Pets Corner (UK) Limited - Limited company accounts 25.1

The directors present their strategic report for the year ended 30 September 2024.

REVIEW OF BUSINESS

Pets Corner (UK) Ltd ("Pets Corner") have been at the forefront of animal nutrition since 1968, promoting foods which are natural, wholesome and of the best quality for pets. It is the company's mission to do everything to provide pets with everything they need to sustain a long and healthy life.

Consumer spending and sales volumes have been a challenge throughout the year, which has been felt industry- wide. As a company built on retail stores, Pets Corner must work tremendously hard to combat the competitive environment, including the increase in e-commerce shopping options inclusive of market disruptors. Base rate, energy and minimum wage pressures on top of challenges on like for like sales have made it increasingly difficult for retailers. However, despite these challenges Pets Corner has managed to grow its revenue by 1.6%. Like for like sales across the portfolio of retail and grooming spas stood at fell 5%, demonstrating a challenge across matured sites, however the board are confident that the company has the right strategy to navigate through and re-capture success.

Pets Corner is positioned firmly for providing the highest quality in the market with a heavy focus on nutrition and quality for pets. During the year, the business invested in the opening of 7 new stores, relocated 2 stores, acquired a further 4 sites and opened 5 Dogwood spas. The selection of Pets Corner sites is meticulously planned, using a mixture of data analysis and demographic software which supports the business in ensuring the company continues to go from strength to strength. It is the company's ambition to accelerate the opening of new stores and Dogwood spas within the UK.

Pets Corner invest heavily in training staff across the front line with an un-rivalled training programme of the highest quality which focuses on pet nutrition, customer service and pet husbandry. The training programme takes place within the portfolio of locations and dedicated training centres with 3,688 people trained between October 2023 and September 2024.

Key Performance Indicators

The company aim to present a balanced and comprehensive review of the development and performance of business during the year and its position at the year end. The key financial performance indicators are considered to be those that communicate the financial performance and strength of the group, these being turnover, gross profit, operating profit, profit before tax and gross margin

2024

2023

Turnover

92,387,498

90,887,861

Gross profit

55,306,284

56,508,742

Operating profit

4,821,566

9,486,174

Profit before tax

4,625,548

9,290,302

Gross margin

59.86%

62.17%

Macro-economic decisions have created challenges in the operational performance of the company, with a reduction in EBIDTA performance and increased interest costs, however Pets Corner believe that the quality of the supply chain, inclusive of home brands gives the group a solid platform to hold strong and re-build. The business model applied to Pets Corner provides a competitive advantage over other businesses during tough trade

PRINCIPAL RISKS AND UNCERTAINTIES

Competition

The Company competes with many specialist and non-specialist retailers in the pet trade, including online. It is the company's view that by offering a wide selection of natural premium products, available through its specialist channel, they can promote a solid point of difference within the retail sector, thus driving consumer brand loyalty. This is further enhanced by the exceptional training provided to all staff by the company's team of experts, delivering the only classroom led curriculum within the pet trade

Liquidity, Credit & Financial Risk

The Company's financial position is continually monitored on an actual and forward-looking basis to ensure that its plans for growth can be delivered. The Company is confident that it has adequate revolving facilities in place until July 2026. Company borrowings are linked to the SONIA rate which is subject to change. The Company's minimal exchange rate risk is mitigated via forward foreign currency contracts providing protection to areas of the supply chain that derive from overseas. The directors believe that the company is well placed to continue thriving on all fronts during these adverse economic times and have reflected the likely liquidity impact into the forward-looking business plan

SECTION 172(1) STATEMENT

The directors take a hands-on approach in how each area of the business operates and foster a 'family' environment by creating the conditions for success. It is important to the company that staff can identify change and communicate their ideas, which in the company's view creates a culture where people can thrive. Regular branch visits, training seminars and company conferences ensure a direct link between the directors, senior management, and the various teams throughout the business.

Gender pay gap analysis and mitigation is something very much at the forefront of how the business operates. The company aims to ensure that a culture of differing pay based on gender does not exist.

Pets Corner is committed to ensuring that there is no modern slavery or human trafficking in its supply chains or in any part of its business. The Anti-Slavery Policy, which is published on the company's website, reflects its commitment to acting ethically and with integrity in all its business relationships. Implementing and enforcing effective systems and controls ensure slavery and human trafficking is not taking place anywhere in its supply chains.

As part of the company's initiative to identify and mitigate risk, supply chains are discussed at board meeting and systems are in place to:

- Identify and assess potential risk areas in supply chains.

- Mitigate the risk of slavery and human trafficking occurring in supply chains.

- Monitor potential risk areas in supply chains; and

- Protect whistle blowers.

The company's supplier relationships are maintained by central purchasing and finance teams. Pets Corner constantly strives for perfection and its purchasing team focus heavily on the innovation of new product development with the support of directors. for the past 8 years, the company has operated a policy of supporting smaller companies, having been one itself, by guaranteeing faster payment terms of 14 days to companies with a low turnover threshold.

The Pet Market continues to show strong growth with demand increasing for products and services that add to the pet's health and wellbeing. Pets Corner aim to provide the consumer with not only exceptional products but also the best trained staff in the industry.

ON BEHALF OF THE BOARD:

S Defaye - Director

28 October 2025

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review continued to be the sale of pet accessories.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2024 will be £5,460,684 .

FUTURE DEVELOPMENTS

The company is constantly looking at ways to grow its portfolio of Pets Corner stores and grooming spas within the UK, whilst also focusing on the global supply of its high end, home branded food and accessories. The Pet Industry has seen its challenges over the last 12 months, particularly within retail units which has restricted the company's ability to plan in terms of identifying a large number of future sites. The company is focused instead on enhancing the existing estate with new concepts alongside opening fewer stores.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

D Richmond

S Forrest

S Defaye

EMPLOYEES

Pets Corner is focused on job creation for individuals and contributing to economic success. The company acquired a small retailer at the start of the year which contributed 4 additional stores to the Pets Corner portfolio, and invested in the opening of 7 new stores, including 5 new Dogwood Spa's. During the year, 2 stores were relocated and 1 store was closed. There has been continued, significant investment into training of dedicated staff to ensure they are equipped with the necessary up to date nutritional skills to advise customers on what is best for their pets. The company is also focused on training central staff to ensure up-skilling in key strategic support areas such as IT and Finance.

The company's approach to remuneration is based on providing competitive salaries together with bonus and incentive schemes that reward individuals based on shared goals and performance.

Equality of opportunity is hardwired into the culture at Pets Corner. The Company takes great pride in its track record of

progressing people from within the business into more senior roles.

It is the company's policy to give employment to disabled persons, wherever practicable, and to ensure that the working environment does not prevent disabled people from taking up positions for which they are suitably qualified. Disabled employees would be provided with the same training and opportunities as available to all employees to develop their full potential within the company.

Full support will be given to employees who become disabled, enabling them to maintain or return to a role appropriate to their experience and abilities within the company.

ENGAGEMENT WITH EMPLOYEES

Pets Corner provide staff with regular updates on company performance, new initiatives, new store openings and new product development to gain feedback in an effort to continue to improve each aspect of the business. The directors and by extension senior management, strive to keep staff updated on the financial and economic position that Pets Corner operates in.

FINANCIAL RISK MANAGEMENT

In accordance with S414C(11) Companies Act 2006, refer to the Strategic Report for matters relating to Liquidity, Credit and Financial Risk.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Refer to Section 172(1) statement within Strategic Report.

STREAMLINED ENERGY AND CARBON REPORTING

Approach

The UK Government's environmental reporting guidance on how to measure and report greenhouse gas emissions has been used, along with the provided greenhouse gas reporting figures for the relevant year. The financial control approach has been used to define the scope boundary.

Reporting Period

The reporting period is 1st October 2023 to 30th September 2024, aligning with the company's financial year.

Base Year & Changes in Emissions

A base year of 1st October 2022 to 30th September 2023 has been used. The base year is used as the benchmark for emission data and consumption changes, and the changes between this reporting period and the base year have been recorded and detailed. The recalculation policy is to recalculate the base year emissions only for relevant significant changes which meet the threshold of affecting 5% of base year emissions.

Operational Scopes

Scope 1, 2 and 3 emissions have been included within this report. Pets Corner occupied 166 buildings during this period, where electricity is the primary and only utilities used. Pets Corner owned company vehicles and had staff mileage claims. All activities are based within the UK.

Scope 1 emissions consist of natural gas usage within the building and fuel from company owned vehicles.

Scope 2 consists of electricity usage within the building.

Scope 3 emissions consisting of grey fleet have been included.

Table 1 shows the breakdown of carbon emissions, in tonnes of carbon dioxide equivalent (tCO2e) by scope and specific area, with comparison to the base year

Table 1 - Breakdown of consumption and carbon emissions by scope, with comparison to the base year, for the current reporting period 1st October 2023 to 30th September 2024.

Base Year (FY2023)

Current Year FY 2024

tCO2e change

tCO2e

% of total

tCO2e

% of total

Scope 1

362.54

20%

318.68

19%

-43.86

Natural Gas (kWh)

4.86

0.00

-4.86

Company Vans Diesel (L)

109.57

104.52

-5.05

Company Lorries Diesel (L)

248.11

14%

214.16

13%

-33.95

Scope 2

1,320.10

72%

1,201.04

73%

-119.06

Electricity

1,320.10

72%

1,201.04

73%

-119.06

Scope 3

142.85

122.24

-20.61

Grey fleet mileage

142.85

122.24

-20.61

Gross emissions (location

based)

1,825.49

100%

1,641.96

100%

-183.53

Less Renewable Electricity

688.90

38%

768.91

47%

80.01

Market-based Electricity

631.20

35%

973.20

59%

342.00

Gross Emissions (Market

Based)

1,136.59

62%

1,414.12

86%

277.53

Less Offsets

1,137.00

62%

1,415.00

86%

278.00

Net emissions

-0.41

(0%)

-0.88

-0.47

Carbon Offsets & Electricity

Electricity purchased for own use or consumption: 5,800,706.09Wh.

Renewable electricity generated from owned or controlled sources: 3,713,631.35 kWh.

Pets Corner recognise that the company's primary responsibility is to reduce emissions as far as possible. However, as Pets Corner work towards responsible consumption practices, to mitigate any impact, a green tariff for 100% renewable electricity has been purchased for the properties they are responsible for purchasing utilities for. Every unit of renewable energy purchased comes with its own Renewable Energy Guarantee of Origin (REGO) certificate. This means there are no associated carbon emissions from electricity, reducing the carbon footprint by 768.91 tCO2e, however location-based grid average emissions have been used to report the emission figure. As well as this, verified carbon offset credits have been purchased to offset all other emissions. For the reporting period, 1,415 tCO2e of verified carbon credits have been purchased, making Pets Corner carbon neutral.

Intensity Ratios & Targets

An overall intensity ratio of gross Scope 1, 2 and 3 emissions per £M turnover has been calculated. This will allow comparison and benchmarking with similar sites and organisations and still drives energy reduction goals. Although building electricity is sourced through renewable contracts, the location-based grid average emissions have been used to calculate intensity ratios.

The previous reduction target was to reduce gross Scope 1, 2 and 3 emissions by 5% from FY2023 to FY2024. The chosen emissions reduction target for this financial year is to reduce the overall business intensity ratio by 5% from FY2024 to FY2025. The target is based upon the intensity ratio to improve performance, rather than allow for spurious improvements due to changes in operations. If the turnover theoretically remains the same across the current and upcoming reporting periods, predicted gross emissions are 1,343.42 tCO2e. Table 2 shows the intensity ratio of £92.38M and target for the business, with comparison to the base year.

Table 2 - Overall intensity ratio, target, and predicted tCO2e, with comparison to the base year. Intensity ratios are presented as Gross and Net Scope 1, 2 and 3 tCO2e/£M turnover.

Previous Year (FY2023)

Current Year (FY 2024)

Predicted FY 2025

tCO2e

Intensity

ratio

tCO2e

Intensity

ratio

Predicted

tCO2e

Intensity

Target

Gross emissions

(Location based)

1,825.49

20.26

1,641.96

17.77

1,559.86

16.89

Gross emissions

(Market Based)

1,136.59

12.61

1,414.12

15.31

1,343.42

14.54

Net emissions

-0.41

0.00

-0.88

0.00

-0.90

0.00

Carbon Reduction Initiatives

Pets Corner were required to comply with ESOS Phase 3, which details their carbon reduction and energy efficiency initiatives. Pets Corner also mitigate their environmental impact by purchasing renewable electricity and purchasing carbon credits to offset their remaining tonnes of carbon.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The company's auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

S Defaye - Director

28 October 2025

Opinion

We have audited the financial statements of Pets Corner (UK) Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 2 to the financial statements which describes how the ability of the company to continue as a going concern is affected by the refinancing of the borrowing facilities in its ultimate parent company, Pet Family Group Limited, which fall due for refinancing within the 12 months following the date of approval of these financial statements, and the risk associated with the refinancing of these facilities and ongoing availability of finance should the facilities not be renewed. The conditions that are set out in note 2 result in a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to the extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. This included, but were not limited to, the Companies Act 2006, employment law and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to misstate revenue or expenditure, and management bias.

Audit procedures performed by the engagement team included:

- discussions with management, including considerations of known or suspected instances of non-compliance with

laws and regulations and fraud;

- gaining an understanding of management's controls designed to prevent and detect irregularities; and

- identifying and testing journal entries.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Dean LLB ACA (Senior Statutory Auditor)

for and on behalf of Mercer & Hole LLP

Chartered Accountants

21 Lombard Street

London

EC3V 9AH

28 October 2025

TURNOVER

92,387,498

90,887,861

Cost of sales

37,081,214

34,379,119

GROSS PROFIT

55,306,284

56,508,742

Distribution costs

939,227

1,101,086

Administrative expenses

51,382,181

47,449,211

52,321,408

48,550,297

2,984,876

7,958,445

Other operating income

1,836,690

1,527,729

OPERATING PROFIT

4,821,566

9,486,174

Interest payable and similar expenses

196,018

195,872

PROFIT BEFORE TAXATION

4,625,548

9,290,302

Tax on profit

553,835

(80,782

)

PROFIT FOR THE FINANCIAL YEAR

4,071,713

9,371,084

OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

4,071,713

9,371,084

All activities relate to continuing operations.

The notes on pages 12 to 23 form part of these financial statements.

FIXED ASSETS

Intangible assets

3,401,209

2,929,961

Tangible assets

15,891,955

15,229,606

19,293,164

18,159,567

CURRENT ASSETS

Stocks

18,760,394

16,569,176

Debtors

20,653,430

15,526,957

Cash at bank and in hand

267,775

1,174,765

39,681,599

33,270,898

CREDITORS

Amounts falling due within one year

43,230,311

34,831,763

NET CURRENT LIABILITIES

(3,548,712

)

(1,560,865

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

15,744,452

16,598,702

CREDITORS

Amounts falling due after more than one

year

(1,171,305

)

(1,068,178

)

PROVISIONS FOR LIABILITIES

(839,264

)

(407,670

)

NET ASSETS

13,733,883

15,122,854

CAPITAL AND RESERVES

Called up share capital

1,509,950

Capital redemption reserve

705,050

Retained earnings

11,518,883

12,907,854

SHAREHOLDERS' FUNDS

13,733,883

15,122,854

The notes on pages 12 to 23 form part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2025 and were signed on its behalf by:

S Defaye - Director

Called up

Capital

Retained

redemption

Total

Notes

capital

earnings

reserve

equity

Balance at 1 October 2022

1,509,950

11,827,059

705,050

14,042,059

Changes in equity

Dividends 10

(8,290,289

)

(8,290,289

)

Total comprehensive income

9,371,084

Balance at 30 September 2023

1,509,950

12,907,854

705,050

15,122,854

Changes in equity

Dividends 10

(5,460,684

)

(5,460,684

)

Total comprehensive income

4,071,713

Balance at 30 September 2024

1,509,950

11,518,883

705,050

13,733,883

1.	COMPANY INFORMATION

Pets Corner (UK) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal activity for the year under review continued to be that of the sale of pet products.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£), which is the functional currency of the company, and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

The company is a qualifying subsidiary. The parent company is Pet Family Limited. The ultimate parent company is Pet Family Group Limited into which results of the company are consolidated. Consolidated accounts can be obtained from the company's registered office.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts, rebates, coupons, returns and excluding value added tax, sold in the ordinary course of business and arises from activities in the United Kingdom.

Income from the sale of goods represents food and accessories, sold in store and online, with revenue recognised at the point of sale, being the point at which risks and rewards of ownership have been transferred to the customer.

Income from services represents grooming revenue, with revenue recognised at the point of service to the customer.

Operating leases (recognised as income)

Revenue from operating leases is recognised on a straight-line basis over the lease term.

Goodwill

Goodwill brought forward relates to the amount paid in connection with the acquisition of businesses in 1999, 2005, 2006, 2010 and 2011 and was amortised over its estimated useful life of 10 years.

Intangible assets

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Lease premiums are being amortised evenly over the terms of the leases.

Computer software includes both general software and bespoke software. Bespoke software is being amortised evenly over its estimated useful life of five years and general software is amortised over its estimated useful life of three years.

Web development is being amortised over its estimated useful life of 3 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

20 - 33% straight line

Fixtures and fittings

10 - 20% straight line

Motor vehicles

25% straight line

Tangible assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are valued at the lower of cost, using the first in first out method, and selling price less costs to complete and sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

Employee benefits are recognised as an expense in the period in which they are incurred.

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.

Lease Incentives

The benefit of lease incentives are recognised in profit and loss account over the lease period.

Onerous lease provision

A provision for onerous lease contracts is recognised when the expected benefits to be derived by the company from a contract are lower than the unavoidable cost of meeting its obligations under the contract.

Financial instruments

Basic financial instruments are recognised at amortised cost, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when, in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party and in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless they are included in a hedging arrangement.

The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates.

Going concern

The company generated a profit for the financial year of £4,071,713 (2023: £9,371,084). Whilst the company has net current liabilities of £3,548,712, the amount is impacted by additional intercompany loans of £6,463,215 during the year with no risk of these amounts needing to be settled. At the balance sheet date, the business is in a strong net asset position of £13,733,883 and the financial statements have been prepared on a going concern basis, which the directors consider to be appropriate for the following reasons.

The company have prepared cash flow forecasts covering at least a 12 month period from the date of approval of these financial statements.

In preparing the forecasts, the company has considered areas of uncertainty and a number of underlying assumptions including growth expectation. These forecasts show that the company continues to have sufficient levels of cash for the forecast period.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements.

The company is subject to a fixed and floating charge covering all property or undertaking of the company in relation to the borrowings in its ultimate parent company, Pet Family Group Limited ("the Group"). The Group has borrowing facilities totalling £35.1m that are due for refinancing within the period covered by the Directors' going concern assessment. Consequently, there is a risk associated with the refinancing of these facilities, and the Directors have concluded that this constitutes a material uncertainty that may cast doubt on the Group's and company's ability to continue as a going concern should the facilities not be renewed, which therefore warrants disclosure in the financial statements. However, despite the uncertainty, the Directors are satisfied that the group will be able to renew its financing after considering the following factors:

- The Group maintains strong and long-standing relationships with its lenders.

- The Board is confident in the successful renewal of the facilities on commercially acceptable terms.

- The Group's cash flow forecasts, which incorporate the expected refinancing, demonstrate sufficient liquidity to meet its liabilities as they fall due over the forecast period.

After considering these factors, the Board is confident that the Group will be able to renew its financing, continue its operations for the foreseeable future, and meet its liabilities as they fall due.

Accordingly, the Directors consider it appropriate to prepare the financial statements for the company on a going concern basis.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires the Company to make certain judgements, assumptions and estimates about the carrying amounts of assets and liabilities. The Company believes that the estimates, assumptions and judgements upon which it relies are reasonable based on the information available to it at the time that those estimates, assumptions and judgements are made. The estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results may ultimately differ from these estimates.

The key sources of estimation uncertainty and critical accounting judgements are as follows:

Impairment of assets

The carrying value of tangible assets is calculated on the basis of estimates of depreciation periods derived from the expected useful life of the asset concerned, and residual values. The expected useful life of the asset concerned and its estimated residual value may change under the influence of technological developments, market circumstances and changes in the use of the asset. These factors may also give rise to the need to recognise an impairment on assets.

Whenever there is an indication that these assets may be impaired, the recoverable amount is determined on an individual asset basis. If the recoverable amount of the asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount.

The difference between the carrying amount and the recoverable amount is recognised as an impairment loss in profit or loss.

Provisions for dilapidations

Provisions for dilapidations is the area involving estimates and judgements where there is the greatest risk of a material adjustment in future years. The current provision is based on management’s current best analysis of the future obligation. However, various factors and changes in circumstances such as building and materials costs could affect any amount payable in the future.

Stock provisions

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment is recognised immediately in profit or loss.

Depreciation and amortisation

The Directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

Sale of goods

87,903,801

86,858,993

Sale of services

4,483,697

4,028,868

92,387,498

90,887,861

All turnover arises in the UK.

5.	OTHER OPERATING INCOME

2024

2023

Rents received

276,781

239,229

Overhead recharges

1,559,909

1,288,500

1,836,690

1,527,729

Operating leases

The company has entered into sublet leases on a number of its sites.

Future aggregate minimum lease rentals receivable under non-cancellable leases as at 30 September 2024 are as follows:

2024

2023

Within 1 year

232,266

After 1 year but not more than 5 years

838,895

802,497

More than 5 years

581,329

853,661

1,652,490

1,888,424

6.	EMPLOYEES AND DIRECTORS

2024

2023

Wages and salaries

21,059,325

20,547,235

Social security costs

1,560,558

1,553,322

Other pension costs

625,915

347,232

23,245,798

22,447,789

The average number of employees during the year was as follows:

2024

2023

Head Office

Retail

1,032

1,025

Warehouse

1,208

1,194

2024

2023

Directors' remuneration

382,514

479,686

Directors' pension contributions to money purchase schemes

7,044

2,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

Information regarding the highest paid director is as follows:

2024

2023

Emoluments etc

179,445

204,676

Pension contributions to money purchase schemes

3,522

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

Other operating leases

65,759

44,042

Depreciation - owned assets

3,800,878

3,777,851

Depreciation - assets on hire purchase contracts

1,053,791

964,839

Profit on disposal of fixed assets

(3,531

)

(7,962

)

Amortisation

1,024,736

844,310

Auditors' remuneration

42,105

40,100

Foreign exchange differences

117,900

(40,131

)

Operating lease - rent

9,047,218

8,440,484

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

Bank interest

Hire purchase

195,986

195,872

196,018

195,872

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2024

2023

Current tax:

UK corporation tax

232,869

1,610,445

Adjustment for prior periods

(110,628

)

130,548

Total current tax

122,241

1,740,993

Deferred tax:

Origination and reversal of timing differences

356,302

(183,611

)

Adjustment for prior period

75,292

(1,638,164

)

Total deferred tax

431,594

(1,821,775

)

Tax on profit

553,835

(80,782

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

Profit before tax

4,625,548

9,290,302

Profit multiplied by the standard rate of corporation tax in the UK of 25%

(2023 - 22%)

1,156,387

2,043,866

Effects of:

Expenses not deductible for tax purposes

36,334

92,693

Capital allowances in excess of depreciation

(24,693

)

Depreciation in excess of capital allowances

107,768

Group relief

(711,318

)

(659,369

)

Adjustment to tax charge in respect of previous periods

(110,628

)

130,548

Adjustment to tax charge in respect of previous periods - deferred tax

75,292

(1,638,164

)

Remeasurement of deferred tax for changes in tax rates

(21,973

)

Rounding difference

763

Income not taxable for tax purposes

(2,969

)

Additional deduction for land remediation expenditure

(1,484

)

claimed

Total tax charge/(credit)

553,835

(80,782

)

10.

DIVIDENDS

2024

2023

Ordinary shares of £1 each

Final

4,145,021

8,290,289

Interim

1,315,663

5,460,684

8,290,289

11.	INTANGIBLE FIXED ASSETS

Web

Lease

Computer

Goodwill

development

premium

software

Totals

COST

At 1 October 2023

1,385,237

221,741

586,175

3,668,918

5,862,071

Additions

267,989

1,227,995

1,495,984

At 30 September 2024

1,385,237

489,730

586,175

4,896,913

7,358,055

AMORTISATION

At 1 October 2023

1,385,237

72,004

256,919

1,217,950

2,932,110

Amortisation for year

94,736

77,025

852,975

1,024,736

At 30 September 2024

1,385,237

166,740

333,944

2,070,925

3,956,846

NET BOOK VALUE

At 30 September 2024

322,990

252,231

2,825,988

3,401,209

At 30 September 2023

149,737

329,256

2,450,968

2,929,961

Amortisation of intangible fixed assets is included in administrative expenses.

12.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

COST

At 1 October 2023

3,901,528

36,392,438

582,260

40,876,226

Additions

397,056

4,984,884

135,078

5,517,018

At 30 September 2024

4,298,584

41,377,322

717,338

46,393,244

DEPRECIATION

At 1 October 2023

2,699,288

22,514,565

432,767

25,646,620

Charge for year

509,920

4,295,876

48,873

4,854,669

At 30 September 2024

3,209,208

26,810,441

481,640

30,501,289

NET BOOK VALUE

At 30 September 2024

1,089,376

14,566,881

235,698

15,891,955

At 30 September 2023

1,202,240

13,877,873

149,493

15,229,606

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

COST

At 1 October 2023

841,775

3,774,599

294,895

4,911,269

Additions

203,431

989,995

125,485

1,318,911

Transfer to ownership

(39,880

)

(890,467

)

(930,347

)

Reclassification/transfer

308,168

310,696

618,864

At 30 September 2024

1,313,494

4,184,823

420,380

5,918,697

DEPRECIATION

At 1 October 2023

317,113

1,248,180

148,715

1,714,008

Charge for year

220,892

786,410

46,489

1,053,791

Transfer to ownership

(39,880

)

(625,695

)

(665,575

)

Reclassification/transfer

34,871

49,014

83,885

At 30 September 2024

532,996

1,457,909

195,204

2,186,109

NET BOOK VALUE

At 30 September 2024

780,498

2,726,914

225,176

3,732,588

At 30 September 2023

524,662

2,526,419

146,180

3,197,261

The reclassification / transfer of assets relates to assets purchased in the prior year that were financed within the current financial year and have therefore been reclassified as assets held under hire purchase contracts.

13.

STOCKS

2024

2023

Stocks - finished goods

17,743,585

16,199,159

Goods in transit

1,016,809

370,017

18,760,394

16,569,176

14.

DEBTORS

2024

2023

Amounts falling due within one year:

Trade debtors

441,212

338,995

Other debtors

515,155

660,044

Prepayments and accrued income

2,835,224

2,504,608

Amounts owed by group undertakings

15,797,173

11,327,226

Amounts owed by related parties

1,063,216

696,084

20,651,980

15,526,957

Amounts falling due after more than one year:

Other debtors

1,450

Aggregate amounts

20,653,430

15,526,957

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

Hire purchase contracts (see note 17)

1,381,441

1,701,163

Trade creditors

7,009,666

8,495,608

Amounts owed to group undertakings

25,559,225

14,626,063

Corporation tax payable

(36,612

)

1,740,993

Social security and other taxes

329,345

353,535

VAT

595,423

1,180,852

Other creditors

2,360,405

688,227

Amounts owed to related parties

3,702,856

3,920,423

Accruals and deferred income

2,328,562

2,124,899

43,230,311

34,831,763

16.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

Hire purchase contracts (see note 17)

1,171,305

1,068,178

17.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2024

2023

Gross obligations repayable:

Within one year

1,523,411

1,820,289

Between one and five years

1,238,189

1,128,520

2,761,600

2,948,809

Finance charges repayable:

Within one year

141,970

119,126

Between one and five years

66,884

60,342

208,854

179,468

Net obligations repayable:

Within one year

1,381,441

1,701,163

Between one and five years

1,171,305

1,068,178

2,552,746

2,769,341

Non-cancellable

operating leases

2024

2023

Within one year

7,417,257

6,529,077

Between one and five years

24,586,644

22,430,883

In more than five years

19,647,705

19,160,157

51,651,606

48,120,117

18.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

Hire purchase

2,552,746

2,769,341

The total obligations under hire purchase and finance leases are secured by the assets financed by those agreements, the net book value of these assets is £3,732,588 (2023: £3,197,261).

HSBC UK Bank plc hold a debenture dated 28 July 2023 secured on property Coombe Court, 137-139 Malling Street, Lewes, BN7 2RB and by way of a fixed and floating charge covering all property or undertaking of the company.

19.	PROVISIONS FOR LIABILITIES

2024

2023

Deferred Tax

589,264

157,670

Dilapidation provision

250,000

839,264

407,670

Deferred

tax

Balance at 1 October 2023

157,670

Accelerated capital allowances

356,302

Adjustment to prior year

75,292

Balance at 30 September 2024

589,264

The balance brought forward, together with the movement for the year, relates to accelerated capital allowances.

The company recognises a provision in respect of anticipated costs to put, at the end of the lease, the properties it leases back into the same condition it was when the lease commenced (dilapidation provision).

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

1,509,500

Ordinary

£1

1,509,500

450

Non-Voting B Shares

£1

450

1,509,950

The ordinary shares have equal dividend, voting and distribution rights.

21.

RESERVES

Called up share capital - represents the nominal value of shares that have been issued.

Capital redemption reserve - represents the nominal value of shares repurchased by the company.

Profit and loss account - includes all current and prior period retained profits and losses.

22.	PENSION COMMITMENTS

Pension contributions are made under defined contribution schemes.

The assets of the schemes are held separately from those of the company in independently administered funds. The pension costs charge represents contributions payable by the company and amounted to £625,915 (2023: £347,232). Contributions totalling £88,243 were payable at the year end and are included in creditors (2023: £87,260).

23.	OTHER FINANCIAL COMMITMENTS

The company have entered into additional finance agreements after the year end totalling £1,301,630.

24.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 September 2024 and 30 September 2023:

2024

2023

D Richmond

Balance outstanding at start of year

Amounts advanced

2,066,786

472,241

Amounts repaid

(2,066,786

)

(472,241

)

Balance outstanding at end of year

25.	RELATED PARTY DISCLOSURES

During the year, the company entered into transactions, in the ordinary course of business, with other related parties. Transactions entered into, and trading balances outstanding at 30 September 2024, are as follows:

Summary of transactions with fellow subsidiaries

Included within creditors is an amount of £606,845 owed to fellow subsidiaries not wholly owned by the parent (2023: £232,207) During the year the company made purchases totalling £2,625,377 (2023: £3,401,210) from these companies and sales totalling £190,744 to the companies.(2023: £184,175).

Included within debtors is an amount of £464,115 owed by fellow subsidiaries not wholly owned by the parent. (2023: £684,483). During the year, the company made purchases totalling £470,690 (2023: £1,153,065) from these subsidiaries and sales totalling £1,473,206 (2023: £380,683).

Summary of transactions with other related parties

Included within creditors is a total of £3,702,856 owed to companies incorporated in England & Wales under common control and that are associates of the parent (2023: £3,920,423). During the year the company paid market rents to one of these companies totalling £618,608 (2023: £571,920), made purchases totalling £11,340,599 (2023: £8,943,949) and sales totalling £219,090 (2023: £88,769).

Included within debtors is £1,063,216 owed by companies incorporated in England & Wales under common control and that are associates of the parent (2023: £696,084). During the year the company made sales to these companies totalling £358,313 (2023: £241,366) and purchases from them totalling £538,185 (2023: £1,481,587).

Unlimited Multilateral Guarantee dated 26 July 2023 given by Pets Corner (UK) Limited, Pet Family Group Limited, Symply Pet Foods Ltd, Wooburn Green Property Ltd, Domus Property Ltd, Pet Family Ltd, Yora Pet Foods for the Planet Ltd, Pet Family 2021 Limited, Canagan 2021 Limited and Cangagn Group

Limited.

Exemption taken for disclosure of balances and transactions with other group companies.

Key Management Personnel

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of key management personnel for the period was £780,063 (2023: £870,581).

26.	ULTIMATE PARENT COMPANY

The ultimate parent company is Pet Family Group Limited, a company incorporated in England & Wales, in which the results of the company are consolidated. The registered office and principal place of business is Unit 1000, Spindle Way, Crawley, West Sussex, RH10 1TG.

27.	ULTIMATE CONTROLLING PARTY

By virtue of his shareholding in Pet Family Group Ltd, the ultimate parent company, Mr D Richmond is the ultimate controlling party.