- Pet product retailer and veterinary group Pets at Home Group said it grew its first-quarter revenue by 8.1%, though it stuck to its guidance for a contraction in margins.

Revenue for the three months through June rose to £277.4m, with retail revenue up 6.9% and vet group revenue up 18.4%.

On a like-for-like basis, sales grew 6.1%.

Pets at Home said it still expected gross margin dilution for the full year of 75-to-125 basis points.

The company said it had decided not to proceed with the opening of two stores, for which lease arrangements had been committed.

The full cost of the leases, at around £1.6m, would be absorbed within underlying profit in the first half.

'I am really pleased with our start to the year, particularly as trading across both retail and the vet business has been consistently strong,, chief executive Peter Pritchard said.

At 10:02am: [LON:PETS] Pets At Home Group Plc share price was +11.95p at 125.05p

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