Broker sees vet business as hidden value driver at Pets at Home

Shore Capital has highlighted a growing divergence within Pets at Home Group PLC (LSE:PETS), the UK's largest specialist pet retailer, arguing that the higher-margin veterinary division is being undervalued by a market focused on weakness in the retail business. The broker's assessment came as Pets at Home reported full-year results showing group consumer revenue up 1% to £1.98 billion but adjusted pre-tax profit down roughly 30% to £93 million.