£24m of acquisitions give Cohens Pharmacy a shot in the arm

Bolton-based chemists chain Gorgemead, trading as Cohens Pharmacy, made more than £24m worth of acquisitions to boost its annual turnover to £168m from £76m.5m.

Pre-tax profits fell from £4.3m to £3.3m in the year to August, 2016, but the company carried on its policy of buying up chemist outlets despite increasing restrictions imposed by the government.

In his strategic report director Yakub Patel said: “The company operates in a highly regulated market and significant changes to those regulations may have a significant impact on the business.

“Management will continue to seek the right opportunities to continue to expand the group.
“Similar to the rest of the industry we have been hit with the recent decision to cut the lelvel of funding to the pharmacy community.”

Patel was referring to the decision by the government to cut funding by £113m to March 2017 and then by £208m from April, 2017 to March, 2018. This has been done by restricting fees paid to pharmacies.

During the period the company acquired seven pharmacies. They are: S & D Ross; Middle Chare Pharmacy; Denchem; R Hindhaugh (Chemists); Market Weighton Pharmacy; Old Cross Pharmacy; Group Pharmacy 1968.

Gorgemead now has 1,235 staff.

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