Jollyes, the UK’s second-largest pet retailer, has fallen into the red following the takeover by Asda’s owner TDR Capital, but topline growth continued to soar.
TDR bought a majority stake in February 2024, saddling the business with more than £2m in one-off transaction and restructuring charges, the company’s latest accounts have revealed.
The company also wrote off £6m of assets, “which management believed were not recoverable”, paid £1m for preopening costs of 11 shops and spent a further £1.9m on a supply chain transition project, according to the documents filed with Companies House.
This weighed on the company’s bottom line and meant it made a pre-tax loss of £3.8m in the year to May 2024, down from an equivalent profit the year before.
Sales remained healthy, however, with like-for-like sales up 13.4%. Total revenues grew 25% to £144.1m as the company opened more stores to bring its total estate to 101.
Without the one-off costs, underlying profitability also improved, with EBITDA up 18% to £9.9m.
Last year, Jollyes said TDR’s backing would allow it to accelerate UK store growth plans and lower prices across the chain, as well as support the rollout of grooming and veterinary-led community pet clinics.
“Jollyes is a thriving, growing, robust business that’s investing in growth,” said CEO Joe Wykes.
“With the backing of our new investors, we’re continuing to invest in future growth, opening stores in new communities.”
Jollyes opened its first store in Enfield in 1971, with growth the group ramping up significantly in recent years.
It was previously backed by Kester Capital following a management buyout in 2018, with the business doubling in size under the PE firm’s ownership.
By contrast, Jollyes’ biggest rival, Pets at Home has been struggling in the past year, with shares crashing in November when the chain warned of an “unusually subdued” pet retail market. Pets at Home revenues grew just 1.9% in the first half of the year, with CEO Lyssa McGowan warning sluggish market conditions would continue.
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