Profits are down at major family pharmacy
By Andrew Merrell | 6th January 2020
Annual profits are down at a family pharmacy business which has become a household name in Gloucestershire.
According to its most recent accounts (for the period up to March 2019), profit before tax was down from £654,789 to £287,185.
But the headline numbers do not tell the whole story - with Badham Pharmacy Ltd having invested heavily in 2019 in opening two more practices within the county.
"During the year the company continued to grow its retail pharmacy operations through organic growth and acquisitions. At the end of the year, the company has 19 pharmacies across Gloucestershire and one pharmacy in Bristol. The pharmacies are supported by a mobility shop.
"The company acquired two pharmacies in central Gloucester during the year. One pharmacy is located in the Aspen Medical Centre, which serves approximately 30,000 patients. The second pharmacy is located on a business high street in close proximity to the Aspen Medical Centre.
"The pharmacies continue to be at the centre of the local community, dispensing 1,973,743 items, which following the acquisitions is a 12 per cent increase on the prior year," said Charles Badham, a director of the Cheltenham headquartered business.
In June the award-winning pharmacy was also able to announce that after what it called a "seven-year-long fight" with NHS England, it was at lastable to open its third pharmacy contract in Bishops Cleeve, Cheltenham.
It is not just the investment in new businesses which ate into its profits.
"The impact of cuts in NHS funding and 'category M' clawback in the year continued to depress the gross profit margin and the cash flow of the company.
"Following the announcement of the new pharmacy contract the Government has continued to support the growth of additional services being offered by pharmacy, although this will be funded by a reduction in dispensing income as the overall pharmacy funding has remained at £2,592 million.
"The key business risks and uncertainties affecting the company are considered to relate to reductions in NHS funding and the competition in the local market."
Net assets have increased from £5,177,285 to £5,388,672.
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