Pets at Home Group PLC (LON:PETS) dropped on Thursday despite reporting on “exceptional levels of demand” during the coronavirus pandemic have driven results beyond expectations.
Pre-tax profit for the year to 26 March is now set to be “slightly” above market consensus, which was £92-97mln.
READ: Pets at Home among retailers to stay open during coronavirus outbreak
The pets products seller and veterinary was nominated as an "essential retailer" by the UK Government though it had to shutter its grooming salons.
The FTSE 250-listed chain said it is too early to provide guidance for the current financial year.
The year ended with £160mln in the bank and “a significant proportion” of a committed £248mln facility still available to draw before 2023.
"A core holding in all weathers"
Analysts at Peel Hunt said the £30mln rate relief "will take up most of the profit slack from lower sales", but when rates are paid in full again there will be a "good bounce back" in underlying profit.
The broker expects a 5p final dividend with the preliminary results in May, bringing the total to 7.5p for the year.
"Not many retailers are this confident and the underlying business is strong and improving," analysts commented.
"This should be a core holding in all weathers."
Shares dropped 3% to 231.8p on Thursday morning.
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