Pets at Home chief executive Ian Kellett is stepping down and will be replaced by Peter Pritchard, the chief executive of the group’s retail division.
Kellett (right), who became chief executive last year after his 10-year tenure as chief financial officer, departs amid an 11% drop in profit before tax to £42 million in the six months to 12 October.
Revenues, however, edged up 6% to £468 million. Its merchandise arm is growing steadily with same-store sales up 5.1% in the second quarter. It said the profit outlook for 2018 is in line with market expectations.
Kellett, who is leaving to 'pursue his own personal business interests' will stand aside in May 2018.
Tony DeNunzio, Chairman, said: "I am pleased to announce Peter’s future succession as Group CEO. Ian and Peter will continue to work closely together over the next six months through which there will be an orderly handover process. Peter has steered the Retail business for a number of years and has been responsible for the launch of some highly successful initiatives, and I am confident he will provide strong leadership to the Group.
"I want to thank Ian for his long tenure at Pets at Home, having successfully lead multiple areas of the business in his roles as Chief Financial Officer, within Retail, and as Group CEO. On behalf of the Board, I wish him well as he takes a break from corporate life to pursue his personal business interests.”
Ian Kellett said: “Having spent the past twelve years with Pets at Home, I feel very fortunate to have worked in such a special business with some amazing people. I am proud to have been part of transforming the Group from its retail roots into the much wider services and omnichannel business it is today.
“The actions we have taken this year to reposition Retail pricing have landed well, and we have a clearly defined plan that will deliver further results. It is with this in mind that I feel able to move on and pursue my own personal business interests, which will provide me with a different type of challenge at this point in my career.”
Commenting on the trading report, Kellett said: "Our strategic progress and trading momentum have steadily improved through the first half of the financial year.
"In the Merchandise business, our like-for-like sales grew by 5.1% in the second quarter, driven by our pricing changes, omnichannel offer and product innovation.
"Our veterinary business is taking market share and hitting the revenue and profit growth levels expected from both the First Opinion practices and Specialist Referral centres. We see the potential for significant future profit growth in our Vet Group, where 75% of practices are yet to mature.
"We are confident we are taking the right actions to reposition our Merchandise business and having seen the results from our initial investments, we are accelerating our plans. There remains much to do and we will continue to evolve our strategy and adapt to customers' needs in what remains a competitive market place."
Incoming CEO,Peter Pritchard (above) joined Pets at Home in 2011 as Commercial Director and moved to the role of CEO of Retail in 2015.
Over this time, he has overseen the establishment of the sourcing office in China, the launch of the VIP club, the development of its omnichannel strategy, and more recently, the repositioning of its merchandise business.
