Pharmacy group posts €250k losses

EXCEPTIONAL costs totalling €1.29m contributed to the Hickey pharmacy group recording a pre-tax loss of €251,230 last year, figures show.

The pharmacy group operates 27 pharmacies across the country and revenues at holding company Drishlawn Ltd reduced by 5% from €51.9 million to €49m in the 12 months to the end of February 28, 2011.

The company recorded an operating profit last year of €6.2 million. This followed an operating profit of €6.3m in fiscal 2010.

However, non-cash amortisation charges of €3.2 million, interest charges of €1.96m and exceptional costs totalling €1.29m resulted in the pre-tax loss of €251,230.

The pre-tax loss follows the company recording a pre-tax profit of €1.2m in 2010.

Tax of €594,462 on the losses last year resulted in a post tax loss of €845,692 and this followed a post tax profit of €591,707 in 2010.

Established in 1995, the group operates 27 pharmacies across the country “and are intent on further expansion”. It operates at high profile retail locations including Dublin’s Grafton Street and O’Connell St, while it also operates a branch in Cork city.

Concerning the company’s future developments, the directors state that “it is the intention of the directors to continue to increase turnover and profitability in the coming year”.

The €1.2m exceptional item relates to a €594,064 write-down of an investment; €361,350 concerning a write down of leasehold premium, and a €340,883 waiver of related party loan.

The group had shareholder funds totalling €9m at the end of February last. This included €2m in cash.

The group reduced its bank loan owed to the Irish Bank Resolution Corporation last year from €32.9m to €30.6m.

The bank loan is guaranteed by Paddy Hickey. Numbers employed by the group last year increased from 281 to 288 with staff costs declining from €7.83m to €7.2m.

The figures show directors’ remuneration last year decreased from €544,814 to €450,978 and the remuneration last year was made up of €257,820 in salary and pension costs of €192,978.

The loss last year also takes account of depreciation costs of €742,161.

The group’s cost of sales last year decreased from €29.7m to €28.4m while other operating expenses declining from €6.9m to €6.2m with other operating income at €292,363 compared to €236,738 in 2010.

In 2008, the business won a landmark case when the High Court ruled that the HSE and the Department of Health breached their contract with Hickey’s Pharmacies by unilaterally altering the reimbursement price of medicines under existing agreements.