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Retailer Pets at Home has decided not to float despite a 55.6 per cent increase in profit for the year because of concerns about the economy.

For the year to March 27th 2008, Pets at Home said like-for-like sales were up eight per cent while 20 new stores were opened, bringing the total to 213.

Profit before tax increased by 55.6 per cent to £30.9 million on sales of £354.6 million.

Pets at Home was founded in 1991 and was bought by private equity firm Bridgepoint for £230 million in 1994. It sells a range of foods and accessories for cats, dogs, small animals and fish as well as supplies for aviary and wild birds.

Last year, the company appointed advisers to look at a sale or float of the business.

However, Matthew Davies, chief executive of Pets at Home, said: "Given the company's continued strong performance and our confidence in its future prospects, the board and its advisers have decided not to initiate a sale of the business in the current economic environment.

"To do so at this time would inevitably undervalue what is a fantastic business."

The company said it will continue to focus on increasing margin growth, introducing new ranges and services, as well as opening further stores and new veterinary practices.