Pets At Home saw profits plunge 37.7% as it set aside more than £40m for a huge restructure programme but the set of results still beat low market expectations to send shares climbing.

The pet retail giant recorded pre-tax profits of £49.6m in the 12 months to the end of March. However, underlying profit rose 6.1% to £89.7m and revenues rose 6.9% to £961m.

Pets at Home chief executive Peter Pritchard said the business was “trading strongly and taking share across the pet market.”

He added: “Customers are loving our lower prices, the convenience of subscription packages, high quality veterinary care and pet healthplans.

 “We launched our pet care strategy last year and we’re already making good progress, bringing our retail and vet businesses closer together. Our commitment is to make sure pets and their owners get the very best advice, care and products, and we’re able to join this up for customers in a way that competitors just can’t.

“I’m pleased with our progress and the results we have delivered, but there remains plenty to do. I’m confident we will successfully reposition our vet group so that, with the strong performance in Retail, we will be well placed to deliver our strategy.”