A former Boots manufacturing business in Nottingham has reported a \u00a31.38m loss following the closure of its production operations, while the workforce employed through a sister company has fallen by almost 80%.<\/p>\n
BCM Limited, which was once the manufacturing arm of Boots and produced healthcare, beauty and personal care products for the retailer, saw turnover collapse from \u00a358.94m in 2024 to \u00a33.56m in the year to December 31, 2025.<\/p>\n
The company reported a pre-tax loss of \u00a31.38m, compared with a \u00a356.5m profit the previous year, although the 2024 figure was heavily influenced by exceptional income linked to the restructuring.<\/p>\n
BCM has a long association with Boots’ historic Beeston manufacturing campus, where the D10 pharmaceutical factory opened in 1933.<\/p>\n
Originally known as Boots Contract Manufacturing, BCM produced products for Boots and other major healthcare and beauty brands, including ranges such as No7 skincare and Soltan sun protection.<\/p>\n
The business was sold to French manufacturing group Fareva in October 2017 as part of a wider agreement with Boots’ then parent company, Walgreens Boots Alliance.<\/p>\n
The deal included a ten-year global manufacturing and supply agreement covering own-brand beauty and private-label products.<\/p>\n
Although BCM ceased to be owned by Boots, the agreement established Fareva as a manufacturing partner for the retailer’s parent group.<\/p>\n
The latest accounts reveal the financial consequences of the subsequent decision to close manufacturing at the Nottingham site.<\/p>\n
Separate accounts for BCM Employment & Management Services Limited, which provides employment and management services to BCM, show average employee numbers fell from 310 in 2024 to 65 in 2025.<\/p>\n
The reduction of 245 employees represents a fall of 79%.<\/p>\n
The employment company said the decline followed the closure of BCM’s manufacturing operations in December 2024, with most of the headcount reductions completed during 2025.<\/p>\n
The figures reflect average employment across the respective years rather than the precise number of redundancies.<\/p>\n
Staff costs fell from \u00a318.01m to \u00a34.35m, while turnover at the employment business dropped from \u00a318.91m to \u00a34.66m.<\/p>\n
Despite the contraction, BCM Employment & Management Services returned to profit, reporting a \u00a3236,000 pre-tax profit compared with a \u00a316.64m loss in 2024.<\/p>\n
The company said it would continue providing staff for BCM’s remaining analytical services, research and development, commercial and procurement activities.<\/p>\n
The closure marks the end of manufacturing operations at a business whose roots stretch back more than a century.<\/p>\n
BCM had already undergone a major restructuring following its acquisition by Fareva.<\/p>\n
In 2018, the company announced plans to cut around 400 jobs as it moved away from producing toiletries, haircare products, perfumes and other lines, concentrating instead on selected healthcare and beauty products.<\/p>\n
At the time, Fareva said other factories within the group could manufacture some of those products more efficiently.<\/p>\n
BCM’s latest accounts show production of finished goods continued until the middle of 2024 before manufacturing activities were transferred to sister factories within Fareva.<\/p>\n
Its remaining Nottingham operations are focused on analytical testing services for customers in the pharmaceutical, healthcare and consumer goods sectors.<\/p>\n
Revenue from these services increased from \u00a32.4m in 2024 to \u00a33.56m in 2025.<\/p>\n
However, the restructuring has left the business facing significant financial pressures.<\/p>\n
BCM’s balance sheet shows net liabilities of \u00a316.23m at the end of 2025, compared with \u00a314.85m a year earlier.<\/p>\n
Creditors falling due within one year stood at \u00a314.31m, while cash at bank and in hand amounted to \u00a3127,000.<\/p>\n
The company also recorded provisions of \u00a33.87m, including liabilities associated with redundancy costs, site decommissioning and dilapidations.<\/p>\n
A further \u00a31.06m of exceptional costs were recognised during 2025, principally linked to the restructuring and closure of the Nottingham manufacturing operation.<\/p>\n
Meanwhile, BCM Employment & Management Services recognised a \u00a3172,000 provision relating to an ongoing legal dispute involving a pension scheme arrangement.<\/p>\n
The employment company’s directors said the provision reflected management’s best estimate of the expected settlement amount.<\/p>\n
Both companies’ auditors drew attention to material uncertainties over their ability to continue as going concerns.<\/p>\n
Their accounts were prepared on the basis that financial support would remain available from the wider Fareva Group.<\/p>\n
Fareva SA, the ultimate parent company, provided letters confirming its intention to support the businesses for at least 12 months from the approval of their accounts.<\/p>\n
However, the auditors highlighted that Fareva SA is itself subject to financial covenants under external borrowing arrangements.<\/p>\n
They warned that a failure to comply with those covenants could affect the group’s ability to provide financial support.<\/p>\n
The auditors said the circumstances indicated that \u201ca material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern\u201d.<\/p>\n
Their audit opinions were not modified.<\/p>\n
The employment company’s accounts also show net assets of just \u00a346,000 at the end of 2025, compared with net liabilities of \u00a3183,000 a year earlier.<\/p>\n
BCM said its future would be focused on analytical testing, research and development and related commercial services rather than manufacturing.<\/p>\n","protected":false},"excerpt":{"rendered":"
BCM’s restructuring leaves hundreds fewer employees and raises questions over financial stability<\/p>\n","protected":false},"author":25,"featured_media":2012669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"coauthors":[95],"class_list":["post-2116942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-nottinghamshire","tag-top-story"],"yoast_head":"\n