Pets at Home Group PLC (LSE:PETS) announced chief executive Peter Pritchard is to step down as it upgraded full-year profit guidance.
Pritchard has been in the pet products retailer and vet group for 11 years, including nearly four in the top job.
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He will leave the board next summer but will remain “fully engaged” in his role until May 2022 to ensure a smooth transition period to his successor, who hasn’t been found yet.
“Having completed everything that I set out to achieve in 2018, next summer is the right time to take well-earned rest and to hand over the reins to a new leader who will continue this journey in becoming the Best Petcare Business in the World,” Pritchard commented.
The FTSE 250 group also said that underlying pre-tax profit for the 53 weeks to 31 March 2022 will be at the top end of the current range of analyst expectations, ahead of previous guidance.
The market forecast was £128-135mln, while last year Pets at Home delivered underlying profit before tax of £87.5mln.
“There will likely be disappointment following the departure of the group’s high calibre CEO," analysts at house broker Liberum commented. "On the positive, Peter Pritchard leaves the group better positioned than ever, having orchestrated one of the most impressive turnarounds in the retail space that we have seen in recent years. We expect the group will be able to attract a new, high quality CEO to work alongside its strong operational team.
“In terms of trading… the performance continues to be driven by the success of the strategic initiatives put in place well before COVID-19. We see further upside risk to forecasts as multiple self-help levers look set to drive further outperformance versus the UK pet care market’s accelerating growth.”
Shares dipped 1.6% to 491.39p early on Wednesday.