Good morning, and welcome to the Q1 FY 2022 Trading Update Call with Pets at Home Group Plc. Participants will be able to ask questions later, but for now, I'd like to turn the call over to Peter Pritchard, Group Chief Executive Officer. Please go ahead. Thank you, Daniel. Good morning, everyone, thank you for joining the call. I hope you're keeping safe and well. I'm Peter Pritchard, the Group CEO. With me today is Mike Iddon, our Group CFO. We're pleased to share with you our Q1 trading update for our financial year FY 2022. Our quarter one covers the 16-week period from the 26th of March to the 15th of July, therefore, it's worth noting that the comparative quarter coincided almost exactly with the implementation of the first national lockdown last year. To help, we're presenting comparative numbers on both a one and a two-year basis. Many of the positive trends we discussed at our prelims back in May have not only continued into this financial year but have accelerated. This is reflected in the update that we're giving today. I'm pleased to say that our performance continues to be strong across the group, demonstrating the ongoing success of our pet care strategy. From our update today, there's five key messages that underpin our performance in the quarter. First, we again continue to grow our share of the U.K. pet care market. Our like-for-like group revenue increased by 30.2% year-on-year. That's an impressive 29.4% on a two-year basis. All parts of the group are growing. In retail, like-for-like grew by 29.1% year-on-year or 29.6% on a two-year basis. In our vet group, the like-for-like grew by 44.7% year-on-year, and that's 25.9% on a two-year basis. In retail, our sales growth was across all categories and all channels, with omnichannel revenue growth of 21.4% or 107.5% on a two-year basis. In our vet group, customer sales remain an important measure of the momentum across our joint venture estate and is now closely aligned to fee income growth as our program of fee adjustments are now fully annualized during FY 2021 as they were planned to. Like-for-like customer sales across our joint venture practices increased by 44.5%. That's really testament to the strength of our joint owner operator model. Like-for-like joint venture income grew by 48.1% in the quarter. Second, we're continuing to see growth in new customers across all channels. This is driven in part by our puppy and kitten growth, our Puppy & Kitten Club, I should say, which is focused on engaging new owners at the very start of their pet care journey. Crucially, the club introduces them to all parts of our business, helping to drive an average spend uplift of approximately 30% versus non-members. It's actually grown 167% year-on-year. That was supported by our TV campaign in the quarter. The trend for new pet ownership has continued. We saw our strongest ever week of new sign-ups during quarter one. Puppy & Kitten Club members ultimately feed into our VIP loyalty club. Our VIP loyalty club membership now stands at a record 6.6 million members. That's up 17% year-on-year. New pet owners need a vet. New client registrations across our veterinary practices are now averaging over 10,000 per week, roughly one in 10 visits. That's supported by the continued success of our in-store referral program and our puppy and kitten program. Third, our VIP gives access to rich customer data and of course insight. The investment we've made in our data capabilities is helping us use that insight to better serve our customers and in turn increase our customer share of wallet and the annuity-like income. The number of subscription plans across the group grew by 24% year-on-year to over 1.3 million plans. That's now generating over GBP 100 million in annualized recurring revenue. Our new dedicated propositions team are developing unique bundles of products and services, and our newest plan, Complete Care Junior, a health plan for puppies and kittens, is already proving popular with customers. It's actually the first plan to include 24-hour access to our vet helpline provided by The Vet Connection, this telehealth business that we acquired last year. We're working really hard to encourage customers to shop across our entire ecosystem. I'm pleased to report that 26% of all our VIPs shopped across more than one channel during the quarter, so that's up 18% year-on-year. Fourth, we continue to drive productivity gains across our operations. As I'm sure you're all aware, there are many well-reported inflationary pressures such as freight, and we're proactively trying to mitigate these using our strong top-line growth as a catalyst and specific initiatives to increase our operational efficiency across our business. For example, our successful program of rent renegotiations continues, and we've also recently launched a new project focused on improving product availability and lower fulfillment costs, and this project commenced during the quarter. Our pilot project to deliver orders to customers' homes from store stock has also launched in the quarter, which once scaled should generate significant cost efficiencies, as well as providing a flexible and convenient solution for customers. Finally, we continue to be laser-focused in the execution of our strategic priorities to accelerate growth across our pet care platform. We are progressing the digitization of our business, making pet care even easier for our customers through Project Polestar. We continue to roll out our new generation pet care centers through our store transformation project and with two new pet care centers launched in the quarter. Our new center in Handforth is particularly exciting, being the first to incorporate our brand new vet operating model. We continue the development of our new storage and distribution facility in Stafford, which has now broken ground earlier this month and is on target for go live in 2023. In concluding, our performance over the last quarter further demonstrates the strength of our unique pet care strategy and the robustness of the U.K. pet care market. I'm pleased that not only do we focus on running a successful business, but we also focus on building a good business too. We continue to do the right thing by all our stakeholders. We are progressing our Better World Pledge, helping create a better future for pets, the people that love them, and our planet. I'd like to express my sincere thanks and gratitude to every single colleague and partner across our business. This last quarter has not been easy, but these results reflect the hard work and commitment in serving the nation's pets. They are helping us build the best pet care business in the world. I'll stop there. I'm sure there'll be a number of questions which Mike and I will only be too pleased to answer. Let me hand you back to our call operator, Daniel. Thank you. If you would like to ask a question at this time, pleas press star one on your telephone keypad. It is star one on your telephone keypad. We will pause for just a moment to allow everyone an opportunity to signal. Thank you. We can now take our first question. It comes from Jonathan Pritchard at Peel Hunt. Please go ahead. Morning, all, well done on a great quarter. Just a couple on costs, if I may, and underlying assumptions going forward. Firstly, the GBP 9 million you mentioned from a COVID perspective and the sort of slowing in general that I think is implied in like-for-like, what are you all thinking? What's the underlying assumption on disruption from the pandemic? Are you assuming any further lockdowns, or are you assuming from the end of the year that that GBP 9 million sort of run rate, as it were, will be a lot lower? On freight, are we coming off the top a little bit there? We're talking hundreds of percent in terms of inflation there in some instances. Is that slightly coming off the top and calming down a bit, or do you think that'll persist for quite a bit longer? Hi, Jonathan. Thanks for those two questions. Let me hand you over to Mike first to talk about our view on disruption for balance here, then I'll come back and talk a little bit about freight and our view. Thanks, good morning, Jonathan. Yeah, you're quite right. We built GBP 9 million of COVID costs in, actually right from the beginning of the year, to reflect really the disruption we anticipated in the operation through whatever means it was COVID costs coming through. That, by the way, that works out at about GBP 380 per store per week. We are seeing those costs come through. A lot of our colleagues, like in many businesses, are having to self-isolate as they either track and trace, that will continue. In supply chain, there is disruption caused, and clearly, well understood difficulties that other consumer businesses are facing on their supply chain. We think that GBP 9 million is the right number. We hope, of course, that the pandemic clears up quicker than everybody expects and that life returns to normal. GBP 9 million is where we're tracking, and we'll be able to give an update on that when we give our half year numbers. You asked about freight. To context freight for us, we import about 3,000 containers a year. Last year, we were paying freight rates of about between $1,500-$2,000. A spot rate on containers today is anywhere between $12,000-$14,000. We're not buying at spot, but we're certainly buying at a higher rate than previous years. Year- on- year, that for us is probably around GBP 10 million of cost extra we're having to deal with in our plan. That's built into our guidance. As Peter said in his introductory comments, we've got a program to help mitigate that in terms of cost efficiencies, rent reduction, and other similar things. Nevertheless, it's a cost we're having to bear in the P&L. Like-for-like, that was your third point of your question. Clearly 30.2% reflects weak comp last year, but clearly, we've got strength in the business, got momentum. We're planning on around 10% for balance of the year. Quite a moderate growth compared to what we've seen in the first quarter. Nevertheless, if you look at our two-year like-for-likes, that still leaves us to do 20+ two-year like-for-likes for balance of the year. Still strong growth, but what will be driving that will be momentum coming out of the quarter we've just done. Plus, of course, as Peter was outlining, we've acquired a lot of new customers so far this year. I think just the other thing to add, Claire, because often when we talk freight, we obviously immediately focus on the retail business. I wouldn't forget the other dynamic, of course, of our business, which is our veterinary business. Our fixed costs are pretty much fixed. As we see stronger revenue growth coming in from customers, that just translates into higher fee growth, and that pretty much flows through our P&L very effectively. We have a natural hedge as well as we think about the overall pet care profit pool for us. You can see where our vet business is running relative to our retail business. That's the other thing that actually helps us balance off our overall equation. Of course, freight's impacting everybody. We're not isolated here. I think the other thing we'll be watching very carefully is what that means for inflation. We've got a very hard-won price position within pets, and I'm very keen to make sure that what we don't let happen is let that price position erode. If anything, I think we use our scale and our growth and our flow-through to make sure we keep our price actually very competitive. Great. Thanks a lot, guys. Thanks, Jonathan. Thank you. As a reminder at this time, it is star one to ask a question today. We can now move along to our next question. It comes from Tony Shiret of Panmure Gordon. Your line is open. Please go ahead. Morning, gents. Well done. You mentioned the data insights that you're getting through the sort of enhanced data capabilities you have. I just wonder if there's anything sort of specific and interesting you could point to as just a sort of general indicator of whether these insights are actually leading you to think differently about the business. Second question is about the retail like-for-like. I wonder if you could sort of split it down maybe into pricing, volume, mix, that type of stuff. Thank you. Thanks, Tony. I'll deal with the question on data insights, and I'll hand over to Mike to talk about how the retail like-for-like is forming. You're absolutely right. I think one of the things that we're seeing is as that capability is on board, we've now insourced all our data. What we're doing now is operationalizing that data. The biggest benefits we're seeing immediately are in CRM. Our mailings and our CRM to customers increasingly is getting more and more effective, and we can see that in the performance rates in terms of revenue spent from customers, our success rate. They just get better and better because our algorithms are learning very quickly and literally as we're now doing campaigns. We're actually modifying campaigns in flight as we see early response from consumers. There's a couple of areas I'd really point to that we're seeing significant success in this year. One i s in subscriptions. You've seen that we've now got 1.3 million plans. We've got really strong growth across flea and worm, Easy Repeat, and healthcare plans. What we've been doing there is looking at which customers are most likely to take a subscription out based on other customers, and therefore, it gives us a really effective target pool to go for. That's why you've seen such another strong performance in subscriptions and some of our early work there is proving to be very successful, so we're very interested in it. One of the other things actually, which is something which is work in progress, and I'll tell you about it because I only saw it last week, is we've been looking at our range optimization by store. Historically, we range quite flatly by store, so we range by space. Our data teams have been working very closely with our merchandising teams to provide much more tailored insight for store locations and range performance, and the early trial work there is really interesting. As we're doing our pet care reformat, it gives us an opportunity to reset space and make sure we really optimize. I think that's something that we hadn't anticipated when we were looking at our store refresh program, but something that actually started to build into it. I think the final point on data is when we invested in here, we obviously invested very clearly from a CRM point of view. What we're seeing is as we brought that capability in-house, the amount of problems that we're now solving by taking a data-led approach were never factored into our thinking. I think what it means is as we're making decisions, we're making actually significantly more sophisticated and nuanced decisions, which really flow through the P&L in many ways. For me, this has been a great experience and one that I'm really excited about because as our team continue to ramp up, I think the opportunities are still actually in cards or unknown because we're discovering them, but really exciting. I'll hand over to Mike to talk about retail like-for-likes. Yeah. Hi, Tony. Retail like-for-like for the quarter, you'll see in the statement is 29.1% in total. You break that back down into its components, store like-for-like was particularly strong at close to 28%. We report here omnichannel growth of 21.4%, and the other third component to that is our grooming business, which you may remember was closed for a lot of Q1 last year. We've got a very strong like-for-like growth in our grooming business. Add those three together, you get to the 29.1%. Two other features, though, to help add a bit of color. One is in category level, pretty much food and accessories is pretty equal in terms of their growth. Pretty much equal contribution to overall retail growth. In terms of shape of that, as a participation, our online business dropped back slightly compared to quarter one last year. We actually call that out in the statement. This time last year, our online business was 16.6% of sales. This year it's 15.6. I think that's understandable. More customers are going back into stores, and I think other businesses are seeing a similar trend. Whilst our omnichannel business is still growing really strongly, actually in the quarter, the biggest contribution by far is the contribution our stores have made to retail like-for-like. Mike, is there any price inflation in this like-for-like? Very little. It's all transactions. Inflation in terms of basket spend is less than 2%. Average transaction values haven't really moved significantly. This growth is driven by more customers, more transactions. Thank you very much. Thank you. We have no further questions at this time. As a final reminder today, if anybody would like to ask questions over the audio, it's star one. Thank you. We have no further questions. At this point, I'll hand the call back to the speakers for any additional or concluding remarks. Thank you. Great. Well, thank you very much, everybody. I know today is an incredibly busy day. There's a lot of results out, so I really appreciate your questions. Have a great summer. Hope you manage to get away. Andrew Porteous, if you're listening, hope you have a great wedding on Saturday. Thank you.