By Scott Wright
WALTER Davidson & Sons has declared it remains on the hunt for acquisitions, as new accounts reveal a drop in profits at the Blairgowrie-based pharmacy group.
The company, which trades as Davidsons Chemists, underlined its appetite for continuing to grow its portfolio as it reported an increase in turnover to nearly £52.8 million, from £46.9m, in the year ended January 31.
This came amid “serious challenges” relating to the pandemic and subsequent increases in running costs and wages, the pharmacy group said. Pre-tax profits dipped to £4.9m from £5.6m.
The directors note in the accounts that the company acquired eight new pharmacies, increasing its estate to more than 50 units, over the period, and state that they are in the market for more deals.
“The two pharmacies in Dunblane run by Dunblane Healthcare joined us in June and we were particularly pleased to acquire the Newfield Dundonald Ltd group of six pharmacies in December,” directors write. “The group now operates pharmacies across eight Scottish Health Board regions.
“The group reached a strategically important level of pharmacy ownership of 50 in this financial year, but the group continues to look or new acquisitions, contracts and properties.
“Further fixed asset investments are planned during 2022 with renewal of pharmacy computer equipment and a major pharmacy re-fit incorporating a hub and spoke dispensing and distribution model.”
The accounts show the group employed an average of 471 people over the period, up from 440 the year before, while overall payroll costs increased to £10.3m from £8.5m. Directors’ remuneration increased to £558,489 from £343,754, with earnings for the highest-paid director rising to £208,754 from £106,758, excluding pension contributions.
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