Pets at Home : FY26 Prelim Results

for the 52-week period to 26 March 2026

Building momentum through our Retail Turnaround Plan and unique Vets business Key financial results

1. In the 52 week period ended 27 March 2025, £0.4m has been reclassified from cost of sales to revenue, this adjustment has been posted to aid comparability with the current year.

   James Bailey, Chief Executive Officer:

   "Pets at Home is a business with many strengths, a strong shared purpose and great potential and I am excited to lead

   it through its next chapter.

   I have spent my early weeks immersing myself in the business, meeting colleagues and practice owners, understanding our customers and learning about the capabilities we have across the Group. I have found a business full of talented and committed people who want to do the best for our customers and their pets. This time in the business has increased my conviction on the opportunity to create value for customers, colleagues and investors of Pets at Home.

   We are the clear leader in the growing UK pet care market with a unique set of highly complementary businesses. We have considerable, sustainable competitive advantages including our unrivalled reach through our 460 pet care centres, our sector leading Vet business, our large and loyal customer base and well invested infrastructure.

   Material progress has been made over the past 6 months stabilising the Retail business, delivering improved satisfaction and better availability. We have the opportunity now to build momentum through profitable volume led growth in Retail while continuing to execute the proven growth levers of our Vet business and launch our Insurance offering.

   We will not achieve this without the continued hard work, passion and dedication of our colleagues and partners. We have clear priorities for FY27 and from what I have seen so far, I am confident we can build a great future for Pets at Home, which I look forward to updating on later in the year."

   Business Highlights

   • Launch of our Retail Turnaround Plan in Q3 brought improved focus and clear priorities to our Retail business and has driven improving sequential sales and volume growth through H2.

   • Customer satisfaction increased. Vets Satisfaction was up 1.5pts and Retail Satisfaction increased 4pts, driven by particularly strong improvement in value for money, product availability and promotional clarity.

   • Active Pets Club members3 of 7.4m with total Retail transactions down 1% but returning to growth in H2 and improving customer recruitment with Puppy & Kitten registrations averaging 15k a week, up 5%.

   • Pets Club average consumer value4 up 12% to £195 partly due to growth in our Vet consumer revenues and in part due to the change in methodology7 on Pets Club customers that shifted some lower frequency customers to non-Pets Club.

   • Vet Group space expansion accelerated with 8 new practice openings and 17 practice extensions in the period, clinical talent underpins our growth ambitions and we saw clinical talent grow 3.5% in FY26.

   • Subscription % of consumer revenues5 grew to 15.2%, up from 13.0% in the prior year. Care Plans grew strongly, with now well over 50% of Vet clients having a plan.

   • 'Pets Insurance' progressing with FCA approval achieved and good progress building the required technology infrastructure. We remain on track for launch in 2026.

   • CMA - We welcome the Final Decision Report of the CMA's veterinary services market investigation which recognised that our practices offer competitive prices and strong customer outcomes while operating a differentiated Joint Venture(JV) model.

     Financial Highlights

   • Total Group consumer revenue# up 1.0% to £1.98bn

     • Vet Group consumer revenue# up 5.0% to £688m, outperforming the market again with growth driven by strong Care Plan sign-ups and higher average transaction values.

     • Retail consumer revenue# down 1.0% to £1.29bn, against a subdued market backdrop. We saw the early impacts of our Retail Turnaround Plan drive better momentum in H2, delivering positive sales growth and faster volume growth. We remain focused on building further momentum and are encouraged by the early volume response to recent price investments.

   • Total Group statutory revenue down 0.8% to £1.47bn

   • Group gross margin 45.7% was down c120bps

     • Vet increased by c310bps due to the growing contribution of Joint Venture fee income.

     • Retail down c180bps, including c80bps from planned price investment.

   • Group operating costs grew 1.9% YoY, 1.1% excluding the impact of our Insurance start-up. Cost control remains strong with productivity measures almost fully offsetting underlying cost inflation, ahead of our plans.

   • Group underlying PBT# of £92.8m down 30.2% YoY, underlying PBT margin# of 6.3% down c270bps. Year on year profit growth improved in H2 across both Retail and Vets.

     • Vet Group underlying PBT# £83.8m, up 10.4% YoY, with underlying PBT margin# 47.4% driven by operating leverage of growing JV practice sales on a broadly flat cost base as well as strong profit conversion within our company managed practices.

     • Retail underlying PBT# £30.8m, down 57.8% YoY, underlying PBT margin# 2.4%. Profit came through in line with the revised plan announced in September 2025, with the decline for the full year reflecting operating leverage, with good cost control more than offset by sales and gross margin declines.

   • Group statutory PBT £86.5m down 28.3% YoY, statutory PBT margin of 5.9% down c230bps reflecting the fall in underlying PBT# together with non-underlying costs of £6.3m which relates to the completion of restructuring the Group's Support Office functions, which are down from £12.4m last year.

   • Underlying EPS# 14.8p, down 29.7% YoY with an underlying profit after tax decline of 31.1%, partially offset by share buyback accretion.

   • Free cash flow# down 26.1% to £61.9m, including

     • Vet Group £74.2m up 9.9% YoY, reflecting the capital light nature of our JV model.

     • Retail £2.7m down from £30.6m in FY25 impacted mainly by the decline in PBT.

   • Balance sheet remains robust, adjusted net debt# of £19.4m represents a leverage ratio of 0.1x underlying EBITDA. Net debt# increased £25.6m YoY due to lower Retail underlying PBT#.

   • At our pre-close update we announced a refreshed capital allocation approach. In line with this policy we propose a total dividend per share of 7.4p, representing 50% of EPS, and a further £50m share buyback.

     Strategic overview Building on our unique strengths

     We are the leader in an attractive pet care market which is resilient and benefits from unchanged structural trends towards premiumisation and humanisation, which we are well placed to capitalise on. As the only UK pet care specialist with highly complementary exposure across omnichannel Retail, Vets and soon Insurance, we have considerable advantages which are difficult for our competitors to replicate. Our compelling strengths across the business, give us confidence that with better execution, Pets at Home has a bright future ahead of it.

     These unique strengths include:

   • Expert colleagues - 17,000 highly trained, passionate colleagues and clinicians. They play a pivotal role in advising and assisting consumers on how to take the best care of their pets.

   • Sector leading Vets - our Joint Venture model is a unique asset, operating some of the most productive assets in the industry through empowering our practice owning partners with our support and services. We have significant headroom for further growth leveraging proven growth levers of maturity, extensions and new practices.

   • Unrivalled reach - 460 pet care centres sit at the core of our business, bringing together products, grooming, and vets while enabling much of our digital revenue. We have a well located, well rented, and flexible estate with no long tail of unprofitable stores.

   • A large, engaged customer base - with 7.4m active Pets Club customers and many more Vet clients and non-Pets Club customers, we remain the leading UK pet specialist and the critical route to market for any pet brand. We have many opportunities to grow spend from our customers through better meeting their needs.

   • A trusted brand - with brand awareness of over 95% the Pets at Home brand is instantly recognisable and trusted by the nations pet owners.

   • Well-invested infrastructure - two major investments in our distribution and digital capabilities have been completed in recent years. We have a modern digital platform that will support profitable growth in our omnichannel sales and a distribution centre (DC) that is delivering structurally better levels of availability. They have required significant effort and resource to deliver but put the business in good shape for the future.

     Progress against our Retail Turnaround Plan

     At our FY26 interims, reflecting the disappointing trajectory in Retail sales and profits, we outlined a 'Retail Turnaround Plan' to address those shortcomings, centred around four priorities of Product, Price, Execution and Cost. This plan has brought clear focus and seen growth improve sequentially and we are confident these are the right priorities for the business in the near term. We finished the year with better momentum, delivering in line with our plan. While there is more we need to do, progress is being made in all areas.

     Product

   • In food we have launched two new own brands, 'Ruff's Recipes' and 'Willows' and have brought one of the fastest growing US dog food brands, 'Nulo', to the UK with an exclusive agreement. We will continue to look for opportunities to enhance ranges where we see a clear consumer need.

   • In Accessories, we are on track with our turnaround having strengthened our team and progressed with our plans to introduce greater innovation and freshness to our ranges.

     Price

   • In November we reduced prices on over 1,000 food products by an average of 12%, bringing us back to where we need to be. We have seen a good response with food volumes growing 3.7% in Q4.

     Execution

   • Great execution determines how we show up for customers. We have high customer satisfaction which increased 4pts in FY26 and we are focused on improving further in the future as we improve execution. We have seen particularly strong improvement in value for money, product availability and promotional clarity.

   • Availability remains an area of strength. It has improved consistently since we brought our Stafford DC on line and in FY26 improved further, reducing store gaps by c20%.

     Cost

   • At our interim results we announced an intention to deliver a £20m reduction in our Group overheads and this programme has been successfully completed.

   • Our cost discipline has been strong in recent years in the face of multiple external headwinds and FY26 was further demonstration of this with Group operating costs increasing by just 1.9%. Productivity remains a key area of focus as we look to release efficiency to invest for our customers.

     The Retail Turnaround is not complete, we have much more to do, but we are encouraged by the progress seen to date across our four key focus areas and by the improvement in our sales growth and volume trends.

     Another year of progress in our Vet Group

     Our unique Vet Group goes from strength to strength and has delivered another year of progress on customer KPIs, practice revenues, profits and cash.

   • Our Vet Group is a clear #2 in the UK First Opinion sector and is responsible for 35% of our consumer revenues and underpins our Group underlying PBT# and Group Free Cash Flow#.

   • The strengths of our model are based around delivering differentiated practice economics through consistently great consumer outcomes. In FY26:

     • We increased our brand awareness by a further 5pts and delivered a further 1.5pts increase in client satisfaction from already high levels.

     • Average practice revenues grew 3.9% to £1.5m.

     • Joint Ventures paid c£48.1m out to partners in dividends, up £2.3m YoY, averaging over £165k per debt-free practice. 71% of JV practices are now debt free (48% in FY22).

   • While the industry backdrop remains subdued given the natural aging of large pandemic pet cohorts, our Vet Group retains significant headroom to grow consumer revenues, profits and free cash flow further, leveraging the proven growth levers of:

     • Practice sales growth - Whilst we have driven out significant maturity-driven growth over the past 5 years, we still have plenty of opportunity to grow within our existing footprint through optimising practice operations and growing areas like Care Plans.

     • Practice rollout - in FY26 we accelerated our practice roll out, opening 8 new practices in the year. We continue to work to identify and partner with the best vet talent to open further practices and expect to accelerate openings further in FY27.

     • Extensions - we have a clear track record of growing practice revenues as they fill their original footprint through extensions. We completed 17 in FY26 and plan for a similar number in FY27.

     • Advanced capabilities - adding advanced capabilities enables our skilled practice owners to grow into adjacent areas, growing their revenues, leveraging their capability and delivering better customer outcomes.

   • We welcome the Final Decision Report of the CMA's veterinary services market investigation which found our practices offer competitive prices and great customer outcomes while delivering differentiated economics for our practice owners and shareholders.

     Pets Insurance

   • In 2026, our new insurance venture will bring a disruptive, Pets branded proposition to the c£2bn pet insurance market. A market that is expected, by Mintel, to grow at c4% per annum reaching c£2.5bn by 2029.

   • Insurance is the largest adjacent growth opportunity available to us and highly complementary to our existing Retail and Vets exposure. We will leverage a number of core areas of competitive advantage including our trusted brand, large customer base and leading data.

     FY27 Guidance

     As we look to FY27, year to date, Retail sales growth has accelerated further against tougher comparatives with mid-single digit sales growth and faster volume growth, and we are comfortable with consensus expectations for Group underlying PBT# (currently £98m). This view reflects:

   • In Vets we expect a further year of profit growth. We expect sales growth of low single digit with momentum likely to build through the year against a market backdrop which we expect to remain subdued. FY27 will also see a step up in the cost of our new practice management system as it is fully rolled out through our estate.

   • We expect to increase the rate of Vet developments through a further increase in practice rollout and in extending existing practices.

   • In Retail we expect:

     • Underlying market growth of 1-2%, against which we expect to outperform as we roll out more initiatives through FY27 as our turnaround plan progresses.

     • Progress in underlying PBT#. Retail will also benefit from a one-off low single digit £m benefit from the exit of our PetPlan insurance agreement in FY27.

   • Insurance start-up investment costs are expected to be slightly higher in FY27.

   • Capex is expected to be c£50m with the biggest element being investment in maintaining our store estate.

   • Effective tax rate is expected to be 26%.

   • We will complete a £50m buyback over the next 12 months.

   This guidance reflects no specific impacts for the geopolitical uncertainty in the Middle East, which we will continue to monitor closely. We are well hedged for FY27 with c90% of our USD requirements secured at 1.34 (1.28 in FY26) and c80% of our energy requirements secured.

   Key Performance Indicators2

   Strategic KPIs	FY26	FY25	YoY
   Number of active Pets Club members3 (m)	7.4	8.2	(10.5)%
   Average Consumer Value4 (£)	195	175	11.7%
   % of Consumer Revenue from Subscription5 (%)	15.2%	13.0%	16.8%
   Clinical FTE Headcount6 (k)	3.6	3.5	3.5%

2. KPIs represent those used by the business to monitor performance. Management recognise that as Alternative Performance Measur es they differ to statutory metrics, but believe they represent the most appropriate KPIs.

3. Retained consumers are active Pets Club members who transacted across the group in the last 365 days prior to the end of the reporting period for both the current and prior year.

4. Average consumer value (ACV) is the average spend of active Pets Club members across the group over the last 365 days based on consumer revenue, rather than statutory revenue.

5. Subscription revenue includes our Flea & Worm, Easy Repeat, Complete Care and Vac4Life plans and is divided by Group consumer revenue.

6. Full time equivalent number of all vets and nurses working across the group, based on standard working hours.

7. In April 2025 we implemented a change in how store colleagues are able to look up Pet Club member records in our till system. This resulted in a reduction in lower spending customers in our active Pets Club members base. Correspondingly, the number of non-Pets Club transactions have increased. It is not possible to restate prior quarters numbers to reflect this change.

Results presentation

An audio webcast and presentation of these results will be available on our website (https://stream.brrmedia.co.uk/broadcast/69ef43244057ae00129f8f80) 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/PETSFY26).

Our next scheduled update will be our Q1 trading update on 30 July 2026.

Citigate Dewe Rogerson:

Angharad Couch +44 (0) 7507 643 004

About Pets at Home

Pets at Home Group Plc is the UK's leading pet care business, providing pets and their owners with the very best advice, products and care. Pet products are available online or from 460 pet care centres, many of which also have vet practices and grooming salons. The Group also operates a leading small animal veterinary business, with over 450 veterinary general practices located both in our pet care centres 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.

This announcement contains information that is inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (the Market Abuse Regulation ("MAR")). Upon the publication of this announcement, such information will no longer constitute inside information. Andrew Porteous, the Company's Director of Investor Relations, is the person responsible for making the notification for the purposes of Article 17 of MAR.

Chief Financial Officer's Review

The FY26 period represents the 52 weeks from 28 March 2025 to 26 March 2026. The comparative period represents the 52 weeks from 29 March 2024 to 27 March 2025.

The Group's results are shown as four 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 legacy insurance commissions via our 3rd party arrangement), Vet Group (includes general practices and our veterinary telehealth business), Central (includes Group costs and finance expenses) and our Insurance business (includes startup costs).

Number of

1. In the 52 week period ended 27 March 2025, £0.4m has been reclassified from cost of sales to revenue, this adjustment has been posted to aid comparability with the current year.

2. FY26 non-underlying items of £6.3m relates to the completion of restructuring the Group's Support Office functions. FY25 non-underlying items of £12.4m. £7.3m relating to our distribution network optimisation program, £4.1m relating to restructuring of certain support functions, £3.3m relating to the CMA investigation. Alongside this we had a disposal on investment gain of

   £2.3m which relates to the disposal of Pure Pet Food.

   Revenue

   Group consumer revenue# grew 1.0% to £1.98bn, with Group statutory revenue declining 0.8% to £1.47bn

   Consumer Revenue YoY Growth#	Q1 25	Q2 25	H1 25	Q3 25	Q4 25	H2 25	FY 25
   Retail	(0.8)%	1.1%	0.1%	(2.4)%	(5.2)%	(3.7)%	(1.8)%
   Vet Group	13.3%	12.6%	13.0%	14.2%	11.9%	13.0%	13.0%
   Group	3.6%	4.7%	4.1%	2.3%	0.2%	1.2%	2.7%

   Consumer Revenue YoY Growth#	Q1 26	Q2 26	H1 26	Q3 26	Q4 26	H2 26	FY 26
   Retail	(2.8)%	(1.7)%	(2.3)%	(1.1)%	2.2%	0.4%	(1.0)%
   Vet Group	7.1%	6.2%	6.7%	5.0%	1.3%	3.1%	5.0%
   Group	0.5%	1.0%	0.7%	0.8%	1.9%	1.3%	1.0%

   Vet Group consumer revenue# up 5.0% to £688.1m, with statutory revenue up 0.8% to £176.7m.

   • Joint Venture consumer revenues# grew 6.3% to £619.8m with Joint Venture statutory revenues (fee income) up 4.9% to £108.4m.

   • Company managed practice revenues decreased 3.0% to £51.1m, as we had 4 fewer YoY due to conversions from being company managed to a Joint Venture practice.

   • The Vet Connection (our telehealth business), generated revenue of £3.8m, down 3.5%. Retail revenue (consumer# and statutory) down 1.0% to £1.29bn.

   • Food sales of £805.0m were flat, volume momentum built through the year in part supported by price investment. Our own brands continue to perform well, delivering sales growth of c3%.

   • Consumable accessories sales of £171.5m were down 1.6% as we saw a weak flea & worm season alongside annualising a very strong season in the prior year.

   • Discretionary accessories sales of £265.1m, down 3.5%, looking ahead we expect performance to improve as this plays a key area of the Retail Turnaround Plan.

     Gross margin

     Group gross margin3 decreased YoY by c120bps to 45.7%. Retail adversely contributed c160bps towards the Group movement, with Vets Group improving the Group position by c40bps.

   • Vet Group gross margin3 increased by c310bps to 55.7%. The main contributor being the growing contribution of Joint Venture fee income against a broadly fixed cost base, we also saw better profit conversion within our company managed practices even though sales declined in the period.

   • Retail gross margin3 was 44.4%, a c180bps decline YoY, including c80bps from targeted price investment.

     Operating costs

     Operating costs4 grew 1.9% YoY, when excluding insurance start-up costs, they only grew 1.1%. Well within our previously stated guidance for operating costs to grow by no more than 5% in FY26.

     (£m)	FY26	FY25	YoY
     Group statutory revenue	1,469.6	1,481.71	(0.8)%
     Selling and distribution expenses	451.7	442.9	2.0%
     Administrative expenses	127.9	117.6	8.7%
     Other Income	(16.8)	(14.6)	15.2%
     Underlying operating costs	562.8	545.9	3.1%
     Non-underlying items2	6.3	12.4	(49.4)%
     Operating costs	569.1	558.3	1.9%
     Underlying operating costs to sales ratio	38.3%	36.8%	c150bps

3. Gross margin is calculated as gross profit as a percentage of revenue.

4. Operating costs are the sum of selling and distribution expenses, administrative expenses, other income and non-underlying items. These can be found on the consolidated income statement.

   Cost remains a key pillar of our Retail Turnaround Plan, we successfully completed the program to reduce our Group overheads by c£20m as we simplify our business, FY27 will see a full year benefit from the program. Linked to this program £6.3m of non-underlying costs were incurred in FY26.

   Alongside this we have ongoing productivity initiatives to help offset against external headwinds, productivity spans across procurement, lease renegotiations and distribution automation. We also implemented a leaner store operating model earlier in the year.

   Finance expense

   The net finance expense, including interest charged on lease liabilities, was £16.4m (FY25: £15.8m). Of this, £13.2m (FY25: £13.2m) related to interest expense on lease liabilities.

   Profit before tax (PBT)

   Group statutory PBT £86.5m decreased £34.1m with £6.3m of non-underlying costs incurred in the period vs £12.4m in the prior year.

   Group underlying PBT# £92.8m (FY25: £133.0m), with Group underlying PBT margin5 of 6.3%, down c270bps YoY due to a reduction in Retail profit conversion. Vet Group positively contributed through stronger profit conversion and a growing contribution to Group performance.

   • Vet Group statutory PBT was £82.8m with underlying PBT# of £83.8m which represents another year of strong profit growth (FY25: £75.9m) with underlying# PBT margin5 of 47.4% (FY25: 43.3%), driven by the continued strong sales performance across Joint Venture practices, which are leveraging a broadly flat cost base.

   • Retail statutory PBT was £26.8m (FY25: £66.9m). Retail underlying PBT# was £30.8m (FY25: £72.9m) with underlying profit margin5 of 2.4% (FY25: 5.6%). Sales declined in the year with gross margins3 also reducing by c180bps YoY (see relevant section) against a broadly stable cost base.

   • Underlying Central costs of £16.6m (FY25: £15.4m) includes payroll costs for Group functions, professional fees, and PLC related costs.

   • Insurance start-up investment costs of £5.2m were incurred in period as we began building the team and the required technology infrastructure, set up costs are expected to be slightly higher in FY27.

     (£m)	FY26	FY25	YoY
     Group statutory PBT	86.5	120.6	(28.3)%
     Retail	26.8	66.9	(59.9)%
     Vet Group	82.8	75.9	9.1%
     Insurance	(5.2)	(0.4)
     Central	(17.9)	(21.8)	(17.9)%
     Group statutory PBT margin	5.9%	8.1%	c(230)bps

     (49.4)%

Non-underlying items2 (6.3) (12.4)

1. Group underlying PBT margin is calculated as underlying profit before tax as a percentage of revenue.

   Taxation, profit after tax & EPS

   • Total tax expense was £23.4m for the period. The effective tax rate for the period is 26.9% (FY25 26.7%), which is higher than the UK corporation tax rate due to expenditure not allowable for tax relief.

   • Statutory profit after tax decreased by 28.4% to £63.1m.

   • Statutory basic earnings per share (EPS) 13.8 pence (FY25: 19.0 pence) and underlying basic EPS# 14.8 pence (FY25: 21.0 pence).

     Working capital

     The cash flow movement in working capital7 for FY26 was an outflow of £8.6m (FY25: £3.3m outflow).

   • Inventories increased by £0.6m YoY (outflow), stock levels comparable to last year to support the Retail sales plan.

   • Trade and other receivables decreased by £0.9m YoY (inflow) due to lower Retail debtors YoY.

   • Trade and other payables have decreased by £4.7m YoY (outflow) due to Retail trade creditors.

   • Provisions decreased by £4.2m YoY (outflow) due to the settlement of various property provisions.

     Investment

     Capex was £42.1m (FY25: £45.9m) down £3.9m YoY as capex investment remains at more normalised levels following peak investment in prior years. Investment remains focused on key areas of the business.

   • New pet care centres and refurbishments £30.6m (FY25: £27.9m)

   • IT & Digital £8.5m (FY25: £12.1m)

   • Vet Group investment £0.9m (FY25 £0.7m)

   • Distribution Centre £1.6m (FY25: £5.0m)

   • Pets Insurance £0.4m (FY25: £nil)

     Free cash flow#

     Free cash flow# (FCF) was £61.9m (FY25: £83.8m).

   • Vet Group FCF# £74.2m up £6.7m YoY due to strong Joint Venture consumer revenue# growth flowing into fee income.

     Free cash flow (£m) FY26	Group	Retail	Vet Group	Insurance	Central
     Underlying PBT#	92.8	30.8	83.8	(5.2)	(16.6)
     Interest (underlying)	16.4	13.5	(0.7)	0.1	3.5
     Depreciation (underlying)	102.7	98.3	3.9	-	0.5
     Leases	63.3	62.1	1.2	-	-
     PPE & amortisation of assets	39.4	36.2	2.7	-	0.5
     Underlying EBITDA	211.9	142.6	87.0	(5.1)	(12.6)
     Impairment of investments	5.7	3.0	2.7	-	-
     Share-based payment charge	4.5	-	-	-	4.5
     Non-underlying cash costs	(6.3)	(4.0)	(1.0)	-	(1.3)
     Lease payments6	(81.8)	(81.0)	(0.8)	-	-
     WCAP7	(8.6)	(10.1)	1.9	0.3	(0.7)
     Operating cash flow	125.4	50.5	89.8	(4.8)	(10.1)
     Capex8	(40.8)	(40.4)	-	(0.4)	-
     Bank interest (net)	(1.3)	0.2	0.9	-	(2.4)
     Tax	(16.2)	(7.6)	(16.5)	-	7.9
     Purchase of own shares (employee share schemes)	(5.2)	-	-	-	(5.2)
     Free Cash Flow	61.9	2.7	74.2	(5.2)	(9.8)

   • Retail FCF# £2.7m down £27.9m YoY due to lower underlying PBT# (£42.1m) with a lower tax charge and lower capex partially offsetting as we return to a normalised level of investment.

   Group YoY

0.6

3.9

1.1

2.8

(35.7)

5.7

(1.4)

5.0

(1.7)

(5.3)

(33.4)

7.6

0.5

4.7

(1.3)

(21.9)

1. Lease payments are cash payments for the principal portion of the right-of-use lease liability, they also include interest paid on lease obligations, costs to acquire right-of-use assets and the right-of-use asset.

2. Working capital is the sum of YoY movements in trade and other receivables, inventories, trade and other payables, and provisions.

3. Capex is the net proceeds from the sale of property, plant and equipment less acquisition of property, plant and equipment and other intangible assets. It also includes investment capital contributions and proceeds from repayment of partner loans.

The cash generation above enables us to invest to grow our business as well as fund our equity dividend and share buyback programme. Our balance sheet remains robust, our closing adjusted net debt position# at the end of the period was £19.4m (cash £39.6m, debt £59.0m). This represents a leverage ratio of 0.1x underlying EBITDA.

Capital allocation

Our capital allocation policy prioritises investing cash in areas that will expand the Group and deliver attractive returns, our dividend policy (targeting a payout of 50% of earnings per share over the medium term) and value-accretive opportunities including M&A (which are strategically aligned to expanding our platform in core and adjacent markets).

We will return to shareholders any surplus cash after these items, and it is the Board's intention to review this on an annual basis. We have completed £150m in share buybacks over the past four years, in total reducing the shares in issue by c10%. We are pleased to announce a further £50m buyback in FY27 which aligns to our refreshed capital allocation approach across buybacks and dividends.

Dividend

The Board has recommended a final dividend of 2.7 pence per share, taking the total dividend for the year to 7.4 pence per share (FY25 13.0 pence per share), which is rebased to 50% of EPS. The final dividend will be payable on 15 July 2026 to shareholders on the register at the close of trading on 5 June 2026.

Sarah Pollard

Chief Financial Officer 27 May 2026

Consolidated Income Statement

Consolidated Statement of Comprehensive Income Consolidated Balance Sheet

Consolidated Statement of Changes in Equity as at 26 March 2026 Consolidated Statement of Changes in Equity as at 27 March 2025 Consolidated Statement of Cash Flows

Notes to the consolidated financial statements Parent Company Balance Sheet

Parent Company Statement of Changes in Equity as at 26 March 2026 Parent Company Statement of Changes in Equity as at 27 March 2025 Notes to the parent company financial statements

Glossary - Alternative Performance Measures

The financial information set out below does not constitute the company's statutory accounts for the periods ended 26 March 2026 or 27 March 2025 but is derived from those accounts. Statutory accounts for 2025 have been delivered to the registrar of companies, and those for 2026 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.

52 week period ended

26 March 2026

52 week period ended 27 March 2025 (restated)1

1In the 52 week period ended 27 March 2025, £0.4m has been reclassified from cost of sales to revenue, this adjustment has been posted to aid comparability with the current year.

The consolidated financial statements were authorised for issue by the Board of Directors on 27 May 2026. On behalf of the Board:

Sarah Pollard

Chief Financial Officer 27 May 2026

Company number: 08885072

The notes on pages 18 to 66 form an integral part of these consolidated financial statements.

Share

Consolidation

Merger

Cash flow hedging

Translation

Capital redemption

Retained

Non-Controlling

Interest

Total

Cash flow Capital

Share Consolidation

Merger

hedging Translation redemption Retained

Total

capital

reserve

reserve

reserve

reserve

reserve earnings

equity

52 week period ended

26 March 2026

52 week period ended

27 March 2025

Notes to the consolidated financial statements

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

1. 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. Basis of preparation

      The Group financial statements of Pets at Home Group Plc have been prepared in accordance with UK-adopted international accounting standards (UK-adopted IFRS) and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

      The Parent Company financial statements have been prepared in accordance with FRS 101 Reduced Disclosure Framework (FRS 101) for all periods presented, under the historical cost convention, and in accordance with the Companies Act and other applicable law.

      As permitted by FRS 101, the Parent Company has taken advantage of the disclosure exemptions available under that standard in relation to standards not yet effective and presentation of a cash flow statement. The accounting policies adopted for the Parent Company are otherwise consistent with those used for the Group as set out within this note. The Company has also taken advantage of the following disclosure exemptions under FRS 101:

      • The requirement of paragraphs 91-99 of IFRS 13 'Fair Value Measurement'

      • The requirement of IFRS 7 'Financial Instruments: Disclosure'

      • The requirements of 45 (b) and 46-52 of IFRS 2 'Share-based payments'

      • The requirements in IAS 24 'Related Party Disclosures' to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

        On publishing the Parent Company financial statements here together with the Group financial statements, the Company has also taken advantage of the exemption provided under section 408 of the Companies Act 2006 not to publish its individual income statement and related notes that form a part of these approved Financial Statements.

        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 26 March 2026 have not had a material impact on the Group's financial statements, these include IAS 8 amendments and IAS 1 amendments on current/non-current classification of liabilities.

        The OECD Pillar Two GloBE model rules introduce a global minimum corporation tax rate of 15% applicable to multinational enterprise groups with global revenue over €750m. Pillar Two legislation was substantively enacted on 20 June 2023 in the UK, the jurisdiction in which the Group's ultimate Parent Company is incorporated and came into effect from 1 January 2024. The Group has performed an assessment of the Group's potential exposure to Pillar Two income taxes and does not expect a material potential tax liability in respect of Pillar Two top up taxes. The Group applies the mandatory temporary exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

   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.

   3. Going concern

The Group and Company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report. The financial position of the Group and 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 Group and 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, despite 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 market performance consumer confidence, climate change, geopolitical tensions and the actual and potential impact on supply chains, as well as energy cost inflation on liquidity and future performance.

The Group has access to a revolving credit facility of £300.0m which expires on 30 September 2028 and a £19.0m reducing asset backed loan which expires on 27 March 2030. The Group has £40.0m drawn down against the revolving credit facility at 26 March 2026 and cash balances of £39.6m. The lowest level of headroom forecast over the next 12 months from the date of signing of the financial statements is in excess of £282.3m in the base case scenario. On a sensitised basis, the lowest level of headroom forecast over the next 12 months from the date of approving of the financial statements is

£212.2m due to the removal of the dividend payment and share buybacks in the second half of the year in scenario 3.

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 plausible downside scenarios of increasing severity 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:

1. Accounting policies (continued)

   1. Going concern (continued)

      • Scenario 1: Reduction on Group like-for-like sales growth assumptions of 1% in each year throughout the forecast period, but ordinary dividends continue to be paid.

      • Scenario 2: Using scenario 1 outcomes and further impacted by a conflated risk impact of £81.3m on sales and £29.3m on PBT per annum (using specific financial risks taken from Group risk register with sales and PBT financial impact quantified), with dividends held at 7.4p per share per annum.

      • Scenario 3: Group like-for-like sales growth at 0% in each year and a conflated risk impact of £196.7m on sales and £71.0m on PBT is applied (using the top risks from Group risk register in addition to potential unmitigated risks associated with the current conflict in the middle east in addition to potential cyber incidents with sales and PBT impact quantified), with dividends cut to nil to conserve cash.

        Against these negative scenarios, adjusted projections showed no breach of covenants however they do become significantly tighter under scenario 3 which is considered to be a very extreme scenario. Further mitigating actions could also be taken in such scenarios should it be required, including reducing capital expenditure and certain operating costs.

        Despite net current liabilities of £131.5m in the Group and £759.5m in the Company, the Directors of Pets at Home Group Plc, having made appropriate enquiries including the principal risks and uncertainties on pages 21 to 25 of the Annual Report, consider that the Group and Company will have sufficient funds to continue to meet their liabilities 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 Group consolidated financial statements and the Company only financial statements as at and for the period ended 26 March 2026.

   2. 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 considered Joint Venture partnerships. 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, nor joint control, 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 1.22, 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.

   3. 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. 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 functional currency of the Parent Company and the presentational currency of the Group and Company, these have been rounded to the nearest £0.1m.

   4. Classification of financial instruments issued by the Group

      Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. These are recognised initially at fair value. Subsequent recognition is measured in accordance with the substance of the contractual agreement.

   5. Non-derivative financial instruments

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

1. Accounting policies (continued)

   1. Non-derivative financial instruments (continued)

      Trade and other receivables

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

      Trade and other payables

      Trade payables and other payables are initially recognised at fair value. Subsequent to initial recognition they are both 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 purposes of the cash flow statement and are only offset for balance sheet purposes where the offsetting criteria are met.

      Other interest-bearing loans and 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.

      Investments in equity

      Investments in equity are initially and subsequently measured at fair value through profit or loss ('FVTPL'), with changes recognised in the profit or loss. As disclosed in note 1.6: Classification of financial instruments issued by the Group.

   2. Derivative financial instruments and hedging Derivative financial instruments

      Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement 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.

   3. Intra-group financial instruments

      Financial guarantee contracts issued to guarantee the indebtedness of companies within the Group are accounted for in accordance with 'IFRS 9 -Financial Instruments'. These guarantees are initially recognised at fair value and subsequently measured at the higher of:

      • The amount of the expected credit loss ('ECL') determined in accordance with the ECL model under IFRS 9, and

      • The amount initially recognised, less any cumulative income recognised in accordance with IFRS 15.

   4. 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 and assets under construction are not depreciated. The estimated useful lives are as follows:

      Freehold property - 50 years Fixtures, fittings, tools and equipment - 3 to 20 years

      Leasehold improvements - the term of the lease

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

      The impact of climate change, particularly in the context of risks identified in the TCFD scenario analysis have been considered and no material impact on the carrying value, useful lives or residual values have been identified.

      1 Accounting policies (continued)

   5. 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 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.

      Expenditure on Software as a Service ('SaaS') customisation and configuration that is distinct from access to the cloud software can only be capitalised to the extent it gives rise to an asset, i.e. where the Group has the power to obtain the future economic benefits and can restrict others' access to those benefits, otherwise such expenditure in relation to developing SaaS for use is expensed.

      The impact of climate change, particularly in the context of risks identified in the TCFD scenario analysis have been considered and no material impact on the carrying value, useful lives or residual values have been identified.

   6. Leases

      On completion of a lease, the Group recognises a right-of-use asset, representing its right to use the underlying asset and a lease liability, representing its obligation to make lease payments. The lease liability is measured at the present value of the lease payments over the term of the lease, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Group's incremental borrowing

      rate. This rate is adjusted to take into account the risk associated with the length of the lease. Lease payments will include any fixed payments, including as a result of stepped rent increases.

      The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the lease commencement date and any lease incentives received or premiums paid.

      The Group has lease contracts in relation to property and equipment. There are recognition exemptions for low-value assets and short-term leases with a lease term of 12 months or less. Any leases under a short-term licence agreement are excluded as they fall into the lease term of 12 months or less. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the term of the lease. The total value of leases where the Group has taken a recognition exemption is disclosed in note 12.

      The Group has a small number of leases where it is an intermediate lessor. For these leases, it accounts for the interest in the head lease and sublease separately. It assesses the lease classification of the sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset.

      The Group currently receives rental income from related Joint Venture veterinary practices which are located within the Group's retail stores. These rental incomes are disclosed in note 3. Under IFRS16, the lease classification of sub-leases is assessed by reference to the right-of-use asset under the head lease rather than the underlying asset. This rental income is presented in other income in the Consolidated Income Statement.

      Right-of-use assets may be impaired if the lease becomes onerous. Impairment costs would be charged to administrative expenses if this occurred.

   7. 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 remeasured, 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. There can be significant timing difference between the charges that are recorded in the Consolidated Income Statement to reflect movements in the fair value of the liability and the actual cash payments made to settle the liability.

On settlement of the liability, the part of each payment relating to the original estimate of the fair value of the contingent consideration on acquisition is reported within investing activities in the cash flow statement and the part relating to the increase in the liability since the acquisition is reported within operating cash flows. Any contingent deferred consideration receivable is recognised at fair value.

1. Accounting policies (continued)

   1. Business combinations (continued)

      On acquisition, the identifiable assets acquired and liabilities assumed are recognised at their acquisition-date fair values. On consolidation, all intra-group balances, transactions, income and expenses are eliminated in full. Non-controlling interests represent the equity in subsidiaries not attributable to the owners of the parent. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests.

      When the Group loses control of a subsidiary, it derecognises the assets and liabilities of the subsidiary, any non-controlling interests, and recognises any retained interest at fair value. Any resulting gain or loss is recognised in profit or loss.

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

      IFRS1 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.

   2. Investments

      Investments in associates and joint ventures are carried in the Consolidated Balance Sheet at cost and of their post-acquisition retained profits or losses and other comprehensive income together with any goodwill arising on the acquisition. The Group recognises the assets, liabilities, revenue and expenses of joint operations in accordance with its rights and obligations.

      Assessment of control with regard to Joint Ventures is disclosed in 1.22: Accounting estimates and judgements

   3. 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 Stock Keeping Unit ('SKU'). 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 1.22.

   4. Impairment excluding inventories 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 considers Joint Venture receivables (operating loans) to be in default when the individual underlying veterinary practice is significantly under-performing against its business plan, assessed based on future cashflow forecasts for the individual practices which utilise consistent assumptions across all practices. These assumptions consider historical repayment performance, current financial position of the related parties, and forward-looking macroeconomic information relevant to JV's ability to meet its obligations. Any shortfall in repayment of the Joint Venture loans and receivables following the 10-year forecast period are considered to be in default as repayment is expected during this time. Loss given default is also determined based on the forecast shortfall amount. Those within the performing credit risk category are deemed to have low credit risk. Practices categorised within the in default credit risk categories are those considered to be in default based on their cashflow forecast. Significant increase in credit risk is not applicable to Joint Venture operating loans due to the on-demand payment terms.

Initial set up loans are considered in default if they cannot be settled within one day of year end. These loans have no set repayment date but are expected to be recovered within 15 years. There is no significant increase in credit risk of any practice which has an operating loan as these are considered to be on demand, as defined above. All other loans are considered to be performing and have low credit risk.

The Group considers other intercompany and related party assets to be in default when the entity does not have the forecast future funds available to repay the balance, if recalled.

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 indicated by JV practice performance or in advance of an acquisition of a veterinary practice. Details of these provisions are explained 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 post-tax 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').

1. Accounting policies (continued)

   1. Impairment excluding inventories (continued)

      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.

   2. Employee benefits Defined contribution plans

      A defined contribution plan is a post-employment benefit plan under which the Group 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 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

      The 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.

   3. 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, which 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.

   4. 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 substantially 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.

1 Accounting policies (continued)

1.19 Revenue and cost of sales (continued)

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.

Pets Club loyalty scheme

Under the Pets Club 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 Pets Club 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 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 discount 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.

1. Veterinary Group income

   Veterinary Group income represents revenue recognised at a point in time from the provision of veterinary services from Company Managed 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. Fee income received from Joint Venture companies in relation to network purchasing arrangements is recognised as the contractual commitments are fulfilled to create an entitlement to the revenue. The Group also receives revenue in relation to business development for the Joint Venture companies and recognises this within operating income.

   The Group launched the new 'Complete Care Health' plans in June 2023, which offered a more comprehensive package of services available to customers adding discretionary elements such as clinic visits and telehealth services. Now that sufficient data is available to assess the membership usage of the component parts of the health plans, we have reviewed the point at which we consider the treatment/services have been provided. Revenue is recognised in line with specific performance obligations of the plan as they are completed in line with the contract. The majority of these are met at a point in time, with the remainder over time and have been assessed based on the nature of the individual components.

   Under the previous application of the policy, revenue from care plans was deferred and recognised at the point at which treatment and/or services were provided against the plan at an amount that reflected the consideration to which the entity expected to be entitled in exchange for those goods or services. Once the plan had expired, any unutilised deferred revenue was 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.

   Revenue derived from the veterinary telehealth business ('TVC') is recognised over time on a pro-rated basis over the period the customers have access to the telehealth service through subscriptions.

   Rental income received from in-store Joint Venture veterinary practices is disclosed within note 3 and is categorised as other income.

2. 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.

3. Insurance commissions

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

   Accrued income

   Accrued income relates to income in relation to fees from Joint Venture veterinary practices, and supplier and promotional income from suppliers which has not yet been invoiced. Accrued income has been classified as current as it is expected to be invoiced and received within 12 months of the period end. 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.

   1. Accounting policies (continued)

      1. Revenue and cost of sales (continued)

         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. Supplier early payment discounts are also included within cost of sales; these are offered from certain inventory suppliers based on payment of invoices within a certain time frame resulting in a percentage discount to reduce cost of sales.

         Supplier and promotional 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 supplier income and promotional income, which are explained below. The supplier income arrangements are typically not coterminous 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. Where the income is directly related to inventory, it is recognised as a credit within gross margin to cost of sales. To the extent that the rebate relates to unsold stock purchases it is recognised as a reduction in the cost of inventory. Where the income is in relation to a distinct service, it is recognised as other income.

         Supplier and promotional 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 period 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

         Supplier 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 reassessed and remeasured 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.

      2. Finance income and expenses Financing expenses

         Financing expenses comprise interest payable under the effective interest rate method, incorporating amortisation of loan arrangement fees, interest on lease liabilities and non-underlying interest on lease liabilities.

         Financing income

         Financing income comprises interest receivable on funds invested and other interest receivable. Interest receivable is recognised in profit or loss as it accrues, using the effective interest method.

      3. 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 Accounting policies (continued)

      4. Accounting estimates and judgements

         The preparation of consolidated financial statements in conformity with UK adopted 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.

         Critical accounting judgements

         Assessment of control with regard to Joint Ventures

         The assessment of control with regard to Joint Ventures is considered to be a critical accounting 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.

         Key sources of estimation uncertainty

         Impairment of retail goodwill and other indefinite life intangibles

         The carrying amount of goodwill allocated to the retail group of CGUs is assessed for impairment annually. The carrying amount is determined based on the value in use. Certain key assumptions and inputs within forecasted cash flows used to calculate the value in use of the retail group of CGUs are considered to be a key source of estimation uncertainty. The value in use of the retail group of CGUs is determined using cash flow projections from the approved business and strategic plans over a period of five years which are then extrapolated based on estimated long-term growth rates applicable to the markets in which the CGUs operate. The cash flow projections are discounted based on a post-tax weighted average cost of capital.

         Estimation uncertainty arises due to changing economic and market factors as well as the business performance challenges being addressed in the ongoing Retail Turnaround Plan (as explained on page 4 of the Annual Report) which have resulted in increased forecasting uncertainty and sensitivity to reasonably possible changes in certain key assumptions. Refer to note 13 for further details on the key assumptions and sensitivities which are considered to be a key source of estimation uncertainty.

         There are no other significant estimates or assumptions which would cause a material change to the carrying value of asset and liabilities within the next 12 months.

      5. 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.

      6. 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. Non-underlying costs are considered by the Directors to be those not arising from normal business operations, which are infrequent, not expected to recur in the foreseeable future, and significant in amount.

      7. Alternative Performance Measures

         The Directors measure the performance of the Group based on a range of financial measures, including measures not recognised by UK-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 72.

      8. New standards and amendments issued but not yet effective

         New standards and interpretations that are in issue but not yet effective are listed below:

         IFRS 18: Presentation and Disclosure in Financial Statements.

         Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments.

         With the exception of the adoption of IFRS 18, the adoption of the above standards and interpretations is not expected to lead to any changes to the Group's accounting policies nor have any other material impact on the financial position or performance of the Group.

         IFRS 18 'Presentation and Disclosure in Financial Statements' is effective from 1 January 2027. The standard will replace IAS 1 Presentation of Financial Statements and introduces changes to the presentation of financial performance. IFRS 18 introduces defined categories of income and expenses (operating, investing and financing), new mandatory subtotals and requirements for the disclosure of management-defined performance measures (MPMs). While IFRS 18 is expected to affect future periods, the Group is still assessing its impact. There is no effect on current year presentation due to its future effective date. Adoption is planned for the 52 weeks ending 25 March 2027.

   2. Segmental reporting

      The Group has four strategic business units, Retail, Vet Group, Insurance and Central. These business units, with the exception the of new Insurance segment, are consistent with those reported in the 52 week period ended 27 March 2025. 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. 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 commissions via our 3rd party arrangement (these are separate from operations in the insurance segment). The operations of the Vet Group reporting segment comprise General Practice and the veterinary telehealth business. Insurance includes costs incurred as part of the Group's new insurance venture for pet insurance. Central includes group costs and finance expenses.

      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. A large proportion of revenue recognised within the Vet Group relates to fee income from Joint Venture veterinary practices which are considered to be related parties. Further information regarding these related party transactions is disclosed in note 27.

      52 week period ended 26 March 2026

      Income statement	Retail £m	Vet Group £m	Insurance1 £m	Central £m	Total £m
      Revenue	1,292.9	176.7	-	-	1,469.6
      Gross profit	573.5	98.5	-	-	672.0
      Depreciation and amortisation	(98.3)	(3.9)	-	(0.5)	(102.7)
      Underlying operating profit/(loss)	44.3	83.1	(5.1)	(13.1)	109.2
      Non-underlying items	(4.0)	(1.0)	-	(1.3)	(6.3)
      Operating profit/(loss)	40.3	82.1	(5.1)	(14.4)	102.9
      Net financing expense	(13.5)	0.7	(0.1)	(3.5)	(16.4)
      Profit/(loss) before tax	26.8	82.8	(5.2)	(17.9)	86.5
      Non-underlying items	4.0	1.0	-	1.3	6.3
      Underlying profit/(loss) before tax	30.8	83.8	(5.2)	(16.6)	92.8
      Attributable to:
      Equity shareholders of the parent	30.8	83.0	(5.2)	(16.6)	92.0
      Non-controlling interests	-	0.8	-	-	0.8

      Non-underlying operating expenses in the periods ended 26 March 2026 and 27 March 2025 are explained in note 3.

      52 week period ended 27 March 2025

      Income statement	Retail £m	Vet Group £m	Insurance1 £m	Central £m	Total £m
      Revenue	1,306.4	175.3	-	-	1,481.7
      Gross profit	602.4	92.3	-	-	694.7
      Depreciation and amortisation	(97.4)	(4.3)	-	(0.5)	(102.2)
      Underlying operating profit/(loss)	85.8	75.1	(0.4)	(11.7)	148.8
      Non-underlying items	(6.0)	-	-	(6.4)	(12.4)
      Operating profit/(loss)	79.8	75.1	(0.4)	(18.1)	136.4
      Net financing expense	(12.9)	0.8	-	(3.7)	(15.8)
      Profit/(loss) before tax	66.9	75.9	(0.4)	(21.8)	120.6
      Non-underlying items	6.0	-	-	6.4	12.4
      Underlying profit/(loss) before tax	72.9	75.9	(0.4)	(15.4)	133.0

      1The insurance business segment presented in the tables above relates to the Group's insurance venture and includes costs incurred in the periods ended 26 March 2026 and 27 March 2025. Expenses for the 52 week period ended 27 March 2025 have been reclassified from central costs.

      52 week period ended 26 March 2026

      Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Total £m
      Retail - Food	805.0	-	805.0
      Retail - Accessories	436.6	-	436.6
      Retail - Services	51.3	-	51.3
      Vet Group - Joint Venture fee income	-	108.4	108.4
      Vet Group - Company Managed veterinary practices	-	51.1	51.1
      Vet Group - Other income	-	13.4	13.4
      Vet Group - Veterinary telehealth services	-	3.8	3.8
      Total	1,292.9	176.7	1,469.6

      52 week period ended 27 March 2025

      Segmental revenue analysis by revenue stream	Retail £m	Vet Group £m	Total £m
      Retail - Food	804.2	-	804.2
      Retail - Accessories	449.2	-	449.2
      Retail - Services	53.0	-	53.0
      Vet Group - Joint Venture fee income	-	103.4	103.4
      Vet Group - Company Managed veterinary practices	-	52.5	52.5
      Vet Group - Other income	-	15.4	15.4
      Vet Group - Veterinary telehealth services	-	4.0	4.0
      Total	1,306.4	175.3	1,481.7

   3. Expenses

      Included in operating profit are the following:
      	52 week period	52 week period
      	ended 26 March 2026	ended 27 March 2025
      	£m	£m
      Non-underlying items
      Costs relating to the implementation of the new Distribution Centre
      Provisions for retention and relocation bonuses for colleagues at existing Distribution Centres	-	0.4
      Dual running costs of operating new and existing Distribution Centres	-	1.9
      Depreciation of right-of-use assets	-	3.4
      Onerous lease provision	-	1.6
      	-	7.3
      Store redundancy costs	-	1.0
      Total included within selling and distribution expenses	-	8.3
      Group restructure and legal settlement costs	5.9	3.1
      Property costs associated with group restructure	0.4	-
      Legal costs associated with the CMA review	-	3.3
      Total included within administrative expenses	6.3	6.4
      Included within other income - disposal of investment	-	(2.3)
      Total non-underlying cost within operating profit	6.3	12.4
      Underlying items
      Depreciation of property, plant and equipment	31.8	28.5
      Amortisation of intangible assets	7.6	8.1
      Depreciation of right-of-use assets	63.3	62.2
      Share-based payment charges	4.5	5.9
      Impairment of investments (note 16)	3.0	-
      Impairment of capital contributions made to vet practices	2.7	-
      Other income
      Rental income from sub-leasing right-of-use assets to third parties	(0.1)	(0.2)
      Rental and other occupancy income from related parties	(13.7)	(13.0)
      Supplier funding and backhaul-related income	(3.0)	(1.6)

      Non-underlying items in operating profit

      Group restructure and legal settlement costs

      On 25 November 2025, the Group announced a restructuring of its Support Office functions, the impact of which primarily relates to redundancy payments, notice period obligations, outplacement support and settlement agreements.

      • Non-underlying Group restructure costs in the 52 week period ended 26 March 2026 were £6.3m, primarily relating to redundancy payments and legal settlement costs of £5.9m, together with property costs from an office closure of £0.4m arising from a central one-off group-wide redundancy programme. The process was a significant operational change for the Group, outside of the ordinary course of business and has now concluded with no further costs expected.

        3 Expenses (continued)

        Non-underlying items in operating profit (continued)

        Stafford Distribution Centre

        During the 52 week period ended 27 March 2025, the Group incurred a number of costs in the process of bringing into operation a new Distribution Centre to replace the existing legacy Distribution Centres. The process was a significant operational change for the Group, outside of the ordinary course of business and has now concluded. As part of the transition, the Group incurred £7.3m operational costs which it has classified as non-underlying.

      • £0.4m relates to costs for retention bonuses for colleagues at the existing Distribution Centres to remain employed by the Group until the point at which the sites closed.

      • £1.9m relates to costs incurred whilst the legacy Distribution Centres and the new Distribution Centres were both in operation.

      • £3.4m in relation to depreciation of the right-of-use assets for the legacy which includes £1.7m in relation to accelerated depreciation of the legacy site.

      • All operations ceased at the legacy site before the 27 March 2025. At this date the remaining right of use asset of the legacy site was fully impaired (£1.7m included in the number above) and an onerous lease provision of £1.6m was created in relation to the remaining lease associated costs.

        Additional non-underlying charges made during the 52 weeks ending 27 March 2025 related to:

        • Store redundancy costs of £1.0m related to the expected store redundancy costs following the announcement of the store colleague operating model simplification process.

        • Legal costs associated with the CMA review totalled £3.3m.

        • Disposal of investment in Pure Pet Food Limited resulted in a profit on disposal of £2.3m within retail which was recognised in other income.

      Auditor's remuneration
      	52 week period	52 week period
      	ended 26 March	ended 27 March
      	2026 £m	2025 £m
      Audit of the Parent Company financial statements	-	-
      Amounts receivable by the Company's auditor and its associates in respect of:
      Audit of financial statements of subsidiaries pursuant to legislation1	1.8	1.5
      Review of interim financial statements	0.1	0.1
      Other assurance services (sustainability assurance)	-	0.1
      	1.9	1.7

      1£0.1m in relation to audit of the financial statements from the 52 week period ended 26 March relates to additional costs for the audit of the financial statements for the 52 week period ended 27 March 2025..

   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:

1. Colleague numbers and costs (continued)

   Remuneration of Directors and Executive Management Team
   	52 week period ended 26 March	52 week period ended 27 March
   	2026	2025
   	£m	£m
   Executive Directors' short-term employee benefits	1.4	1.2
   Non-Executive Directors' short-term employee benefits	0.5	0.5
   Executive Directors' share-based payments	0.9	0.6
   Executive Directors' post-employment benefits	-	0.1
   Total Directors' remuneration	2.8	2.4
   Executive Management Team short-term employee benefits	3.2	3.1
   Executive Management Team share-based payments	1.1	0.9
   Executive Management Team post-employment benefits	0.2	0.2
   Total Executive Management Team remuneration	4.5	4.2

   In the opinion of the Board, the key management as defined under revised IAS 24 Related Party Disclosures are the Executive Directors, Non-Executive Directors and the Executive Management Team. Executive Directors' emoluments are also included within the Executive Management Team emoluments disclosed above. There are no further amounts, other than those noted above, receivable under long term incentive schemes by the Directors or Executive Management team.

   The number of directors who received pensions contributions in the 52 week period ended 26 March 2026 is four for executive directors (two in the 52 week period ended 27 March 2025) and nine in the executive management team (eight in the 52 week period ended 27 March 2025).

2. 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 26 March

   2026

   52 week period ended 27 March

   2025

   	Underlying trading	After non-underlying items	Underlying trading	After non-underlying items
   Profit attributable to equity shareholders of the parent (£m)	67.2	62.5	97.5	88.2
   Basic weighted average number of shares	454.4	454.4	463.5	463.5
   Dilutive potential ordinary shares	4.7	4.7	5.0	5.0
   Diluted weighted average number of shares	459.1	459.1	468.5	468.5
   Basic earnings per share	14.8p	13.8p	21.0p	19.0p
   Diluted earnings per share	14.6p	13.6p	20.8p	18.8p

3. Finance income

   	52 week period ended	52 week period ended
   	26 March 2026	27 March 2025
   	£m	£m
   Interest receivable on loans to Joint Venture veterinary practices	0.3	0.5
   Other interest receivable	2.3	2.4
   Total finance income	2.6	2.9

4. Finance expense

   	52 week period ended	52 week period ended
   	26 March 2026	27 March 2025
   	£m	£m
   Bank loans at effective interest rate	4.2	4.7
   Amortisation of debt issue costs	0.8	0.8
   Underlying interest expense on lease liability	14.0	13.2
   Total finance expense	19.0	18.7

5. Taxation

   Recognised in the income statement

   52 week period ended

   52 week period ended

   26 March 2026 27 March 2025

   	£m	£m
   Current tax expense Current period	20.2	23.2
   Adjustments in respect of prior periods	0.9	(3.9)
   Current tax expense	21.1	19.3
   Deferred tax expense Origination and reversal of temporary differences	4.3	7.8
   Adjustments in respect of prior periods	(2.0)	5.3
   Deferred tax expense	2.3	13.1
   Total tax expense	23.4	32.4

   The UK corporation tax standard rate for the period was 25% (2025: 25%). Deferred tax at 26 March 2026 has been calculated based on the rate of 25% which is the rate at which the majority of items are expected to reverse.

   Deferred tax recognised in comprehensive income

   52 week 52 week period ended period ended

   26 March 2026 27 March 2025

   £m £m

   Deferred tax on changes in fair value of cash flow hedges (note 22) (0.6) -

   Reconciliation of effective tax rate

   52 week period ended 26 March 2026 52 week period ended 27 March 2025

   	Underlying trading £m	Non-underlying items £m	Total £m	Underlying trading £m	Non-underlying items £m	Total £m
   Profit for the period	67.8	(4.7)	63.1	97.5	(9.3)	88.2
   Total tax expense/(credit)	25.0	(1.6)	23.4	35.5	(3.1)	32.4
   Profit excluding taxation	92.8	(6.3)	86.5	133.0	(12.4)	120.6
   Tax using the UK corporation tax rate for the period of 25%	23.2	(1.6)	21.6	33.3	(3.1)	30.2
   Depreciation on expenditure not eligible for tax relief	0.5	-	0.5	0.8	-	0.8
   Expenditure not eligible for tax relief	2.4	-	2.4	-	-	-
   Adjustments in respect of prior periods	(1.1)	-	(1.1)	1.4	-	1.4
   Total tax expense	25.0	(1.6)	23.4	35.5	(3.1)	32.4

   The UK corporation tax standard rate for the 52 week period ended 26 March 2026 was 25% (52 week period ended 27 March 2025: 25%). The effective tax rate before non-underlying items for the 52 week period ended 26 March 2026 was 26.9% (52 week period ended 27 March 2025: 26.7%).

   The effective tax rate after non-underlying items for the 52 week period ended 26 March 2026 was 27.1% (52 week period ended 27 March 2025: 26.8%).

6. Dividends paid and proposed

   Group and Company

   	52 week period ended	52 week period ended
   	26 March 2026 £m	27 March 2025 £m
   Declared and paid during the period
   Final dividend of 8.3p per share (2024: 8.3p per share)	37.7	38.4
   Interim dividend of 4.7p per share (2025: 4.7p per share)	21.0	21.3
   Proposed for approval by shareholders at the AGM
   Final dividend of 2.7p per share (2025: 8.3p per share)	12.1	38.1

   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 26 March 2026 and 27 March 2025 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 26 March 2026: 6,003,064 shares; holding at 27 March 2025: 5,670,000 shares).

7. Business combinations

   In the 52 week period ended 26 March 2026, the Group has acquired 100% of the 'A' shares of ten 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 all or the majority of the 'A' shares has led to the control and consolidation of these practices. The primary reason for the business combination is to hold these practices as company-owned until a suitable Joint Venture Partner is found at which point the intention is to convert them into Joint Venture partnerships. A detailed explanation for the basis of consolidation can be found in note 1.4.

   Up to the date of acquisition and in the comparative period being the 52 week period ending 27 March 2025, 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 in the 52 week period ended 26 March 2026
   			Total proportion of
   		Proportion of voting equity	voting equity instruments owned	Cash consideration
   	Date of	instruments	following the	transferred
   Principal activity	acquisition	acquired	acquisition	£m
   Companion Care (Stockport) Limited Veterinary practice	03/04/2025	15%	65%	0.4
   Walkden Vets4Pets Limited Veterinary practice	29/05/2025	50%	100%	-
   Rayleigh Vets4Pets Limited Veterinary practice	09/06/2025	50%	100%	0.1
   Companion Care (Cardiff) Limited Veterinary practice	07/07/2025	50%	100%	-
   Longton Vets4Pets Limited Veterinary practice	08/08/2025	32%	82%	1.1
   Watford Vets4Pets Limited Veterinary practice	16/09/2025	50%	100%	0.1
   Sheffield Wadsley Bridge Vets4Pets Limited Veterinary practice	24/11/2025	50%	100%	0.1
   Portishead Vets4Pets Limited Veterinary practice	09/12/2025	50%	100%	0.1
   Bristol Longwell Green Vets4Pets Limited Veterinary practice	17/12/2025	25%	75%	-
   Swinton Vets4Pets Limited Veterinary practice	24/12/2025	50%	100%	0.8

   In the 52 week period ended 27 March 2025, the Group acquired 100% of the 'A' shares of eight 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 all or the majority of the 'A' shares has led to the control and consolidation of these practices. The primary reason for the business combination is to hold these practices as company-owned until a suitable Joint Venture Partner is found at which point the intention is to convert them into Joint Venture partnerships. A detailed explanation for the basis of consolidation can be found in note 1.4.

   Assets acquired and liabilities recognised at the date of acquisition

   On acquisition, assets and liabilities are revalued to fair value. Pre-existing arrangements between the Group and acquired Joint Venture veterinary practice are not considered part of the business combination and have been removed from the fair values of assets and liabilities recognised on acquisition. During the 52 week period ended 26 March 2026, £1.9m of operating loans which were deemed to be in default were written off as an expense in advance of the acquisition of the 'A' shares (52 week period ended 27 March 2025: £1.7m) which led to the control and consolidation of these practices. The group acquired £0.4m of cash and cash equivalents from the practices (52 week period ended 27 March 2025 debt of £0.5m). The fair value of net assets of acquisitions during the year is shown below.

   	26 March 2026 £m	27 March 2025 £m
   Current assets
   Cash and cash equivalents	0.4	0.2
   Trade and other receivables	0.4	0.1
   Inventories	0.1	0.2
   Non-current assets
   Tangible fixed assets	1.6	0.3
   Current liabilities
   Overdrafts	-	(0.7)
   Bank loans	(0.3)	-
   Trade and other payables	(0.8)	-
   Net assets	1.4	0.1

   10 Business combinations (continued)
   Subsidiaries acquired in the 52 week period ended 27 March 2025
   			Total proportion of
   		Proportion of	voting equity	Cash
   	Date of	voting equity instruments	instruments owned following the	consideration transferred
   Principal activity	acquisition	acquired	acquisition	£m
   Lichfield Vets4Pets Limited Veterinary practice	04/04/2024	50%	100%	0.1
   Bishop's Stortford Vets4Pets Limited Veterinary practice	02/04/2024	50%	100%	-
   Trafford Park Vets4pets Limited Veterinary practice	04/04/2024	50%	100%	0.1
   Merthyr Tydfil Vets4Pets Limited Veterinary practice	17/10/2024	50%	100%	-
   Llanrumney Vets4Pets Limited Veterinary practice	25/10/2024	50%	100%	0.5
   Companion Care (Scarborough) Limited Veterinary practice	25/10/2024	50%	100%	0.2
   Warminster Vets4Pets Limited Veterinary practice	24/01/2025	50%	100%	0.2
   Bath Vets4Pets Limited Veterinary practice	24/01/2025	50%	100%	0.2
   Goodwill arising on acquisition
   			26 March 2026	27 March 2025
   			£m	£m
   Consideration			3.1	0.8
   Less: Fair value of assets acquired			(1.4)	(0.1)
   Goodwill arising on acquisition			1.7	0.7
   Carrying value of goodwill			1.7	0.7

   The cash outflow on acquisition £3.1m (2025: £0.8m), net of cash acquired £0.4m (2025: net overdraft of £0.5m) amounted to £2.7m (2025: £1.3m) and is presented within investing activities in the consolidated cash flow statement.

   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 goodwill acquired on the purchase of the ten (2025: eight) Joint Venture veterinary practices has been allocated to the Vet Group of CGUs and relates to expected future cashflows from combining operations.

   Disposal of subsidiaries

   In the 52 week period ended 26 March 2026, the Group has disposed of all held 'A' shares of thirteen veterinary practices which are now accounted for as Joint Venture veterinary practices. These practices are accounted for as Joint Venture veterinary practices as the Group holds 100% of the non-participatory 'B' ordinary shares, equating to 50% of the total shares. The group recognised a gain on disposal of these practices of £0.4m (2025: £0.7m loss) in cost of sales and disposed of cash and cash equivalents of £2.5m (2025: £2.2m).

   11 Property, plant and equipment
   			Fixtures, fittings,
   		Leasehold	tools and	Assets under
   	Freehold property £m	improvements £m	equipment £m	construction £m	Total £m
   Cost
   Balance at 27 March 2025	2.4	85.1	357.9	3.9	449.3
   Additions	-	6.4	30.6	1.2	38.2
   On acquisition (note 10)	0.1	1.1	0.4	-	1.6
   Brought into use	-	-	3.9	(3.9)	-
   Disposals	(0.2)	(2.8)	(2.7)	-	(5.7)
   Balance at 26 March 2026	2.3	89.8	390.1	1.2	483.4
   Depreciation
   Balance at 27 March 2025	0.4	39.6	247.6	-	287.6
   Depreciation charge for the period	-	5.6	26.2	-	31.8
   Disposals	(0.1)	(2.0)	(2.2)	-	(4.3)
   Balance at 26 March 2026	0.3	43.2	271.6	-	315.1
   Net book value
   At 27 March 2025	2.0	45.5	110.3	3.9	161.7
   At 26 March 2026	2.0	46.6	118.5	1.2	168.3

8. Property, plant and equipment (continued)

   	Freehold property £m	Leasehold improvements £m	Fixtures, fittings, tools and equipment £m	Assets under construction £m	Total £m
   Cost
   Balance at 28 March 2024	2.4	82.5	345.4	14.4	444.7
   Additions	-	9.8	25.9	3.9	39.6
   On acquisition (note 10)	-	1.2	0.8	-	2.0
   Transfers1	-	-	(5.7)	-	(5.7)
   Brought into use	-	-	14.4	(14.4)	-
   Disposals	-	(8.4)	(22.9)	-	(31.3)
   Balance at 27 March 2025	2.4	85.1	357.9	3.9	449.3
   Depreciation
   Balance at 28 March 2024	0.4	41.5	244.7	-	286.6
   Depreciation charge for the period	-	5.3	23.2	-	28.5
   Transfers1	-	-	1.7	-	1.7
   On acquisition	-	0.8	0.9	-	1.7
   Disposals	-	(8.0)	(22.9)	-	(30.9)
   Balance at 27 March 2025	0.4	39.6	247.6	-	287.6
   Net book value
   At 28 March 2024	2.0	41.0	100.7	14.4	158.1
   At 27 March 2025	2.0	45.5	110.3	3.9	161.7

   1 The transfers balance of £5.7m cost and £1.7m accumulated depreciation is in relation to assets previously categorised within fixtures, fittings, tools and equipment being transferred to software within intangibles.

   Refer to Note 13 for details of impairment testing carried out over property, plant and equipment.

9. Leases

As lessee

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.

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 £0.5m in the 52 week period ended 26 March 2026 (27 March 2025: £0.0m).

1The depreciation charge for the period includes £1.7m in relation to an impairment charge recognised during the year. See note 3 for further disclosure.

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

For the lease liabilities at 26 March 2026 a 0.1% change in the discount rate used would have increased the carrying value of lease liabilities by £1.1m (27 March 2025: £0.3m).

In relation to new leases and lease extensions entered into by the Group during the period, these are discounted at the rate implicit in the lease which ranges from 5.2% to 6.1% depending on the length of the lease and reflect the impact of increases to the Bank of England base rate during the period.

Surplus and short term leases

The Group has a small number of surplus 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. These leases are included within the lease balances disclosed on the face of the balance sheet and a related provision has been made for other property costs relating to these properties in note 21.

The Group has a small number of short term 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 and are accounted for within trade and other receivables.

In line with IAS 36, the carrying value of the right-of-use asset is assessed for indicators of impairment and an impairment charge will be recognised where management believes there is 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 considered a sublease unlikely.

Refer to Note 13 for details of impairment testing carried out over right-of-use assets.

1 The transfers balance of £5.7m and £1.7m accumulated depreciation is in relation to assets previously categorised within fixtures, fittings, tools and equipment being transferred to software within intangibles.

Amortisation of intangible assets is posted within selling and distribution expenses and administrative expenses in the consolidated income statement.

Impairment testing

The Group reviews individual cash generating units ('CGUs') such as stores for indicators of impairment by comparing the net cash flows generated at a store level against the carrying value of assets including property, plant and equipment, right of use assets and other intangible assets. Key operational metrics are also considered as part of this review. As at the 26 March 2026, no material triggers of impairment have been identified at an individual CGU level, when considered either individually or combined.

Cash-generating units

For impairment testing of other intangible assets, property, plant and equipment and right of use assets, the Group treats each store as a separate cash-generating unit ('CGU') as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Distribution costs and online sales are apportioned to stores because there is a clear link between the costs and online sale and the store such as 'click and collect'. Within the Vet Group, each Company Managed veterinary practice is considered to be a separate CGU in addition to the veterinary telehealth business, hereafter disclosed as The Vet Connection ('TVC'). The Joint Venture veterinary practices are collectively considered to be one CGU due to the structure of the agreements with the Company.

Goodwill generated from an acquisition is allocated to groups of CGUs at an operating segment level as shown in the table below as this represents the lowest level at which goodwill is monitored by management.

Within the Retail operating segment, the group of CGUs comprises the body of stores, online operations and grooming operations. Within the Vet Group operating segment, the group of CGUs comprises the Joint Venture veterinary practices, Company Managed veterinary practices and TVC.

Within the Vet Group goodwill balance shown below is £4.2m relating to the Company Managed veterinary practices. The goodwill is allocated to individual practices and assessed annually for impairment.

As at 26 March 2026 and 27 March 2025, the Group is deemed to have two groups of CGUs as follows:

Goodwill

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

52 week period ended

26 March 2026

52 week period ended

27 March 2025

The goodwill is considered to have an indefinite useful economic life and the recoverable amount is determined based on 'value-in-use' calculations. The key assumptions used in estimating the value in use calculations were:

Forecasted cash flows - These calculations use a post-tax cash flow projection based on a five-year strategic plan approved by the Board, rebased to reflect the actual trading in the 52 week period ending 26 March 2026 and the detailed business plan for the 52 week period ending 25 March 2027. The model has been adjusted to remove all cash flows associated with business units which the Group has a strategic intention to invest capital in, but has not yet done so (for example stores or practices yet to open, but within the planning horizon), thus ensuring that the future cash flows used in modelling for the impairment review 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. Central costs relate to corporate costs associated with being a public listed company, finance expenses and costs which cannot be directly attributed to any division of the Group and have been allocated on an equal basis to the Vet Group and Retail segment. This is a change in allocation methodology since the prior reporting period, where costs were allocated proportionate to the asset base. The previous allocation is no longer considered the most appropriate methodology to reflect the allocation of resources to which the central cashflows relate. Both divisions are deemed to carry equal weighting within the Group's strategic delivery and now share one combined support office.

Other than the change in allocation of central cash flows, this approach is consistent with impairment reviews carried out in the 2025 financial statements.

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 or group of CGUs operate, 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. The Group reviews individual CGUs such as stores and groups of veterinary practices for indicators of impairment.

A different set of assumptions may be more appropriate in future years depending on changes in the macro-economic environment and the sector in which each CGU operates. The Group has considered key risk factors such as the continuing issues throughout our global supply chains, geopolitical uncertainty, climate change, consumer confidence and disposable income. The Group has continued to assess the possible long term impacts of the likely levels of tariffs that may be applied by the USA and retaliatory measures from countries where our supply chains are located, as well as the reasonably possible impact on supply chains due to global conflict.

Long-term growth rates - The Directors have assumed a growth rate projection beyond the projection period of 2% for both groups of CGUs, which is lower than market growth rates based on past experience within the Group, taking into account the economic growth forecasts within the relevant industries.

Discount rates - The discount rates for the two groups of CGUs have been estimated based on past experience and the weighted average cost of capital is adjusted to reflect a market participant view specific to the risk of the sectors in which the groups of CGUs operate in. A post tax discount rate was used within the value in use calculation and adjustments made to calculate the pre-tax discount rate which is disclosed above in line with IAS 36 requirements.

Outcome and sensitivity analysis - The total recoverable amount in respect of goodwill for the groups of CGUs 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.

As part of the assessment, the Directors consider the impact of reasonably possible changes in key assumptions, including on a combined basis. These sensitivities have been selected based on the inherent business and market risks, and reflect recent retail trading performance challenges linked to the subdued market backdrop.

The results presented below show the decrease in the value in use and the impact this could have on the carrying value.

Given the key source of estimation uncertainty specifically relating to impairment of goodwill (see note 1.22), and specifically relating to the Retail CGUs, a further sensitivity has been applied to the Retail assumptions to identify a reasonably possible downside scenario in which an impairment could be triggered.

Key assumption Decrease in

value in use

£m

Impact on carrying value

£m

Retail Retail

1. Reduction of 1% in the growth rate applied beyond approved forecast period (93) -

2. Increase of 1% to the discount rate (pre-tax) (129) -

3. Reduction of 3% to the compound annual growth rate (CAGR) in revenue derived cashflows over the forecasted period compared to plan

4. A £10m (50%) shortfall in the Retail budgeted cost saving initiatives, along with a shortfall of 1.5% vs the revenue CAGR in the Retail budgeted plan from FY27-FY31, offset in part by a 50% reduction in discretionary brand marketing but otherwise unmitigated

5. Sensitivity 4 above with mitigating actions being a 1% reduction in operating costs as a response to the reduced revenue CAGR

(190) -

(237) (25)

(188) -

The Directors consider the fourth scenario in the table above, which could result in an impairment of the carrying value of Retail goodwill, to be a severe but reasonably possible downside if left unmitigated. The sensitivity assumes medium term revenue performance below forecast market growth rates and below the growth rate of 2.0% applied beyond the approved forecast period, and that not all costs savings assumed are achieved notwithstanding further mitigating actions that could be taken to reduce costs and expenditure. This scenario would be driven by failure to achieve the forecasted trading performance and cost control which underpins the Retail Turnaround Plan, however acknowledges the ongoing challenging trading environment.

The fifth scenario above includes additional mitigating actions within the control of the Directors which could be taken to reduce operating costs if the combined circumstances in scenario four were to arise. The Directors consider the fifth scenario to represent a reasonably possible set of assumptions in the event of scenario four.

Within Vet Group, 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.

1. Inventories

   At 26 March 2026 At 27 March 2025

   £m £m

   Finished goods 107.5 106.9

   The cost of inventories recognised as an expense and included in 'cost of sales' is £689.9m (52 week period ended 27 March 2025: £677.4m).

   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 26 March 2026 the inventory provision amounted to £4.3m (27 March 2025: £4.4m). 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 value of inventory against which an ageing provision is held is £10.7m (27 March 2025: £9.9m).

   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%

   Included in the provision is an amount held to account for store stock losses during the period since which the SKU was last counted.

   In the 52 week period ended 26 March 2026, the value of inventory written off to the income statement amounted to £9.1m (52 week period ended 27 March 2025: £10.1m).

2. Deferred tax assets and liabilities

   Recognised deferred tax assets and liabilities

   Deferred tax assets and liabilities are attributable to the following:

   	Assets £m	Liabilities £m	Tota £m	Assets £m	Liabilities £m	Total £m
   Property, plant and equipment	-	(22.4)	(22.4	-	(20.2)	(20.2)
   Financial assets	0.1	(0.3)	(0.2	0.4	-	0.4
   Other short term temporary differences	1.6	(0.5)	1.1	2.9	(0.8)	2.1
   Share based payments	1.0	-	1.0	0.1	-	0.1
   Net deferred tax assets/(liabilities)	2.7	(23.2)	(20.5	3.4	(21.0)	(17.6)
   Movement in deferred tax during the period
   		27 March		Recognised in	Recognised in	26 March
   		2025 £m		income £m	equity £m	2026 £m
   Property, plant and equipment		(20.2)		(2.2)	-	(22.4)
   Net financial assets/(liabilities)		0.4		-	(0.6)	(0.2)
   Other short term timing differences		2.1		(1.0)	-	1.1
   Share based payments		0.1		1.0	(0.1)	1.0
   		(17.6)		(2.2)	(0.7)	(20.5)
   Other short-term timing differences primarily relate to inventory provisions.
   Movement in deferred tax during the prior period
   		28 March 2024		Recognised in income	Recognised in equity	27 March 2025
   		£m		£m	£m	£m
   Property, plant and equipment		(6.1)		(14.1)	-	(20.2)
   Net financial assets		0.2		-	0.2	0.4
   Other short term timing differences		1.1		1.0	-	2.1
   Share based payments		0.1		-	-	0.1
   		(4.7)		(13.1)	0.2	(17.6)

   At 26 March 2026 At 27 March 2025 l

   )

   )

   )

   16 Other financial assets and liabilities
   		At 26 March 2026 £m		At 27 March 2025 £m
   Non-current - other financial assets
   Investments in Joint Venture veterinary practices		-		2.7
   Loans to Joint Venture veterinary practices - initial set up loans		3.2		3.9
   Other investments		-		3.0
   Deferred fee income rebate in Joint Venture veterinary practices		3.4		1.5
   Deferred consideration for veterinary practices acquisitions		3.2		-
   Other receivables		3.7		3.9
   		13.5		15.0

   Investments in Joint Venture veterinary practices

   Investments in Joint Venture veterinary practices represents capital contributions made to these practices to fund extensions and improvements to their practice residences. The carrying value of these investments is £nil (2025: £2.7m) following full impairment during the 52 week period ended 26 March 2026.

   Loans to Joint Venture veterinary practices - initial set up loans

   Loans to Joint Venture veterinary practices of £3.2m (2025: £3.9m) are provided to Joint Venture veterinary practice companies trading under the Companion Care, Vets4Pets or VetsforPets brands, in which the Group's share interest is non-participatory. These loans support their initial set up and working capital, and are held at carrying value. Under the terms of the loans provided to veterinary companies trading under the Companion Care, Vets4Pets or VetsforPets 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 £0.2m (2025: £0.4m).

3. Other financial assets and liabilities (continued)

Loans to Joint Venture veterinary practices - initial set up loans (continued)

Gross loan

Expected credit

Carrying value

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. The loans are categorised as performing, or in default in accordance with the policy set out in note 1.16. The loss allowance is calculated depending on the credit risk of each loan, the Group's expectations of future cash flow recoverability and practice age in accordance with the policy set out in note 1.16.

The presentation of performing and in default loans has been revised to better align with the requirements of IFRS 9. Initial set up loans are considered in default if they cannot be settled within one day of year end. This has no impact on the estimated credit loss which is made based on the 10-year cashflow forecast.

Other investments

In the 52 week period ended 26 March 2026, the investment balances of £3.0m (2025: £3.0m) in relation to investments in Good Dog Food Limited ('Meatly') and Project Blu Limited were fully provided against. The impairments were recognised due to insufficient evidence to support the fair value of future cash flows to the Group, using either the market or income valuation approaches under IFRS 13. The impairment charge was recognised in administrative expenses in the income statement.

Deferred fee income rebate in Joint Venture veterinary practices

The rebate of £3.6m (2025: £1.7m) will be released as a deduction to fee income over a period of up to 10 years which represents the period of time the Group expects to receive economic benefits from enhanced fee income.