Covid-related impact on profit of approximately £30m and the repayment of £28.9m of business rates relief. Growth in H2 Group underlying PBT^# of 22.0% after adjusting for timing of business rates payment. Group statutory PBT of £116.4m including £30.2m relating to profit on the disposal of our Specialist Group

· Group underlying free cash flow^# of £67.4m, reflecting strong cash generation across our First Opinion veterinary practices and a material increase in practice profitability

· Net cash (pre-IFRS16) of £1.4m (net cash/EBITDA of 0.0x) and total liquidity², comprising cash balances and undrawn portion of £248m RCF, of £248.8m

· Final dividend per share of 5.5p, an increase of 10% YoY, reflecting our strong cash generation and robust balance sheet, giving a total dividend of 8.0p for the year, up 7% YoY

· Strong underlying growth in our second half

· H2 Retail LFL^# revenue growth of 11.9% reflecting broad-based growth across categories and channels including 4.9% store LFL^# growth, notwithstanding a second national lockdown in England

· H2 LFL customer sales^# growth of 19.1% across all First Opinion practices reflecting over 9,000 new client registrations per week and driving continued improvement in profitability

· Leveraging data insights to drive customer lifetime value and increase the proportion of annuity-like income:

· The number of VIPs increased 9% YoY to 6.2m, with those shopping across more than one channel up 10% YoY and representing 26% of VIPs.

· The number of Puppy and Kitten Club members grew 60.9% YoY with sign-ups in H2 double that of the prior year; Puppy and Kitten Club members typically spend 34% per annum more than non-members across the Group

· The number of subscription customers across the Group grew 21% YoY to over 1.0m, generating over £90m in annualised recurring customer sales

· Estimated 8% increase in UK pet ownership over the past year has raised the outlook for growth across our addressable market and, in conjunction with our expectations of continuing to win market share, provides a supportive backdrop to the £600m customer revenue opportunity we see across our business over the medium term.

1. Customer sales include gross customer sales made by Joint Venture vet practices, and differs to the fee income recognised within Vet Group revenue.

2. Comprising £1.4m net cash and £247.4m undrawn facility, being RCF of £248m less £0.6m carved out as a deferment account guarantee.

# Alternative Performance Measures (APMs) are defined and reconciled to IFRS information, where possible, on page 85.

All FY21 APMs include the impact of IFRS16 unless explicitly stated.

Current trading and outlook

The start of our current financial year has seen a continuation of the strong momentum across our retail and veterinary operations.

While the emergence of new variants of the virus and the potential for higher transmission levels as the UK continues to unlock mean the external environment remains uncertain in the near term, our pet care model remains robust, and the changes we have made to our business enable us to continue providing pet care to our customers with minimal disruption.

At this early stage of the new financial year and considering both the ongoing momentum across our business and the continuing impact of the pandemic on operating costs, we anticipate that Group underlying pre-tax profit for the 53 weeks to 31 March 2022 will be in the range of £120m to £130m.

Our next scheduled update will be our Q1 FY22 update on 29 July 2021.

Peter Pritchard, Group Chief Executive Officer:

We ended this unprecedented year a far stronger pet care business. Despite challenges to how we were able to do business, we grew our market share across all channels and our underlying growth trajectory accelerated. Our loyalty clubs saw record periods of new customer registration, strong growth in subscription customers increased the visibility and quality of our sales profile, whilst new clients across our veterinary estate helped increase practice profitability and cash flow. We achieved all of this while remaining mindful at all times of doing the right thing for all our stakeholders.

Covid-19 has structurally changed the dynamics of the pet care market. We estimate that the rising level of pet ownership, combined with structural demand drivers such as premiumisation and humanisation, has increased the outlook for growth across our addressable market, and in conjunction with our expectations of continuing to take market share, provides a tailwind to the £600m customer revenue opportunity we see across our business over the medium term.

We will, as the UK's leading omnichannel pet care provider, capitalise on this opportunity through continued investment in our infrastructure, further digitising our business and leveraging our extensive and unique dataset to provide insight throughout the customer lifetime to support investment decision-making that will drive quality and profitable growth.

I am incredibly grateful for the tireless efforts of all our colleagues and Partners across the Group in the most challenging of environments and am very proud of their collective achievements this year. I look to the future with much confidence.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulations (Regulation (EU) No.596/2014). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Roger Tejwani, Director of Investor Relations & External Communication.

Results webcast

An audio webcast and presentation of these results will be available on our website ( https://investors.petsathome.com/investors/ ) from 07.00am on 27 May. Management will host a Q&A conference call for analysts and investors at 09.00am. To join the call in listen-only mode, please click on the following link ( https://brrmedia.news/PETS_FY21 ). Those wishing to participate in the Q&A session should email petsathome-Maitland@maitland.co.uk for call details.

# Alternative Performance Measures (APMs) are defined and reconciled to IFRS information, where possible, on page 85.

All FY21 APMs include the impact of IFRS16 unless explicitly stated.

Investor Relations Enquiries

Pets at Home Group Plc:

Roger Tejwani, Director of Investor Relations & External Communication
+44 (0)1279 927022

Chris Ridgway, Head of Investor Relations
+44 (0)7788 783925

Media Enquiries

Pets at Home Group Plc:

Natalie Cullington, Head of Media & Corporate Affairs
+44 (0)7786 927811

Maitland:

Clinton Manning
+44 (0)7711 972662

Joanna Davidson
+44 (0)7827 254567

About Pets at Home

Pets at Home Group Plc is the UK's leading pet care business; our commitment is to make sure pets and their owners get the very best advice, products and care. Pet products are available online or from our 452 stores, many of which also have vet practices and grooming salons. Pets at Home also operates a UK leading small animal veterinary business, with 441 First Opinion practices located both in our stores and in standalone locations. For more information visit: http://investors.petsathome.com/

Disclaimer

This trading statement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Pets at Home Group Plc shares or other securities nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever. It does not constitute a recommendation regarding any securities. Past performance, including the price at which the Company's securities have been bought or sold in the past, is no guide to future performance and persons needing advice should consult an independent financial adviser. Certain statements in this trading statement constitute forward-looking statements. Any statement in this document that is not a statement of historical fact including, without limitation, those regarding the Company's future plans and expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this statement. As a result you are cautioned not to place reliance on such forward-looking statements. Nothing in this statement should be construed as a profit forecast.

Chief Executive Officer's Review

An extraordinary year in review

The start of our financial year coincided almost exactly with implementation of the UK's first national lockdown, marking what would become the most extraordinary period across my thirty-five years in industry.

Our immediate priorities were to ensure the safety and wellbeing of all our colleagues, Partners, customers, and pets, and we rapidly adapted our retail and veterinary operations to be able to continue providing essential pet care to our customers in a safe and appropriate manner.

Recognising that Covid-19 would be a catalyst for change around customer purchasing behaviour and pet ownership, we accelerated investment into our loyalty clubs and subscription platforms, and introduced new ways to engage, serve and fulfil our customers' needs across all channels, making pet care as convenient, engaging and flexible as possible.

These measures, together with the inherent strength of our pet care platform and the underlying pet care market, underpinned the strong and sustained momentum witnessed in both our retail and veterinary operations across the last three quarters of the year, notwithstanding national or regional pandemic-related restrictions throughout much of the period.

Despite the wide-ranging impact of the pandemic, we ended the year a far stronger pet care business. We continued to grow our market share across all channels and our underlying growth trajectory accelerated. Our VIP and Puppy and Kitten clubs saw record periods of new customer growth, many of whom are already shopping across multiple channels of our pet care ecosystem, strong growth in subscription customers increased the visibility and quality of our sales profile, and new client registrations across our veterinary estate have improved practice profitability and cash flow.

We continued to shape our business to align with our strategic focuses, disposing of our Specialist Group for up to £100m in cash and deferred consideration and broadening our digital pet care capabilities through the acquisition of The Vet Connection, a long-established veterinary telehealth provider.

We also ensured that our preparations to mitigate any potential impact on the business relating to the UK's exit from the European Union were in place well ahead of the transition deadline.

We achieved all of this while remaining mindful at all times of our ongoing obligations as a responsible corporate citizen, increasing our support to nominated charities, continuing to pay our suppliers and landlords, voluntarily repaying £28.9m of business rates relief, and implementing several measures for our colleagues to support their emotional and financial wellbeing. We also took the decision across our Group-owned businesses not to participate in any of the government's support schemes.

Key Performance Indicators

Financial KPIs¹		FY21	FY20	YoY change
Customer sales^{#, 2} (£m)		1,437.1	1,334.7	7.7%
Group underlying PBT^# (£m)		87.5	93.5	(6.4)%
Group underlying free cashflow^# (£m)		67.4	89.6	(24.8)%

Strategic KPIs	Measure	FY21	FY20	YoY change
Bring the pet experience to life	No. of customer transactions³ (m)	60.0	63.1	(4.9)%
50% of sales from pet care services	Customer sales^{#, 2} from services	32.8%	34.1%	(129)bps
Use our data to better serve customers	VIP customer sales^{#, 2, 4} (£m)	887.1	817.2	8.6%
Set our people free to serve	Customer sales^{#, 2} per colleague (£k)	196.7	187.0	5.2%

1. Financial KPIs shown above represent those used by the business to monitor performance. Management recognise that as Alternative Performance Measures they differ to statutory metrics, but believe they represent the most appropriate KPIs.

2. Customer sales include gross customer sales made by Joint Venture vet practices of £358.1m (FY20: £329.7m) (unaudited figures), and therefore differs to the fee income recognised within Vet Group revenue

3. Includes customer transactions in-store, online, in First Opinion vet practices, cases treated in our Specialist Group plus pets groomed in Groom Room salons

4. VIP customer sales are shown on a rolling 12-month basis and include gross spend at First Opinion vet practices

Despite such progress, we are still in the early stages of our journey to become the best pet care business in the world, and there remains plenty to strive for and achieve as we continue our transformational journey.

Covid-19 has structurally altered the dynamics of the pet care market. We estimate the overall number of pets in the UK has increased by approximately 8% over the past year which, together with demand drivers such as premiumisation and humanisation, has increased the outlook for growth across our addressable market and, in conjunction with our expectations of continuing to take market share, provides a tailwind to the £600m customer revenue opportunity we see across our business over the medium term.

We will, as the UK's leading omnichannel pet care provider, capitalise on this opportunity by continuing to invest in our infrastructure to provide best-in-class customer service and convenience and leveraging our extensive and unique dataset to increase customer lifetime value, enhancing the quality and visibility of our growth and profitability.

In addition, over the next 18 months, we will invest over £20m in further digitising our business through "Polestar", our transformational initiative to create a seamless pet care experience for our customers using a differentiated digital interface which will, we believe, be the first of its kind in the UK pet care market and offer us significant competitive advantage.

None of this would be possible without the ongoing support of our hardworking, passionate and skilled colleagues and Partners across the Group, who have demonstrated remarkable resilience by working tirelessly in adverse circumstances over the past year. I am incredibly grateful for their commitment and equally proud of their successes and look forward to achieving much more together.

I. The outlook for growth has strengthened across the UK pet care market

We operate in a large, growing and robust market, which had an estimated value pre-Covid of approximately £6.1bn across our segments.

Prior to the onset of the pandemic, the pet population of dogs and cats in the UK had been in steady state, with pet humanisation, premiumisation and healthcare and nutritional advancement being the predominant drivers of average annual UK market growth of approximately 3.5%.

Covid-19 has structurally altered the dynamics of the UK pet care market, with changes to the way we work and spend our leisure time removing an historical barrier to pet ownership and strengthening the emotional bond with pets as they play a more significant role in our daily lives. Anecdotal evidence over the past year, across animal welfare charities, pet marketplaces and pet registration forums, points to a significant increase in pet ownership, a good proxy for elevated levels of future market growth.

Across our internal pet care indicators - growth in membership of our VIP and Puppy and Kitten Clubs, new client registrations across our First Opinion veterinary practices and growth in puppy and kitten merchandise categories - we estimate that the overall number of pets in the UK has grown by 8% over the past year, which, combined with prevailing structural tailwinds, has increased the future annual underlying growth rate of our addressable market by approximately 100bps.

II. We are growing our share of pet care and see a £600m customer revenue opportunity

Our share of the pet care market pre-pandemic had grown to approximately 20% across our segments, with our strategy to reposition the business from a pet shop to an omnichannel pet care provider underpinning a shift in revenue mix towards high growth veterinary services, online and subscriptions, and delivering consistent market share gains since 2016.

We continued to increase our share across all channels of this growing market over the past year, with LFL revenue growth across our retail, omnichannel and veterinary operations ahead of their respective segments. Market supplier data implies an estimated 200bps increase, in-store and online, in our share of trade of key branded dog and cat food categories during calendar year 2020, with sequential growth over the last three quarters and, combining our internal data with a range of third-party UK market reports, we estimate that our share of the pet care market across our segments increased to approximately 23%.

Looking ahead, we see a £600m customer revenue opportunity across our business over the medium term, as we continue to take share of a growing market, increase our revenue weighting in high growth segments, and continue to repurpose our core customer proposition from transactional and channel centric to one that is solutions-based and channel-agnostic.

In this respect, our truly omnichannel backbone is one of our key sustainable advantages.

III. The strategic advantages of our omnichannel pet care model

We are the leading omnichannel pet care provider in the UK, with a growing and scalable online platform complemented by a 452-strong estate of well-invested, conveniently located stores across the UK, many of which are playing an increasingly important role in our omnichannel strategy.

The combination of our store, online, grooming, veterinary and digital services gives us a presence across the full pet care market, allowing us to meet pet owners' needs across multiple touch points across the lifetime of their pets, and drive engagement, loyalty and retention.

Our stores bring the pet care experience to life

Our stores, combining a wide range of attractively priced and predominantly UK-sourced branded and own label products with veterinary and grooming services and expert advice, have been key in acquiring new customers during the pandemic. Put simply, they allow pet owners to meet all their product and service needs under one roof in a safe, localised and experiential environment, and provide a suitable alternative for grocery-led shoppers seeking either brand continuity or a more tailored advanced nutrition approach through our market-leading own label brands.

Our online operations integrate our physical and digital channels to maximise convenience

We estimate that our share of the online pet care market increased by approximately 200bps to 16.8% over the past year. Our omnichannel participation of retail sales moved from approximately 10% pre pandemic to an average of 15.8% in FY21, as investment in distribution capacity over the past couple of years supported elevated levels of online demand with minimal disruption.

During the year, we simplified the remote sign-up process to our loyalty programmes and subscription plans, underpinning 34% growth in annualised subscription sales, and enabled home delivery of veterinary medicines, which grew 35% in the period.

We also extended choice and flexibility for customers, investing in innovative ways to integrate our physical and digital channels, including "Deliver to Car" across more than 150 stores and a one hour Click and Collect service across the full estate, which has surpassed initial expectations.

Towards the end of calendar 2020, recognising the growing importance of telehealth through the pandemic, we broadened our digital capabilities in the provision of trusted advice and pet care solutions through the acquisition of The Vet Connection, an established and successful provider of on demand, high quality, round-the-clock veterinary telehealth advice, triage and ancillary services, which is helping to differentiate our proposition and drive customer acquisition and retention.

Our veterinary services are an integral part of our pet care ecosystem

We also increased our share of the veterinary market during the year, with new client registrations across our 441 practices comprising approximately 9% of all veterinary visits in our second half, reflecting an increase in pet ownership over the past year as well as a higher number of existing pet owners choosing our veterinary services for the first time.

This strong performance is a clear endorsement of our unique veterinary joint venture model, where our Partners are incentivised, economically and clinically, to drive practice maturity, with marketing and support services provided at Group level. This model has worked especially well through the pandemic where we were able to support our Partners to remain open and accessible for the provision of pet care. It is also one of the key reasons why even our mature practices typically grow at a faster rate than the underlying market.

The health of our veterinary estate continued to improve, with customer sales across our First Opinion practices of approximately £384m over the past year, an increase of 21% on a two-year basis. The number of loss-making practices more than halved year on year, the number of profit-making practices has increased again this year, and a step change in both the reduction of operating loans and cash flow generation is demonstrating that remedial action previously taken, as well as supportive measures implemented during the pandemic, is helping to accelerate practice maturity and release embedded value.

Our colleagues share an ambition to be the best pet care business in the world

Having a best-in-class suite of assets is, however, only half the solution, and many of our achievements this year would not have been possible without the energy, passion and skill of all our colleagues and Partners across the Group.

We have not been immune to the challenges that Covid-19 has created and, while we were pleased to be able to implement a number of measures to support their emotional and financial wellbeing, including offering full pay to those that were shielding and clinically vulnerable, additional support for those with caring responsibilities, a £1.0m hardship fund, and an incremental Thank You bonus totalling £2.9m to frontline colleagues, I would personally like to take this opportunity, on behalf of our Executive Management Team, to thank them all for their tireless work and dedication in serving our customers' needs during such challenging times.

IV. Accelerating investment to grow the Pets at Home ecosystem

Three things are fundamental in supporting our ambition to be the best pet care business in the world.

§ Investing in our infrastructure to provide a best-in-class customer experience;

§ Further digitising our business to create a seamless pet care experience;

§ Leveraging our data to increase customer lifetime value and annuity-like income

Investing in our infrastructure to provide a best-in-class customer experience

It would be outdated to describe our next generation pet care centres as stores. We see them as destinations to connect and engage with local communities of pet owners and their pets, providing all their product and healthcare needs in one location which brings the pet experience to life through multi-use event space, pet care services, training and socialising classes and nutritional consultations.

While we paused our regeneration programme during the pandemic, we plan to restart the process this year, utilising the learnings from our 23 transformations to date. We have also recently launched two smaller, high street pet care centres inside the M25 London Orbital Motorway, where we are currently underrepresented, but a meaningful opportunity exists. The performance of these new centres will help to inform our decision-making on wider rollout within Greater London.

The role our stores play in accelerating our omnichannel strategy is also becoming increasingly significant, with their wide geographical footprint and proximity to our customers positioning them well as localised distribution centres as part of our ambition of delivering frictionless execution, convenience and speed. Our new Order Management System, providing real-time intelligence on optimal order management and routing across our nationwide estate, will enable us, alongside our centralised distribution model, to offer localised same day delivery from store to home, embedding best-in-class fulfilment while generating operational efficiencies across the Group.

We also have a clear ambition to transform the responsiveness of our supply chain and during the year signed a lease agreement for a new purpose-built, highly automated storage and distribution facility in Stafford, which will come on-stream during 2023. Consolidating our legacy infrastructure into a modern, well-located, and future focused platform, that serves both our store and online operations, will give us significant incremental capacity across our subscription platforms and enable us to better serve our customers through maximum flexibility in stock holding and order fulfilment capacity.

Across our veterinary operations, we will invest in infrastructure and resource to enhance practice revenues through widening our service offering and improved call handling efficiency, and our recent acquisition of The Vet Connection will enable us to differentiate our veterinary proposition to support new client acquisition and retention.

We also plan to re-start new practice rollout this year, targeting between 5 and 10 new sites per annum.

Further digitising our business to create a seamless pet care experience

At the heart of our pet care strategy lies a clear and unequivocal customer first approach, offering everything pet owners need and empowering them to search, shop for and receive their goods and services however and whenever they choose.

Achieving this requires us to facilitate customer journeys across our suite of products and services that are based on a deep understanding of their pet care needs and are supported by integrating our well-invested store estate, our fast-growing online business and an efficient and responsive supply chain into a seamless experience that really brings the customer pet care experience to life.

Over the past year, we have undertaken more joined-up TV and digital marketing campaigns across our subscription platforms and Puppy and Kitten Club and digitised the sign-up process, with approximately 80% of the record level of new puppy and kitten sign-ups coming through our app. Our stores have also become more digitally enabled through investment in IT solutions to simplify daily tasks and video functionality to link instore colleagues to online customers.

This is, however, just the start of our journey to provide an enhanced, joined-up digital experience.

We will, over the next 18 months, be investing over £20m in "Polestar", our transformational initiative to create a seamless pet care experience for our customers through a differentiated digital interface offering new features, functionality, and capability to integrate our offering across retail, grooming and veterinary services into a single, customer-managed dashboard.

This is one of our most significant investments to date and will, we believe, be the first of its kind in the UK pet care market, offering us significant competitive advantage.

Customers will, for example, through a single, universal login, be able to access all touchpoints across the Group, whether joining our loyalty clubs, booking, and managing veterinary and grooming appointments or paying for goods and services across our ecosystem. Subscription customers will be able to manage their preferences across all our plans through a single platform and will be given more choice in tailoring plans to real-time needs, including a variety of flexible payment and delivery options.

For new pet owners, we will make pet care easier, more convenient, and emotionally rewarding by offering them the products, services and expert advice they need through a personal shopping appointment in-store or online, and our "first pet checklist" with pet-specific, comprehensive pet care solutions tailored by pet type and breed will, we believe, deliver a best-in-class first shop experience.

Leveraging our data to increase customer share of wallet and annuity-like income

Our base of 6.2m active VIP customers, many of whom are multiple pet owners, continues to grow strongly, increasing the breadth and depth of our unique proprietary customer and pet dataset.

We have in-housed all our VIP customer data onto a cloud-based platform and assembled a team of 45 data scientists and engineers who are providing data insights across the business to inform decision-making on pricing, range optimisation and logistical efficiencies.

We have also developed a single customer and household view of pet ownership across all parts of our business, which will enable us to more accurately predict customer preferences and responsiveness to specific campaigns, personalise customer interaction through timely, pet-specific and integrated solutions across the full lifecycle of the pet, and predict which customers are most at risk of churn at both brand and range level, allowing us to generate algorithmically-targeted and relevant interventions.

While the benefits flowing from our data insights will only increase over the coming year, early indications of the potential for higher levels of engagement and spend are extremely encouraging.

Across four VIP reward mailers (using over 300 pieces of data at an individual customer level to optimise the audience based on probability of response) customers that were specifically targeted spent at least a third more than those outside of the group, but within the same segment, and our recent Grooming campaign generated a c50% uplift in spend specific to a single mailer from customers that were targeted compared to the control group.

Our initial test churn campaign, using an "always on" AI-based predictive churn model, increased both VIP activity rate and value during the campaign, the latter by one third. In a separate, more recent churn campaign, over half of customers that initially responded to the reactivation offer transacted with us again outside of the offer.

While many of our VIPs already shop a range of our products and services, a significant opportunity remains to leverage our data to i) drive customer acquisition through our Puppy and Kitten club and ii) deepen new and existing customer relationships and improve our earnings quality through broadening our offering of Pet Care Plans, which span our full range of products and services and move the customer relationship from single product or service to one that is tailored and multi-faceted.

§ Drive customer acquisition through our Puppy and Kitten club

Our free-to-join Puppy and Kitten Club, designed to attract pet owners at the start of their journey and introduce them to all parts of our ecosystem, has been particularly successful in acquiring new customers over the past year.

We know that members of the club respond well to our tailored CRM programme, typically spending 34% more in each year and with less churn than inferred puppy and kitten owners not in the club, and we can utilise our insights on existing members to identify prospects amongst existing VIPs, attract new customers to the Group, finesse our digital marketing campaigns and refine our in-store and online proposition.

We will also leverage the important role our veterinary services play for new pet owners, maximising the flow through of accelerated Puppy and Kitten Club customer acquisition in our retail operations to our veterinary practices through the introduction of a bespoke subscription, "Complete Care Junior", designed to offer a tailored and continuous care plan journey for new puppies and kittens based on their life stage needs, and the first to include access to our 24-hour veterinary care helpline.

§ Pet Care Plans deepen the customer relationship and improve our earnings quality

We know from our veterinary business that our Healthplan subscriptions, designed to make pet care easy, convenient, and affordable, increase customer loyalty and spend, and grow our mix of annuity-like income. We also know that customers who shop across our ecosystem of products and services spend on average 9x more per annum than a store only shopper, and their use of services and subscriptions increases their retention across the business.

We believe that Covid-19 is accelerating the already growing trend of subscription models in the market, as consumers seek ways to access goods and services conveniently at good value, and we are well-placed to address this growing trend. We operate in market segments that lend themselves to subscription packages and have the unique ability to consolidate a broad range of pet care products and physical and digital services into a single personalised plan to optimise value and convenience for pet owners across all life stages of pet ownership.

Utilising the data insights from our current database of over one million subscription customers, we can identify customers with a propensity to subscribe or become multi-service users across our 6.2m VIP customers, accelerate the recruitment of new customers through relevant, tailored propositions and, combining our omnichannel and fulfilment capabilities, use our Pet Care Plans to create a point of differentiation and retention that competitors cannot easily replicate.

V. Responsible, quality, profitable growth over the medium term

None of this would be possible without the ongoing support of our colleagues and Partners across the Group. Colleague wellbeing has long been an integral part of our culture, and we continually seek new ways to invest in their learning and development and foster an inclusive culture where everyone is welcome.

We are proud of the progress we have made, in an unprecedented year, to narrow our mean gender pay gap and improve diversity across our organisation, and I was pleased to note external recognition of this in the Financial Times 2020 Diversity Leaders Report, where across the Retail sector Pets at Home was ranked 7^th, out of a total 85 constituents. During the past year we were also delighted to join both the Business Disability Forum and Disability Confident scheme and Stonewall, and to become a signatory to the Valuable 500, British Retail Consortium (BRC) diversity commitment and BITC Race at Work Charter.

Meeting our obligations as a responsible corporate citizen has remained paramount throughout the pandemic. We continued to pay our landlords and suppliers, allocated £1.3m to pet rescue centres, £0.1m to CaRE20 and provided a 10% discount scheme to NHS workers.

We have also recently launched a new social value strategy, "Our Better World Pledge", centred on the three pillars of Pets, People and Planet and underpinned by several specific goals, actions and targets. Amongst our many pledges are commitments to a net zero carbon value chain by 2040 and 100% packaging that is recyclable, recycled or compostable by 2025.

We are already piloting in-store collection points for flexible plastics, tackling the largest category of non-kerbside collected pet food packaging, with a nationwide rollout planned from summer 2021, and have become a signatory to the BRC climate roadmap, as part of a world-leading industry ambition to reach net zero emissions.

We operate in a large, growing and robust market, with favourable demographics and structural tailwinds. We have a unique combination of assets, customer DNA and omnichannel pet care expertise which can be leveraged through growing our data and digital capabilities to drive share gains in high-growth market segments. We will continue to make the right investments, organically and inorganically, across both core and adjacent markets to responsibly deliver quality and profitable growth over the medium term.

Peter Pritchard

Group Chief Executive Officer

27 May 2021

Chief Financial Officer's Review

The FY21 audited period represents the 52 weeks from 27 March 2020 to 25 March 2021. The comparative period represents the 52 weeks from 29 March 2019 to 26 March 2020.

The Group's results are shown as three segments that represent the size of the respective businesses and our internal reporting structures; Retail (includes products purchased online and in-store, pet sales, grooming services and insurance products), Vet Group (includes First Opinion practices and Specialist Referral centres) and Central (includes Group costs, finance expenses and the Group's telehealth business).

The Group completed its disposal of its five Specialist Referral centres (the "Specialist Group") on 31 December 2020 and therefore the financial information shown for FY21 includes an element of discontinued operations, however given the immateriality of these operations (revenue £33.9m, underlying EBIT £1.8m) to Group revenue and profit they have not been disclosed separately.

	FY21	FY20	YoY change
Group like-for-like revenue growth^#	8.7%	9.0%
Retail	8.8%	9.4%
Vet Group	7.9%	5.6%

Group revenue (£m)	1,142.8	1,058.8	7.9%
Retail	1,018.9	937.6	8.7%
Vet Group	123.2	121.2	1.6%
Central	0.7	-	NM

Group underlying gross margin^1,#	48.9%	48.9%	(2) bps
Retail	49.2%	49.7%	(50) bps
Vet Group¹	46.0%	42.7%	334 bps

Group underlying EBIT^2,3,# (£m)	105.9	111.3	(4.8)%
Retail	79.5	89.3	(11.0)%
Vet Group^2,3	36.0	30.6	17.6%
Central	(9.6)	(8.6)	(11.6)%

Group underlying EBIT margin^2,3,#	9.3%	10.5%	(124) bps
Retail	7.8%	9.5%	(172) bps
Vet Group^2,3	29.2%	25.2%	398 bps

Group underlying PBT^# (£m)	87.5	93.5	(6.4)%
Group statutory PBT (£m)	116.4	85.9	35.5%
Underlying basic EPS^1,2,3,# (p)	14.0	15.0	(6.8)%
Statutory basic EPS (p)	19.8	13.5	47.1%
Group statutory net income (£m)	99.0	67.4	47.1%

Group non-underlying items^1,2,3 (£m)	28.9	(7.6)	NM
Group non-underlying cash costs⁴ (£m)	(5.5)	(16.4)	(66.5)%
Group underlying free cashflow^# (£m)	67.4	89.6	(24.8)%
Dividend (p)	8.0	7.5	6.7%

Number of
Stores	452	453	(1)
Grooming salons	316	316	-
Joint Venture First Opinion vet practices	395	396	(1)
Company managed First Opinion vet practices	46	45	1

1. FY21 non-underlying credit of £0.6m relates to the release of a provision held against property leases. FY20 non-underlying charges of £6.6m relate to costs incurred by the Group in buying out, and in some cases closing, JV practices. Both items have been allocated against Vet Group, and Group, non-underlying gross margin.

2. FY21 non-underlying charges of £1.9m relate to an accounting charge for minority stakes owned by vet partners in the Specialist Group, prior to the disposal on 31 December 2020, which has been charged against non-underlying operating costs (FY20: £1.0m)

3. FY21 non-underlying credit of £30.2m relating to the profit on disposal of the Specialist Group (FY20: £nil) has been allocated against non-underlying operating costs.

4. FY21 non-underlying cash costs include £nil (FY20: £10.0m) relating to practices that we have bought out, plus £5.5m (FY20: £6.4m) in relation to payments made to Shared Venture Partners in our Specialist Group to acquire certain remaining minority stakes

Impact of Covid-19 on the FY21 financial statements

Throughout the year and particularly in the first quarter, Covid-19 impacted the Group by placing revenue restrictions on the business and leading us to incur both one-off costs and ongoing, additional operational costs.

We temporarily closed our grooming salons and stopped the sale of pets, and our First Opinion practices and Specialist Referral centres were subject to regulatory restrictions on permitted procedures. We incurred additional costs through, inter alia, social distancing measures across our stores and distribution centres, the provision of personal protective equipment, cleaning and sanitisation, and pet welfare, as well as through the payment of an additional Thank You bonus to frontline colleagues and enhancing our Colleague Hardship Fund.

This resulted in an estimated £30m adverse financial impact in the year, all of which is included in our underlying results.

We took the decision across our Group-owned businesses not to participate in any of the government's support schemes including the Job Retention Scheme (JRS), the Job Retention Bonus, and the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and we voluntarily repaid £28.9m in business rates relief.

While the impact of Covid remains, we have planned for ongoing additional operational costs across both our stores and distribution centres of approximately £9m for the year ahead and will monitor this closely as the year progresses.

Impact of IFRS16 on the FY21 financial statements

The financial information in pages 12 to 16, and associated commentary, have been presented on a constant accounting basis and reflect the impact of IFRS16, which was fully implemented in the prior year. The impact of IFRS16 on the Group financial statements is shown on page 16.

Revenue

Group revenue in FY21 grew 7.9% to £1,142.8m (FY20: £1,058.8m) and like-for-like (LFL) revenue grew 8.7%^#. In H2 Group revenue grew by 10.9%, with Group LFL revenue growth of 12.4%.

Retail revenue grew 8.7% to £1,018.9m (FY20: £937.6m), including omnichannel revenue growth of 71.7% to £161.3m, representing 15.8% of total Retail revenue (FY20: 10.0%). The LFL revenue growth in Retail was 8.8%^# for the period and 11.9% in H2. Retail LFL revenue grew by 17.3% on a 2-year basis.

Food revenue grew by 6.6% to £551.5m (FY20: £517.4m), reflecting our success in recruiting new customers throughout the year, as more people became pet owners for the first time.

Accessories revenue grew 15.0% to £431.4m (FY20: £375.3m), with significant growth in categories such as leads and bedding as humanisation continues to drive customer spend. Grooming revenues declined by 29.2% in the year to £19.6m (FY20: £27.7m), reflecting closure of all salons for the first 10 weeks of the year, with some form of Covid-related restrictions in place for much of the year.

Vet Group revenues grew 1.6% to £123.2m (FY20: £121.2m), with LFL growth of 7.9%^#, despite varying degrees of restrictions on permitted procedures throughout much of the year. In H2 Vet Group revenues grew by 3.4%, with LFL growth of 17.2%, with the difference between total and LFL revenue growth being driven by the disposal of the Specialist Group on 31 December 2020. Customer sales made by all First Opinion vet practices were up 9.2% to £383.6m^# (FY20: £351.3m).

Total Joint Venture fee income increased by 6.0% to £57.0m (FY20: £53.8m), with LFL fee income up 6.3%^# (FY20: 2.1%). The growth in fee income is lower than that seen in customer sales due to the fee adjustments which have been in place for some JV practices throughout the year. Our program of fee adjustments completed in the year as planned and fully annualised in the second half of the year such that, in H2, growth in First Opinion customer sales and JV fee income was more closely aligned, at 19.4% and 17.9% respectively.

Consolidated customer revenues ^# from company managed First Opinion practices increased by 17.7% to £25.5m (FY20: £21.7m).

Revenue of £0.7m was recognised within our Central division in relation to The Vet Connection, the financial performance of which has been fully consolidated since the acquisition on 30 November 2020.

LFL Sales Growth	FY21
LFL Sales Growth	H1	H2	Full Year	2-year
Retail	5.8%	11.9%	8.8%	17.3%
Of which:
Stores¹	0.7%	4.9%	2.7%	9.0%
Omnichannel²	65.8%	77.6%	71.7%	119.0%
Vet Group	1.2%	17.2%	7.9%	13.2%
Group	5.3%	12.4%	8.7%	17.0%

1. Store sales includes live pet sales.

2. Defined as orders placed online at petsathome.com and in-store using our order-in-store service for both delivery to home and collection in-store, plus subscriptions to monthly flea & worm treatments via our 'Subscribe & Save' platform.

Gross margin

Underlying group gross margin remained broadly flat year-on-year, declining by 2 bps to 48.9% (FY20: 48.9%), despite strong growth in grocery food sales, which are at a lower percentage margin.

Gross margin within Retail was 49.2%, a reduction of 50 bps over the prior period (FY20: 49.7%), albeit with a 70-bps improvement in H2. This reflects four main impacts; the restrictions on grooming services which had a dilutive impact on gross margin as we continued to employ our grooming colleagues, whose costs are allocated to gross margin, a mix benefit driven by strong growth within accessories, beneficial terms with our suppliers partly driven by volume, as well as the external factors of foreign exchange and increased freight costs.

In the year, we incurred a year-on-year foreign exchange impact of 29 bps as our average dollar hedged rate weakened from 1.33 to 1.28, as well as a 26-bps impact from increased freight costs. In the current financial year, 100% of our forecast USD spend is currently hedged at a rate of 1.35 and we have planned for increased freight costs for at least the first half of the financial year.

Underlying gross margin^# within the Vet Group increased by 334 bps to 46.0% (FY20: 42.7%). This increase reflects the strong sales growth across both our Joint Venture and company managed estate driving fee income growth of 6.0% with the cost base to support those practices remaining largely fixed. Gross margin also includes the impact of planned fee adjustments, which have supressed Joint Venture fee income in the year, but which are now fully completed with no further fee adjustments planned.

Operating profit and operating costs

Underlying Group EBIT was £105.9m^# (FY20: £113.3m), with an operating margin of 9.3%^# (FY20: 10.5%). Group underlying operating costs of £342.1m (FY20: £297.2m) grew at 15.1% or 10.6% on a pre-Covid basis. Before investment in fulfilment, customer acquisition, and our support office capabilities underlying cost growth was 1.3%.

Retail EBIT was £79.5m^# (FY20: £89.3m) with an operating margin of 7.8%^# (FY20: 9.5%). Whilst we saw sustained strong trading in our second half across both stores and online this has been offset by the revenue and cost implications of Covid-19. Operating cost growth, excluding depreciation and amortisation, was 16.2% to £316.8m (FY20: £272.5m). We have continued to pay all our rents throughout the year, and our program of rent negotiations continues.

Underlying Vet Group EBIT was £36.0m^# (FY20: £30.6m) with an operating margin of 29.2%^# (FY20: 25.2%). Operating costs in the Vet Group, excluding depreciation and amortisation, were £15.1m (FY20: £16.1m), a decrease of 5.8% on the prior year. The year-on-year change in operating costs reflects achieved cost efficiencies across several areas, as well as the disposal of the Specialist Group part way through the year.

Within Vet Group non-underlying items, we recognised £30.2m in relation to the profit on disposal of the Specialist Group (FY20: £nil) on 31 December 2020, as well as non-underlying operating costs of £1.9m in relation to the accounting treatment of the ownership structure of the Specialist Group (FY20: £1.0m), consistent with our accounting practices since acquisition.

Central costs, including Group overheads and colleagues, increased to £9.6m (FY20: £8.6m), partly driven by investment in our Group capability and the small amount of costs associated with The Vet Connection, acquired on 30 November 2020.

Finance expense

The net finance expense for the period increased to £18.4m (FY20: £17.8m) with the increase driven by fees relating to the £100m credit facility arranged in May 2020 as part of our Covid-19 response. This facility remained unutilised for the entire term and, post year end, has been allowed to expire without seeking renewal.

Profit before tax

Underlying pre-tax profit was £87.5m^# (FY20: £93.5m) and statutory pre-tax profit, including all non-underlying items was £116.4m (FY20: £85.9m). Underlying pre-tax profit declined 6.4% in the period.

Taxation, net income & EPS

Underlying total tax expense for the period was £17.3m^#, a rate of 19.8% on underlying pre-tax profit.

Underlying net income for the year, after tax, decreased by 6.3% to £70.2m^# (FY20: £74.9m), whilst statutory net income for the year, after tax, increased by 47.1% to £99.0m (FY20: £67.4m), driven by the £30.2m profit on disposal of the Specialist Group. Underlying basic earnings per share were 14.0 pence^# (FY20: 15.0 pence) and statutory basic earnings per share were 19.8 pence (FY20: 13.5 pence).

Cash working capital

The cash movement in trading working capital for FY21 was an outflow of £16.5m^#. This was predominantly driven by a £22.1m increase in inventory, reflecting the rebuild of stock levels throughout the period following the customer stockpiling seen towards the end of FY20.

The strong financial performance across our Joint Venture First Opinion vet practices, as well as the 6-month loan holiday we agreed with third party banks as part of the Covid-19 response, led to the gross value of operating loans reducing by £10.8m to £26.7m (FY20: £37.5m). This decreased the overall Group cash working capital outflow to £5.7m (FY20: £28.2m inflow), and supported the solid cash generation of the Vet Group.

The provision held against the gross value of operating loans was £6.2m (FY20: £8.0m) representing 23% of the gross value of the loans.

Capital investment

Capital investment was £44.4m (FY20: £38.3m) and was focused on three strategic growth areas; a £5.6m (FY20: £3.5m) investment to increase capacity within our distribution network, £4.8m (FY20: £11.1m) to rollout our next generation store format, and investment in data analytics and business systems totalling £22.9m (FY20: £14.9m), as we continue to progress our data and digital agenda. The balance of capital spend supported the ongoing maintenance of our asset base. Cash capital expenditure was £34.9m (FY20: £39.6m).

Group underlying free cashflow

Group underlying free cashflow after interest and tax, but before acquisitions and disposals decreased to £67.4m^# (FY20: £89.6m), representing a cash conversion rate of 30.4% (FY20: 39.8%). The decrease in free cashflow compared with the prior year is largely driven by the working capital movements described above offset by a year-on-year benefit relating to a change in timing of Corporation Tax payments in the prior year.

Group underlying free cashflow^# (£m)	FY21	FY20
Operating cashflow^#	133.2	165.8
Tax and Interest	(21.9)	(34.0)
Debt issue costs	(0.2)	-
Net Capex	(35.0)	(39.4)
Purchase of own shares to satisfy colleague options	(8.7)	(2.8)
Group underlying free cashflow^#	67.4	89.6

FY21 Group underlying free cashflow^#	Underlying FCF (£m)	FCF conversion²
Retail	44.6	23.8%
Vet Group	38.1	89.8%
Central¹	(15.4)	NM
Group underlying free cashflow^#	67.4	30.4%

1. Includes central costs of £9.5m plus interest paid of £5.3m, purchase of own shares of £8.7m, £0.2m of debt issue costs, a WCAP inflow of £4.3m a tax credit of £3.3m and a credit relating to IFRS2 of £0.8m.

2. Calculated as underlying free cashflow as a percentage of underlying EBITDA.

As a result of strong cash generation and £80m of initial proceeds from the disposal of the Specialist Group, the Group's net cash position at the end of the period was £1.4m, and net debt was £408.3m on a post-IFRS16 basis. This represents a leverage ratio of 0.0x underlying EBITDA^# on a pre-IFRS16 basis or 1.9x on a post-IFRS16 basis.

Group net cash/(debt) (£m)	FY21	FY20
Opening net cash/(debt) (pre-IFRS16)	(85.9)	(120.5)
Underlying free cashflow^#	67.4	89.6
Ordinary dividends paid	(37.1)	(37.1)
Acquisitions³	(16.8)	(1.5)
Disposals⁴	79.4	-
Non-underlying cash outflow⁵	(5.5)	(16.4)
Closing net cash/(debt)	1.4	(85.9)
Pre-IFRS16 leverage (Net cash/(debt) / underlying EBITDA^#)	0.0x	0.6x
Post-IFRS16 leverage (Net cash/(debt) / underlying EBITDA^#) ⁶	1.9x	2.5x

3. In FY21 includes acquisition of The Vet Connection and investment in certain company managed practices. In FY20, includes an investment in Tailster and in certain company managed practices.

4. In FY21 includes the £80m cash proceeds in relation to the disposal of the Specialist Group in the year net of fees and cash held upon disposal (FY20: £nil).

5. FY21 includes £nil (FY20: £10.0m) relating to practices bought out during the year, plus £5.5m (FY20: £6.4m) in relation to payments made to certain Shared Venture Partners in our Specialist Group to acquire remaining minority stakes.

6. Underlying EBITDA for FY21 is £216.7m.

The Group's cash return on invested capital in the period declined to 22.5% (FY20: 23.3%).

Capital allocation

Following the successful reset of our Retail business and restructuring of the Vet Group over the past few years, we have taken the opportunity to formally revisit our capital allocation policy. Our refreshed policy prioritises investing our cash generation in areas that will expand the Group and deliver attractive returns. This includes organic investment into our digital capability and our infrastructure, including our store regeneration program. Our next priority is to provide a progressive ordinary dividend to shareholders which approximates to 50% of earnings per share. We will consider value-accretive opportunities, including M&A, which are strategically aligned to expanding our ecosystem in core and adjacent markets and where we consider the potential opportunity to drive incremental value as attractive. Finally, post all other identified and anticipated uses for capital, including the ordinary dividend, we would expect to return surplus free cashflow to shareholders through a special dividend or share buyback.

Dividend

The Board has recommended a final dividend of 5.5 pence per share, an increase of 10% on the prior year. This takes the total dividend for the year to 8.0 pence per share (FY20: 7.5p per share), reflecting our strong cash performance and balance sheet. The final dividend will be payable on 13 July 2021 to shareholders on the register at the close of trading on 18 June 2021.

Application of IFRS16

The financial statements for FY21, and the prior period comparatives, have been prepared under the requirements of IFRS16. Implementation of IFRS16 has had no effect on how the business is run, nor on cash flows generated. It has, however, had an impact on the assets, liabilities and income statement of the Group, as well as the classification of cash flows relating to lease contracts.

In order to clearly show the impact of IFRS16, we show a reconciliation for Group underlying profit before tax and cashflow as follows.

£m	Pre IFRS16	Exclude rent	Include depreciation	Include interest	Post IFRS16
Revenue	1,142.8	-	-	-	1,142.8
Operating lease rentals	(78.1)	78.1	-	-	-
Depreciation & amortisation	(40.5)	-	(70.3)	-	(110.8)
Underlying operating profit^#	98.1	78.1	(70.3)	-	105.9

Finance income	0.3	-	-	-	0.3
Finance expense	(5.9)	-	-	(12.8)	(18.7)
Underlying PBT^#	92.5	78.1	(70.3)	(12.8)	87.5

£m	Pre IFRS16	Add back rent	Capital lease payments	Lease interest payments	Costs to acquire ROU assets	Post IFRS16
Operating cashflow^#	133.2	79.6	(66.4)	(12.8)	(0.4)	133.2

Tax	(17.5)	-	-	-	-	(17.5)
Interest	(4.4)	-	-	-	-	(4.4)
Debt issue costs	(0.2)	-	-	-	-	(0.2)
Net Capex	(35.0)	-	-	-	-	(35.0)
Purchase of own shares	(8.7)	-	-	-	-	(8.7)

Group underlying free cashflow^#	67.4	79.6	(66.4)	(12.8)	(0.4)	67.4

Impact of the UK's exit from the European Union

Following the United Kingdom's exit from the European Union (EU) and the end of the transition period on 31 December 2020, we continue to take actions across the Group to mitigate any related impact on tariffs, logistics, vet availability and currency.

We are also evaluating the potential regulatory implications for our operations in Northern Ireland, specifically concerning Export Health Certificates. We continue to work with the relevant professional bodies to assess the protocols involved in bringing products into Northern Ireland, and our plans for the coming year include an increase in associated logistics costs.

Mike Iddon

Chief Financial Officer

27 May 2021

Financial statements

Independent Auditor's Report

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated statement of changes in equity as at 25 March 2021

Consolidated statement of changes in equity as at 26 March 2020

Consolidated statement of cash flows

Company balance sheet

Company statement of changes in equity as at 25 March 2021

Company statement of changes in equity as at 26 March 2020

Company income statement

Company statement of cash flows

Notes (forming part of the financial statements)

Glossary - Alternative Performance Measures

Advisors and contacts

Financial Statements

The financial information set out below does not constitute the company's statutory accounts for the periods ended 25 March 2021 or 26 March 2020 but is derived from those accounts. Statutory accounts for 2020 have been delivered to the registrar of companies, and those for 2021 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006

Consolidated income statement

	Note	52 week period ended 25 March 2021			52 week period ended 26 March 2020
	Note	Underlying trading £m	Non-underlying items (note 3) £m	Total £m	Underlying trading £m	Non-underlying items (note 3) £m	Total £m
Revenue	2	1,142.8	-	1,142.8	1,058.8	-	1,058.8
Cost of sales		(583.2)	0.6	(582.6)	(540.0)	(6.9)	(546.9)
Impairment gains/(losses) on receivables	3,16,17	(0.8)	-	(0.8)	(0.9)	0.3	(0.6)
Gross profit		558.8	0.6	559.4	517.9	(6.6)	511.3
Selling and distribution expenses		(321.0)	-	(321.0)	(313.8)	-	(313.8)
Administrative expenses	3	(131.9)	(1.9)	(133.8)	(92.8)	(1.0)	(93.8)
Profit on disposal of subsidiary	3	-	30.2	30.2	-	-	-
Operating profit	2,3	105.9	28.9	134.8	111.3	(7.6)	103.7
Financial income	6	0.3	-	0.3	0.5	-	0.5
Financial expense	7	(18.7)	-	(18.7)	(18.3)	-	(18.3)
Net financing expense		(18.4)	-	(18.4)	(17.8)	-	(17.8)
Profit before tax		87.5	28.9	116.4	93.5	(7.6)	85.9
Taxation	8	(17.3)	(0.1)	(17.4)	(18.6)	0.1	(18.5)
Profit for the period		70.2	28.8	99.0	74.9	(7.5)	67.4

Basic and diluted earnings per share attributable to equity shareholders of the Company:

	Note	52 week period ended 25 March 2021	52 week period ended 26 March 2020
Equity holders of the parent - basic	5	19.8p	13.5p
Equity holders of the parent- diluted	5	19.4p	13.2p

Dividends paid and proposed are disclosed in note 9.

The notes on pages 27 to 84 form an integral part of these financial statements.

Consolidated statement of comprehensive income

	Note	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Profit for the period		99.0	67.4
Other comprehensive income
Items that are or may be recycled subsequently into profit or loss:
Foreign exchange translation differences	22	0.1	(0.1)
Effective portion of changes in fair value of cash flow hedges	22	5.0	(5.5)
Other comprehensive income for the period, before income tax		5.1	(5.6)
Income tax on other comprehensive income	15,22	(0.3)	0.9
Other comprehensive income for the period, net of income tax		4.8	(4.7)
Total comprehensive income for the period		103.8	62.7

The notes on pages 27 to 84 form an integral part of these financial statements.

Consolidated balance sheet

	Note	At 25 March 2021 £m	At 26 March 2020 £m
Non-current assets
Property, plant and equipment	11	99.6	117.1
Right-of-use assets	12	368.7	425.2
Intangible assets	13	1,000.2	1,006.4
Other non-current assets	16	16.7	20.9
		1,485.2	1,569.6
Current assets
Inventories	14	83.7	62.8
Deferred tax asset	15	2.9	-
Other financial assets	16	1.5	1.5
Trade and other receivables	17	49.3	55.9
Cash and cash equivalents	18	101.4	79.1
		238.8	199.3
Total assets		1,724.0	1,768.9
Current liabilities
Trade and other payables	20	(211.1)	(196.6)
Lease liabilities	12	(78.4)	(83.7)
Corporation tax		(1.5)	(0.5)
Provisions	21	(4.3)	(3.9)
Other financial liabilities	16	(1.3)	(2.2)
		(296.6)	(286.9)
Non-current liabilities
Other interest-bearing loans and borrowings	19	(98.7)	(163.3)
Lease liabilities	12	(331.3)	(380.2)
Provisions	21	(2.1)	(1.3)
Other financial liabilities	16	(1.6)	(5.8)
Deferred tax liabilities	15	-	(0.4)
		(433.7)	(551.0)
Total liabilities		(730.3)	(837.9)
Net assets		993.7	931.0
Equity attributable to equity holders of the parent
Ordinary share capital	22	5.0	5.0
Consolidation reserve		(372.0)	(372.0)
Merger reserve		113.3	113.3
Translation reserve		(0.0)	(0.1)
Cash flow hedging reserve		(1.5)	(2.8)
Retained earnings		1,248.9	1,187.6
Total equity		993.7	931.0

On behalf of the Board:

Mike Iddon

Group Chief Financial Officer

27 May 2021

Company number: 08885072

The notes on pages 27 to 84 form an integral part of these financial statements.

Consolidated statement of changes in equity as at 25 March 2021

	Share capital £m	Consolidation reserve £m	Merger reserve £m	Cash flow hedging reserve £m	Translation reserve £m	Retained earnings £m	Total equity £m
Balance at 26 March 2020	5.0	(372.0)	113.3	(2.8)	(0.1)	1,187.6	931.0
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	99.0	99.0
Other comprehensive income (note 22)	-	-	-	4.7	0.1	-	4.8
Total comprehensive income for the period	-	-	-	4.7	0.1	99.0	103.8
Hedging gains & losses reclassified to inventory	-	-	-	(3.4)	-	-	(3.4)
Total hedging gains & losses reclassified to inventory	-	-	-	(3.4)	-	-	(3.4)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	-	-	(37.1)	(37.1)
Share based payment charge	-	-	-	-	-	4.7	4.7
Deferred tax movement on IFRS 2 reserve	-	-	-	-	-	3.4	3.4
Purchase of own shares	-	-	-	-	-	(8.7)	(8.7)
Total contributions by and distributions to owners	-	-	-	-	-	(37.7)	(37.7)
Balance at 25 March 2021	5.0	(372.0)	113.3	(1.5)	(0.0)	1,248.9	993.7

Consolidated statement of changes in equity as at 26 March 2020

	Share capital £m	Consolidation reserve £m	Merger reserve £m	Cash flow hedging reserve £m	Translation reserve £m	Retained earnings £m		Total equity £m
Balance at 28 March 2019	5.0	(372.0)	113.3	0.8	(0.0)	1,155.9		903.0
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	67.4		67.4
Other comprehensive income (note 22)	-	-	-	(4.6)	(0.1)	-		(4.7)
Total comprehensive income for the period	-	-	-	(4.6)	(0.1)	67.4		62.7
Hedging gains & losses reclassified to inventory	-	-	-	1.0	-	-		1.0
Total hedging gains & losses reclassified to inventory	-	-	-	1.0	-		-	1.0
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	-	-	(37.1)		(37.1)
Share based payment charge	-	-	-	-	-	4.2		4.2
Purchase of own shares	-	-	-	-	-	(2.8)		(2.8)
Total contributions by and distributions to owners	-	-	-	-	-	(35.7)		(35.7)
Balance at 26 March 2020	5.0	(372.0)	113.3	(2.8)	(0.1)	1,187.6		931.0

Consolidated statement of cash flows

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Cash flows from operating activities
Profit for the period	99.0	67.4
Adjustments for:
Depreciation and amortisation	110.8	109.4
Non-underlying impairment	-	3.4
Profit on disposal	(30.2)	-
Financial income	(0.3)	(0.5)
Financial expense	18.7	18.3
Settlement of 'put & call' liabilities (growth element)	-	(0.8)
Share based payment charges	4.7	4.2
Taxation	17.4	18.5
	220.1	219.9
Decrease in trade and other receivables	3.1	5.4
(Increase)/decrease in inventories	(22.1)	5.7
Increase in trade and other payables	10.2	16.9
Increase/(decrease) in provisions	1.3	(0.7)
Increase/(decrease) in working capital relating to non-underlying items	-	(1.2)
	212.6	246.0
Tax paid	(17.5)	(30.8)
Net cash flow from operating activities	195.1	215.2
Cash flows from investing activities
Proceeds from the sale of property, plant and equipment	0.3	0.4
Interest received	0.4	0.5
Investment in other financial assets	-	(1.0)
Costs to acquire right-of-use assets	(0.4)	-
Acquisition of subsidiaries, net of cash acquired (underlying)	(16.9)	(0.5)
Acquisition of subsidiaries, net of cash acquired (non-underlying)	-	(0.5)
Other costs associated with acquisition of subsidiaries (non-underlying)	-	(3.7)
Disposal of subsidiaries, net of cash disposed (non-underlying)	79.4	-
Repayment of borrowings owed by JV practices in advance of acquisition of subsidiaries (non-underlying)	-	(5.9)
Acquisition of property, plant and equipment and other intangible assets	(34.9)	(39.6)
Net cash used in investing activities	27.9	(50.3)
Cash flows from financing activities
Equity dividends paid	(37.1)	(37.1)
Proceeds from new loan	60.0	61.0
Repayment of borrowings	(125.0)	(77.0)
Debt issue costs	(0.2)	-
Capital lease payments	(66.6)	(67.0)
Settlement of 'put and call' liabilities (minimum amount)	(5.5)	(5.6)
Purchase of own shares	(8.7)	(2.8)
Finance lease obligations	(0.0)	(0.1)
Interest paid	(4.8)	(3.7)
Interest paid on lease obligations	(12.8)	(14.0)
Net cash used in financing activities	(200.7)	(146.3)
Net increase in cash and cash equivalents	22.3	18.6
Cash and cash equivalents at beginning of period	79.1	60.5
Cash and cash equivalents at end of period	101.4	79.1

The notes on pages 27 to 84 form an integral part of these financial statements.

Company balance sheet

	Note	At 25 March 2021 £m	At 26 March 2020 £m
Non-current assets
Investments in subsidiaries	28	936.2	936.2
		936.2	936.2
Current assets
Other financial assets	16	0.2	0.3
Trade and other receivables (due in greater than 1 year)	17	587.9	579.2
Cash and cash equivalents	18	-	-
Deferred tax assets	15	3.7	0.4
		591.8	579.9
Total assets		1,528.0	1,516.1
Current liabilities
Trade and other payables	20	(509.7)	(387.8)
Other financial liabilities	16	(0.1)	(0.0)
		(509.8)	(387.8)
Non-current liabilities
Other interest-bearing loans and borrowings	19	(98.7)	(163.3)
Other financial liabilities	16	(1.6)	(2.3)
		(100.3)	(165.6)
Total liabilities		(610.1)	(553.4)
Net assets		917.9	962.7
Equity attributable to equity holders of the parent
Ordinary share capital	22	5.0	5.0
Merger reserve		113.3	113.3
Cash flow hedging reserve		(1.2)	(1.6)
Retained earnings		800.8	846.0
Total equity		917.9	962.7

On behalf of the Board:

Mike Iddon
Group Chief Financial Officer

27 May 2021

Company number: 08885072

The notes on pages 27 to 84 form an integral part of these financial statements.

Company statement of changes in equity as at 25 March 2021

	Share capital £m	Merger reserve £m	Cash flow hedging reserve £m	Retained earnings £m	Total equity £m
Balance at 26 March 2020	5.0	113.3	(1.6)	846.0	962.7
Total comprehensive income for the period
Loss for the period	-	-	-	(7.5)	(7.5)
Other comprehensive income	-	-	0.4	-	0.4
Total comprehensive income for the period	-	-	0.4	(7.5)	(7.1)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	(37.1)	(37.1)
Share based payment charge	-	-	-	4.7	4.7
Deferred tax movement on IFRS 2 reserve	-	-	-	3.4	3.4
Purchase of own shares	-	-	-	(8.7)	(8.7)
Total contributions by and distributions to owners	-	-	-	(37.7)	(37.7)
Balance at 25 March 2021	5.0	113.3	(1.2)	800.8	917.9

Company statement of changes in equity as at 26 March 2020

	Share capital £m	Merger reserve £m	Cash flow hedging reserve £m	Retained earnings £m	Total equity £m
Balance at 28 March 2019	5.0	113.3	(0.1)	887.3	1,005.5
Total comprehensive income for the period
Loss for the period	-	-	-	(5.6)	(5.6)
Other comprehensive income	-	-	(1.5)	-	(1.5)
Total comprehensive income for the period	-	-	(1.5)	(5.6)	(7.1)
Transactions with owners, recorded directly in equity
Equity dividends paid	-	-	-	(37.1)	(37.1)
Share based payments charge	-	-	-	4.2	4.2
Purchase of own shares	-	-	-	(2.8)	(2.8)
Total contributions by and distributions to owners	-	-	-	(35.7)	(35.7)
Balance at 26 March 2020	5.0	113.3	(1.6)	846.0	962.7

Company income statement

As permitted by section 408 of the Companies Act 2006, the Company's income statement has not been included in these financial statements. The Company's loss for the 52 week period ended 25 March 2021 was £7.5m (loss for the 52 week period ended 26 March 2020 was £5.6m).

Company statement of cash flows

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Cash flows from operating activities
Loss for the period	(7.5)	(5.6)
Financial expense	5.9	4.2
Share based payment charges	4.7	4.2
Tax	(3.1)	(2.6)
	0.0	0.2
Increase in trade and other receivables	(8.7)	(1.3)
Increase in trade and other payables	121.5	57.7
Tax paid	3.5	3.0
Net cash flow from operating activities	116.3	59.6
Cash flows from financing activities
Equity dividends paid	(37.1)	(37.1)
Proceeds from new loan	60.0	61.0
Repayment of borrowings	(125.0)	(77.0)
Debt issue costs	(0.2)	-
Interest paid	(5.3)	(3.7)
Purchase of own shares	(8.7)	(2.8)
Net cash used in financing activities	(116.3)	(59.6)
Net (decrease)/increase in cash and cash equivalents	-	-
Cash and cash equivalents at beginning of period	-	-
Cash and cash equivalents at end of period	-	-

Notes (forming part of the financial statements)

Pets at Home Group Plc (the Company) is a company incorporated in the United Kingdom and its registered office is Epsom Avenue, Stanley Green, Handforth, Cheshire, SK9 3RN.

1 Significant accounting policies

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these consolidated financial statements.

1.1 Basis of preparation

The consolidated financial statements were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The Company's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The Company has taken advantage of the exemption provided under section 408 of the Companies Act 2006 not to publish its individual income statement and related notes.

The financial statements are prepared under the historical cost convention, as modified by the revaluation of derivative financial instruments to fair value, and in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. New standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) becoming effective during the 52 week period ended 25 March 2021 have not had a material impact on the Group's financial statements.

1.2 Measurement convention

The consolidated financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instruments, financial instruments classified as fair value through the profit or loss. Non-current assets held for sale are stated at the lower of previous carrying amount and fair value less costs to sell.

1.3 Going concern

The Company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report, including a detailed COVID-19 assessment within the Chief Executive's statement. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the Chief Financial Officer's review. In addition, note 23 to the financial statements includes the Company's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.

The Directors of the Group have prepared cash flow forecasts for a period of at least 12 months from the date of the approval of these financial statements which indicate that, taking account of reasonably possible downsides, the Group will have sufficient funds, through its revolving credit facility, to meet its liabilities as they fall due for that period.

In preparing the forecasts for the Group, the Directors have carefully considered the impact of COVID-19 on the Group's financial position, liquidity and future performance. The Group is deemed an 'essential retailer' by the Government and as such stores and veterinary practices have continued to trade throughout and higher levels of online orders have continued to be fulfilled from Distribution Centres.

The Group has access to a revolving credit facility of £248m, which expires in September 2023, with £100.0m drawn down at 25 March 2021 and cash balances of £101.4m. The lowest level of headroom forecast over the next 12 months from the date of signing of the financial statements is in excess of £254.7m in the base case scenario. On a sensitised basis, the headroom forecast over the next 12 months from the date of approving of the financial statements is £215.0m. The Group has been in compliance with all covenants applicable to this facility within the financial year, and is forecast to continue to be in compliance for 12 months from the date of signing of the financial statements. A number of severe but plausible downside scenarios were calculated compared to the base case forecast of profit and cash flow to assess headroom against facilities for the next 12 months. These scenarios included:

- Scenario 1: Reduction on Group like-for-like assumption of 1% in each year throughout the forecast period, with ordinary dividends continuing

- Scenario 2: Using scenario 1 outcomes and further impacted by a conflated risk impact of £22.5m on sales and £11.25m on PBT, with dividends held at 7.5p per share

- Scenario 3: Group like-for-like sales declines to 0% over the next year and a conflated risk impact of £74.5m on sales and £37.25m on PBT is used, with dividends cut to nil to conserve cash

Against these negative scenarios, adjusted projections showed no breach of covenants with the lowest level of headroom in the strategic planning horizon being £183.6m. Further mitigating actions could also be taken in such scenarios should it be required, including reducing capital expenditure.

The Directors of Pets at Home Group Plc, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements and that, therefore, it is appropriate to adopt the going concern basis in preparing the consolidated financial statements as at and for the period ended 25 March 2021.

1.4 Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The acquisition date is the date on which control is transferred to the acquirer. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

The Group and Company operate an Employee Benefit Trust (EBT) for the purposes of acquiring shares to fund share awards made to employees. The EBT is deemed to be a subsidiary of the Group and Company as Pets at Home Group Plc is considered to be the ultimate controlling party for accounting purposes. The assets and liabilities of this trust have been included in the consolidated financial information. The cost of purchasing own shares held by the EBT is accounted for in retained earnings.

Investment in Joint Venture veterinary practices

The Group has a number of non-participatory shareholdings in veterinary practice companies, which are accounted for as Joint Venture arrangements. The veterinary practices were established under terms that require mutual agreement between the Group and the Joint Venture Partner, and do not give the Group power over decision making to affect its exposure to, or the extent of, the returns from its involvement with the practices and therefore are not consolidated in these financial statements. Further, the Group is not entitled to profits, losses, or any surplus on winding up or disposal of the Joint Venture veterinary practices, and as such no participatory interest is recognised. The Group's category of shareholding in the Joint Venture veterinary practices entitles the Group to charge management fees for support services provided. For further details see notes 16, 17 and 27. The Group's shares are non-participatory, and therefore the Group does not share in any profits, losses or other distribution of value from the Joint Venture company; the investments are held at cost less impairment, which is deemed to be their carrying value as explained further in note 16.

1.5 Foreign currency

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement, except for differences arising on the retranslation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective, or qualifying cash flow hedges, which are recognised directly in other comprehensive income. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined.

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to the Group's presentational currency, sterling, at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated at an average rate for the period where this rate approximates to the foreign exchange rates ruling at the dates of the transactions. Exchange differences arising from this translation of foreign operations are reported as an item of other comprehensive income and accumulated in the translation reserve or non-controlling interest, as the case may be.

Functional currency

The consolidated financial statements are presented in sterling which is the Group and Company's functional currency and have been rounded to the nearest million.

1.6 Classification of financial instruments issued by the Group

Following the adoption of IAS 32, financial instruments issued by the Group are treated as equity only to the extent that they meet the following two conditions:

(a) they include no contractual obligations upon the Company (or Group as the case may be) to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company (or Group); and

(b) where the instrument will or may be settled in the Company's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the Company's own equity instruments or is a derivative that will be settled by the Company exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability.

1.7 Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.

Trade and other receivables

Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any expected credit loss.

Trade and other payables

Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value, net of attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method.

Contingent consideration

Contingent consideration on acquisition or disposal of a subsidiary is valued at fair value at the time of acquisition or disposal. Any subsequent change in fair value is recognised in profit or loss (see 1.12).

1.8 Derivative financial instruments and hedging

Derivative financial instruments

Derivative financial instruments are recognised at fair value. The gain or loss on re-measurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below).

Cash flow hedges

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in the hedging reserve. Any ineffective portion of the hedge is recognised immediately in the income statement.

If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains and losses that were recognised directly in equity are reclassified into profit or loss in the same period or periods during which the asset acquired or liability assumed affects profit or loss, i.e. when interest income or expense is recognised.

When the hedged forecast transaction subsequently results in the recognition of a non-financial item such as inventory, the amount accumulated in the hedging reserve and the cost of hedging is included directly in the initial cost of the non-financial item when it is recognised. For all other hedging forecast transactions, the amount accumulated in the hedging reserve and the cost of hedging is reclassified to profit or loss in the same period or periods during which the hedged expected future cash flows affect the profit or loss.

For cash flow hedges, other than those covered by the preceding two policy statements, the associated cumulative gain or loss is removed from equity and recognised in the income statement in the same period or periods during which the hedged forecast transaction affects profit or loss.

When a hedging instrument expires or is sold, terminated or exercised, or the entity revokes designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in equity is recognised in the income statement immediately.

1.9 Intra-group financial instruments

Financial guarantee contracts to guarantee the indebtedness of companies within the Group are considered to be insurance arrangements and accounted for as such. In this respect, the Group treats the guarantee contract as a contingent liability until such time as it becomes probable that a payment will be required under the guarantee.

1.10 Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows:

Freehold property	- 50 years
Fixtures, fittings, tools and equipment	- 3-10 years
Leasehold improvements	- the term of the lease

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.

1.11 Intangible assets

Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost).

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

Customer lists are valued based on the forecast net present value of the future economic relationship with those customers, adjusted for forecast retention rates. Technology based 'know how' assets are valued based on the expected cost to reproduce or replace the asset, adjusted for the physical deterioration and functional or economic obsolescence, if present and measurable. Software is stated at cost less accumulated amortisation.

Amortisation is charged to the income statement on a straight-line basis over the estimated useful life of an asset. The estimated useful lives are as follows:

Software	- 2 to 7 years
Customer lists	- 10 years
Technology based know how	- 10 years

Amortisation methods, useful lives and residual values are reviewed at each balance sheet date.

1.12 Business combinations

Business combinations are accounted for by applying the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group.

Acquisitions on or after 26 March 2010

For acquisitions on or after 26 March 2010, the Group measures goodwill at the acquisition date as:

· the fair value of the consideration transferred; plus

· the recognised amount of any non-controlling interests in the acquiree; plus

· the fair value of the existing equity interest in the acquiree; less

· the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.

Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss. If contingent consideration is payable and is dependent on future employment, it is recognised as an expense over the relevant period as a cost of continuing employment.

Any contingent deferred consideration receivable is recognised at fair value.

A combined put and call option over non-controlling interests is recognised at fair value at the acquisition date and included within the valuation of goodwill. Subsequent changes to fair value are recognised in profit or loss.

Where a combined written put and call option exists over a non-controlling interest, and the conditions of the agreement provide the Group with present access to the benefits of the ownership of the non-controlling interest, then the acquisition is deemed to reflect 100% ownership and no non-controlling interest is recognised. A liability is recorded for the expected future acquisition of the non-controlling interest, and is recognised as part of the fair value of the consideration. Where the written put and call option has an embedded valuation mechanism to reward and retain key individuals employed by the acquired business, who are also non-controlling shareholders, then the expected increase in the financial liability is charged to the income statement as employment costs evenly over the option period within non-underlying items. See note 1.21 for further details.

On a transaction-by-transaction basis, the Group elects to measure non-controlling interests, which have both present ownership interests and are entitled to a proportionate share of net assets of the acquiree in the event of liquidation, either at its fair value or at its proportionate interest in the recognised amount of the identifiable net assets of the acquiree at the acquisition date. All other non-controlling interests are measured at their fair value at the acquisition date.

Acquisitions prior to 26 March 2010 (date of adoption of IFRS)

IFRS 1 grants certain exemptions from the full requirements of Adopted IFRS for first time adopters. In respect of acquisitions prior to 26 March 2010, goodwill is included on the basis of its deemed cost.

1.13 Acquisitions and disposals of non-controlling interests

Acquisitions and disposals of non-controlling interests that do not result in a change of control are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. Any difference between the price paid or received and the amount by which non-controlling interests are adjusted is recognised directly in equity and attributed to the owners of the parent.

1.14 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost principle and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs in bringing them to their existing location and condition, less rebates and discounts.

Provision is made against specific inventory lines where market conditions identify an issue in recovering the full cost of that SKU (Stock Keeping Unit). The provision focuses on the age of inventory and the length of time it is expected to take to sell, and applies a progressive provision against the gross inventory based on the numbers of days' stock on hand. Where necessary, further specific provision is made against inventory lines, where the calculated provision is not deemed sufficient to carry the inventory at net realisable value.

To the extent that the ageing profile of gross inventory as calculated by this provision methodology results in a material provision, it will be disclosed as an estimate that may have an impact on subsequent periods. To the extent this is material, it will be disclosed in note 1.21.

1.15 Impairment excluding inventories and deferred tax assets

Financial assets (including receivables)

Measurement of Expected Credit Losses ('ECLs') and definition of default

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

The definition of default is applicable to intercompany and related party receivables but not relevant to trade receivables where the lifetime expected credit loss is considered. The Group defines default based on both qualitative and quantitative risk criteria. The Group considers Joint Venture loans and receivables to be in default when the underlying veterinary practice is significantly under-performing against its business plan, assessed based on its performance against a scorecard of qualitative and quantitative metrics. Each practice is reviewed against this set of criteria and their appropriate risk weightings on an ongoing basis by management. Those within the low credit risk category are not deemed to be in default. Practices categorised within the high and medium credit risk categories are those considered to be in default based on their scorecard performance. Loss given default is determined based on forecast future cash flows. The Group considers other intercompany and related party assets to be in default when the entity does not have the forecasted future funds available to repay the balance, if recalled.

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Write-offs

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery.

Details of these provisions are explained in note 1.21 and in note 16.

Non-financial assets

The carrying amounts of the Group's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated each period at the same time.

The recoverable amount of an asset or cash-generating unit as defined by IAS 36 is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the 'cash-generating unit'). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units ('CGUs'). Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

1.16 Employee benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement in the periods during which services are rendered by employees.

Short term benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Share based payments

A number of employees of the Company's subsidiaries (including Directors) receive an element of remuneration in the form of share based payments, whereby employees render services in exchange for shares in Pets at Home Group Plc or rights over shares.

Share based payments are measured at fair value at the date of grant. The fair value of transactions involving the granting of shares is determined by the share price at the date of grant. The fair value of transactions involving the granting of share options is calculated by an external valuer based on a binomial model. In valuing share based payments, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Pets at Home Group Plc ('market conditions').

The cost of share based payments is recognised, together with a corresponding increase in equity, on a straight-line basis over the vesting period based on the Company's estimate of how many of the awards will eventually vest. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

Where the terms of a share based payment award are modified, as a minimum, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification.

Where a share based payment award is cancelled, it is treated as if it had vested on the date of cancellation and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification to the original award, as described in the previous paragraph. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Employee Benefit Trust

T he assets and liabilities of the Employee Benefit Trust (EBT) have been included in the Group and Company accounts. The assets of the EBT are held separately from those of the Company. Neither the purchase nor sale of own shares leads to a gain or loss being recognised in the Group consolidated statement of comprehensive income.

Investments in the Company's own shares held by the EBT are presented as a deduction from reserves and the number of such shares is deducted from the number of shares in issue when calculating the diluted earnings per share. The trustees of the holdings of Pets at Home Group Plc shares under the Pets at Home Group Employee Benefit Trust have waived or otherwise foregone any and all dividends paid.

1.17 Provisions

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

1.18 Revenue and cost of sales

Revenue represents the total amount receivable for goods and services, net of discounts, coupons, returns and excluding value added tax, sold in the ordinary course of business, and arises from activities in the United Kingdom.

Revenue is recognised when the Group transfers control of goods or services to a customer at the amount to which the Group expects to be entitled, and substantially all of the Group's performance obligations have been fulfilled. Depending on whether certain criteria are met, revenue is recognised either over time, in a manner that best reflects the Group's performance, or at a point in time, when control of the goods or services is transferred to the customer.

Sale of goods in-store and online

Retail revenue from the sale of goods is recorded net of value added tax, colleague discounts, coupons, vouchers, returns and the free element of multi-save transactions. Sale of goods represents food and accessories sold in-store and online, with revenue recognised at the point in time the customer obtains control of the goods and substantially all of the Group's performance obligations have been fulfilled, which is when the transaction is completed in-store and at point of delivery to the customer for online orders. Revenue is adjusted to account for estimates for anticipated returns and a provision is recognised within trade and other payables. Estimates for anticipated returns are calculated using past data for both in-store and online transactions. No separate asset has been recognised (with no corresponding adjustment to cost of sales) in relation to the value of products to be recovered from the customer as the products are not always in a resaleable condition.

Gift vouchers and cards

Revenue from the sale of gift vouchers and cards is deferred until the voucher is redeemed, at which point performance obligations have been fulfilled. In line with IFRS 15 the value of revenue deferred is based on expected redemption rates. The Group continues to assess the appropriateness of the expected redemption rates against actual redemptions.

VIP loyalty scheme

Under the VIP loyalty scheme, points are earned by customers upon the purchase of goods and services. These points can be converted by nominated charities into gift cards for redemption against goods and services in-store and online. The sales value of the points earned under the VIP scheme are treated as deferred income; the sales are only recognised once the points have been redeemed by the charities, at which point performance obligations have been fulfilled. The points do not expire and have no value to the customer.

Subscription orders

Revenue for subscription orders is recognised at the point of delivery of each incremental order to the customer at which point performance obligations have been fulfilled. Subscription services primarily relate to the repeat order of flea and worm products sold online and in-store.

Provision of services

Revenue from the provision of services is recorded net of value added tax, colleague discounts, coupons and vouchers. Provision of services represents veterinary group income, grooming revenue and insurance commissions, with revenue recognised upon provision of the service to the customer at the point at which the Group has substantially fulfilled its performance obligations.

i) Veterinary Group income

Veterinary Group income represents revenue from the provision of veterinary services (from Specialist Referral Centres up until 31 December 2020 and managed First Opinion veterinary practices) and income from the provision of administrative support services to Joint Venture veterinary practices. Revenue received for the provision of veterinary services is recognised at the point of provision of the service and is recognised net of value added tax, colleague discounts, coupons and vouchers. Fee income received from the Joint Venture veterinary practice companies for administrative support services is recognised in the period the services relate to and recorded net of value added tax.

Revenue derived from care plans is recognised on an apportioned basis relative to delivery of the service. Revenue on annual 'Complete Care' plans is deferred and recognised at the point at which treatment and/or services are provided against the plan at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Once the plan has expired, any un-utilised deferred revenue will be recognised as revenue. Revenue from 'Vac4Life' plans is deferred when payment is received and then recognised in reducing proportions over the first three years of the plan when vaccinations/boosters are provided.

Rental income received from in-store Joint Venture veterinary practices is disclosed within note 3 and is categorised as a credit within selling and distribution expenses.

ii) Grooming revenue

Grooming revenue is recognised net of value added tax, colleague discounts, coupons and vouchers, at the point of provision of the service to the customer. Deposits received are deferred until the grooming service has been performed.

iii) Insurance commissions

Insurance commissions are recognised on a pro-rated basis over the period the insurance policy relates to.

Accrued income

Cost of sales

Cost of sales includes costs of goods sold and other directly attributable costs, promotional income and rebate income received from suppliers, including costs to deliver administrative support services to Joint Venture veterinary practices and costs to deliver grooming services.

Non-underlying items

Income or costs considered by the Directors to be non-underlying are disclosed separately to facilitate year-on-year comparison of the underlying trade of the business. The Directors consider that changes to the fair value of the put and call liabilities warrant separate disclosure due to the nature of these arrangements as they do not relate to the underlying trade of the business.

Alternative Performance Measures

The Directors measure the performance of the Group based on a range of financial measures, including measures not recognised by EU-adopted IFRS. These Alternative Performance Measures may not be directly comparable with other companies' alternative performance measures and the Directors do not intend these to be a substitute for, or superior to, IFRS measures. Further information can be found in the Glossary on page 85.

Supplier income

A number of different types of supplier income are negotiated with suppliers via the joint business planning process in connection with the purchase of goods for resale, the largest of which being overrider income and promotional income, which is explained below. The supplier income arrangements are typically not co-terminus with the Group's financial period, instead running alongside the calendar year. Such income is only recognised when there is reasonable certainty that the conditions for recognition have been met by the Group, and the income can be measured reliably based on the terms of the contract. This income is recognised as a credit within gross margin to cost of sales and, to the extent that the rebate relates to unsold stock purchases, as a reduction in the cost of inventory.

Supplier income is recognised on an accruals basis, based on the expected entitlement that has been earned up to the balance sheet date for each relevant supplier contract. The accrued incentives, rebates and discounts receivable at year end are included within trade and other receivables.

Given the presence of the joint business plans, on the basis of the historic recoverability of accrued balances, and as amounts are typically agreed with suppliers prior to recognition, supplier income is not considered to be an area of significant estimation that could impact on the following financial year.

Supplier income comprises:

Overrider income

Overrider income comprises three main elements:

1. Fixed percentage based income: These relate largely to volumetric rebates based on the joint business plan agreements with suppliers. The income accrued is based on the Group's latest forecast volumes and the latest contract agreed with the supplier. Income is not recognised until the Group has reasonable certainty that the joint business agreement will be fulfilled, with the amount of income accrued regularly re-assessed and re-measured throughout the contractual period, based on actual performance against the joint business plan.

2. Fixed lump sum income: These are typically guaranteed lump sum payments made by the supplier and are not based on volume. Fixed lump sum income is usually predicated on confirmation of a supplier contract and typically includes performance conditions upon the Group, such as marketing and promotional campaigns. These amounts are recognised periodically when contractual milestones have been met such as the promotion being run or marketing in store.

3. Growth income: These are tiered volumetric rebates relating to growth targets agreed with the supplier in the joint business planning process. These are retrospective rebates based on sales volumes or purchased volumes. Income is recognised to the extent that it is reasonably certain that the conditions will be achieved, with such certainty increasing in the latter part of the calendar year.

Promotional income

Promotional income relates to supplier funded rebates specific to promotional activity run in agreement between the Group and its suppliers. Rebates are agreed at an individual inventory article level for agreed periods of time and are systemically calculated based on article sales information. No estimation is applied in calculating the promotional income receivable.

1.19 Expenses

Financing income and expenses

Financing expenses comprise interest payable under the effective interest rate method, incorporating amortisation of loan arrangement fees, finance charges on shares classified as liabilities, unwinding of the discount on provisions , interest on lease liabilities and net foreign exchange losses that are recognised in the income statement (see foreign currency accounting policy). Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial time to be prepared for use are capitalised as part of the cost of that asset. Financing income comprises interest receivable on funds invested, dividend income, and net foreign exchange gains.

Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the income statement on the date the entity's right to receive payment is established. Foreign currency gains and losses are reported on a net basis.

1.20 Taxation

Tax on the profit or loss for the period comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous periods.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

1.21 Accounting estimates and judgements

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions concerning the future that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These judgements are based on historical experience and management's best knowledge at the time and the actual results may ultimately differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis and revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The estimates and assumptions that have significant risk of causing a material adjustment to the carrying value of assets and liabilities are explained below.

Impairment of goodwill and other intangibles (significant estimate)

Determining whether goodwill and other intangibles are impaired requires an estimation of the value in use of the cash-generating units to which goodwill and other intangible assets have been allocated. The value in use calculation requires estimation of future cash flows expected to arise from the cash-generating unit (CGU) and a suitable discount rate in order to calculate present value. Details of CGUs as well as further information about the assumptions made are disclosed in note 13.

Operating and other loans (significant estimate)

The Group provides longer term operating loans and other loans to a number of Joint Venture veterinary practices as detailed in notes 16, 17 and 27 to support their working capital requirements. The operating loans advanced to the practices are interest free and either repayable on demand or repayable within 90 days of demand. As detailed in these notes, provisions for expected credit losses are held in respect of operating and other loans to Joint Venture veterinary practices. In line with IFRS 9, judgement is applied in determining expected credit losses on these loans, the qualitative and quantitative risk-related criteria used to assess default and therefore also the probability of default (as defined in note 1.15), and in estimating an appropriate 'loss given default' to apply to each loan based on forecast future cash flows. In assessing the qualitative and quantitative information, the Group takes into account factors including current performance against business plan, availability of suitable personnel to operate effectively, and level of indebtedness. The revenue, profit, and cash flow expectations of the practices are taken into account in determining the length of time that the practice is expected to take in order to repay the loans. This is also the period over which losses are estimated should default occur within the contractual period. The provision for expected credit loss is based on forward-looking information, taking into account expected credit losses giving due consideration to the Joint Venture's business plan, as well as macro-economic factors such as growth in the size of the veterinary market, availability of veterinary practitioners and cost inflation within the industry. The quantum of operating loans and other loans and expected credit loss made against these loans is disclosed in notes 16, 17 and 27.

Assessment of control with regard to Joint Ventures (significant judgement)

The Group has assessed, and continually assesses,whether the level of an individual Joint Venture veterinary practice's indebtedness to the Group, particularly those with high levels of indebtedness, implies that the Group has the practical ability to control the Joint Venture, which would result in the requirement to consolidate. In making this judgement, the Group reviewed the terms of the Joint Venture agreement and the question of practical ability, as a provider of working capital to control the activities of the practice. This included consideration of barriers to the Group's ability to exercise such practical or other control which include difficulty in replacing Joint Venture Partners due to the shortage of veterinarians in the UK and reputational damage within the veterinary network should the Group attempt to exercise control, as well as potential barriers to the Joint Venture Partner exercising their own power over the activities of the practice. We note that under the terms of the Joint Venture agreement, the partners run their practices with complete operational and clinical freedom. The Group is satisfied that on the balance of evidence from the Group's experience as shareholder and provider of working capital support to the practices, it does not have the current ability to exercise control over those practices to which operating loans are advanced, and therefore non consolidation is appropriate.

Put and call options (significant estimate)

The Group recognises put and call options over non-controlling interests (NCI) in its subsidiary undertakings as a liability in the consolidated balance sheet. The nature of the Group's option agreements are such that there is an element that is a minimum amount and a growth element to reward and retain key individuals employed by the acquired business who are also non-controlling shareholders which is linked to improvements in the results of the acquired business. The growth element would be forfeited under certain conditions by the NCI, including if they ceased to be employed by the Group.

Upon initial recognition, the minimum amount is recognised as a liability at fair value, which is estimated as the present value of the future exercise price based upon the fair value of the business at acquisition. For the growth element, the expected amount is charged to the income statement as employment costs over the option period within non-underlying items. The financial liability is valued based on management's best estimate of the future pay out, which is based on the estimated future earnings. The charge is spread over the financial years before the put and call can be exercised for the first time.

The Group considers that no reasonably possible change in assumptions underlying the carrying value of the put and call options would result in a material range of estimation uncertainty in the next 12 months. Therefore, the carrying value of the options is not considered a significant estimate as at 25 March 2021.

Carrying value of inventory (significant estimate)

A provision is made for those items of inventory where the net realisable value is estimated to be lower than cost. Net realisable value is based on both historical experience and assumptions regarding future selling values and disposal channels, and is consequently a source of estimation uncertainty. At 25 March 2021 the inventory provision amounted to £3.9m (26 March 2020: £3.2m). Of this, £2.5m of the provision relates to a provision against ageing inventory. The value of inventory against which an ageing provision is held is £8.9m (26 March 2020: £7.1m). The remaining £1.4m of the provision relates to specific inventory provisioning relating to factors other than ageing. Management consider the range of reasonably possible estimation uncertainty to be immaterial given the value of the provision, the value of inventory against which the provision is held, and the degree of historical accuracy in the provisioning policy.

1.22 Dividends

Final dividends are recognised in the Group's financial statements as a liability in the period in which the dividends are approved by shareholders such that the Company is obliged to pay the dividend. Interim equity dividends are recognised in the period in which they are paid.

2 Segmental Reporting

The Group has three reportable segments, Retail, Vet Group and Central, which are the Group's strategic business units. The Group's operating segments are based on the internal management structure and internal management reports, which are reviewed by the Executive Directors on a periodic basis. The Executive Directors are considered to be the Chief Operating Decision Makers.

The Group is a pet care business with the strategic advantage of being able to provide products, services and advice, addressing all pet owners' needs. Within this strategic umbrella, the Group has three reportable segments, Retail, Vet Group and Central, which are the Group's strategic business units. The strategic business units offer different products and services, are managed separately and require different operational and marketing strategies.

The operations of the Retail reporting segment comprise the retailing of pet products purchased online and in-store, pet sales, grooming services and insurance products. The operations of the Vet Group reporting segment comprise First Opinion practices and specialist referral centres up until 31 December 2020. Central includes veterinary telehealth business, group costs and finance expenses. Revenue and costs are allocated to a segment where reasonably possible.

The following summary describes the operations in each of the Group's reportable segments. Performance is measured based on segment underlying operating profit as included in the management reports that are reviewed by the Executive Directors. These internal reports are prepared in accordance with IFRS accounting policies consistent with these financial statements. All material operations of the reportable segments are carried out in the UK and all revenue is from external customers.

	52 week period ended 25 March 2021
Income statement	Retail £m	Vet Group £m	Central £m	Total £m
Revenue	1,018.9	123.2	0.7	1,142.8
Gross profit	501.6	56.7	0.5	558.8

Underlying operating profit/(loss)	79.5	36.0	(9.6)	105.9
Non-underlying items	-	28.9	-	28.9
Segment operating profit	79.5	64.9	(9.6)	134.8
Net financing expense	(12.0)	(0.5)	(5.9)	(18.4)
Profit before tax	67.5	64.4	(15.5)	116.4

Non-underlying operating expenses in the periods ended 25 March 2021 and 26 March 2020 are explained in note 3.

	52 week period ended 26 March 2020
Income statement	Retail £m	Vet Group £m	Central £m	Total £m
Revenue	937.6	121.2	-	1,058.8
Gross profit	466.2	51.7	-	517.9

Underlying operating profit/(loss)	89.3	30.6	(8.6)	111.3
Non-underlying items	-	(7.6)	-	(7.6)
Segment operating profit/(loss)	89.3	23.0	(8.6)	103.7
Net financing expense	(13.3)	(0.3)	(4.2)	(17.8)
Profit/(loss) before tax	76.0	22.7	(12.8)	85.9

	52 week period ended 25 March 2021
Reconciliation of EBITDA before non-underlying items	Retail £m	Vet Group £m	Central £m	Total £m
Underlying operating profit/(loss)	79.5	36.0	(9.6)	105.9
Depreciation of property, plant and equipment	24.8	2.1	-	26.9
Depreciation of right-of-use assets	68.2	2.1	-	70.3
Amortisation of intangible assets	12.2	1.4	-	13.6
Underlying EBITDA	184.7	41.6	(9.6)	216.7

	52 week period ended 26 March 2020
Reconciliation of EBITDA before non-underlying items	Retail £m	Vet Group £m	Central £m	Total £m
Underlying operating profit/(loss)	89.3	30.6	(8.6)	111.3
Depreciation of property, plant and equipment	25.8	2.5	-	28.3
Depreciation of right-of-use assets	69.0	2.1	-	71.1
Amortisation of intangible assets	9.5	0.5	-	10.0
Underlying EBITDA	193.6	35.7	(8.6)	220.7

EBITDA before non-underlying items is defined on page 85.

	52 week period ended 25 March 2021
Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Central £m	Total £m
Retail - Food	551.5	-	-	551.5
Retail - Accessories	431.4	-	-	431.4
Retail - Services	36.0	-	-	36.0
Vet Group - First Opinion fee income	-	57.0	-	57.0
Vet Group - Company managed practices	-	25.5	-	25.5
Vet Group - Other income	-	6.8	-	6.8
Vet Group - Specialist	-	33.9	-	33.9
Central - Veterinary telehealth services	-	-	0.7	0.7
Total	1,018.9	123.2	0.7	1,142.8

	52 week period ended 26 March 2020
Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Central £m	Total £m
Retail - Food	517.4	-	-	517.4
Retail - Accessories	375.3	-	-	375.3
Retail - Services	44.9	-	-	44.9
Vet Group - First Opinion fee income	-	53.8	-	53.8
Vet Group - Company managed practices	-	21.6	-	21.6
Vet Group - Other income	-	6.2	-	6.2
Vet Group - Specialist	-	39.6	-	39.6
Total	937.6	121.2	-	1,058.8

3 Expenses and auditor's remuneration

Included in operating profit are the following:

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Non-underlying items
Write off and provisions for operating loans, initial set-up loans, and trading balances with Joint Venture veterinary practices	-	(0.3)
Other costs associated with the purchase of Joint Venture veterinary practices	(0.6)	3.5
Impairment of right-of-use assets following acquisition of Joint Venture veterinary practices	-	1.6
Impairment of property, plant & equipment and intangible assets following acquisition of Joint Venture veterinary practices	-	1.8
Increase in fair value of put and call liability	1.9	1.0
Profit on disposal of subsidiary	(30.2)	-
Total non-underlying items	(28.9)	7.6
Underlying items
Impairment losses on receivables	0.8	0.9
Depreciation of property, plant and equipment	26.9	28.3
Amortisation of intangible assets	13.6	10.0
Depreciation of right-of-use assets	70.3	71.1
Rentals under operating leases:
Expenses relating to short term leases	0.1	0.1
Other income
Rental income from sub-leasing right-of-use assets to third parties¹	(0.3)	(0.3)
Rental income from related parties¹	(7.3)	(7.4)
Share based payment charges	4.7	4.2

¹ This other income is presented within selling and distribution expenses.

During the 52 week period ended 25 March 2021, the Group disposed of its 100% shareholding in the subsidiary Pets at Home Veterinary Specialist Group Limited, and its subsidiaries Northwest Veterinary Specialists Limited, Anderson Moores Veterinary Specialists Limited, Eye-Vet Limited, Dick White Referrals Limited and Veterinary Specialists (Scotland) Limited. The profit on disposal reported in the non-underlying items above represents consideration received and costs incurred by the Group in relation to the disposal, as follows:

		£m
Cash consideration received		80.0
Net assets disposed of		(48.5)
Profit on disposal of net assets		31.5
Costs borne by the Group		(1.3)
Profit on disposal		30.2

Further deferred contingent consideration of £20.0m may become payable at a future date, subject to the Specialist Referral Centres achieving certain financial KPIs. The fair value of the deferred consideration is immaterial due to the substantial uncertainty regarding the timing and achievement of the financial KPIs, which are not within the control of the Group.

The remaining non-underlying operating expenses in the period ended 25 March 2021 of £1.3m relate to:

- £1.9m of non-underlying operating expenses relate to an increase in the financial liability for put and call options over shares held by clinicians in Dick White Referrals Limited and Veterinary Specialists (Scotland) Limited, prior to the disposal of the Specialist Referral Centres. The charge represents an increase in the equity 'option' value held by those clinicians based on the Directors' best estimate of the future settlement on exercise of the put and call. As a result of the disposal of the Specialist Referral Centres, the put and call options were settled in the period and as at 25 March 2021, the financial liability held on the consolidated balance sheet was £nil.

-(£0.6m) of non-underlying operating expenses relate to the release of provisions for exit and closure costs provided for under IAS 37 in relation to Joint Venture veterinary practices provided for in the 52 week period ended 26 March 2020.

The non-underlying operating expenses in the period ended 26 March 2020 of £7.6m related to:

- (£0.3m) related to the release of allowances for expected credit losses for operating loans, initial set-up loans, and trading balances to Joint Venture veterinary practices which were provided for under IFRS 9 by the Group in the period ended 28 March 2019.

- £3.5m related to exit and closure costs (provided for under IAS 37) payable in relation to Joint Venture veterinary practices which the Group has acquired.

- £1.6m related to the write down of right-of-use assets to their expected recoverable amount, relating to First Opinion veterinary practices acquired with the intention of being closed.

- £1.8m related to the impairment of property, plant and equipment and intangible assets relating to the review and recalibration exercise of the First Opinion veterinary practices.

- £1.0m of non-underlying operating expenses related to an increase in the financial liability for put and call options over shares held by clinicians in Dick White Referrals Limited and Veterinary Specialists (Scotland) Limited.

Income or costs considered by the Directors to be non-underlying are disclosed separately to facilitate year-on-year comparison of the underlying trade of the business. The Directors consider non-underlying costs to be those that are not generated from ordinary business operations, infrequent in nature and unlikely to reoccur in the foreseeable future. The Directors consider that changes to the fair value of the put and call liabilities warrant separate disclosure due to the nature of these arrangements as they do not relate to the underlying trade of the business.

Underlying items

The rentals under short term leases disclosed in relation to the 52 week period ended 25 March 2021 and the 52 week period ended 26 March 2020 relate to leases under short term agreements. These fall under the short term exemption so are excluded from the requirements of IFRS 16 on the basis that the lease terms are 12 months or less.

Auditor's remuneration

	52 week period ended 25 March 2021 £m		52 week period ended 26 March 2020 £m
Audit of the parent company financial statements		0.0	0.0
Amounts receivable by the Company's auditor and its associates in respect of:
Audit of financial statements of subsidiaries pursuant to legislation¹		0.9	0.7
Review of interim financial statements		0.1	0.1
All other services		0.0	0.0
		1.0	0.8

¹ The comparative auditor's remuneration has been restated to enhance comparability.

4 Colleague numbers and costs

The average number of persons employed by the Group (including Directors) during the period, analysed by category, was as follows:

	52 week period ended 25 March 2021 Number	52 week period ended 26 March 2020 Number
Sales and distribution - FTE	6,538	6,432
Administration - FTE	732	707
	7,270	7,139

Sales and distribution - total	8,904	8,506
Administration - total	1,100	1,055
	10,004	9,561

The aggregate payroll costs of these persons were as follows:

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Wages and salaries	227.6	203.1
Social security costs	19.2	17.5
Contributions to defined pension contribution plans	7.6	6.9
	254.4	227.5

Remuneration of Executive Directors and Executive Management Team

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Executive Directors' emoluments including social security costs	2.1	1.8
Non-Executive Directors' emoluments including social security costs	0.5	0.5
Executive Directors' amounts receivable under share options ¹	1.8	1.0
Executive Directors' pension contributions	0.1	0.1
Total Directors' remuneration	4.5	3.4
Executive Management Team emoluments including social security costs¹	5.5	3.9
Executive Management Team amounts receivable under share options ¹	2.2	1.4
Executive Management Team pension contributions¹	0.2	0.2
Total Executive Management Team remuneration	7.9	5.5

In the opinion of the Board, the key management as defined under revised IAS 24 Related Party Disclosures are the Executive Directors and the Executive Management Team. Executive Directors' emoluments are also included within the Executive Management Team emoluments disclosed above.

¹ The comparative numbers in the 52 week period ended 26 March 2020 have been restated to be comparable with the numbers presented in the 52 week period ended 25 March 2021.

5 Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.

	52 week period ended 25 March 2021		52 week period ended 26 March 2020
	Underlying trading	After non-underlying items	Underlying trading	After non-underlying items
Profit attributable to equity shareholders of the parent (£m)	70.2	99.0	74.9	67.4
Basic weighted average number of shares	500.0	500.0	500.0	500.0
Dilutive potential ordinary shares	11.6	11.6	9.6	9.6
Diluted weighted average number of shares	511.6	511.6	509.6	509.6
Basic earnings per share	14.0p	19.8p	15.0p	13.5p
Diluted earnings per share	13.7p	19.4p	14.7p	13.2p

6 Finance income

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Interest receivable on loans to Joint Venture veterinary practices	0.3	0.4
Other interest receivable	0.0	0.1
Total finance income	0.3	0.5

7 Finance expense

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Bank loans at effective interest rate	6.0	4.4
Interest expense on lease liability	12.8	14.0
Other interest expense	(0.1)	(0.1)
Total finance expense	18.7	18.3

8 Taxation

Recognised in the income statement

	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Current tax expense
Current period	20.2	22.0
Adjustments in respect of prior periods	(1.8)	(0.8)
Current tax expense	18.4	21.2
Deferred tax expense
Origination and reversal of temporary differences	(2.2)	(3.4)
Impact of difference between deferred and current tax rates	-	0.2
Adjustments in respect of prior periods	1.2	0.5
Deferred tax expense	(1.0)	(2.7)
Total tax expense	17.4	18.5

The UK corporation tax standard rate for the period is 19% (2020: 19%). The deferred tax liability at 25 March 2021 has been calculated at 19% (2020: 19%). In the 3 March 2021 budget it was announced that the UK tax rate would increase to 25% from 1 April 2023. This will have a consequential effect on the Group's future tax charge. If this rate change had been substantively enacted at the current balance sheet date, the impact on the deferred tax position would not have been material as a significant proportion of the deferred tax assets and liabilities unwind at 19%.

Deferred tax recognised in comprehensive income

52 week period ended 25 March 2021

£m

52 week period ended 26 March 2020

£m

Effective portion of changes in fair value of cash flow hedges (note 22)

0.3

(0.9)

Reconciliation of effective tax rate

	52 week period ended 25 March 2021			52 week period ended 26 March 2020
	Underlying trading £m	Non-underlying items £m	Total £m	Underlying trading £m	Non-underlying items £m	Total £m
Profit for the period	70.2	28.8	99.0	74.9	(7.5)	67.4
Total tax expense	17.3	0.1	17.4	18.6	(0.1)	18.5
Profit excluding taxation	87.5	28.9	116.4	93.5	(7.6)	85.9
Tax using the UK corporation tax rate for the period of 19% (52 week period ended 26 March 2020: 19%)	16.6	5.5	22.1	17.8	(1.5)	16.3
Impact of difference between deferred and current tax rates	-	-	-	0.2	-	0.2
Depreciation on expenditure not eligible for tax relief	0.6	-	0.6	0.9	-	0.9
Expenditure not eligible for tax relief	0.6	(5.4)	(4.8)	0.1	1.4	1.5
Adjustments in respect of prior periods	(0.5)	-	(0.5)	(0.4)	-	(0.4)
Total tax expense	17.3	0.1	17.4	18.6	(0.1)	18.5

The UK corporation tax standard rate for the 52 week period ended 25 March 2021 was 19% (52 week period ended 26 March 2020: 19%). The effective tax rate before non-underlying items for the 52 week period ended 25 March 2021 was 19.7%.

9 Dividends paid and proposed

	Group and Company
	52 week period ended 25 March 2021 £m	52 week period ended 26 March 2020 £m
Declared and paid during the period
Final dividend of 5.0p per share (2020: 5.0p per share)	24.7	24.8
Interim dividend of 2.5p per share (2020: 2.5p per share)	12.4	12.3
Proposed for approval by shareholders at the AGM
Final dividend of 5.5p per share (2020: 5.0p per share)	27.2	24.7

The trustees of the following holdings of Pets at Home Group Plc shares under the Pets at Home Group Employee Benefit Trust have waived or otherwise foregone any and all dividends paid in relation to the periods ended 25 March 2021 and 26 March 2020 and to be paid at any time in the future (subject to the exceptions in the relevant trust deed) on its respective shares for the time being comprised in the trust funds:

Computershare Nominees (Channel Islands) Limited (holding at 25 March 2021: 5,958,116 shares; holding at 26 March 2020: 5,749,377 shares).

10 Business combinations

Subsidiaries acquired

On 27 November 2020, the Group acquired 100% of the total share capital of Pet Advisory Services Limited and its subsidiary VetsDirect Limited in exchange for cash consideration. Pet Advisory Services Limited and Vets Direct Limited are a veterinary tele-health service. The Group expects to realise both revenue and cost synergies from the acquisition, which will allow the Group to better support its customers by providing out of hours veterinary services.

Principal activity

Date of acquisition

Proportion of voting equity instruments acquired

Cash consideration transferred

£m

Pet Advisory Services Limited

Veterinary telehealth services

27 November 2020

100%

16.5

VetsDirect Limited

Veterinary telehealth services

27 November 2020

100%

Assets acquired and liabilities recognised at the date of acquisition

The provisional amounts recognised in respect of identifiable assets and liabilities relating to the acquisition are as follows:

	Book value of assets and liabilities acquired £m		Adjustments on acquisition £m	Fair value of assets and liabilities acquired £m
Current assets
Cash and cash equivalents		0.7	-	0.7
Trade and other receivables		1.0	-	1.0
Non-current assets
Intangible assets		0.2	4.5	4.7
Tangible fixed assets		0.0	-	0.0
Current liabilities
Trade and other payables		(0.5)	-	(0.5)
Non-current liabilities
Deferred tax liability		-	(0.8)	(0.8)
Net assets		1.4	3.7	5.1

Goodwill arising on acquisition

	£m
Consideration	16.5
Less: Fair value of assets acquired	(5.1)
Goodwill arising on acquisition	11.4

Consideration has been given to other intangibles that are recognisable under IFRS 3 Business Combinations. No favourable leases were owned by the company at the time of acquisition. A customer list intangible asset of £1.9m and an intangible asset of £2.6m relating to call script know how have been identified and recognised separately from goodwill at fair value. None of the goodwill identified on this acquisition is expected to be deductible for tax purposes.

The intangible asset recognised on acquisition relates to:

- Customer contracts of £1.9m have been recognised and valued using the excess earnings method, and will be amortised over 10 years

- Call scripts know how of £2.6m have been recognised and valued using the replacement cost method, and will be amortised over 10 years

All other assets and liabilities have been valued at fair value on acquisition.

Acquisition of Joint Venture veterinary practices

In the 52 week period ended 25 March 2021, the Group has acquired 100% of the 'A' shares of 6 veterinary practices, which were previously accounted for as Joint Venture veterinary practices. These practices were previously accounted for as Joint Venture veterinary practices as the Group only held 100% of the non-participatory 'B' ordinary shares, equating to 50% of the total shares. Acquisition of the 'A' shares has led to the control and consolidation of these practices. A detailed explanation for the basis of consolidation can be found in note 1.4.

In the 52 week period ended 25 March 2021, £1.4m of operating loans relating to these practices were written off in advances of the acquisitions.

Up to the date of acquisition and in the comparative period being the 52 week period ending 26 March 2020, these entities listed below were all accounted for as a Joint Venture veterinary practice where the Group held 100% of the non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led to the control and consolidation of these practices on the dates below, leading to control from the date of acquisition and consolidation from that date forward.

Subsidiaries acquired

	Principal activity	Date of acquisition	Proportion of voting equity instruments acquired	Total proportion of voting equity instruments owned following the acquisition	Cash consideration transferred £m
Sidcup Vets4Pets Limited	Veterinary practice	1 July 2020	50%	100%	0.9
Sydenham Vets4Pets Limited	Veterinary practice	1 July 2020	50%	100%	0.7
Grantham Vets4Pets Limited	Veterinary practice	20 October 2020	50%	100%	0.0
Rawtenstall Vets4Pets Limited	Veterinary practice	28 October 2020	50%	100%	0.0
Wallasey Bidston Moss Vets4Pets Limited	Veterinary practice	18 December 2020	50%	100%	0.0
Companion Care (Farnborough) Limited	Veterinary practice	18 March 2021	50%	100%	0.0

Assets acquired and liabilities recognised at the date of acquisition

The amounts recognised in respect of identifiable assets and liabilities relating to the acquisitions are as follows. The acquisition disclosures have been combined as each acquisition is considered to be individually immaterial to the Group.

	Book value of assets and liabilities acquired £m		Adjustments on acquisition £m	Fair value of assets and liabilities acquired £m
Current assets
Cash and cash equivalents		0.7	-	0.7
Trade and other receivables		0.2	-	0.2
Inventories		0.1	-	0.1
Non-current assets
Tangible fixed assets		0.4	-	0.4
Right-of-use assets		0.4	-	0.4
Intangible assets		-	0.7	0.7
Non-current liabilities
Lease liabilities		(0.4)	-	(0.4)
Current liabilities
Bank loans and overdrafts		(0.7)	-	(0.7)
Trade and other payables		(0.7)	-	(0.7)
Net assets		0.0	0.7	0.7

Goodwill arising on acquisition

	£m
Consideration	1.7
Less: Fair value of assets acquired	(0.7)
Goodwill arising on acquisition	1.0
Impairment of goodwill	(0.6)
Carrying value of goodwill	0.4

The consideration shown within the table above relates to both consideration for the purchase of A-shares and cash settlement of 'A' shareholder Joint Venture Partner loans, which were repaid to the 'A' shareholder at the point of acquisition. The impairment of goodwill relates to loss making practices.

In line with IFRS 3, the right-of-use asset has been brought on at value equal to the lease liability, adjusted for any unfavourable market conditions. These leases relate to standalone veterinary practices.

11 Property, plant and equipment

	Freehold property £m	Leasehold improvements £m	Fixtures, fittings, tools and equipment £m	Total £m
Cost
Balance at 26 March 2020	2.4	63.9	239.9	306.2
Additions	-	6.4	12.5	18.9
On acquisition (note 10)	-	-	0.4	0.4
Disposals	-	(7.9)	(7.5)	(15.4)
Balance at 25 March 2021	2.4	62.4	245.3	310.1
Depreciation
Balance at 26 March 2020	0.3	26.8	162.0	189.1
Depreciation charge for the period	-	4.0	22.9	26.9
Disposals	-	(1.4)	(4.1)	(5.5)
Balance at 25 March 2021	0.3	29.4	180.8	210.5
Net book value
At 26 March 2020	2.1	37.1	77.9	117.1
At 25 March 2021	2.1	33.0	64.5	99.6

	Freehold property £m	Leasehold improvements £m	Fixtures, fittings, tools and equipment £m	Total £m
Cost
Balance at 28 March 2019	2.5	59.4	222.9	284.8
Additions	-	5.4	17.6	23.0
On acquisition (note 10)	-	0.5	0.3	0.8
Disposals	(0.1)	(1.4)	(0.9)	(2.4)
Balance at 26 March 2020	2.4	63.9	239.9	306.2
Depreciation
Balance at 28 March 2019	0.3	22.5	138.3	161.1
Depreciation charge for the period	0.0	4.3	24.0	28.3
Impairment of assets (non-underlying)	-	1.3	0.4	1.7
Disposals	(0.0)	(1.3)	(0.7)	(2.0)
Balance at 26 March 2020	0.3	26.8	162.0	189.1
Net book value
At 28 March 2019	2.2	36.9	84.6	123.7
At 26 March 2020	2.1	37.1	77.9	117.1

12 Leases

As Lessee

Property, plant and equipment comprise owned and leased assets that do not meet the definition of investment property.

The majority of the Group's trading stores, standalone veterinary practices, Distribution Centres and Support Offices are leased under operating leases, with remaining lease terms of between 1 and 20 years. The Group also has a number of non-property operating leases relating to vehicle, equipment and material handling equipment, with remaining lease terms of between 1 and 6 years.

Right-of-use assets

	Property £m	Equipment £m	Total £m
Cost
Balance at 26 March 2020	486.3	11.6	497.9
Additions	34.8	3.3	38.1
On acquisition (note 10)	0.4	-	0.4
Disposals	(28.0)	(0.2)	-(28.2)
Balance at 25 March 2021	493.5	14.7	508.2
Depreciation
Balance at 26 March 2020	69.1	3.6	72.7
Depreciation charge for the period	67.0	3.3	70.3
Disposals	(3.3)	(0.2)	(3.5)
Balance at 25 March 2021	132.8	6.7	139.5
Net book value
At 26 March 2020	417.2	8.0	425.2
At 25 March 2021	360.7	8.0	368.7

The costs relating to leases for which the Group applied the practical expedient described in paragraph 5a of IFRS 16 (leases with a contract term of less than 12 months) amounted to £0.1m in the 52 week period ended 25 March 2021.

	Property £m	Equipment £m	Total £m
Cost
Balance at 29 March 2019	463.0	10.1	473.1
Additions	20.6	1.5	22.1
On acquisition (note 10)	2.7	-	2.7
Balance at 26 March 2020	486.3	11.6	497.9
Depreciation
Balance at 29 March 2019	-	-	-
Depreciation charge for the period	67.5	3.6	71.1
Impairment (non-underlying)	1.6	-	1.6
Balance at 26 March 2020	69.1	3.6	72.7
Net book value
At 29 March 2019	463.0	10.1	473.1
At 26 March 2020	417.2	8.0	425.2

The following table sets out the maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date:

Maturity analysis - contractual undiscounted cash flows

	At 25 March 2021 £m	At 26 March 2020 £m
Less than one year	78.4	82.2
Between one and five years	241.9	258.0
More than 5 years	131.9	182.6
Total undiscounted lease liabilities	452.2	522.8
Carrying value of lease liabilities included in the statement of financial position	409.7	463.9
Current	78.4	83.7
Non-current	331.3	380.2

For the lease liabilities at 25 March 2021 a 0.1% change in the discount rate used would have increased the carrying value of lease liabilities by £1.5m.

Surplus leases

The Group has a small number of leases on properties from which it no longer trades. A small number of these properties are currently vacant or the sublet is not for the full term of the lease and there is deemed to be a risk on the sublet.

Short term leases

The Group has a small number of leases on properties from which it no longer trades, or a subsection of a trading retail store. These properties are sublet to third parties at contracted rates.

In line with IAS 36, the carrying value of the right-of-use asset will be assessed for indicators of impairment and an impairment charge will be recognised if necessary. Under IAS 17, an onerous lease provision was recognised where management believed there was a risk of default or where the property remained vacant for a period of time. As part of this review the Group has assessed the ability to sub-lease the property and the right-of-use asset has been written down to £nil where the Group does not consider a sublease likely.

13 Intangible assets

	Goodwill £m	Customer lists and 'know how' £m	Software £m	Total £m
Cost
Balance at 26 March 2020	981.3	1.9	63.1	1,046.3
Additions	-	-	25.5	25.5
On acquisition	11.8	5.1	0.2	17.1
Disposals	(34.6)	(0.8)	(0.1)	(35.5)
Balance at 25 March 2021	958.5	6.2	88.7	1,053.4
Amortisation
Balance at 26 March 2020	0.1	0.5	39.3	39.9
Amortisation charge for the period	-	0.2	13.4	13.6
Disposals	-	(0.3)	-	(0.3)
Balance at 25 March 2021	0.1	0.4	52.7	53.2
Net book value
At 26 March 2020	981.2	1.4	23.8	1,006.4
At 25 March 2021	958.4	5.8	36.0	1,000.2

	Goodwill £m	Customer list £m	Software £m	Total £m
Cost
Balance at 28 March 2019	981.3	1.7	47.5	1,030.5
Additions	-	0.2	15.6	15.8
Balance at 26 March 2020	981.3	1.9	63.1	1,046.3
Amortisation
Balance at 28 March 2019	-	0.3	29.5	29.8
Amortisation charge for the period	-	0.1	9.8	9.9
Impairment of assets (non-underlying)	0.0	0.1	-	0.1
Impairment of goodwill (underlying)	0.1	-	-	0.1
Balance at 26 March 2020	0.1	0.5	39.3	39.9
Net book value
At 28 March 2019	981.3	1.4	18.0	1,000.7
At 26 March 2020	981.2	1.4	23.8	1,006.4

The goodwill impairment in the 52 week period ended 26 March 2020 relates to goodwill acquired as part of the buyout of Bicester Vets4Pets Limited in the 52 week period ended 28 March 2019.

Impairment testing

Cash generating units ('CGUs'), as defined by IAS 36, within the Group are considered to be aligned to three operating segments as shown in the table below. Within the Retail operating segment, the CGU comprises the body of stores, online operations, grooming operations and insurance operations. Within the Vet Group operating segment, the CGU comprises the First Opinion veterinary practices and included Specialist Referral Centres up until 31 December 2020. Central includes veterinary telehealth business, group costs and finance expenses. Revenue and costs are allocated to a segment and CGU where reasonably possible.

As at 25 March 2021 and 26 March 2020, the Group is deemed to have CGUs as follows:

	Goodwill
	At 25 March 2021 £m	At 26 March 2020 £m
Retail	586.1	586.1
Central	11.4	-
Vet Group	360.9	395.1
Total	958.4	981.2

The recoverable amount of the CGU group has been calculated with reference to its value in use. The key assumptions of this calculation are shown below:

	52 week period ended 25 March 2021			52 week period ended 26 March 2020
	Retail	Vet Group	Retail		Vet Group
Period on which management approved forecasts are based (years)	5	5	5		5
Growth rate applied beyond approved forecast period	2.0%	3.5%	2.0%		3.5%
Discount rate (pre-tax)	10%	10%	10%		10%
Like-for-like sales growth	8%	10%	4%		11%
Gross profit margin	48%	58%	48%		49%

The goodwill is considered to have an indefinite useful economic life and the recoverable amount is determined based on 'value-in-use' calculations. These calculations use a post-tax cash flow projection based on a five-year plan approved by the Board. For the purposes of intangible asset impairment testing, the model removes all cash flows associated with business units (for example stores or practices yet to open, but within the planning horizon) which the Group has a strategic intention to invest capital in, but has not yet done so, thus ensuring that the future cash flows used in modelling for impairment exclude any cash flows where the investment is yet to take place, in accordance with the requirements of IAS 36 to exclude capital expenditure to improve asset performance. Contributions from and costs associated with new stores and veterinary practices which are already operational at the impairment test date are included in the cash flows. The Group reviews components within CGUs such as stores and veterinary practices for indicators of impairment. This approach is consistent with impairment reviews carried out in the 2020 financial statements.

The key assumptions in the business plans for both the Retail and Vet Group CGUs are like-for-like sales growth and gross profit margin. The Retail forecast assumptions reflect continual innovation and our deep understanding of our customers, incorporating assumptions based on past experience of the industry, products and markets in which the CGU operates, in order to generate the detailed assumptions used in the annual budget setting process, and five year strategic planning process. The Vet Group forecast assumptions are based on a deep understanding of the maturity profile of the practices and their performance, incorporating assumptions based on past experience of the industry, services and markets in which the CGU operates in order to generate the detailed assumptions used in the annual budget setting process, and five year strategic planning process. The projections are based on all available information and growth rates do not exceed growth rates experienced in prior periods. A different set of assumptions may be more appropriate in future years depending on changes in the macro-economic environment and the industry in which each CGU operates. No impairment review has been carried out on the Central CGU due to the acquisition being completed on 27 November 2020 and subsequent trading being in line with financial forecasts.

The discount rate was estimated based on past experience and a market participant weighted average cost of capital. A post tax discount rate was used within the value in use calculation. The pre-tax discount rate is disclosed above in line with IAS 36 requirements.

The Directors have assumed a growth rate projection beyond the five-year period based on market growth rates based on past experience within the Group taking into account the economic growth forecasts within the relevant industries. The long term growth rate in the Vets CGU exceeds the long term average for the UK but is an appropriate rate for the industry.

The Group disposed of £34.6m of goodwill in the 52 week period ended 25 March 2021 in relation to the disposal of the Specialist Referral Centres. The goodwill was previously held in the Vet Group CGU. In line with IAS 36 and in the absence of a market valuation, the Group applied the value in use method to value the total Vet Group CGU using the value of discounted future cash flows. Given the sale of the Specialist Referral Centres, the value in use method cannot be used to value the element of the Vet Group CGU relating to the Specialist Referral Centres, and instead the value of the disposal proceeds has been used for this element. On the basis of the £80.0m of sales proceeds, the Group disposed of 9.0% of the Vet Group CGU which equated to £34.6m of goodwill disposed of.

The total recoverable amount in respect of goodwill for the CGU group as assessed by the Directors using the above assumptions is greater than the carrying amount and therefore no impairment charge has been recorded in each period, with the exception of the goodwill impaired immediately following the acquisition of certain First Opinion veterinary practices as part of the review and recalibration exercise (see note 10).

Within the Retail CGU, a number of sensitivities have been applied to the assumptions in reaching this conclusion including:

- Reduction in growth rate applied beyond forecast period by 100 bps

- Increasing the discount rate by 100 bps

- Reduction in gross margin percentage of 100 bps

None of the above, considered reasonably possible changes in assumptions, would result in impairment when applied either individually or collectively.

Within the Vet Group CGU, a number of sensitivities have been applied to the assumptions in reaching this conclusion including:

- Reduction in growth rate applied beyond forecast period by 100 bps

- Increasing the discount rate by 100 bps

- Reduction in gross margin percentage of 100 bps

None of the above, considered reasonably possible changes in assumptions, would result in impairment when applied either individually or collectively. The same sensitivities were applied to both the Retail CGU and Vet Group CGU in the 52 week period ended 26 March 2020. In addition, further sensitivities were applied in the 52 week period ended 26 March 2020 to reflect the risk of COVID-19. These were:

- Reduction in FY21 H1 Retail sales by 30% as a COVID-19 sensitivity

- Reduction in FY21 H1 Vet Group sales by 50% as a COVID-19 sensitivity

Neither of the above, considered reasonably possible changes in assumptions when applied, resulted in impairment when applied either individually or collectively.

The Directors consider that it is not reasonably possible for the assumptions to change so significantly as to eliminate the excess of the recoverable amount over the carrying value.

14 Inventories

At 25 March 2021 £m

At 26 March 2020

£m

Finished goods

83.7

62.8

The cost of inventories recognised as an expense and included in 'cost of sales' is £487.6m (period ended 26 March 2020: £438.3m).

Inventory expensed to cost of sales includes the cost of the Stock Keeping Units (SKUs) sold, supplier income, stock wastage and foreign exchange variances.

At 25 March 2021 the inventory provision amounted to £3.9m (26 March 2020: £3.2m). The inventory provision is calculated by reference to the age of the SKU and the length of time it is expected to take to sell. The provision percentages applied in calculating the provision are as follows:

· Discontinued stock greater than 365 days: 100%

· Current stock greater than 365 days with a use by date: 50%

· Current stock within 180 and 365 days with a use by date: 25%

· Greater than 180 days with no use by date: 25%

In addition, a provision is held to account for store stock losses during the period since which the SKU was last counted.

The value of inventory against which an ageing provision is held is £8.9m (2020: £7.1m).

In the 52 week period ended 25 March 2021, the value of inventory written off to the income statement amounted to £9.3m (52 week period ended 26 March 2020: £8.7m).

15 Deferred tax assets and liabilities

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	At 25 March 2021			At 26 March 2020
	Assets £m	Liabilities £m	Total £m	Assets £m	Liabilities £m	Total £m
Property, plant and equipment	2.6	-	2.6	2.4	-	2.4
Financial assets	0.6	-	0.6	0.9	-	0.9
Financial liabilities	-	(0.2)	(0.2)	-	(0.2)	(0.2)
Other short term timing differences	2.4	(5.0)	(2.6)	2.2	(5.7)	(3.5)
Arising on acquisition of intangible assets	-	(0.9)	(0.9)	-	-	-
SBP reserve	3.4	-	3.4	-	-	-
Net deferred tax assets/(liabilities)	9.0	(6.1)	2.9	5.5	(5.9)	(0.4)

Movement in deferred tax during the period

	26 March 2020 £m	Recognised in income £m	Recognised in equity £m	Recognised on acquisition £m	25 March 2021 £m
Property, plant and equipment	2.4	0.2	-	-	2.6
Net financial assets/(liabilities)	0.7	-	(0.3)	-	0.4
Other short term timing differences	(3.5)	0.9	-	-	(2.6)
Arising on acquisition of intangible assets	-	-	-	(0.9)	(0.9)
SBP reserve	-	-	3.4	-	3.4
	(0.4)	1.1	3.1	(0.9)	2.9

Other short term timing differences primarily relate to share based payment schemes and inventory provisions.

Movement in deferred tax during the prior period

	28 March 2019 £m	Recognised in income £m	Recognised in equity £m	26 March 2020 £m
Property, plant and equipment	0.2	2.2	-	2.4
Net financial assets/ (liabilities)	(0.2)	-	0.9	0.7
Other short term timing differences	(4.0)	0.5	-	(3.5)
	(4.0)	2.7	0.9	(0.4)

Company

Movement in deferred tax during the period

	26 March 2020 £m	Recognised in income £m	Recognised in equity £m	25 March 2021 £m
Net financial assets	0.4	0.0	(0.1)	0.3
SBP reserve	-	-	3.4	3.4
	0.4	0.0	3.3	3.7

The rate used to calculate deferred tax assets and liabilities is 19% in line with the corporation tax rate.

16 Other financial assets and liabilities

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Non-current assets
Investments in Joint Venture veterinary practices	0.2	0.4	-	-
Loans to Joint Venture veterinary practices - initial set up loans	11.3	13.3	-	-
Loans to Joint Venture veterinary practices - other loans	3.3	4.0	-	-
Other investments	1.1	1.1	-	-
Other receivables	0.6	1.8	-	-
Interest rate swaps	0.2	0.3	0.2	0.3
	16.7	20.9	0.2	0.3

Investments in Joint Venture veterinary practices

Investments represent £0.2m (2020: £0.4m) of the 'B' share capital in Joint Venture veterinary practice companies. These investments are held at cost less impairment. The fair values of investments in unlisted equity securities are considered to be their carrying value as the impact of discounting future cash flows has been assessed as not material and the investment is non-participatory. The share capital of the veterinary practice companies is split equally into 'A' ordinary shares (held by Joint Venture Partners) and 'B' ordinary shares (held by the Group). Any operational decisions require the agreement of the Joint Venture Partner.

Under the terms of the agreements, the Group ('B' shareholder) is not entitled to any profits, losses or dividends, or any surplus on winding up or disposal, although it is entitled to appoint Directors to the Board and carry the same shareholder voting rights as 'A' ordinary shareholders.

The agreements entitle the Group to receive income in relation to support services offered in such areas as clinical development, promotion and methods of operation as well as service activities including accountancy, legal and property.

Loans to Joint Venture veterinary practices - initial set up loans

Loans to Joint Venture veterinary practices of £11.3m (2020: £13.3m) are provided to Joint Venture veterinary practice companies trading under the Companion Care and Vets4Pets brands, in which the Group's share interest is non-participatory. These loans represent a long term investment in the Joint Venture, supporting their initial set up and working capital, and are held at amortised cost under IFRS 9. The carrying value is cost as the impact of discounting future cash flows at a market rate of interest has been assessed as not material. Under the terms of the loans provided to veterinary companies trading under the Companion Care and Vets4Pets brands the loans attract varying interest rates between 2% and 3%. There is no set date for repayment of the loans due to the Group.

The balances are shown net of an expected credit loss ('ECL') of £1.2m (2020: £nil). An ECL has been recognised during the period in relation to loans with Joint Venture veterinary practices where the Group considers the loan to be in default and credit impaired based on the criteria set out in note 1.15.

	Gross loan value £m	Expected credit loss m	Carrying value of loan m
As at 26 March 2020	13.3	-	13.3
Net repayment and further advances	(0.8)	-	(0.8)
Provisions made during the period	-	(1.2)	(1.2)
As at 25 March 2021	12.5	(1.2)	11.3
Closing position	12.5	(1.2)	11.3

Analysis of expected credit loss by risk category

The following table presents an analysis of the credit risk and credit impairment of initial set up loans held at amortised cost. Based on their score card performance, loans are categorised as high, medium or low credit risk. The loss allowance is calculated in accordance with the policy set out in note 1.15, depending on the credit risk of each loan and the Group's expectations of future cash flow recoverability.

Credit risk	At 25 March 2021 £m	At 26 March 2020 £m
Low	10.5	13.3
Medium	1.2	-
High	0.8	-
Gross carrying amount	12.5	13.3
Loss allowance	(1.2)	-
Net carrying amount	11.3	13.3

Loans to Joint Venture veterinary practices - other loans

Loans to Joint Venture veterinary practices - other loans of £3.3m (2020: £4.0m) represent loan balances to Joint Venture veterinary practices. These loans are unsecured, typically for five to seven years and attract an interest rate of LIBOR plus 2.8%. The loans are accounted for at amortised cost under IFRS 9. The carrying value is considered to be cost as the impact of discounting future cash flows at a market rate of interest has been assessed as not material. The loans are typically to support capacity expansion. The balances have been assessed under the criteria set out in note 1.15 as fully performing, and any expected credit losses are immaterial (2020: £nil).

Other investments

Other investments are held at fair value through other comprehensive income ('FVOCI'). The fair values of investments in unlisted equity securities are considered to be their carrying value as the impact of discounting future cash flows has been assessed as not material and the investment is non-participatory.

Other financial assets	Group		Company
Other financial assets	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Current assets
Fuel forward contracts	0.1	-	-	-
Forward exchange contracts	0.8	0.8	-	-
Other receivables	0.6	0.7	-	-
	1.5	1.5	-	-
Other financial liabilities	Group		Company
Other financial liabilities	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Current liabilities
Fuel forward contracts	(0.0)	(0.4)	-	-
Forward exchange contracts	(1.2)	(1.7)	-	-
Interest rate swaps	(0.1)	-	(0.1)	(0.0)
Finance lease liabilities	-	(0.1)	-	-
	(1.3)	(2.2)	(0.1)	(0.0)

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Non-current liabilities
Interest rate swaps	(1.6)	(2.3)	(1.6)	(2.3)
Put and call liability	-	(3.4)	-	-
Finance lease liabilities	-	(0.1)	-	-
	(1.6)	(5.8)	(1.6)	(2.3)

17 Trade and other receivables

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Trade receivables	11.4	17.4	-	-
Amounts owed by Joint Venture veterinary practices - funding for new practices	0.3	1.6	-	-
Amounts owed by Joint Venture veterinary practices - operating loans	20.5	29.5	-	-
Other receivables	9.0	2.2	-	-
Amounts owed by Group undertakings	-	-	587.9	579.2
Prepayments	0.5	1.5	-	-
Accrued income	7.6	3.7	-	-
	49.3	55.9	587.9	579.2

Trade and other receivables

The impairment of trade and other receivables is assessed in line with IFRS 9. As at 25 March 2021 and 26 March 2020 the impact of expected credit loss on these balances was deemed to be immaterial and as such no provision has been made.

The Group apply the simplified approach under IFRS 9 and default to lifetime expected credit loss. The ECL is immaterial on the trade receivables balance for the 52 week period ended 25 March 2021.

Amounts owed by Joint Venture veterinary practices

Amounts owed by Joint Venture veterinary practices represent funding for new practices, trading balances and operating loans owed by J oint Venture veterinary practices to the Group. Operating loans are provided on a short term monthly cycle to the extent that a practice requires additional funding above their external bank loan. Practices generate cash on a monthly basis which is applied to the repayment of brought forward operating loans. For immature practices, loan balances may increase due to operating requirements. Based on a projected cash flow forecast on a practice by practice basis, the funding is expected to be required for a number of years, however as cash is applied against opening loan balances, the Group's expectation is that the brought forward balance will be repaid in cash within 12 months. The loans have been classified as current on this basis and the Group has chosen not to charge interest on these balances, and they are initially recognised under IFRS 9 at their nominal value as the effect of discounting the expected cash flows based on the effective interest rate at the market rate of interest is not material. The loans advanced to the practices are interest free and either repayable on demand or repayable within 90 days of demand. No facility exists and the levels of loans are monitored in relation to review of the practices performance against business plan and a number of financial and non-financial KPIs in accordance with the policy set out in note 1.15.

For those practices in default, a credit impairment charge is recognised under IFRS 9 taking into account the Group's expectations of future cash flow recoverability. For other practices, a credit impairment charge is recognised under IFRS 9, taking into account both the probability of loss and the loss proportion given default.

The balances above are shown net of allowances for expected credit losses held for operating loans of £6.2m (2020: £8.0m). The basis for this allowance and the movement in the period is set out below and further detail is provided in note 1.21.

Group

	Gross loan value £m	Expected credit loss m	Carrying value of loan m
As at 26 March 2020	37.5	(8.0)	29.5
Loans written off	(1.4)	1.4	-
Net repayment and further advances	(9.4)	-	(9.4)
Release of impairment recognised during the period	-	0.4	0.4
As at 25 March 2021
Closing position	26.7	(6.2)	20.5

During the period ended 25 March 2021, £1.4m of operating loans which were deemed to be in default were written off in advance of the acquisition of the 'A' shares which led to the control and consolidation of these practices. Further details of these acquisitions are provided in note 10.

The Group holds expected credit losses of £6.2m against operating loans of £26.7m (26 March 2020: ECLs of £8.0m against operating loans of £37.5m). The movements are shown in the table above. The Group continues to work with a number of Joint Venture Partners, where the partners choose to follow the Group's recommendations on remediation plans aimed at improving practice performance. Further details regarding credit risk are provided in note 1.15.

The following table presents an analysis of the credit risk and credit impairment of operating loans held at amortised cost. Based on their score card performance, loans are categorised as high, medium or low credit risk. The loss allowance is calculated in accordance with the policy set out in note 1.15, depending on the credit risk of each loan.

Credit risk	At 25 March 2021 £m	At 26 March 2020 £m
Low	15.9	26.6
Medium	5.4	6.7
High	5.4	4.2
Gross carrying amount	26.7	37.5
Loss allowance	(6.2)	(8.0)
Net carrying amount	20.5	29.5

Should each operating loan risk, as defined by the risk criteria in note 1.15, increase by 10%, this would lead to an increase in the required provision for operating loans of £0.4m (26 March 2020: £1.9m). This sensitivity is considered by management to represent a reasonably possible range of estimation uncertainty, based on the variance in current trading performance within these Joint Venture veterinary practices. The factors which give rise to the estimation uncertainty include macro-economic and industry specific factors, including the level of industry growth, as well as gross margin percentages achieved within the industry, which contain a number of factors including the availability of suitably qualified veterinary personnel. Further details are provided in note 27.

Accrued income

Accrued income relates to income in relation to fees to Joint Venture veterinary practices, revenues generated through Specialist Referral Centres up until 31 December 2020, and overrider and promotional income from suppliers which have not yet been invoiced . Accrued income is classified as current as it is expected to be invoiced and received within 12 months of the period end date. Supplier income is recognised on an accruals basis, based on the expected entitlement that has been earned up to the balance sheet date for each relevant supplier contract. As detailed in note 1.18, supplier income is recognised as a credit within gross margin to cost of sales and is outside of the scope of IFRS 15 and therefore a contract asset has not been separately recognised. Further detail of the Group's revenue recognition policy is provided in note 1.18.

Company

Amounts owed by Group undertakings

Amounts owed by Group undertakings have been assessed in line with IFRS 9 and an assessment is made of the expected credit loss. As at 25 March 2021 and 26 March 2020 the impact of expected credit loss on these balances was deemed to be immaterial and as such no provision has been made.

18 Cash and cash equivalents

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Cash and cash equivalents	101.4	79.1	-	-

19 Other interest-bearing loans and borrowings

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m		At 25 March 2021 £m	At 26 March 2020 £m
Non-current liabilities
Unsecured bank loans	98.7	163.3		98.7	163.3

Terms and debt repayment schedule

Currency

Nominal interest rate

Year of maturity

Face value at 25 March

2021

£m

Carrying amount at 25 March

2021

£m

Face value at 26 March

2020

£m

Carrying amount at 26 March

2020

£m

Revolving credit facility

GBP

LIBOR +1.15%

2023

100.0

98.7

165.0

163.3

The Group has a revolving credit facility of £248.0m which expires on 25 September 2023 and a further facility of £100.0m which expired on 12 May 2021.

The drawn amount on the £248.0m facility was £100.0m at 25 March 2021 (£165.0m at 26 March 2020) and this amount is reviewed each month. Interest is charged at LIBOR plus a margin based on leverage on a pre-IFRS 16 basis (net debt: EBITDA). Face value represents the principal value of the revolving credit facility. The facility is unsecured. In addition to this, the Group held a further £100.0m 364 day liquidity facility which commenced on 13 May 2020 and expired on 12 May 2021. The drawn amount on the £100.0m facility at 25 March 2021 was £nil (26 March 2020: £nil).

Interest-bearing borrowings are recognised initially at fair value, being the principal value of the loan net of attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at a carrying value, which represents the amortised cost of the loans using the effective interest method.

The analysis of repayments on the loans is as follows:

	At 25 March 2021 £m	At 26 March 2020 £m
Within one year or repayable on demand	-	-
Between one and two years	-	-
Between two and five years	100.0	165.0
	100.0	165.0

The loans at 25 March 2021 and 26 March 2020 are held by the Company.

The Group's policy with regard to interest rate risk is to hedge the appropriate level of borrowings by entering into fixed rate agreements. The Group has entered into one fixed rate interest rate swap agreement over a total of £100.0m of the senior facility borrowings at the balance sheet date at a fixed rate of 0.918% which expires on 31 March 2021. The Group has further fixed interest rate swap agreements over a total of £100.0m of the senior facility borrowings at the balance sheet date at a blended fixed rate of 0.811% which commence on 31 March 2021 and expire on 25 September 2023.

The hedges are structured to hedge at least 70% of the forecast outstanding debt for the next 12 months.

Analysis of changes in net debt

	At 26 March 2020 £m	Cash flow £m	Non-cash movement £m	At 25 March 2021 £m
Cash and cash equivalents	79.1	22.3	-	101.4
Debt due within one year at face value	-	-	-	-
Debt due after one year at face value	(165.0)	65.0	-	(100.0)
Net debt	(85.9)	87.3	-	1.4

20 Trade and other payables

	Group		Company
	At 25 March 2021 £m	At 26 March 2020 £m	At 25 March 2021 £m	At 26 March 2020 £m
Current
Trade payables	107.1	110.8	-	-
Accruals	57.9	45.1	0.4	0.1
Amounts owed to Joint Venture veterinary practices	17.6	6.7	-	-
Other payables including tax and social security	28.5	34.0	-	-
Amounts owed to Group undertakings	-	-	509.3	387.7
	211.1	196.6	509.7	387.8

Amounts owed to Joint Venture veterinary practices that relate to trading balances are interest free and repayable on demand.

Within accruals above, contract liabilities under IFRS 15 of £0.8m (2020: £0.7m) relate to advanced consideration received from customers in relation to gift vouchers, cards and points redeemable by charities. This revenue will be recognised as the vouchers, cards and points are redeemed, which is expected to be over the next two years.

Within accruals above, contract liabilities under IFRS 15 of £0.4m (2020: £3.2m) relate to advanced consideration received from customers in relation to online orders which have not yet been delivered. This revenue will be recognised as the online orders are delivered to customers, which is expected to be in less than one week from the balance sheet date.

21 Provisions

	Dilapidation provision £m	Closed stores provision £m	Provisions for exit and closure costs relating to Joint Venture veterinary practices £m	Total £m
Balance at 26 March 2020	1.9	1.1	2.2	5.2
Provisions made during the period	2.1	0.4	2.7	5.2
Provisions utilised during the period	(0.4)	(0.8)	(2.3)	(3.5)
Provisions released during the period	(0.2)	-	(0.3)	(0.5)
Balance at 25 March 2021	3.4	0.7	2.3	6.4

	At 25 March 2021 £m	At 26 March 2020 £m
Current	4.3	3.9
Non-current	2.1	1.3
	6.4	5.2

The closed stores provision relates to the rates, service charge and utilities payable on sublet or vacant stores. The timing of the utilisation of these provisions is variable dependent upon the lease expiry dates of the properties concerned, which vary between 1 and 4 years. Market conditions have a significant impact and hence the assumptions on future cash flows are reviewed regularly and revisions to the provision made where necessary.

The provision is discounted in line with the discount rates used to calculate the value of a right-of-use asset. A decrease in this rate of 100 bps would increase the provision by £0.0m.

The provisions for exit and closure costs relating to Joint Venture veterinary practices relate to expenses for any Joint Venture veterinary practices that the Group has bought out or has offered to buy out from Joint Venture Partners, and therefore which have been provided for under IAS 37. The timing of the utilisation of these provisions is variable dependent upon the lease expiry dates of the properties concerned, which vary between 1 and 17 years. Market conditions have a significant impact and hence the assumptions on future cash flows are reviewed regularly and revisions to the provision made where necessary.

22 Capital and reserves

Share capital

Group

	Share capital Number	Share capital £m
At 28 March 2019	500,000,000	5.0
At 26 March 2020	500,000,000	5.0
At 25 March 2021	500,000,000	5.0

Company

Share capital

25 March 2021

£m

At beginning of period

5.0

On issue at period end

5.0

Share capital

26 March 2020

£m

At beginning of period

5.0

On issue at period end

5.0

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Consolidation and Merger reserves

The consolidation reserve and the merger reserve arose as a result of the creation of Pets at Home Group Plc and its purchase of the existing group of companies as part of the Initial Public Offering in 2014. As part of the IPO, a number of shares in Plc were issued in exchange for various instruments or cash. The premium arising on the issue was allocated between the share premium and merger reserve. A consolidation reserve was also created which reflected the difference between Plc reserves and the consolidated equity of PAH Lux S.a.r.l at the start of the comparative period.

Translation reserve

The translation reserve comprises all foreign exchange differences arising since 21 November 2011, the date of incorporation of Pets at Home Asia Ltd where the functional currency differs from that of the rest of the Group.

Cash flow hedging reserve

The cash flow hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.

Retained earnings

Included within the Group is Pets at Home Employee Benefit Trust (EBT). The EBT purchases shares to fund the share option schemes. As at 25 March 2021, the EBT held 5,958,116 ordinary shares (26 March 2020: 5,749,377) with a cost of £18,501,342 (2020: £11,805,745). The market value of these shares as at 25 March 2021 was 386.20 pence per share (26 March 2020: 268.80).

Other comprehensive income

25 March 2021

	Translation reserve £m	Cash flow hedging reserve £m	Total other comprehensive income £m
Other comprehensive income	0.1	-	0.1
Effective portion of changes in fair value of cash flow hedges	-	5.0	5.0
Deferred tax on changes in fair value of cash flow hedges	-	(0.3)	(0.3)
Total other comprehensive income	0.1	4.7	4.8

26 March 2020

	Translation reserve £m	Cash flow hedging reserve £m	Total other comprehensive income £m
Other comprehensive income	(0.1)	-	(0.1)
Effective portion of changes in fair value of cash flow hedges	-	(5.5)	(5.5)
Deferred tax on changes in fair value of cash flow hedges	-	0.9	0.9
Total other comprehensive income	(0.1)	(4.6)	(4.7)

23 Financial instruments

Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk.

Risk management framework

Risk management in respect of financial risk is carried out by the Group Treasury function under policies approved by the Board of Directors. The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework. The Board provides written principles through its Group Treasury Policy for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

The main objectives of the Group Treasury function are:

To ensure shareholder and management expectations are managed on cash flow and earnings volatility resulting from financial market movements;

To protect the expected cash flow and earnings from interest rate and foreign exchange fluctuations to within parameters acceptable to the Board and shareholders; and

To control banking costs and service levels.

Market risk

Foreign currency risk

The Group sources a significant level of purchases in foreign currency, in the region of US$100 million each financial year, and monitors its foreign currency requirements through short, medium and long term cash flow forecasting. The value of purchases in US dollars continues to increase each year and the risk management policy has evolved with this increased risk.

At 25 March 2021, the Group's policy is to hedge up to 95% of the next 12 months and additionally up to 60% of the following six months out to 18 months forecast foreign exchange transactions, using foreign currency bank accounts and forward foreign exchange contracts. The transactions are deemed to be 'highly probable' and are based on historical knowledge and forecast purchase and sales projections.

The Group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments, except for derivatives which are based on notional amounts:

25 March 2021

	Euro £m	US Dollar £m	HKD £m	Total £m
Cash and cash equivalents	0.5	0.3	0.0	0.8
Trade payables	(0.9)	(5.9)	-	(6.8)
Forward exchange contracts	-	(0.4)	-	(0.4)
Balance sheet exposure	(0.4)	(6.0)	0.0	(6.4)

26 March 2020

	Euro £m	US Dollar £m	HKD £m	Total £m
Cash and cash equivalents	0.8	0.4	0.0	1.2
Trade payables	(1.1)	(6.5)	-	(7.6)
Forward exchange contracts	(0.0)	(1.0)	-	(1.0)
Balance sheet exposure	(0.3)	(7.1)	0.0	(7.4)

Sensitivity analysis

A 5% weakening of the following currencies against the pound sterling at the period end date in both years would have increased profit or loss or equity by the amounts shown below. This calculation assumes that the change occurred at the balance sheet date and had been applied to risk exposures existing at that date.

This analysis assumes that all other variables, in particular other exchange rates and interest rates, remain constant.

	Equity		Profit or loss
	25 March 2021 £m	26 March 2020 £m	25 March 2021 £m	26 March 2020 £m
US Dollar	-	-	0.3	0.3
Euro	-	-	-	-

A 5% strengthening of the above currencies against the pound sterling in any period would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

Managing interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as 'IBOR reform'). The Group has exposures to IBORs on its financial instruments that will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the timing and the methods of transition in some jurisdictions that the Group operates in. The Group anticipates that IBOR reform will impact its risk management and hedge accounting.

The Group's exposure to sterling LIBOR designated in hedging relationships is £100.0m at 25 March 2021 representing both the nominal amount of the hedging interest rate swap and the principal amount of the hedged sterling-denominated revolving credit facility. The Group is working with its banking syndicate and hedging partners to document a transition from LIBOR to a SONIA benchmark rate by the end of calendar year 2021, for both the revolving credit facility and interest rate swap hedging products. The effect of the transition on the Group and Company's financial statements for the periods ending 31 March 2022 and 30 March 2023, which represents the remaining term of these facilities and products, is expected to be less than £0.1m.

(ii) Interest rate risk

Cash flow and fair value interest rate risk

The Group's interest rate risk arises from long term borrowings. As at 25 March 2021, the Group had a revolving credit facility with a face value totalling £100.0m. The Group's borrowings as at 25 March 2021 incur interest at a rate of 1.15% plus LIBOR at the leverage prevalent in the period, which exposes the Group to cash flow interest rate risk. The analysis of loan repayments is detailed in note 19.

The Group's policy with regard to interest rate risk is to hedge the appropriate level of borrowings by entering into fixed rate agreements. The Group has a fixed rate interest rate swap agreement over a total of £100.0m of the senior facility borrowings at the balance sheet date at a fixed rate of 0.918% which expires on 31 March 2021. The Group has further fixed interest rate swap agreements over a total of £100.0m of the senior facility borrowings at the balance sheet date at a blended fixed rate of 0.811% which commence on 31 March 2021 and expire on 25 September 2023. The hedge is structured to hedge at least 70% of the forecast outstanding debt for the next year.

Profile

At the balance sheet date the interest rate profile of the Group's interest-bearing financial instruments was:

	Group		Company
	Book value At 25 March 2021 £m	Book value At 26 March 2020 £m	Book value At 25 March 2021 £m	Book value At 26 March 2020 £m
Fixed rate instruments
Financial liabilities	100.0	162.4	100.0	162.4
Variable rate instruments
Financial liabilities	-	0.9	-	0.9
Total financial liabilities	100.0	163.3	100.0	163.3

All borrowings bear a variable rate of interest based on LIBOR. Group policy is to hedge at least 70% of the loan to ensure a fixed rate of interest. Therefore, designated above is the portion of the loan hedged by a fixed rate interest rate swap and the remaining un-hedged portion is designated as variable rate.

Sensitivity analysis

A change of 50 basis points in interest rates at the period end date would have increased/ (decreased) equity and profit or loss by the amounts shown below. This calculation assumes that the change occurred at the balance sheet date and had been applied to risk exposures existing at that date.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant and considers the effect of financial instruments with variable interest rates, financial instruments at fair value through profit or loss or available for sale with fixed interest rates and the fixed rate element of interest rate swaps. The analysis is performed on the same basis for the comparative period.

	At 25 March 2021 £m	At 26 March 2020 £m
Equity
Increase	0.5	0.8
Decrease	(0.5)	(0.8)
Profit or loss
Increase	-	-
Decrease	-	-

Credit risk

Financial risk management

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group's receivables from customers, investment securities and operating loans to Joint Venture veterinary practices.

Credit risk also arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions. The Group ensures that the banks used for the financing of the revolving credit facilities and interest rate swap agreements hold an acceptable risk rating by independent parties.

The Group has in place certain guarantees over the bank loans taken out by a number of Joint Venture veterinary practice companies in which it holds an investment. Further details of these guarantees are disclosed in note 27. The performance of the Joint Venture veterinary practice companies is reviewed on an ongoing basis.

Exposure to credit risk

The Group's maximum exposure to credit risk, being the carrying amount of financial assets, is summarised in the table within the fair values section below.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.

Management prepares and monitors rolling forecasts of the Group's cash balances based on expected cash flows to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions without risking damage to the Group's reputation. Covenants are monitored on a regular basis to ensure there is no risk or breach which would lead to an 'Event of Default' and compliance certificates are issued as required to the syndicate agent.

The following are the contractual maturities of financial liabilities, including estimated interest payments:

Group

25 March 2021

	Carrying amount £m	Contractual cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Non-derivative financial liabilities
Bank loans (note 19)	98.7	100.0	-	-	100.0	-
Trade payables (note 20)	107.1	107.1	107.1	-	-	-
Derivative financial liabilities
Interest rate swaps used for hedging:
Outflow (note 16)	1.7	1.7	0.1	0.8	0.8	-
Forward exchange contracts used for hedging:
Outflow (note 16)	1.2	1.2	1.2	-	-	-
Fuel forward contracts used for hedging:
Outflow (note 16)	0.0	0.0	0.0	-	-	-
	208.7	210.0	108.4	0.8	100.8	-

26 March 2020

	Carrying amount £m	Contractual cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Non-derivative financial liabilities
Bank loans (note 19)	163.3	165.0	-	-	165.0	-
Trade payables (note 20)	110.8	110.8	110.8	-	-	-
Finance lease liabilities (note 16)	0.2	0.2	0.1	0.1	-	-
Put and call liability (note 16)	3.4	3.4	-	3.0	0.2	0.2
Derivative financial liabilities
Interest rate swaps used for hedging:
Outflow (note 16)	2.3	2.3	0.0	1.0	1.3	-
Forward exchange contracts used for hedging:
Outflow (note 16)	1.7	1.7	1.7	-	-	-
Fuel forward contracts used for hedging:
Outflow (note 16)	0.4	0.4	0.4	0.0	-	-
	282.1	283.8	113.0	4.1	166.5	0.2

Company

25 March 2021

	Carrying amount £m	Contractual cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Non-derivative financial liabilities
Bank loans (note 19)	98.7	100.0	-	-	100.0	-
	98.7	100.0	-	-	100.0	-

26 March 2020

	Carrying amount £m	Contractual cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Non-derivative financial liabilities
Bank loans (note 19)	163.3	165.0	-	-	165.0	-
	163.3	165.0	-	-	165.0	-

Liquidity risk and cash flow hedges

Cash flow hedges

The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur and to affect profit or loss:

Group

25 March 2021

	Carrying amount £m	Expected cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Interest rate swaps:
Assets (note 16)	0.2	0.2	-	-	0.2	-
Liabilities (note 16)	(1.7)	(1.7)	(0.1)	(0.8)	(0.8)	-
Forward exchange contracts:
Assets (note 16)	0.8	0.8	0.8	-	-	-
Liabilities (note 16)	(1.2)	(1.2)	(1.2)	-	-	-
Fuel forward contracts:
Assets (note 16)	0.1	0.1	0.1	-	-	-
Liabilities (note 16)	(0.0)	(0.0)	(0.0)	-	-	-
	(1.8)	(1.8)	(0.4)	(0.8)	(0.6)	-

26 March 2020

	Carrying amount £m	Expected cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Interest rate swaps:
Assets (note 16)	0.3	0.3	-	-	0.3	-
Liabilities (note 16)	(2.3)	(2.3)	0.0	(1.0)	(1.3)	-
Forward exchange contracts:
Assets (note 16)	0.8	0.8	0.8	-	-	-
Liabilities (note 16)	(1.7)	(1.7)	(1.7)	-	-	-
Fuel forward contracts:
Liabilities (note 16)	(0.4)	(0.4)	(0.4)	(0.0)	-	-
	(3.3)	(3.3)	(1.3)	(1.0)	(1.0)	-

Company

25 March 2021

	Carrying amount £m	Expected cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Interest rate swaps:
Assets (note 16)	0.2	0.2	-	-	0.2	-
Liabilities (note 16)	(1.7)	(1.7)	(0.1)	(0.8)	(0.8)	-
	(1.5)	(1.5)	(0.1)	(0.8)	(0.6)	-

26 March 2020

	Carrying amount £m	Expected cash flows £m	1 year or less £m	1 to <2 years £m	2 to <5 years £m	5 years and over £m
Interest rate swaps:
Assets (note 16)	0.3	0.3	-	-	0.3	-
Liabilities (note 16)	(2.3)	(2.3)	-	(1.0)	(1.3)	-
	(2.0)	(2.0)	-	(1.0)	(1.0)	-

Fair values of financial instruments

Investments

The fair values of investments are considered to be their carrying value as the impact of discounting future cash flows has been assessed as not material and the investment is non-participatory.

Trade and other payables and receivables

The fair values of these items are considered to be their carrying value as the impact of discounting future cash flows has been assessed as not material.

Cash and cash equivalents

The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is not repayable on demand (such as term deposits), then the fair value is estimated at the present value of future cash flows, discounted at the market rate of interest at the balance sheet date.

Long term and short term borrowings

The fair value of bank loans and other loans approximates their carrying value as they have interest rates based on LIBOR.

Short term deposits

The fair value of short term deposits is considered to be their carrying value as the balances are held in floating rate accounts where the interest rate is reset to market rates.

Derivative financial instruments

The fair values of forward exchange contracts and interest rate swap contracts are calculated by management based on external valuations received from the Group's bankers and are based on forward exchange rates and anticipated future interest yield respectively.

Contingent consideration

Contingent consideration on acquisition or disposal of a subsidiary is valued at fair value at the time of acquisition or disposal. Any subsequent changes in fair values are recognised in profit or loss.

Put and call options over non-controlling interests

Put and call options over non-controlling interests are recognised at fair value at the acquisition date and included within the valuation of goodwill. Subsequent changes to fair value are recognised in profit or loss.

Fair values

The fair values of all financial assets and financial liabilities by class together with their carrying amounts shown in the balance sheet are as follows:

Fair value hierarchy

The table below shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

25 March 2021
Carrying amount	Fair value - hedging instruments £m	FVOCI - equity instruments £m	Financial assets at amortised cost £m	Other financial liabilities £m	Total carrying amount £m
Financial assets measured at fair value
Investments in Joint Venture veterinary practices (note 16)	-	0.2	-	-	0.2
Other investments (note 16)	-	1.1	-	-	1.1
Forward exchange contracts used for hedging (note 16)	0.8	-	-	-	0.8
Fuel forward contracts used for hedging (note 16)	0.1	-	-	-	0.1
Interest rate swaps used for hedging (note 16)	0.2	-	-	-	0.2
	1.1	1.3	-	-	2.4
Financial assets not measured at fair value
Current trade and other receivables (note 17)	-	-	20.4	-	20.4
Amounts owed by Joint Venture veterinary practices - funding, trading and operating loans (note 17)	-	-	20.8	-	20.8
Cash and cash equivalents (note 18)	-	-	101.4	-	101.4
Loans to Joint Venture veterinary practices - initial set up loans (note 16)	-	-	11.3	-	11.3
Loans to Joint Venture veterinary practices - other loans (note 16)	-	-	3.3	-	3.3
Other receivables (note 16)	-	-	1.2	-	1.2
	-	-	158.4	-	158.4
Financial liabilities measured at fair value
Fuel forward contracts used for hedging (note 16)	(0.0)	-	-	-	(0.0)
Forward exchange contracts used for hedging (note 16)	(1.2)	-	-	-	(1.2)
Interest rate swaps used for hedging (note 16)	(1.7)	-	-	-	(1.7)
	(2.9)	-	-	-	(2.9)
Financial liabilities not measured at fair value
Current lease liabilities (note 12)	-	-	-	(78.4)	(78.4)
Non-current lease liabilities (note 12)	-	-	-	(331.3)	(331.3)
Trade payables (note 20)	-	-	-	(107.1)	(107.1)
Amounts owed to Joint Venture veterinary practices (note 20)	-	-	-	(17.6)	(17.6)
Other interest-bearing loans and borrowings (note 19)	-	-	-	(98.7)	(98.7)
	-	-	-	(633.1)	(633.1)

25 March 2021
Fair value	Level 1 £m	Level 2 £m	Level 3 £m	Total £m
Financial assets measured at fair value
Investments in Joint Venture veterinary practices (note 16)	-	-	0.2	0.2
Other investments (note 16)	-	-	1.1	1.1
Financial assets not measured at fair value
Amounts owed by Joint Venture veterinary practices - Funding and operating loans (note 17)	-	-	20.8	20.8
Loans to Joint Venture veterinary practices - initial set up loans (note 16)	-	-	11.3	11.3
Loans to Joint Venture veterinary practices - other loans (note 16)	-	-	3.3	3.3
Other receivables (note 16)	-	-	1.2	1.2
Financial liabilities not measured at fair value
Other interest-bearing loans and borrowings (note 19)	-	(100.0)	-	(100.0)

26 March 2020
Carrying amount	Fair value - hedging instruments £m	FVOCI - equity instruments £m	Financial assets at amortised cost £m	Other financial liabilities £m	Total carrying amount £m
Financial assets measured at fair value
Investments in Joint Venture veterinary practices (note 16)	-	0.4	-	-	0.4
Other investments (note 16)	-	1.1	-	-	1.1
Forward exchange contracts used for hedging (note 16)	0.8	-	-	-	0.8
Interest rate swaps used for hedging (note 16)	0.3	-	-	-	0.3
	1.1	1.5	-	-	2.6
Financial assets not measured at fair value
Current trade and other receivables (note 17)	-	-	19.6	-	19.6
Amounts owed by Joint Venture veterinary practices - funding, trading and operating loans (note 17)	-	-	31.1	-	31.1
Cash and cash equivalents (note 18)	-	-	79.1	-	79.1
Loans to Joint Venture veterinary practices - initial set up loans (note 16)	-	-	13.3	-	13.3
Loans to Joint Venture veterinary practices - other loans (note 16)	-	-	4.0	-	4.0
Other receivables (note 16)	-	-	2.5	-	2.5
	-	-	149.6	-	149.6
Financial liabilities measured at fair value
Fuel forward contracts used for hedging (note 16)	(0.4)	-	-	-	(0.4)
Forward exchange contracts used for hedging (note 16)	(1.7)	-	-	-	(1.7)
Interest rate swaps used for hedging (note 16)	(2.3)	-	-	-	(2.3)
	(4.4)	-	-	-	(4.4)
Financial liabilities not measured at fair value
Finance lease liabilities (note 16)	-	-	-	(0.2)	(0.2)
Current lease liabilities (note 12)	-	-	-	(83.7)	(83.7)
Non-current lease liabilities (note 12)	-	-	-	(380.2)	(380.2)
Trade payables (note 20)	-	-	-	(110.8)	(110.8)
Amounts owed to Joint Venture veterinary practices (note 20)	-	-	-	(6.7)	(6.7)
Put & call liability (note 16)	-	-	-	(3.4)	(3.4)
Other interest-bearing loans and borrowings (note 19)	-	-	-	(163.3)	(163.3)
	-	-	-	(748.3)	(748.3)

26 March 2020
Fair value	Level 1 £m	Level 2 £m	Level 3 £m	Total £m
Financial assets measured at fair value
Investments in Joint Venture veterinary practices (note 16)	-	-	0.4	0.4
Other investments (note 16)	-	-	1.1	1.1
Financial assets not measured at fair value
Amounts owed by Joint Venture veterinary practices - funding and operating loans (note 17)	-	31.1	-	31.1
Loans to Joint Venture veterinary practices - initial set up loans (note 16)	-	13.3	-	13.3
Loans to Joint Venture veterinary practices - other loans (note 16)	-	4.0	-	4.0
Other receivables (note 16)	-	2.5	-	2.5
Financial liabilities not measured at fair value
Put & call liability	-	-	(3.4)	(3.4)
Other interest-bearing loans and borrowings (note 19)	-	(165.0)	-	(165.0)

Changes in liabilities arising from financing activities

		Loans and borrowings	Lease liabilities	Total
	£m		£m	£m
Balance at 26 March 2020	163.3		463.9	627.2
Changes from financing cash flows
Proceeds from loans and borrowings	-		-	-
Repayment of borrowings	(65.0)		-	(65.0)
Payment of lease liabilities	-		(79.2)	(79.2)
Total changes from financing cash flows	98.3		384.7	483.0
Other changes
Interest expense on lease liabilities	-		12.8	12.8
Additions to lease liabilities	-		38.5	38.5
Disposal of lease liabilities	-		(26.3)	(26.3)
Amortisation of debt issue costs	0.4		-	0.4
Total other changes	0.4		25.0	25.4
Balance at 25 March 2021	98.7		409.7	508.4

Measurement of fair values

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values at the balance sheet dates, as well as the significant unobservable inputs used.

Type	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement


Investment in equity securities	The fair values of investments in unlisted equity securities are considered to be their carrying value as the impact of discounting future cash flows has been assessed as not material and the investment is non-participatory.	Not applicable	Not applicable

Forward exchange contracts and interest rate swaps	Market comparison technique - the fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions on similar instruments.	Not applicable	Not applicable
Other financial liabilities	Other financial liabilities include the fair values of the put and call options over the non-controlling interests of subsidiary undertakings. The fair values represent the best estimate of amounts payable based on future earnings performance discounted to present value.	Future earnings performance	Fair value linked to increase or decrease in the best estimate of the future earnings performance

Hedge accounting

Cash flow hedges

At 25 March 2021 and 26 March 2020, the Group held the following instruments to hedge exposures to changes in foreign currency and interest rates.

	Maturity
	1-6 months	6-12 months	More than 1 year	1-6 months	6-12 months	More than 1 year
	2021	2021	2021	2020	2020	2020
Foreign currency risk
Forward exchange contracts
Net exposure (£m)	42.4	18.0	-	36.6	15.0	-
Average GBP-USD forward contract rate	1.32	1.36	-	1.27	1.31	-
Average GBP-EUR forward contract rate	1.11	1.15	-	1.14	1.19	-
Interest rate risk
Interest rate swaps
Net exposure (£m)	100.0	-	100.0	162.4	-	100.0
Average fixed interest rate	0.918%		0.811%	0.814%	-	0.865%

Company

The Company held interest rate swaps as at 25 March 2021 and 26 March 2020 which are valued as above.

Capital management

The Group's objectives when managing capital, which is deemed to be total equity plus total debt, are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, through the optimisation of the debt and equity balance, and to maintain a strong credit rating and headroom on financial covenants. The Group manages its capital structure and makes appropriate decisions in light of the current economic conditions and strategic objectives of the Group.

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the Group.

The funding requirements of the Group are met by the utilisation of external borrowings together with available cash, as detailed in note 19.

A key objective of the Group's capital management is to maintain compliance with the covenants set out in the revolving credit facility and to maintain a comfortable level of headroom over and above these requirements.

Management have continued to measure and monitor covenant compliance throughout the period and the Group has complied with the requirements set.

24 Share based payments

At 25 March 2021 and 26 March 2020, the Group has five share award plans, all of which are equity settled schemes.

1 The Co-Invest Plan (CIP)

On 25 February 2014 the Company adopted the Co-Invest Plan (CIP). Matching awards under the CIP (as described in section 1(b) below) were made on 17 March 2014 to Executive Directors and the Senior Executives by reference to corresponding investment pledges by those colleagues.

These matching awards vested over a period of three years subject to the satisfaction of performance conditions and once vested as to performance became exercisable in equal one-third tranches in years three, four and five subject to continued employment with the Group. These awards were granted at nil cost.

(a) Eligibility

Only the Executive Directors, the Senior Executives and certain other senior colleagues were selected to participate in the CIP.

(b) Type of awards

Colleagues were invited to participate in the CIP by making an 'investment' or 'pledge' of their own shares (the 'Co-Invest Shares'), which could include existing, locked-in shares or new shares acquired with cash, in return for a nil cost-matching award over shares (the 'Matching Award').

Matching Awards were granted by reference to a ratio not exceeding one matched share for every Co-Invest Share 'pledged'. Matching Awards under the CIP did not form part of a participant's pensionable earnings and are not transferable other than on death.

The Executive Directors and the Senior Executives pledged Co-Invest Shares with a market value equal to 2.5 times their annual salary. Other senior colleagues who elected to participate in the CIP pledged Co-Invest Shares with a market value equal to a limit specified by the Remuneration Committee, but not exceeding 1 times their annual salary.

(d) Performance, vesting and performance adjustment

The Matching Awards granted on 17 March 2014 vested subject to the satisfaction of the performance conditions outlined below. To the extent that any future awards are granted, different conditions may apply (in the absolute discretion of the Remuneration Committee).

The performance conditions were as follows:

· 75% of the Matching Award was subject to the CAGR in the Company's earnings per share ('EPS') over three financial years, namely FY15, FY16 and FY17 (together the 'Performance Period') (which, for the avoidance of doubt, ended on 30 March 2017). If the CAGR in the Company's EPS was 10%, then 10% of the total Matching Award would vest. If the CAGR in the Company's EPS was 17.5% or more, then 75% of the total Matching Award would vest. Vesting was on a straight-line basis between these two points. For the avoidance of doubt, if the CAGR in the EPS was less than 10% over the Performance Period then the amount of the Matching Award which would vest under this EPS performance condition would be nil.

· 25% of the total Matching Award was subject to the Company's total shareholder return ('TSR') as compared to a comparator group made up of a selected group of retail companies over the Performance Period. Vesting of 6.25% of the total Matching Award would occur for median performance. Vesting of the maximum 25% of the total Matching Award would occur for upper quartile performance or above. Vesting would occur on a straight-line basis between these two points. If the Company's TSR performance over the Performance Period was below median, then the amount of the Matching Award which would vest under this TSR performance condition would be nil.

· To the extent vested as to performance, Matching Awards became exercisable in three equal amounts on the third, fourth and fifth anniversary of 17 March 2014, but subject to continued employment with the Group.

2 CSOP

On 25 February 2014 the Company adopted the CSOP. Part I of the CSOP is tax approved under Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003 and provides for the grant of tax approved options. Part II of the CSOP provides for the grant of unapproved options.

The tax approved options under Part I of the CSOP will be exercisable between the third and tenth anniversary of the date of grant, subject to continued employment with the Group. These awards will be granted with an exercise price equal to the market value of the shares at the grant date (as agreed with HMRC).

(a) Eligibility

All colleagues, including the Executive Directors and Senior Executives, are eligible to participate in the CSOP, at the discretion of the Remuneration Committee.

(b) Grant of options

No options may be granted more than ten years after the adoption of the CSOP. Options under the CSOP will not form part of a colleague's pensionable earnings.

Colleagues who receive options under the CSOP and under the PSP in connection with Admission will be subject to the same performance conditions described in Section 1 (d) above in respect of both grants. Colleagues who only receive options under the CSOP in connection with Admission will not be subject to performance conditions.

(d) Exercise price

The price at which an option holder may acquire shares on the exercise of an option shall be determined by the Board but shall not be less than the greater of market value of a share at the time of grant and its nominal value. The exercise price is therefore fixed at grant date.

(e) Individual limits

No option may be granted to an eligible colleague under Part I of the CSOP which would result in the aggregate exercise prices of shares comprised in all outstanding options granted to him/her under Part I, when aggregated with outstanding options held under any other tax approved executive share option scheme established by the Company, exceeding the tax approved limit (currently £30,000).

In addition, (both under Part I and II of the CSOP) the aggregate exercise price of shares comprised in options granted to a colleague under the CSOP and the PSP in any financial year shall not exceed 150% of his/her annual salary for that year.

For the purposes of these limits, market value will be calculated by reference to the market value of the shares on or prior to the relevant date of grant as determined by the Board (following consultation with the Remuneration Committee) and subject to HMRC approval if applicable.

Part II of the CSOP provides for the grant of unapproved options. This enables options to be granted under the same terms as Part I of the CSOP but without complying with the particular requirements of the legislation applicable to tax approved CSOP Schemes. The provisions of the CSOP that do not apply under Part II include the £30,000 limit and the need to seek HMRC approval for the scheme and subsequent amendments (as applicable).

3 PSP

On 25 February 2014 the Company adopted the PSP. Awards under the PSP were made on 17 March 2014 and annually thereafter up until 2017 after which no further awards were granted. The awards will be exercisable between the third and tenth anniversary of the grant date, subject to continued employment with the Group and the satisfaction of performance conditions. These awards were granted at nil cost.

(a) Eligibility

Only the Executive Directors, Senior Executives and certain other senior colleagues were selected to participate in the PSP.

(b) Grant of awards

Awards under the PSP will not form part of a colleague's pensionable earnings. Awards are not transferable (other than on death) without the consent of the Remuneration Committee.

The price at which a colleague may acquire shares on the exercise or vesting of an award under the PSP shall be determined by the Remuneration Committee on the date of grant, and may, if the Remuneration Committee determines, be nil or nominal value only.

(d) Scheme limits

The number of newly issued shares over which (or in respect of which) awards may be granted under the PSP on any date shall be limited so that: (i) the total number of shares issued and issuable in respect of options or awards granted in any ten year period under the PSP and any other discretionary share option scheme of the Company (including the CIP, RSA and the CSOP but other than to satisfy dividend equivalent payments) is restricted to 5% of the Company's issued shares calculated at the relevant time; and (ii) the total number of shares issued and issuable pursuant to options or awards granted in any ten year period under the PSP and any other employee share scheme operated by the Company (including the CIP, CSOP, SAYE and RSA but other than to satisfy dividend equivalent payments) is restricted to 10% of the Company's issued shares calculated at the relevant time.

For the purposes of these limits, no account will be taken of options or awards granted before, on or in connection with Admission and no account will be taken of options or awards which have lapsed, been surrendered or otherwise become incapable of exercise or vesting. Shares held in treasury will be treated as newly issued shares for the purposes of these limits (as long as this is required by institutional investor guidelines), but (for the avoidance of doubt) shares acquired in the market will not.

(e) Individual limits

The aggregate market value of shares comprised in awards granted to a colleague under the PSP, RSA and the CSOP in any financial year shall not exceed 150% of their annual salary for that year.

For the purposes of awards granted on (or before) Admission, market value for these purposes was calculated by reference to the Offer Price. For the purposes of awards granted following Admission, market value for these purposes will be calculated by reference to the market value of the shares on the relevant date of grant as determined by the Board (following consultation with the Remuneration Committee) in its absolute discretion.

(f) Performance

For awards granted on, or in connection with, Admission, the performance conditions are the same as for the CIP outlined in Section 1(d) above.

4 SAYE

On 25 February 2014, the Company adopted the SAYE (which was registered with and self-certified with HMRC on 4 April 2015). The rules of the SAYE were adopted pursuant to Schedule 3 of the Income Tax (Earnings and Pensions) Act 2003 and provide for the grant of tax approved options. In September each year, the Company issues invitations under the rules of the SAYE which provides eligible colleagues with an opportunity to receive share options at a 20% discount to the market price. The maximum monthly savings is £500 per month. The Executive Directors have elected to participate in the SAYE, along with 17.2% of eligible colleagues.

The options are granted once a year, and in normal circumstances they are not exercisable until completion of a three year savings period, beginning on 1 December each year, and will then be exercisable for a period of six months following completion of the relevant savings period.

(a) Eligibility

All colleagues and full-time Directors of the Group, who have been in continuous service for such period of time (not exceeding five years) as may be determined by the Board prior to the relevant date of grant of an option and who are liable to UK income tax, are eligible to participate in the SAYE.

Participation may also be offered, at the discretion of the Board (taking account of the recommendations of the Remuneration Committee), to other Directors or employees who otherwise do not satisfy all of the above criteria, although Non-Executive Directors are not eligible to participate in the SAYE.

(b) Issue of invitations

Invitations to participate in the SAYE may be made during each 42 day period from (and including) (i) the date on which any amendment to the SAYE is approved or adopted by the Company's shareholders, (ii) the announcement of the Company's final or interim results for any financial period, (iii) the occurrence of an event which the Remuneration Committee considers to be an non-underlying event concerning the Group or (iv) changes to the legislation affecting tax approved SAYE option schemes coming into effect. If any of the above periods is a 'close period' as a result of the application of the Model Code for Securities Transactions by Directors of Listed Companies (or as a result of the Company's equivalent internal share dealing rules) and the Company is prohibited from issuing invitations and/or granting options as a result, then invitations may be made within 42 days of the end of the close period.

Invitations may be issued by the trustee of an employee benefit trust. No invitations may be issued or options granted more than ten years after the adoption of the SAYE.

The price at which an option holder may acquire shares on the exercise of an option shall be determined by the Board but shall not be less than the greater of 80% of the market value of a share at the time of grant and its nominal value.

(d) Savings contract

Options may be granted by the Board or the trustee of an employee benefit trust. Upon applying for an option, the colleague will be required to enter into an approved savings contract with a savings institution nominated by the Company which lasts for three years. The maximum amount which an employee is permitted to contribute under SAYE contracts is £500 per month. The Board may set lower savings limits than this for different colleagues by reference to objective criteria such as levels of salary or length of service. The minimum contribution is £5 per month (or such greater amount as the Board may specify, not to exceed £10). The total exercise price of the shares over which the option is granted may not exceed the aggregate of the monthly contributions and bonus payable at the end of the colleague's related SAYE contract.

(e) Scheme limits

The number of newly issued shares over which (or in respect of which) options may be granted under the SAYE on any date of grant shall be limited so that the total number of shares issued or capable of being issued in any ten year period under all the Company's employee share schemes (including the CIP, CSOP, PSP and RSA but other than to satisfy dividend equivalent payments) is restricted to 10% of the Company's issued shares calculated at the relevant time. Any options or rights to acquire shares granted before, on or in connection with Admission will be excluded from this limit, and no account will be taken of options or awards which have lapsed, been surrendered or otherwise become incapable of exercise or vesting.

(f) Exercisability

Options will normally be exercisable during a period of six months following the allocation of a bonus under the related SAYE contract and will normally lapse upon cessation of employment. Earlier exercise is, however, permitted if the colleague dies or leaves employment through injury, disability, redundancy or retirement or where a colleague leaves employment of the Group by reason of his employing company ceasing to be a member of the Group, or if the undertaking in which he is employed is sold outside the Group. Early exercise will also be permitted in the event of a takeover, reconstructions or voluntary winding up of the Company.

5 RSA

On 20 July 2017 the Company adopted the RSA. Awards under the RSA were made on 20 July 2017 and annually thereafter and will be exercisable between the third and tenth anniversary of this date, subject to continued employment with the Group and the satisfaction of performance conditions. These awards are granted at nil cost.

(a) Eligibility

All colleagues, including the Executive Directors and Senior Executives, are eligible to participate in the RSA, at the discretion of the Remuneration Committee.

(b) Grant of awards

Awards under the RSA will not form part of a colleague's pensionable earnings. Awards are not transferable (other than on death) without the consent of the Remuneration Committee.

The price at which a colleague may acquire shares on the exercise or vesting of an award under the RSA shall be determined by the Remuneration Committee on the date of grant, and may, if the Remuneration Committee determines, be nil or nominal value only.

(d) Scheme limits

The number of newly issued shares over which (or in respect of which) awards may be granted under the RSA on any date shall be limited so that: (i) the total number of shares issued and issuable in respect of options or awards granted in any ten year period under the RSA and any other discretionary share option scheme of the Company (including the CIP, PSP and the CSOP but other than to satisfy dividend equivalent payments) is restricted to 5% of the Company's issued shares calculated at the relevant time; and (ii) the total number of shares issued and issuable pursuant to options or awards granted in any ten year period under the RSA and any other employee share scheme operated by the Company (including the CIP, CSOP, SAYE and PSP but other than to satisfy dividend equivalent payments) is restricted to 10% of the Company's issued shares calculated at the relevant time.

(e) Individual limits

The aggregate market value of shares comprised in awards granted to a colleague under the RSA, PSP and the CSOP in any financial year shall not exceed 150% of their annual salary for that year. Market value for these purposes will be calculated by reference to the market value of the shares on the relevant date of grant as determined by the Board (following consultation with the Remuneration Committee) in its absolute discretion.

Fair value of share awards

The expected volatility is based on historical volatility of a peer group of companies over a relevant period prior to award. The expected life is the average expected period to exercise, which has been taken as three years. The risk free rate of return is the yield on zero-coupon UK government bonds with a life equal to this expected life.

Options are valued using a Black-Scholes option-pricing model for the non-market based (EPS element) performance conditions and a Monte-Carlo simulation for the market-based (TSR element) performance conditions.

Special provisions allow early exercise in the case of death, injury, disability, redundancy, retirement or because the Company which employs the option holder ceases to be part of the Group or in the event of a change in control, reconstruction or winding up of the Company.

The key assumptions used in the fair value of the awards were as follows:

		RSA		CIP		PSP
	2020	2019	2018	2015	2017	2016	2015
At grant date
Share price	£2.28	£1.87	£1.37	£2.45	£2.59	£2.75	£2.45
Exercise price	£0.00	£0.00	£0.00	£0.00	£0.00	£0.00	£0.00
Expected volatility	32%	32%	32%	30%	32%	30%	30%
Option life (years)	10	10	10	3	10	10	10
Expected dividend yield	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%
Risk free interest rate	n/a	n/a	n/a	n/a	0.50%	1.07%	1.07%
Weighted average fair value of options granted	£2.28	£1.87	£1.37	£2.06	£2.06	£2.06	£2.06

			CSOP			SAYE
		2017	2016	2015	2020	2019	2018
At grant date
Share price	£2.59		£2.75	£2.31	£2.87	£2.37	£1.17
Exercise price	£2.59		£2.75	£2.31	£2.29	£1.98	£0.94
Expected volatility	32%		32%	37%	32%	32%	32%
Option life (years)	10		10	10	3	3	3
Expected dividend yield	2.00%		2.00%	2.00%	2.00%	2.00%	2.00%
Risk free interest rate	0.50%		2.25%	2.25%	0.20%	0.20%	0.20%
Weighted average fair value of options granted	£0.65		£0.89	£0.75	£0.95	£0.78	£0.39

As both the RSA and PSP awards have a nil exercise price the risk free rate of return does not have any effect on the estimated fair value.

Movements in awards under share based payment schemes:

	CIP 000	PSP 000	CSOP 000	SAYE 000	RSA 000	Total 000
Outstanding at start of year	51	8	2,196	5,001	7,300	14,556
Granted	-	-	-	2,069	2,264	4,333
Forfeited	(47)	-	(129)	(419)	(860)	(1,455)
Exercised	-	(6)	(1,025)	(526)	(1,596)	(3,153)
Lapsed	(4)	-	-	(111)	(11)	(126)
Outstanding at end of year	-	2	1,042	6,014	7,097	14,155
Weighted average exercise price	-	-	2.44	1.47	-	NA

The Group income statement charge recognised in respect of share based payments for the 52 week period ended 25 March 2021 is £4.7m (52 week period ended 26 March 2020: £4.2m).

25 Commitments

Capital commitments

At 25 March 2021, the Group is committed to incur capital expenditure of £6.1m (26 March 2020: £3.7m). Capital commitments predominantly relate to the cost of investment in new IT systems and refurbishment of Pets at Home stores.

At 25 March 2021, the Group has a commitment to increase the loan funding to Joint Venture companies of £0.8m (26 March 2020: £0.8m), this increase in funding is written into the Joint Venture agreements and becomes payable when certain criteria are met.

26 Contingencies

Veterinary practices

Provisions are maintained by the Group, where necessary, against certain balances held with the veterinary practices. During the period, the Group also had in place certain guarantees over the bank loans taken out by a number of veterinary practice companies in which it holds an investment in non-participatory share capital. At the end of the period, the total amount of bank overdrafts and loans guaranteed by the Group amounted to 12.8m (26 March 2020: £10.9m).

The Group is a guarantor for the lease for veterinary practices that are not located within Pets at Home stores. The Group is also a guarantor to a small number of third parties where the lease has been reassigned.

Exemption from audit by parent guarantee

The following wholly owned subsidiaries of the Company are covered by a guarantee provided by Pets at Home Group Plc and are consequently entitled to an exemption under s479A from the requirement of the Act relating to the audit of individual accounts. Under this guarantee, the Group will guarantee all outstanding liabilities of these entities. No liability is expected to arise under the guarantee. The entities covered by this guarantee are disclosed below.

Company	Registered number
Aberdeen Vets4Pets Limited	09393267
Aberdeen North Vets4Pets Limited	11024679
Alton Vets4Pets Limited	09639868
Andover Vets4Pets Limited	08132407
Companion Care (Ballymena) Limited	08294444
Bearsden Vets4Pets Limited	07780175
Bedminster Vets4Pets Limited	09267870
Belfast Stormont Vets4Pets Limited	09022077
Bicester Vets4Pets Limited	10285804
Blackpool Squires Gate Vets4Pets Limited	09578581
Bonnyrigg Vets4Pets Limited	10757330
Borehamwood Vets4Pets Limited	09319066
Bourne Vets4Pets Limited	10200670
Bracknell Vets4Pets Limited	10605544
Bramley Vets4Pets Limited	04238788
Carmarthen Vets4Pets Limited	09498169
Clitheroe Vets4Pets Limited	09878308
Corby Vets4Pets Limited	08163294
Craigavon Vets4Pets Limited	08846831
Davidsons Mains Vets4Pets Limited	07726992
Doncaster Vets4Pets Limited	04335358
Dorchester Vets4Pets Limited	08708025
East Kilbride Vets4Pets Limited	09628917
Ellesmere Port Vets4Pets Limited	09725644
Evesham Vets4Pets Limited	09269582
Companion Care (Exeter) Limited	04930076
Companion Care (Exeter Marsh) Limited	08314727
Companion Care (Farnborough) Limited	07673889
Grantham Vets4Pets Limited	08361049
Haverfordwest Vets4Pets Limited	09485504
Inverurie Vets4Pets Limited	11056047
Kilmarnock Vets4Pets Limited	08850288
Companion Care (Kirkcaldy) Limited	07680864
Leeds Kirkstall Vets4Pets Limited	10291543
Leicester St Georges Vets4Pets Limited	09881176
Linlithgow Vets4Pets Limited	09966547
Liverpool OS Vets4Pets Limited	06959208
Companion Care (Speke) Limited	07149744
Companion Care (Macclesfield) Limited	08285995

Company	Registered number
Companion Care (Maidstone) Limited	05094399
Maidstone Vets4Pets Limited	05171954
Malvern Vets4Pets Limited	10516552
Market Harborough Vets4Pets Limited	10602806
Marlborough Vets4Pets Limited	09869384
Monmouth Vets4Pets Limited	10756991
Musselburgh Vets4Pets Limited	10425760
Companion Care (Newport) Limited	08425358
Newton Mearns Vets4Pets Limited	07957431
Pentland Vets4Pets Limited	09360949
Prescot Vets4Pets Limited	08878815
Redditch Vets4Pets Limited	05612150
Sheffield Drakehouse Vets4Pets Limited	08790953
Sheldon Vets4Pets Limited	08822150
Sidcup Vets4Pets Limited	08187232
Companion Care (Slough) Limited	07427613
St Neots Vets4Pets Limited	09811640
Companion Care (Stevenage) Limited	08282080
Companion Care (Stratford-upon-Avon) Limited	07329166
Sudbury Vets4Pets Limited	09916308
Sydenham Vets4Pets Limited	08802574
Thamesmead Vets4Pets Limited	09881179
Tiverton Vets4Pets Limited	11023079
Uttoxeter Vets4Pets Limited	11145982
Wallasey Bidston Moss Vets4Pets Limited	09190138
Wellingborough Vets4Pets Limited	07620413
Wokingham Vets4Pets Limited	09869355
Wrexham Vets4Pets Limited	07103838
Companion Care Management Services Limited	08878037
Pet Investments Limited	04428715
Vets4Pets (Services) Limited	04317414
Vets4Pets Services Limited	05055601
Vets4Pets UK Limited	03940967
Vets4Pets Veterinary Group Limited	04263054

27 Related parties

Joint Venture veterinary practice transactions

The Group has entered into a number of arrangements with third parties in respect of veterinary practices. These veterinary practices are deemed to be related parties due to the factors explained in note 1.4.

Financial commitments provided to related party veterinary practices for funding are set out in note 25.

During the period, the Group had in place certain guarantees over the bank loans taken out by a number of veterinary practice companies in which it holds an investment in non-participatory share capital. At the end of the period, the total amount of bank overdrafts and loans guaranteed by the Group amounted to 12.8m (26 March 2020: £10.9m).

The transactions entered into during the period and the balances outstanding at the end of the period are as follows:

	25 March 2021 £m	26 March 2020 £m
Transactions
- Fees for services provided to Joint Venture veterinary practices	57.0	54.7
- Rental and other occupancy charges to Joint Venture veterinary practices	8.2	12.2
Total income from Joint Venture veterinary practices	65.2	66.9
Acquisitions - Consideration for Joint Venture veterinary practices acquired (note 10)	1.6	1.3
Balances
Included within trade and other receivables (note 17):
- Funding for new practices	0.3	1.6
- Operating loans
- Gross value of operating loans	26.7	37.5
- Allowance for expected credit losses held for operating loans	(6.2)	(8.0)
- Net operating loans	20.5	29.5
Included within other financial assets and liabilities (note 16):
- Loans to Joint Venture veterinary practices - initial set up loans
- Gross value of initial set up loans	12.5	13.3
- Allowance for expected credit losses held for initial set up loans	(1.2)	-
- Net initial set up loans	11.3	13.3
- Loans to other related parties - other loans
- Gross value of other loans	3.3	4.0
- Allowance for expected credit losses held for other loans	-	-
- Net other loans	3.3	4.0

Included within trade and other payables (note 20):
- Trading balances	(17.6)	(6.7)
Total amounts receivable from veterinary practices (before provisions)	25.2	49.7

Fees for services provided to related party veterinary practices are included within revenue and relate to charges for support services offered in such areas as clinical development, promotion and methods of operation as well as service activities including accountancy, legal and property. In accordance with IFRS 15, revenue in the 52 week period ended 25 March 2021 and the 52 week period ended 26 March 2020 excludes irrecoverable fee income from Joint Venture veterinary practices.

Funding for new practices represents the amounts advanced by the Group to support veterinary practice opening costs. The funding is short term and the related party Joint Venture veterinary practice draws down their own bank funding to settle these amounts outstanding with the Group shortly after opening.

Trading balances represent costs incurred and income received by the Group in relation to the services provided to the Joint Venture veterinary practices that have yet to be recharged.

Operating loans represent amounts advanced to related party Joint Venture veterinary practices to support their working capital requirements and longer term growth. The loans advanced to the practices are interest free and either repayable on demand or repayable within 90 days of demand. No facility exists and the levels of loans are monitored in relation to review of the practices performance against business plan. Based on the projected cash flow forecast on a practice by practice basis, the funding is often expected to be required for a number of years. As practices generate cash on a monthly basis it is applied to the repayment of brought forward operating loans. For immature practices, loan balances may increase due to operating requirements. The balances above are shown net of allowances for expected credit losses held for operating loans of £6.2m (26 March 2020: £8.0m).

Loans to Joint Venture veterinary practices are provided to Joint Venture veterinary practice companies trading under the Companion Care and Vets4Pets brands, in which the Group's share interest is non-participatory. These loans represent a long term investment in the Joint Venture, supporting their initial set up and working capital, and are held at amortised cost under IFRS 9. The balances above are shown net of allowances for expected credit losses held for operating loans of £1.2m (26 March 2020: £nil).

In the 52 week period ended 25 March 2021, the value of loans written off recognised in the income statement amounted to £1.4m which relates to operating loans. In the 52 week period ended 26 March 2020 the value of loans written off recognised in the income statement amounted to £9.0m, which relates to operating loans £7.2m, initial set up loans £1.1m and other loans £0.7m.

At 25 March 2021, the Group had a commitment to increase the loan funding to Joint Venture companies of £0.8m (26 March 2020: £0.8m); this increase in funding is written into the Joint Venture agreements and becomes payable when certain criteria are met.

The Group is a guarantor for the lease for veterinary practices that are not located within Pets at Home stores.

Key management personnel

Details of remuneration paid to key management personnel are set out in note 4.

28 Investments in subsidiaries

Company

Investments in subsidiaries

£m

At 26 March 2021 and 25 March 2021

936.2

Impairment testing

Management have conducted a full impairment review which has been undertaken on the Group's cash generating units of which the Company's investments form part. The results of this review are disclosed in note 13, including a sensitivity analysis. In this review, the goodwill on consolidation balance of £958.4m at 25 March 2021 exceeds the investments held in subsidiary undertakings of £936.2m, and therefore management have concluded that under IAS 36, no impairment has been identified with regard to the Company's investments in subsidiaries.

Registered office address

Pets at Home (Asia) Limited: Units 704 5A, 7/F, Tower B, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong

PAH Pty Limited: Herbert Greer and Rundle, Level 21, 385 Bourke Street, Melbourne, VIC 3000, Australia

Pure Pet Food Limited: Unit 6, Brookmills, Saddleworth Road, Greetland, Halifax, West Yorkshire, England, HX4 8LZ

Dog Stay Limited: 305 Regents Park Road, Finchley, London, England, N3 1DP

VetsDirect Limited: Dickson Minto, 16 Charlotte Square, Edinburgh, Scotland, EH2 4DF

The registered office of all the remaining companies in which the Group has an interest in the share capital is Epsom Avenue, Stanley Green, Handforth, Cheshire, Englad SK9 3RN.

Group

Details of the subsidiary undertakings are as follows:

In the 52 week period ended 25 March 2021, the Group has acquired 100% of the share capital in Pet Advisory Services Limited and its subsidiary VetsDirect Limited.

In the 52 week period ended 25 March 2021, the Group has also acquired 100% of the 'A' shares of 6 companies. These practices were previously accounted for as Joint Venture veterinary practices as the Group held 100% of the non-participatory 'B' ordinary shares. Acquisition of the 'A' shares has led to the control and consolidation of these companies. A detailed explanation for the basis of consolidation can be found in note 1.

Further details of these acquisitions can be found in note 10.

Company	Holding	Country of incorporation	Class of shares held	At 25 March 2021 %	At 26 March 2020 %
Dick White Referrals Limited	Indirect	United Kingdom	Ordinary	-	91
Eye-Vet Limited	Indirect	United Kingdom	Ordinary	-	100
Anderson Moores Veterinary Specialists Ltd	Indirect	United Kingdom	Ordinary	-	100
Brand Development Limited	Indirect	Guernsey	Ordinary	100	100
Companion Care (Services) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care Management Services Limited	Indirect	United Kingdom	Ordinary	100	100
Les Boues Limited	Indirect	Jersey	Ordinary	100	100
Northwest Veterinary Specialists Limited	Indirect	United Kingdom	Ordinary	-	100
PAH Pty Limited	Indirect	Australia	Ordinary	100	100
Pet Advisory Services Limited	Indirect	United Kingdom	Ordinary	100	-
Pet Investments Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home (Asia) Limited	Indirect	Hong Kong	Ordinary	100	100
PAH Financial Services Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home Holdings Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home No.1 Limited	Direct	United Kingdom	Ordinary	100	100
Pets at Home Superstores Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home Veterinary Specialist Group Limited	Indirect	United Kingdom	Ordinary	-	100
Pets at Home Vets Group Limited	Indirect	United Kingdom	Ordinary	100	100
Pets at Home (ESOT) Limited	Indirect	United Kingdom	Ordinary	100	100
Pet City Holdings Limited	Indirect	United Kingdom	Ordinary	100	100
Pet City Limited	Indirect	United Kingdom	Ordinary	100	100
Pet City Resources Limited	Indirect	United Kingdom	Ordinary	100	100
Vets4Pets (Services) Limited	Indirect	United Kingdom	Ordinary	100	100
Vets4Pets Holdings Limited	Indirect	Guernsey	Ordinary	100	100
Vets4Pets I.P. Limited	Indirect	Guernsey	Ordinary	100	100
Vets4Pets Services Limited	Indirect	United Kingdom	Ordinary	100	100
Vets4Pets UK Limited	Indirect	United Kingdom	Ordinary	100	100
Vets4Pets Limited	Indirect	Guernsey	Ordinary	100	100
Vets4Pets Veterinary Group Limited	Indirect	United Kingdom	Ordinary	100	100
VetsDirect Limited	Indirect	United Kingdom	Ordinary	100	-
Veterinary Specialists (Scotland) Limited	Indirect	United Kingdom	Ordinary	-	94
Aberdeen North Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Aberdeen Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Addlestone Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Alton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Andover Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Aylesbury Berryfields Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bearsden Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bedminster Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Belfast Stormont Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bicester Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bishop Auckland Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Blackpool Squires Gate Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bodmin Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bolton Central Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bonnyrigg Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Borehamwood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bourne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bradford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bramley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bramley Vets4Pets (Newco) Limited	Indirect	United Kingdom	Ordinary	100	100
Bridlington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Bromborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Cambridge Perne Road Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Canvey Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Carmarthen Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Chorley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Clitheroe Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Coalville Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Colchester Layer Road Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Ballymena) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Exeter Marsh) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Exeter) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Farnborough) Limited	Indirect	United Kingdom	Ordinary	100	50
Companion Care (Kendal) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Kirkcaldy) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Macclesfield) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Maidstone) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Newport) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Nottingham) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Slough) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Speke) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Stevenage) Limited	Indirect	United Kingdom	Ordinary	100	100
Companion Care (Stratford-Upon-Avon) Limited	Indirect	United Kingdom	Ordinary	100	100
Corby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Coventry Canley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Craigavon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Crosby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Cumbernauld Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Davidsons Mains Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Doncaster Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Dorchester Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Dundee Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
East Grinstead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
East Kilbride South Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Ellesmere Port Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Evesham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Gillingham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Grantham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	50
Great Yarmouth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Haverfordwest Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Heanor Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Hemsworth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Hexham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Horden Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Inverness Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Inverurie Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Kilmarnock Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Kingswood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Leamington Spa Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Leeds Kirkstall Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Leicester St Georges Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Leven Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Linlithgow Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Littleover Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Liverpool OS Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Long Eaton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Maidstone Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Malvern Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Market Harborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Marlborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Melton Mowbray Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Mexborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Milton Keynes Broughton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Monmouth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Musselburgh Vet4sPets Limited	Indirect	United Kingdom	Ordinary	100	100
Newark Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Newbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Newhaven Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Newton Mearns Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Norwich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Nottingham Castle Marina Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Pentland Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Perth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Peterlee Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Poynton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Prescot Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Rawtenstall Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	50
Redditch Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Ripon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Salford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Scunthorpe Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Selby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sheffield Drakehouse Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sheffield Heeley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sheldon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Shepton Mallet Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sidcup Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	50
St Austell Vets4Pets Limited	Indirect	United Kingdom	Ordinary	95	95
St Neots Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Stocksbridge Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Stoke-On-Trent Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sudbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Sydenham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	50
Teesside Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Thamesmead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
The Heart of Dulwich Veterinary Care Limited	Indirect	United Kingdom	Ordinary	100	100
Thornbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Tiverton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Uckfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Uttoxeter Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Wallasey Bidston Moss Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	50
Warrington Winnick Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Wellingborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
West Drayton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Wokingham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100
Wrexham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	100	100

Investments in Joint Venture practices and other investments

The Group holds an indirect interest in the share capital of the following companies:

Company	Holding	Country of incorporation	Class of shares held	At 25 March 2021 %	At 26 March 2020 %
Abingdon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
ABTW Limited	Indirect	United Kingdom	Ordinary	50	50
Accrington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Airdrie Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Alsager Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Altrincham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Amesbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bagshot Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bangor Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bangor Wales Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Barnsley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Barnstaple Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Barnwood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Barry Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bath Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bedford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bedlington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Beeston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Beverley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Biggleswade Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bishops Stortford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bishopston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bitterne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Blackburn Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Blackheath Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Blackpool Warbreck Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Blackwood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bolton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bracknell Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Bradford Idle Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Brighouse Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bristol Emerson Green Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bristol Imperial Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bristol Kingswood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bristol Longwell Green Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bromsgrove Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Buckingham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bulwell Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Burscough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Burton-On-Trent Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bury St Edmunds Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Bury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Byfleet Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Caerphilly Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Camborne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cannock Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Canterbury Sturry Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cardiff Ely Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cardiff Newport Road Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Carlisle Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Carrickfergus Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Castleford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Catterick Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cc (Rustington) Newco Limited	Indirect	United Kingdom	Ordinary	50	50
Chadwell Heath Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cheadle Hulme Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Chester Caldy Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Chester Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Chesterfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cirencester Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Clevedon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cleveleys Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Clifton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Clowne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Colne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Aintree) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Andover) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ashford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ashton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Aylesbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ayr) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Banbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Barnsley Cortonwood) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Basildon Pipps Hill) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Basildon) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Basingstoke) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Beckton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bedford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Belfast) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bishopbriggs) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bletchley) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bolton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bournemouth) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Braintree) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Brentford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bridgend) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bridgwater) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Brislington) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Bristol Filton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Broadstairs) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Burgess Hill) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cambridge Beehive) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cambridge) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cannock) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Canterbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cardiff) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Charlton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chatham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chelmsford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cheltenham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chesterfield) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chichester) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chingford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Chippenham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Christchurch) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Colchester) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Corstorphine) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Coventry Walsgrave) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Cramlington) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Crawley) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Crayford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Croydon) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Derby Kingsway) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Derby) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Dunstable) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Eastbourne) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ely) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Enfield) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Falmouth) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Fareham Collingwood) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Fareham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Farnham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Folkestone) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Fort Kinnaird) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Friern Barnet) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Gloucester) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Harlow) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Hatfield) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Hemel Hempstead) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (High Wycombe) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Hove) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Huddersfield) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Huntingdon) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ilford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Ipswich Martlesham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Keighley) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Kidderminster) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Kings Lynn) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Leicester Beaumont Leys) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Leicester Fosse Park) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Leighton Buzzard) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Linwood) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Lisburn) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Liverpool Penny Lane) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Livingston) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Llantrisant) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Merry Hill) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Milton Keynes) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (New Malden) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Newbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Newcastle Kingston Park) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Northampton Nene Valley) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Norwich Hall Road) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Norwich Longwater) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Norwich) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Oldbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Oldham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Orpington) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Oxford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Perth) Limited	Indirect	United Kingdom	Ordinary	50	100
Companion Care (Peterborough Bretton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Peterborough) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Plymouth) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Poole) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Portsmouth) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Preston Capitol) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Pudsey) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Reading) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Redditch) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Redhill) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Romford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Rotherham) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Rustington) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Salisbury) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Scarborough) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Southampton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Southend-On-Sea) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Stirling) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Stockport) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Stoke Festival Park) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Swansea) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Swindon) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Tamworth) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Taunton) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Telford) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Truro) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Tunbridge Wells) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Wakefield) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Weston-Super-Mare) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Winchester) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Winnersh) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Woking) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Woolwell) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Worcester) Limited	Indirect	United Kingdom	Ordinary	50	50
Companion Care (Wrexham Holt Road) Limited	Indirect	United Kingdom	Ordinary	50	50
Craigleith Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Crescent Link Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Crewe Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Cross Hands Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dagenham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Darlington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Daventry Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Denbigh Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Denton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dewsbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dog Stay Limited	Indirect	United Kingdom	Ordinary	12	12
Dover Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Droitwich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Drumchapel Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dudley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dumbarton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Dunfermline Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Durham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
East Kilbride Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Eastleigh Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Eastwood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Eccleshill Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Epsom Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Falkirk Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Feltham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Filton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Gamston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Gateshead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Glasgow Forge Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Glasgow Pollokshaws Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Goldenhill Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Gosport Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Gravesend Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Greasby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Greenford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Grimsby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Guernsey Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Halesowen Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Halifax Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hamilton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Harrogate New Park Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Harrogate Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hartlepool Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hastings Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Havant Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Haverhill Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hayling Island Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hedge End Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hemel Hempstead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hendon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hereford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hertford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
High Wycombe Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hinckley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hucknall Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Huddersfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hull Anlaby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hull Stoneferry Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Hull Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Ilkeston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Ipswich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Irvine Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Kendal Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Kettering Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Kidderminster Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Kirkby in Ashfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Lancaster Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Larne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Launceston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leeds Birstall Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leeds Colton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leeds Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leigh Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leigh-On-Sea Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Letchworth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Leyland Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Lichfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Lincoln South Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Lisburn Longstone Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Llandudno Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Llanelli Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Llanrumney Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Longton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Loughborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Loughton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Luton Gipsy Lane Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Luton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Lytham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Maidenhead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Maldon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Mansfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Mapperley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Merthyr Tydfil Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Middlesbrough Cleveland Park Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Middlesbrough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Middleton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Millhouses Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Morpeth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
New Milton Vets4pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newcastle-Upon-Tyne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newmarket Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newport Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newton Abbot Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newtownabbey Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Newtownards Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
North Tyneside Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Northallerton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Northampton Riverside Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Northampton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Northwich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Nottingham Chilwell Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Nottingham Netherfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Nuneaton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Oadby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Old Kent Road Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Oxford Cowley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Paisley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Penrith Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Penzance Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Peterborough Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Pontypridd Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Poole Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Portishead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Portsmouth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Prenton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Preston Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Prestwich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Pure Pet Food Ltd	Indirect	United Kingdom	Ordinary	12	19
Quinton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rayleigh Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rhyl Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Richmond Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rochdale Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rotherham Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rugby Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rugby Central Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Ruislip Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Runcorn Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Rushden Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Saffron Walden Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Selly Oak Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sevenoaks Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sheffield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sheffield Wadsley Bridge Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Shelfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Shrewsbury Meole Brace Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Shrewsbury Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sittingbourne Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Solihull Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Somercotes Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
South Shields Quays Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
South Shields Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Southampton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Southend Airport Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Southend-On-Sea Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Southport Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
St Albans Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
St Helens Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Stafford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Stechford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Stockton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Stourbridge Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Street Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sunderland South Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sunderland Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sutton Coldfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Sutton In Ashfield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Swindon Bridgemead Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Swinton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Telford Madeley Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Thurrock Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Tilehurst Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Torquay Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Totton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Trafford Park Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Trowbridge Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Wakefield Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Walkden Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Walsall Reedswood Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Waltham Abbey Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Walton on Thames Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Walton Vale Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Warminster Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Warrington Riverside Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Warrington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Washington Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Waterlooville Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Watford Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
West Bromwich Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Weymouth Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Whitstable Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
Widnes Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Wigan Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Wimbledon Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Wolverhampton Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Worksop Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Worthing Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
WSM Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Yate Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
Yeovil Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	100
York Clifton Moor Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50
York Vets4Pets Limited	Indirect	United Kingdom	Ordinary	50	50

During the 52 week period ended 25 March 2021, the Group has sold 100% of the 'A' shares in a number of companies which were previously classified as subsidiaries, and subsequent to sale of the 'A' shares, have been accounted for as Joint Venture veterinary practices, which has led to the reduction in the holding in 7 entities listed above to 50% investment.

Glossary - Alternative Performance Measures

Guidelines on Alternative Performance Measures (APMs) issued by the European Securities and Markets Authority came into effect for all communications released on or after 3 July 2016 for issuers of securities on a regulated market.

In the reporting of financial information, the Directors have adopted various APMs of historical or future financial performance, position or cash flows other than those defined or specified under International Financial Reporting Standards (IFRS).

The Directors measure the performance of the Group based on the following financial measures which are not recognised under EU-adopted IFRS, and consider these to be important measures in evaluating the Group's strategic and financial performance. The Directors believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.

APMs are also used to enhance the comparability of information between reporting periods by adjusting for non-underlying items, to aid the user in understanding the Group's performance.

Consequently, APMs are used by the Directors and management for performance analysis, planning, reporting and incentive setting purposes and have remained consistent with the prior year.

All APMs relate to the current period's results and comparative periods where provided. Where the current APM has been amended to exclude the impact of transition to IFRS 16, this has been set out in the definition below.

APMs considered by the business to be a key performance indicator are explained in more detail on page 13 of the Annual Report.

The key APMs used by the Group are:

'Like-for-Like' sales growth comprises total revenue in a financial period compared to revenue achieved in a prior period for stores, online operations, grooming salons, veterinary practices and Specialist Referral Centres that have been trading for 52 weeks or more, excluding fee income from Joint Venture veterinary practices where the Group has bought out the Joint Venture Partners or will offer to buy out the Joint Venture Partners in the future

Omnichannel revenue: Revenue net of discounts and VAT from core online sales, subscriptions and order to store

Underlying EBITDA: Earnings before interest, tax, depreciation and amortisation before the effect of non-underlying items in the period

Underlying free cash flow: Net cash from operating activities, after tax, less net cash used in investing activities (excluding acquisitions), less interest paid and debt issue costs before the effect of non-underlying items in the period

Underlying CROIC: Cash return on invested capital, represents cash returns divided by the average of gross capital invested (GCI) for the last 12 months. Cash returns represent underlying operating profit before property rentals and share based payments subject to tax, then adjusted for depreciation and amortisation. GCI represents gross property, plant and equipment, plus software and other intangibles excluding the goodwill created on the acquisition of the Group by KKR (£906,445,000) plus net working capital, plus capitalised rent multiplied by a factor of 8x, before the effect of non-underlying items in the period

Non-underlying items: Certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group

References to Underlying GAAP measures and Underlying APMs throughout the financial statements are measured before the effect of non-underlying items.

APM

Definition

Reconciliation

Cash EBITDA

Underlying EBITDA (see below) adjusted for share based payment charges.

Cash EBITDA (£m)	FY21	FY20	Note
Underlying EBITDA	216.7	220.7	2
Share based payment charge	4.7	4.2	3
Cash EBITDA	221.4	224.9

Underlying EBITDA

Earnings before interest, tax, depreciation and amortisation before the effect of non-underlying items in the period.

Underlying EBITDA (£m)	FY21	FY20	Note
Statutory operating profit	134.8	103.7	2
Depreciation on tangible fixed assets	26.9	28.3	3
Amortisation of intangible assets	13.6	10.0	3
Non-underlying items	(28.9)	7.6	3
Underlying EBITDA before IFRS 16	146.4	149.6
Depreciation on right-of-use assets	70.3	71.1	3
Underlying EBITDA	216.7	220.7

Underlying CROIC

Cash return on invested capital, represents cash returns divided by the average of gross capital invested (GCI) for the last 12 months. Cash returns represent underlying operating profit before share based payments subject to tax, and then adjusted for depreciation on property, plant and equipment, depreciation on right-of-use assets and amortisation on intangible assets. GCI represents gross property, plant and equipment and right-of-use assets, plus software and other intangibles excluding the goodwill created on the acquisition of the Group by KKR (£906,445,000) plus net working capital.

CROIC	FY21	FY20	Note
Cash returns:
Underlying operating profit	105.9	111.3	2
Share based payment charges	4.7	4.2	3
	110.6	115.5
Effective tax rate	19%	20%
Tax charge on above	(21.0)	(23.1)
	89.6	92.4
Depreciation and amortisation	110.8	109.4	2
Cash returns	200.4	201.8

Gross capital invested (GCI):
Gross property, plant and equipment	310.1	306.2	11
Gross right-of-use assets	508.2	497.9	12
Intangibles	1,053.4	1,046.3	13
Less KKR goodwill	(906.5)	(906.5)
Investments	12.6	14.8	16
Net working capital	(87.3)	(91.1)	see definition
GCI	890.5	867.6
Underlying CROIC	22.5%	23.3%

Underlying free

cash flow

Net cash from operating activities, after tax, less net cash used in investing activities (excluding acquisitions), less interest paid and debt issue costs before the effect of non-underlying items in the period.

Underlying free cash flow (£m)	FY21	FY20	Note
Underlying free cash flow	67.4	89.6
Non-underlying working capital	-	1.2
Free cash flow	67.4	90.8
Underlying cash flow
Dividends	(37.1)	(37.1)	CFS
Investments	-	(1.0)	CFS
Acquisition of subsidiary	(16.9)	(0.5)	CFS
Proceeds from new loan	-	61.0	CFS
Repayment of borrowings	(65.0)	(77.0)	CFS
Non-underlying cash flow
Proceeds from sale of PPE	-	0.4	CFS
Proceeds from sale of PPE relating to GVs	-	(0.3)
Payment of deferred consideration	-	-	CFS
Settlement of put & call	(5.5)	(6.4)	CFS
Acquisition of subsidiary	-	(0.5)	CFS
Costs associated with acquisitions	-	(3.7)	CFS
Repayment of borrowings on acquisition	-	(5.9)	CFS
Non-underlying working capital	-	(1.2)	CFS
Disposal of subsidiaries	79.4	-	CFS
Net increase in cash	22.3	18.6
CFS = Consolidated statement of cash flows

Like-for-like

'Like-for-like' sales growth comprises total revenue in a financial period compared to revenue achieved in a prior period for stores, online operations, grooming salons, veterinary practices and Specialist Referral Centres that have been trading for 52 weeks or more, excluding fee income from Joint Venture veterinary practices where the Group has bought out the Joint Venture Partners or will offer to buy out the Joint Venture Partners in the future.

Not applicable.

2-year like-for-like

2 year 'like-for-like' sales growth comprises total revenue in a financial period compared to revenue achieved in a prior period for stores, online operations, grooming salons, veterinary practices and Specialist Referral Centres that have been trading for 104 weeks or more, excluding fee income from Joint Venture veterinary practices where the Group has bought out the Joint Venture Partners or will offer to buy out the Joint Venture Partners in the future.

Not applicable.

Underlying basic EPS

Underlying basic earnings per share (EPS) is based on earnings per share after the impact of IFRS 16, but before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying basic EPS (p)	FY21	FY20	Note
Underlying basic EPS	14.0	15.0	5
Non-underlying items	5.8	(1.5)	5
Basic earnings per share	19.8	13.5

Underlying operating profit

Underlying operating profit is based on operating profit before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying operating profit (£m)	FY21	FY20	Note
Underlying operating profit	105.9	111.3	2
Non-underlying items	28.9	(7.6)	3
Operating profit	134.8	103.7

Underlying profit before tax

Underlying profit before tax (PBT) is based on pre-tax profit before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying PBT (£m)	FY21	FY20	Note
Underlying PBT	87.5	93.5	CIS
Non-underlying items	28.9	(7.6)	3
PBT	116.4	85.9

CIS = Consolidated income statement

Underlying profit after tax

Underlying profit after tax (PAT) is based on post tax profit before the impact of certain costs or incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying PAT (£m)	FY21	FY20	Note
Underlying PAT	70.2	74.9	CIS
Non-underlying items	28.8	(7.5)	CIS
PAT	99.0	67.4

CIS = Consolidated income statement

Underlying total tax expense

Underlying total tax expense is based on the statutory tax expense for the period (being the net of current and deferred tax) before the impact of certain costs of incomes that derive from events or transactions that fall outside the normal activities of the Group, and are excluded by virtue of their size and nature in order to reflect management's view of the performance of the Group.

Underlying total tax expense (£m)	FY21	FY20	Note
Underlying tax expense	(17.3)	(18.6)	8
Non-underlying items	(0.1)	0.1	8
Tax expense	(17.4)	(18.5)

Underlying net working

capital

Underlying net working capital movement is a measure of the cash required by the business to fund its inventory, receivables and payables.

The change year on year reflects the cash in/outflow in relation to changes in the working capital cycle excluding non-underlying items.

The change in net working capital is a key component of the free cash flow measure of the Group.

Underlying net working capital movement (£m)	FY21	FY20	Note
Net working capital per cash flow statement	(7.5)	27.3	CFS
Being:
Movement in trade and other receivables	(5.9)	8.8
Movement in inventories	(22.1)	5.7	CFS
Movement in trade and other payables	10.2	16.9	CFS
Movement in provisions	1.3	(0.7)	CFS
Trading working capital movement	(16.5)	30.7
Movement in gross operating loans	10.8	(2.5)
Cash working capital movement	(5.7)	28.2
Underlying allowance for expected credit losses against operating loans	(1.8)	(0.9)
Net working capital movement	(7.5)	27.3
CFS = Consolidated statement of cash flows

(£m)	FY21	FY20	Note
Receivables	49.3	55.9	17
Inventory	83.7	62.8	14
Trade and other payables	(213.9)	(204.6)
Provisions	(4.3)	(3.9)	21
Non-current provisions	(2.1)	(1.3)	21
Net working capital	(87.3)	(91.1)

Underlying cash working capital

Working capital before increase/decrease in gross operating loans to Joint Venture practices

Underlying cash working capital (£m)	FY21	FY20	Note
Net working capital (above)	(7.5)	27.3
Net loans and borrowings	(9.0)	1.6	27
Underlying cash working capital	(16.5)	28.9

Operating cash flow

Net cash flow from operating activities per the cash flow statement, before the effects of corporation tax payments, non-underlying elements, and IFRS 16

Operating free cash flow(£m)	FY21	FY20	Note
Net cash flow from operating activities (per cash flow statement)	195.1	215.2	CFS
Add back:
Tax paid	17.5	30.8	CFS
Settlement of put & call liabilities (growth element)	-	0.8	CFS
Pre-tax underlying operating cash flow	212.6	246.8
Capital lease payments	(66.6)	(67.0)	CFS
Interest paid on lease obligations	(12.8)	(14.0)	CFS
Operating cash flow	133.2	165.8
Tax paid	(17.5)	(30.8)	CFS
Interest paid	(4.8)	(3.7)	CFS
Interest received	0.4	0.5	CFS
Debt issue costs	(0.2)	-	CFS
Purchase of own shares	(8.7)	(2.8)	CFS
Acquisition of PPE and intangible assets	(34.9)	(39.6)	CFS
Proceeds from sale of PPE	0.3	0.4	CFS
Proceeds from sale of PPE (non-underlying)	-	(0.2)	CFS
Costs to acquire ROU assets	(0.4)	-	CFS
Underlying free cash flow	67.4	89.6
CFS = Consolidated statement of cash flows

Omnichannel revenue

Revenue net of discounts and VAT from core online sales, subscriptions and order to store.

Omnichannel revenue (£m)	FY21	FY20	Note
Omnichannel revenue	161.3	93.9

Underlying EBIT

Earnings before interest and tax agreed to operating profit relating to underlying trading.

Underlying EBIT (£m)	FY21	FY20	Note
Operating profit relating to underlying trading (EBIT)	105.9	111.3	2

Retail underlying EBIT

Earnings before interest and tax agreed to operating profit relating to underlying trading for the Retail division.

Retail underlying EBIT (£m)	FY21	FY20	Note
Retail operating profit relating to underlying trading (EBIT)	79.5	89.3	2

Vet Group underlying EBIT

Earnings before interest and tax agreed to operating profit relating to underlying trading for the Vet Group division.

Vet Group underlying EBIT (£m)	FY21	FY20	Note
Vet Group operating profit relating to underlying trading (EBIT)	36.0	30.6	2

Net cash/(debt)

Cash and cash equivalents less loans and borrowings.

Net cash/(debt) (£m)	FY21	FY20	Note
Cash and cash equivalents	101.4	79.1	18
Loans and borrowings	(100.0)	(165.0)	19
Net cash/(debt)	1.4	(85.9)

Total indebtedness

Cash and cash equivalents less loans and borrowings plus lease liabilities.

Total indebtedness (£m)	FY21	FY20	Note
Cash and cash equivalents	101.4	79.1	18
Loans and borrowings	(100.0)	(165.0)	19
Net cash/(debt)	1.4	(85.9)
Lease liabilities	(409.7)	(463.9)	12
Total indebtedness	(408.3)	(549.8)

Customer sales

Customer sales being statutory Group revenue, less Joint Venture veterinary practice fee income (which forms part of statutory revenue within the Vet Group), plus gross customer sales made by Joint Venture veterinary practices (unaudited).

Customer sales (£m)	FY21	FY20	Note
Statutory Group revenue	1,142.8	1,058.8	CIS
Fee income	(57.0)	(53.8)	2
Sales by Joint Venture veterinary practices	351.3	329.7
Customer sales	1,437.1	1,334.7
IS = Consolidated income statement

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