Pharmacy chain Davidsons, which is predominantly based in the north east of Scotland, is eyeing further expansion after recording a profits boost.
The firm, which has a workforce of 350 staff across 37 locations saw an increase in pre-tax profits of more than £600,000, rising from £3.44 million in 2018, to £4.05 m in 2019.
Allan Gordon, managing director, said: “These are positive figures and come against a backdrop of cuts in the NHS, where the vast bulk of our business comes from.
“There is a shortage of GPs, which in turn leads to less prescribing, and we have also noticed that GPs are moving patients to cheaper medicines.
“The addition of an additional subsidiary company has been a contributory factor in the year’s figures.
“The over the counter section ofthe business has been under some stress, but it only accounts for some 8% of revenue.
“However, we have also been concentrating on our buying procedures, our IT systems and taking advantage of deals from manufacturers.
Mr Gordon said that the increased profits will be used to fund further acquisitions, after signing off a deal which will see company’s estate reach 40 units by the end of the year.
He said: “Getting to 40 sites is a real milestone for us, but we are looking to expand further, with a target of 50 premises.
“The figures we have recorded means that we can fund new opportunities in cash.”
Mr Gordon added that he expected the next year to be a “big challenge” with pharmacies coming under increased scrutiny from the NHS, which provides the bulk of the company’s income.
However, Brexit was not necessarily seen as “a major issue” for the company.
He said: “We have had to live with drug shortages over the past five to six years, so in some ways we are kind of used to it and we can stock up to a certain extent.”
The firm, which specialises in retail pharmacy and veterinary chemists has continued with a programme of investment in their existing properties, carrying out multiple refits and upgrades, together with the installation of robotic automated dispensing systems.
The company which was founded in 1897, has moved with the times and now offers a range of services including smoking cessation, gluten-free services and medicine compliance aids to help patients take the right medicines at the right time, and a text messaging service to alert patients their items are ready.
jimillar@thecourier.co.uk